As an appraiser of a workforce housing unit, it is important to know Section 2106 of the City Zoning Ordinance pertaining to workforce housing units, which requires the following:
The exterior of workforce housing units shall be physically indistinguishable (same building materials and finish) from the non-workforce housing units of the same housing type in the development;
Workforce housing units shall be comparable in design and overall quality of construction to the market rate units in the development;
The square footage and interior features of workforce housing units shall not be required to be the same as other dwelling units in the development, so long as they are reasonably similar in size and quality and are consistent with the current building standards for new housing in the City of Virginia Beach; and
Workforce housing units shall be integrated throughout the development and not clustered in discrete locations separate from the market rate units.
Workforce housing units also carry resale restrictions
. When the owner of a workforce housing unit decides to sell their home, they must first offer the city the option to purchase it before they can offer it for sale to the general public. If the city exercises its option to purchase the unit, it may hold the unit or assign its option to purchase to another eligible buyer from the workforce housing waiting list. If the city assigns its option to purchase the unit, it will make the unit available for sale to another eligible buyer on its prescreened waiting list so that they may visit the property to determine if they are interested in purchasing the unit. The unit will be available for purchase to eligible buyers for a period of 90 days from the date the owner first notified the city of their intent to sell. Should an eligible buyer desire to purchase the unit within the 90-day period, they will be subject to the same resale restrictions as the current owner of the unit (to view the Workforce Housing Deed, click here )
If no eligible buyers express interest in purchasing the unit after 90 days, the City shall notify the owner, in writing, and the owner will thereafter have the right to sell the unit to any other person or entity, in the resale restrictions terminate.
Whether the city purchases the unit or assigns its option to purchase to another eligible buyer, the city will offer the owner the fair market price for the unit. Fair market price will be determined by a Market Approach to Value appraisal which is based on the fair market value of comparable properties that have recently sold. The appraisal must be prepared by a licensed Virginia real estate appraiser and is subject to the city’s approval.