Fairfax County to Decide on Key Workforce Housing Updates

Fairfax County, Virginia, is taking steps to update its Workforce Dwelling Unit (WDU) program with proposed revisions to the Countywide and Tysons Urban Center WDU Administrative Policy Guidelines. These updates are detailed in a staff report dated Feb. 18, 2025. The revised policy guidelines will be reviewed and voted on for approval by the Fairfax County Board of Supervisors on March 18, 2025.

Background

On Sept. 10, 2024, the Fairfax County Board of Supervisors adopted revisions to the county's WDU Policy following recommendations by the WDU For-Sale Task Force. The WDU Policy revisions were designed to further accommodate changes such as a broader range of income levels served in the for-sale WDU program, expanding the geographic applicability of the WDU Policy and adjusting architectural aspects such as bedroom mix and room sizes. The proposed changes to the WDU Administrative Policy Guidelines are intended to implement these policy revisions.

Key Updates and Changes to WDU Program Policy Guidelines

Integration and Dispersion

• Retains transfer flexibility with for-sale WDUs as rental WDUs in high-rise condominium developments where construction costs and condominium fees are high
• Sets a maximum of 30 percent for transferring affordable units among different unit types, unless the proposal clearly demonstrates "to the satisfaction of the Departments of Housing and Community Development and Planning and Development that the project would not be possible without the WDU transfer and the transfer provides an equivalent or greater value toward affordable housing priorities, per the Plan policies. In this case, the developer must demonstrate that there is no other reasonable alternatives to the transfer, and that the transfer functions in a manner intended by these administrative guidelines."

Unit Sizes

• Ties minimum unit size requirements to the 2024 updates to the WDU Policy
• WDUs should include comparable finishes, fixtures and appliances to market-rate units.

Designation on Plan

• Clarifies language for inclusion of for-sale WDU units on site plans and subdivision/condominium plats
• Adds language noting that the "location of the lots or units designated as for-sale WDUs should be noted in the zoning approval so that staff may review for compliance and note any adjustments that might be needed to meet the intent of these Administrative Guidelines as early as possible in the development process"

Finance and Refinance

• Allows for owners to refinance their WDUs based on "Maximum Control Price" as defined in the proposed WDU Administrative Guidelines, at the time of refinance, rather than limiting the refinance to the "Outstanding First Trust Debt" as defined in the current WDU Administrative Guidelines

Additional Proposed Revisions

• Updates regarding covenants and offering agreements, including the use of a first rider
• Updates regarding sales, resales and rental pricing

For More Information

If you have any questions regarding the proposed updates to the WDU Administrative Policy Guidelines, please contact the authors or another member of Holland & Knight's D.C. and Northern Virginia Land Use Team.