AGENDA DATE: 6/17/2026
TITLE:
Title
Proposed Project for the Albemarle Housing Investment Fund
BODY
SUBJECT/PROPOSAL/REQUEST: Consider funding Albemarle County Employer Assisted Housing Pilot Program
ITEM TYPE: Regular Information Item
STAFF CONTACT(S): Richardson, Herrick, Curfman, Dimock, Sumner, Pethia
PRESENTER (S): Kaki Dimock
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The Albemarle Housing Investment Fund (AHIF) was established in 2019 for the purpose of supporting the creation and preservation of affordable housing with one-time funds. Eligible activities include development of affordable rental units, affordable home ownership, rehabilitation and preservation of existing affordable units, and activities associated with implementing Housing Albemarle.
The board approved a process for the distribution of the AHIF in May 2025 which included 20% for staff-initiated projects that responded to emerging housing needs or implemented projects recommended by Housing Albemarle.
On March 18, 2026, the Board of Supervisors approved $3,518,176 in grants and $450,000 in loans from the AHIF to support rental development and housing preservation projects, leaving $840,000 in the AHIF for staff-initiated projects.
STRATEGIC PLAN: Safety & Well-Being - Nurture a safe and healthy community.
DISCUSSION: Albemarle County has experienced a steady increase in the value and median sales prices of its owner-occupied housing stock since 2016. According to the U.S. Census Bureau, in 2024 (the most recent year for which data is available), the median value of owner-occupied homes located within the County was $545,800. This value represents a 34% increase over the median home value for the County in 2019: $406,000. While this increase in value is good news for established homeowners, families currently seeking to purchase a home within the County face high-cost barriers to purchasing. The Virginia Association of Realtors reported the median sales price of homes sold in Albemarle County at $554,083 for May 2026 with a median list price of $630,000.
In order for a home at this price point to be affordable, a homebuyer would need an annual household income of at least $130,764 for a traditional bank mortgage, or $100,640 for a FannieMae HomeReady mortgage product. According to the Albemarle County Office of Human Resources, 85% of Albemarle County staff earn less than $100,640 per year:
• Police officers start at $60,798
• Firefighters start at $59,825
• Family support workers start at $54,583
• Teachers start at $57,511
The U.S. Department of Housing and Urban Development has established the area median income (AMI) for our metropolitan service area at $139,800. AMI is used as a tool for determining eligibility for services and subsidies in federal programs. Importantly, affordable housing is targeted at households with annual incomes at or below 80% AMI, or $111,840.
Staff propose a pilot program to test the interest in and impact of an employer assisted housing program which would provide down payment assistance and rental assistance to Albemarle County employees. This program is enabled by Virginia Code § 15.2-542. Specifically, the program would provide a $20,000 loan to county employees that meet the following eligibility requirements:
• Household income at or below 80% AMI
• Completion of homebuyer education classes
• In good standing with Albemarle County
• Subject to cap of purchase price, meeting HUD’s definition of affordability, or where no more than 30% of household income is spent on housing
• Matching funds of $10,000
• Ability to obtain traditional bank financing
• Property must be within Albemarle County limits
• Must live in the home as primary residence
This loan would be secured with a lien on the property and forgivable at the rate of 20% per year, as long as the recipient remains employed with Albemarle County. Rental support, in the amount of $2,500, would be provided to households earning less than 60% AMI, as a 100% match for security deposit expenses. Pending approval of the by the Board, guidelines further detailing eligibility requirements and the application process will be developed prior to the program beginning.
Staff propose a five-year pilot program to test the interest in and impact of an employer-assisted housing program, using $840,000 in AHIF funds to provide down payment assistance or rental security deposit assistance.
Employer assisted housing programs are closely associated with improved employee recruitment and retention, improved productivity and work-life balance, and environmental benefits associated with reduced commute times. Many local and regional jurisdictions provide housing assistance to employees to live in their employment community including Baltimore, MD, Washington D.C., Henrico County, Loudon County, Chesterfield County, Arlington, and Chapel Hill, N.C. In addition, an employer housing assistance program is consistent with Housing Albemarle Objective 3: Improve access to affordable and workforce homeownership opportunities. Data on usage rates and impacts would be periodically reported to the Board throughout the pilot period.
BUDGET IMPACT: If approved, $840,000 remaining in the FY2026 appropriated AHIF would be sequestered for exclusive use for the administration of this employer assisted housing program between July 1, 2026 - June 30, 2031.
RECOMMENDATION:
Recommendation
Staff recommends the Board adopt the Proposed Ordinance (Attachment A) approving the use of AHIF funds to pilot an employer assisted housing program for Albemarle County employees.
ATTACHMENTS:
A - Proposed Ordinance