February 8, 2008
SPECIAL LEGISLATIVE ALERT UPDATE
Senate to Vote Monday, Feb. 11 on “Proffer Bill”; Virginia Association of Counties Board Voices Strong Opposition to Senate Bill 768
Proposed Legislation Would Eliminate Voluntary Contributions for Affordable Housing and other Public Benefits through Rezoning Process. Parks, Schools, Road Improvements also Impacted.
2/8/2008 UPDATE: The Board of Directors of the Virginia Association of Counties (VACo) voted yesterday at its meeting in Richmond to oppose Senate Bill 768; the measure is expected to go to the full Senate for a vote on Monday, Feb. 11. Fairfax County’s State Senate delegation includesSenators Barker, Cuccinelli, Herring, Howell, Peterson, Puller, Saslaw, Ticer and Whipple.
Senate Bill 768 proposes drastic changes to the land use “proffer” system and could have a significant negative impact on affordable housing in Fairfax County. In addition to negatively impacting affordable housing, the bill could also prevent Fairfax County from receiving contributions for schools, parks, road improvements and a variety of other vital public benefits currently produced via the proffer system. On Friday, January 18th, the Board of Supervisors Legislative Committee (with seven Board members present) voted to oppose Senate Bill 768.
The VACo Board of Directors yesterday unanimously approved the following resolution about SB 768, which was read to Governor Kaine after he finished addressing about 600 elected officials from across the Commonwealth:
"Senate Bill 768, legislation introduced at the eleventh hour of this legislative session, represents a direct threat to the ability of local governments throughout the Commonwealth to protect the interest of the taxpayers, commuters, and communities we represent.
Senate Bill 768 is a transparent and reprehensible power grab by special interests that would overturn the proffer system that has served us well for over 30 years.
The Virginia Association of Counties hereby serves notice that should this irresponsible legislation become law, the land use process in the Commonwealth will be broken and forever contentious."
Senate Bill 768 and Affordable Housing: Senate Bill 768, if it becomes law, will result in fewer homes being built that are affordable to low and moderate-income working households in Fairfax County. According to a November 2006 study by the George Mason University Center for Regional Analysis (GMU-CRA), Fairfax County will need as many as 84,000 net new units affordable to households earning up to 120 percent of the Area Median Income, based on projected job growth. Fairfax County’s new Workforce Housing program, which would be shut down by Senate Bill 768, is specifically designed to foster the production of units affordable to this income range. This critical tool gives the county’s low- and moderate-income public and private-sector workforce – entry-level professionals, first responders, teachers – the opportunity to live near Fairfax County’s vital employment centers, such as Tyson’s Corner and Reston.
Any “savings” realized by developers through the passage of Senate Bill 768 would be insufficient to make new homes any more affordable to Fairfax County’s low- and moderate-income workforce. For example, a family of four, earning the Area Median Income ($94,000) can afford to purchase a home priced at about $265,000 (assumes no down-payment, a 6 percent interest rate, and about $900 per month in taxes, insurance and homeowners association/condominium fees). According to GMU-CRA data, the median sales price for existing housing in 2005 was $541,100. It should be noted that in Fairfax County, according to George Mason, 64 percent of homes sold in Fairfax County in 2000 were priced at under $250,000; by 2005, that number had dropped to just 3 percent.
The full text of Senate Bill 768, as approved by the Senate Finance Committee on 2/6/2008, can be found at: http://leg1.state.va.us/cgi-bin/legp504.exe?081+ful+SB768S1+hil.
