Fairfax County supervisors reacted enthusiastically, but with some caution this week to a staff plan that would provide long-term tax breaks for affordable housing in order to reduce initial financing costs.
Discussion at the Board of Supervisors’ Housing Committee meeting on Tuesday (Oct. 6) focused on piloting the authority newly granted by the Virginia General Assembly on two upcoming projects: Dulles Greene near the Innovation Center Metro station in the Herndon area and East County in Bailey’s Crossroads.
Eliminating property taxes for up to 50 years at the property would lower the upfront cost of financing an affordable housing project, which in turn could lower the amount Fairfax would need to provide.
Property taxes average 5% to 10% of the operating costs of a for-rent affordable complex, or about $3,000 per unit, and are part of the costs considered by potential lenders, said Anna Shapiro, deputy director of real estate finance and development for the Fairfax County Redevelopment and Housing Authority (FCRHA).
The Oct. 6 preview was a chance to “talk through how this can roll out,” as the two projects move through regulatory reviews, Shapiro said.
To redevelop a mostly vacant site at 13500 Dulles Greene Drive, FCRHA has partnered with the nonprofit True Ground on a proposal for two apartment buildings totaling 435 units that would be reserved for residents earning 30% to 60% of the area median income, which is currently $166,100 for a household of four.
The East County project would replace the Crossroads Interim Park at 5831 Columbia Pike with a 160-unit apartment building, as proposed in a rezoning application submitted to the county in February by the nonprofit developer NHP Foundation.
Under the bill passed by the state legislature earlier this year, localities are allowed — but not required — to adopt an ordinance offering property tax rebates on properties owned by qualifying nonprofits. Fairfax County staff’s proposal would only apply any potential rebates to new development.
Following the staff presentation, the general mood among supervisors was upbeat.
It represents “a really exciting possibility,” said Braddock District Supervisor Rachna Sizemore Heizer, who chairs the Housing Committee. But she wasn’t fully committed just yet.
“There’s a lot to dig into,” she said of the intricacies of the proposal. “We need to make sure what we’re getting into.”
Others said the proposed tax breaks should only be implemented if they make financial sense for the county government.
“I want to make sure that, when this is brought to us, there’s [a cost-benefit] analysis,” Dranesville District Supervisor Jimmy Bierman said.
A dissenter, Springfield District Supervisor Pat Herrity, called the proposal a Band-Aid solution to a bigger issue.
“I’m having a real hard time — surprise, surprise — with this one,” he said.
Herrity said tackling the county’s affordable housing shortfall will require lower per-unit costs so more units could be built, rather than nibbling around the edges as he believes the tax-break proposal does.
Franconia District Supervisor Rodney Lusk said a whole range of tools are needed.
“This is going to help,” he predicted.
Sizemore Heizer said that, if done correctly, the tax-abatement effort could be a model for the rest of Virginia to follow.
“We want to make sure we’re getting it right,” she said.
In addition to recommending consideration of tax exemptions for the Dulles Greene and East County projects, county staff said it will evaluate whether the authority could be used to help preserve existing affordable housing.
Staff will also push for the 2026 state legislation to be amended so any property owned by a public housing authority would be eligible for the tax break, regardless of its development partner. The exemption is currently allowed for projects with a nonprofit developer.
Supervisors discussed the potential amendments to the 2026 legislation later on Oct. 6 at a work session with members of Fairfax’s legislative delegation.
Del. Rip Sullivan (D-6) expressed optimism that the proposed changes have a chance of passing the General Assembly in its 45-day session that starts in mid-January.
The Board of Supervisors’ draft program of priorities for the legislative session includes a section on housing that emphasizes a desire to preserve local authority over land use decisions, while calling for increased state funding to address homelessness and support affordable housing development.
