Affordable Housing
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Harrisonburg Explores Options For Developing Housing On City Owned Land |
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 The City of Harrisonburg has been working for the past year on exploring how two City-owned properties might be developed to provide future affordable housing solutions. The first site is an 8.59 acre parcel located on Neff Avenue that would likely allow for the development of either (72) townhomes or up to (200) apartments. Here is an illustration of a potential townhome layout...  The second site is an 8.13 acre parcel on Central Avenue that would likely allow for the development of (36) single family homes, (51) townhomes or up to (133) apartments. Here is an illustration of a potential single family home layout...  Click here to download the full memorandum from Land Planning and Design Associates, Inc. who prepared a detailed technical memorandum outlining opportunities, constraints, possible development solutions and affordable housing solutions. The memorandum also include multiple other renderings of potential development plans for these sites. | |
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164 Apartments Proposed On Mosby Road As Affordable Housing, With More Likely To Be Proposed In The Future |
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 A developer out of Georgia, the Beverly J. Searles Foundation, is proposing to build a 164 unit apartment complex on West Mosby Road. The Harrisonburg Planning Commission will hold a public hearing related to this proposed development today, August 9, 2023. You can download the full packet of information to be reviewed and discussed at the planning commission meeting here. These are a few key points I have pulled out of the information packet... [1] The developer intends to build a "diverse and affordable residential community serving seniors and potentially workforce and other citizens qualifying for affordable housing options." [2] None of the apartments would have more than three bedrooms. [3] At least 25% of the apartments would be one bedroom apartments. [4] A minimum of 82 apartments would be age-restricted, such that at least one member of the household must be 55 years or older. [5] The developer plans to build some amenities that might include a dog run, gazebo, koi pond or picnic pavilion. A clubhouse would also be constructed with a minimum of 2500 square feet. [6] An important contextual note here is that the applicant (the developer from Georgia) is apparently intending to purchase around 28 acres of land that includes this 12 acres that they would like to rezone and develop right now. If the developer had proposed to rezone all 28 acres they would have been required to conduct a Traffic Impact Analysis (TIA) which would delayed the development beyond a timeframe when they could be elgible for the early Spring 2024 low-income housing tax credits. As such, the applicant is only requesting that 12 of the acres be rezoned... though the applicant seems likely to be returning in the future to request that the other 16 acres be rezoned as well for further development. City Staff is supportive of this application for a rezoning (and special use permit) and the Planning Commission will hold a public hearing regarding the proposal this evening. | |
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90 Acres Of Land In The City Of Harrisonburg Sold For $6,775,000 For Development Of Bluestone Town Center |
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 It's official -- the 90 acres of land to be used for the development of Bluestone Town Center has been officially purchased, as of yesterday, by a corporate entity (EP HARRISONBURG OWNER LLC) that seems likely to be the new partnership between Equity Plus and the Harrisonburg Redevelopment and Housing Authority. The land purchase was in three parts (from three separate land owners) as follows...
Again, that's a total of just under 90 acres for $6,775,000. Presumably at some point soon a more detailed site plan will be submitted to the City for review. Sifting through the court records, it was also interesting to note that... [1] EP HARRISONBURG OWNER LLC immediately put a loan in place via the National Housing Trust Community Development Fund for $6,480,000. [2] A Land Use Restriction Agreement was also recorded with a variety of details such as... [2a] There seems to only be a requirement that the housing be rented within certain affordability guidelines for 10 years. Hopefully the developer will continue to keep the rental rates at affordable levels after that even if the land use restriction agreement doesn't require it? [2b] At least 8% of the units shall be rental housing that is affordable to those with incomes at or below 30% of the Area Median Income. [2c] At least 38% of the units shall be rental housing that is affordable to those with incomes at or below 80% of the Area Median Income. [2d] All remaining units will be for sale units affordable to those with incomes at or below 120% of the Area Median Income. | |
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What Is An Affordable Home Purchase For A First Year Teacher? |
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 Q: What Is An Affordable Home Purchase For A First Year Teacher? A: Technically, $161K, but maybe more? Let's look at the numbers... It seems a first year teacher in the City of Harrisonburg would expect to be paid around $50,000 annually per this salary scale. A commonly accepted guideline for housing affordability is a housing cost, including utilities, that does not exceed 30% of a household's gross income. If we estimate utilities at around $125 per month, to include $40 for water/sewer and $85 for electricity, we would then conclude that this first year teacher could spend up to $1,125 per month on their mortgage payment. $50,000 x 30% = $15,000 for mortgage + utilities (per year) $15,000 / 12 = $1,250 for mortgage + utilities (per month) $1,250 - $125 utilities = $1,125 for mortgage How, then, does that translate into a potential purchase price of a home for this first year teacher? We'll assume a small-ish (5%) down payment for this first year teacher, and thus 95% financing, and a slightly above market rate of 6.5% for a 30 year fixed rage mortgage. To determine a housing budget for this first year teacher, let's look at a few mortgage payments (including principal, interest, taxes and insurance) given 95% financing at 6.5% and City taxes... $250K purchase = $1,748 / month $225K purchase = $1,572 / month $200K purchase = $1,398 / month $175K purchase = $1,223 / month $161K purchase = $1,126 / month $150K purchase = $1,048 / month So, a few things to note here... [1] An affordable home purchase for a first year teacher given the assumptions above would be priced right around $161K. [2] Let's tweak the numbers a bit. We'll look at a teacher's salary after three years ($52K) and we'll round utilities down a bit ($100 instead of $125) and we'll hope for a loan program with a slightly lower (6.25% instead of 6.5%) interest rate. This increases the monthly budget to $1,200 which translates into a $176K home purchase instead of $161K. So... a bit better, but not much. [4] Circling back to the original $1,125 per month figure... there are rental options at this price point even if it proves difficult to find a suitable home to purchase for $161K with that same $1,125 per month budget. [5] Certainly, if the first year teacher is married or is in a relationship such that there are two buyers instead of one, with two incomes instead of one, then all of this math changes... and they will find more housing options that will fit the affordable criteria. P.S. Do you come up with different numbers when you do that math? What assumptions above are too high or too low? What else am I not considering in this analysis? Let me know. | |
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Harrisonburg Redevelopment and Housing Authority in Planning Stages of a 1,000 Unit Housing Development Across From Harrisonburg High School |
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 Specific details are still relatively limited, but the Harrisonburg Redevelopment and Housing Authority is planning a LARGE development on land that stretches from Erickson Avenue to Garbers Church Road. Here are some of the details that have been made public thus far...
More details here. Stay tuned for more details as they are made public. | |
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The Two Things We Might Mean By Affordable Housing |
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 "We need more affordable housing in our area." I hear it regularly, and perhaps you do as well. But I think it's worth pointing out that when people say this they might mean two very different things... When talking within the context of folks buying homes -- "affordable housing" often means homes in a price range that makes them affordable for first time buyers in our market. That could mean "under $150K" for some folks, or even "under $200K" in some situations. But wait -- is a home that can be purchased for $145K (for example) an affordable housing option for everybody living in our community? Nope! Not at all. There are plenty of folks who can't afford the accompanying monthly payment, or don't have a downpayment, or don't have money for closing costs, or who wouldn't have savings if a home repair became necessary in the first year or two of homeownership. So, it seems there is another thing we might mean when we say we need "affordable housing" in our community - and that would be rental properties with a low enough monthly rental rate to be feasible for low income earners in our area to still have decent housing options. I think it is important for elected officials and other City and County staff to be thinking about how decisions that are made and policies that are set can encourage the development of affordable housing - but we'll need to make sure we're all on the same page about what kind of affordable housing we're encouraging - and perhaps they need to be two completely separate priorities. Encouraging the development of affordable housing for renters and affordable housing for buyers -- for lack of any better way to express it. Anyone have other thoughts on how to best describe or name these types of housing and the need for them in our community? | |
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Some Student Housing Eventually Becomes Affordable (Non Student) Housing |
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   Sometimes it seems CRAZY how much NEW, NICE, EXPENSIVE student housing is being built in Harrisonburg - and now even in Rockingham County. So what happens to all of that older student housing stock when the newer student housing becomes available to students? Quoting fellow Realtor, Ritchie Vaughn (thanks Ritchie!) from a Facebook dialogue a few days ago... "Many of the most affordable spots for working families in Harrisonburg today are complexes that were initially build for students, like Madison Manor, Camden Townes, Hunters Ridge, South Ave condos, etc, so we have some robust historical support that the student complexes of today will likely turn into affordable housing in the future." The neighborhoods that Ritchie references are the ones I have pictured above, and indeed, while they were originally built as student housing complexes, I don't think any of them are "mostly students" any longer. 1. Does anyone know/believe any of these complexes to really still be mostly students? (It's not my understanding, but I welcome other perspectives.) 2. What other complexes in Harrisonburg were built to be student housing and now are not? | |
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It Is Hard To Find a City Home Under $200K These Days |
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 I've said this (it's hard to find a City home for under $200K these days) in about 10 different ways over the past year using data. In conversation with a fellow Realtor yesterday, while inside a house I'll reference in a moment, we reflected on this reality. If you're looking to buy a home in the City of Harrisonburg and were hoping to have a budget of $200K -- you'll have some difficulty doing so. Just a few (4 or 5?) years ago we recalled decent single family homes selling for $180K - $200K in the City. Now days, if a home is price under $200K it is likely either tiny, or still needs some updates. OK - reverting to what is most natural to me when thinking about real estate - here is the data to back up our observation... Detached homes sold in the City between under $200K with 1000+ SF...
So, it's not QUITE as terrible as I described above (data saves the day from my extreme rhetoric) but there has been a significant (41%) decline in sub-$200K homes selling (or able to be purchased) in the City of Harrisonburg In fact, today, there are only two such homes currently for sale... I'll be listing another sub-$200K home (just barely under that price point) later today -- and I expect it may sell relatively quickly. Buyers are hungry for homes in this affordable price range and there just aren't too many options any longer. Yes, there are plenty of townhouses under $200K, but detached homes are much harder to find in this price range. | |
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Make your voice heard in the updated Comprehensive Plan for the City of Harrisonburg |
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 The City of Harrisonburg is in the midst of updating the Comprehensive Plan for the City. As per the City.... The Comprehensive Plan presents a vision of Harrisonburg's future. It identifies steps to move toward that vision by providing information about current conditions, long-term goals and objectives, and recommended implementation strategies. As described in the Code of Virginia, the Comprehensive Plan is general in nature. Harrisonburg's Plan addresses a wide range of issues including but not limited to: land use, housing, education, transportation, recreation, the preservation of historic and natural resources, and economic development. The plan serves as a long-term guide for the community, and it helps City leaders with setting policies and decision-making. So, basically, what do you want the City of Harrisonburg to be in 10 or 20 years? Discussions taking place and decisions being made right now will affect that future, and you have the opportunity to be a part of the conversation! Better yet -- there are several Public Workshops coming up that will allow you to chime in on topics near and dear to your heart.... Education; Arts, Culture, and Historic Resources; and Community Engagement & CollaborationSo, mark your calendars, and get involved in the discussions and decisions to help shape the future our our great City! Also of note.... Lots of Q&A's about the Comprehensive Plan update can be found here. General information about the Comprehensive Plan update can be found here. | |
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Will We Ever See Detached Homes Under $100K in the CIty of Harrisonburg Again? |
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 It remains difficult to buy a single family home in the City of Harrisonburg for less than $100K. While the 2017 data point (above) is based only on the first four-ish months of the year, it is clear that fewer and fewer detached homes are selling in Harrisonburg for less than $100K. These are the two homes that have sold for less than $100K thus far in 2017 -- one on Hawkins Street and the other on North Main Street....  AND -- there are currently zero (zip, zilch, nada) detached homes for sale under $100K in the City of Harrisonburg. | |
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County Tables Rezoning of Land for Second Phase of Affordable Housing Complex on Reservoir Street |
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 The buildings shown above currently under construction on Reservoir Street -- at the previous location of the Albert Long baseball field. These apartments will be called Robinson Park, and will affordable housing -- with income limits for tenants who wish to reside at Robinson Park.  The developer was planning to expand Robinson Park into a second phase on the five acre wooded parcel shown above, adjacent to the current development, but the County tabled the developer's rezoning request. A few snippets from this week's Daily News Record article....
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Have all price ranges seen equivalent changes in inventory levels? |
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 Indeed -- inventory levels are falling -- there aren't nearly as many homes on the market now as there were a year ago. In fact, over the past year, we have seen a 27% decline in the number of homes for sale in Harrisonburg and Rockingham County. However -- not all price ranges are created equal. As shown above, the most significant declines in inventory levels has been in the "under $200K" market, where there has been a 39% decline over the past year. The "over $400K" market, in contrast, has seen no change in the past year in the number of homes for sale. You can find out more about the Harrisonburg and Rockingham County real estate market by visiting....  | |
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Affordable Housing Apartment Complex Under Construction on Reservoir Street |
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 click here for a larger version of this aerial image Just a stone's throw away from this new student housing being built on Reservoir Street, you will find another large patch of bare earth in preparation for a new residential development. This new community is being built on the site of the former Albert Long baseball field off of Reservoir Street (across from Fieldale Place) in Rockingham County. This complex will be called Robinson Park, and will include 88 garden-style apartments. According to the developer, this will include:
A clubhouse / community building will also be constructed. Per this Daily News Record article....
Read more from the Daily News Record.... Affordable Housing In Focus In City, County N.C. Company Eyes Housing On Reservoir | |
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Fewer and Fewer Single Family Homes Under $100K in Harrisonburg |
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 It remains difficult to buy a single family home in the City of Harrisonburg for less than $100K. While the 2016 data point (above) is based only on the first four months of the year, it is clear that fewer and fewer detached homes are selling in Harrisonburg for less than $100K. Here are the currently available detached homes for sale under $100K in the City of Harrisonburg: search now (4 listings as of 5/4/2016) | |
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Buying under $200K in Harrisonburg may require you to buy an old or attached home |
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A bit more about affordable housing in the City of Harrisonburg, as we started to explore yesterday....  There are 149 residential properties for sale in Harrisonburg right now -- but if you're buying under $200K, and hoping for a single family (detached) home, it may be more difficult than you imagined. As shown above....
So, if you are looking to buy under $200K in Harrisonburg you may have to buy an old home or an attached home (duplex, condo, townhouse). | |
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Harrisonburg Sub-$100K Single Family Homes: They're back, and more affordable than ever! |
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 As the real estate market heated up, the opportunity to buy a single family home in the City of Harrisonburg for less than $100K cooled down. Now, however, there are more opportunities to buy such homes. The even better news is that it's more affordable than ever to buy such a property.  The chart above shows the principal and interest payment on a $96,500 loan (a 96.5% FHA loan on a $100K purchase) given the interest rates over the last 11 years. This does not include taxes, insurance, and PMI. If you are looking for an affordable house --- either from a sales price perspective, or a monthly payment perspective --- don't hesitate to contact me (scott@HarrisonburgHousingToday.com or 540-578-0102). I'd be happy to help you find a home to meet your needs. | |
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Affordable Housing with a LOW interest rate! |
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 The current VHDA interest rate is already low, at 5.875%. But for first time buyers looking for affordable housing, it can be tough to finance a purchase even at that low rate. So....how about 4.875%? If you're buying at Covenant Heights, a neighborhood being developed by Hope Community Builders (a non-profit group), depending on your income levels, you may be able to have the current VHDA rate lowered by an entire percentage point! And these are nice properties we're talking about here -- duplexes and townhomes with three bedrooms, all of which are pre-inspected and built to EarthCraft and EnergyStar standards. If you have a friend or co-worker who is seeking affordable housing, do them a favor and tell them about Covenant Heights! | |
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Covenant Heights - affordable housing in Harrisonburg |
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Hope Community Builders is a non-profit organization in Harrisonburg who builds and sells high quality, affordable housing for those who otherwise may not be able to afford to buy a home.  As an example, someone who can only qualify for a $140,000 mortgage, may still be able to purchase one of these brand new duplexes or townhomes in Covenant Heights that are selling between $168,000 and $175,000. Here are some same financing scenarios from recent purchasers...  As you can see, there is a potential for $150 to $175 a month savings on mortgage costs. For more information about Covenant Heights, either...
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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Commonwealth of Virginia
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