Framework for the Future 2030

Housing Types

Market Rate

Upper Income Housing

The Zoning Ordinance, adopted in 1997, created a new, larger lot residential zoning district. It requires a 20,000 square foot minimum lot size and a two dwelling unit per acre maximum density.  These lot sizes can accommodate homes in the upper-income price range. With careful and thoughtful planning, vacant, residentially zoned land, especially in the northern sections of the City, can be developed with these types of homes.

In 2003, the Economic Development Authority (EDA) released a Request for Qualifications (RFQ) for a development team to plan, design, build and market a new premier community on EDA-owned property in the Lee Hall area.  The community was to be predominantly residential, with mixed use and new urbanist elements.  In 2004, a developer was selected, and, in 2006, a Comprehensive Plan Amendment and change of zoning were approved to allow the development of four parcels totaling approximately 436 acres.  Asheton, so named by the developer, will be a quality, upscale community in Planning District IV that offers a range of housing choices and opportunities.  It will have walkable neighborhoods that take advantage of existing assets and foster a sense of place, all while preserving and protecting sensitive environmental and historic resources.

The recently approved conceptual master plan includes single family and multiple family dwellings and a mixed use village center that will provide retail and personal service uses to support neighborhood demand.  The Master Plan proposes 1,596 units to include a mix of apartments, live/work units, condominiums, townhomes and single family detached.  The development will be implemented in phases over a 10 year period.

Also, in Planning District IV, are the Villages of Stoney Run which will be located at the intersection of Jefferson Avenue and Denbigh Boulevard.  This 42 acre site will be developed as a mixed use development featuring approximately 186 multiple family apartments, 120 residential condominiums and 34,000 square feet of retail commercial space.  A portion of the commercial space will be situated directly below residents offering a unique urban setting.

Bexley Park, in Planning District III, is a 48 lot single family subdivision located in the Denbigh area at Warwick Boulevard.

In 2004, City Council approved a change of zoning for property, in Planning District I, to allow a new residential development at the terminus of Marshall Avenue.  Mariner’s Watch will be developed as an up-scale residential community on approximately 27 acres along the Hampton Roads waterway in the Southeast Community.  The conceptual master plan proposes a total of 274 residential units consisting of single family detached and condominiums.

According to a survey conducted in 2006 by the Wessex Group, Inc. for the Department of Planning, 47% of 1,000 respondents felt the City should do less to promote upper income housing and 39% thought the City should do about the same.  Only 9% of the respondents thought the City should do more to encourage upper income housing.

Middle Income Housing (Workforce Housing)

The nation has experienced a great population increase, but the housing market did not respond with an adequate amount of housing to accompany the rising population.  As a result of this occurrence, housing prices have escalated to a point that makes it very difficult for the average or middle income citizen to afford a home.

The citizens that make up the working class include teachers, police officers, government employees, nurses, and single parent families.  The average salaries, in 2006, for elementary school teachers ($41,080), police officers ($40,970), and licensed practical nurses ($30,670) are too low for them to qualify for a mortgage on a median-priced home of $156,000.

Measures have been taken by federal, state and local governments to make it more affordable for low, very low, and extremely low income citizens to afford housing through subsidies, tax benefits and other price mechanisms.  However, little has been done to aid the working class citizen.  Working class citizens have been forced to purchase housing in locations that are a great distance away from their employment or in neighborhoods that are less desirable.  The City of Newport News is not isolated from this housing crisis and currently it is not producing new workforce-housing opportunities for the working class.   

Of all the planning districts in the city, the Southeast Community has been identified as an area in need of more middle-income homes in order to attract middle and upper income families to the community.  For example, the demolition of Glen Gardens Apartments created the opportunity to build a new neighborhood of single-family homes and town homes for sale. The houses were developed and sold to middle income families. The town homes were developed as a cooperative whereby the tenants eventually purchased their homes. The redevelopment of the Glen Gardens site should be a model used in other areas of the city as a way to provide workforce housing.

The U.S. Department of Housing and Urban Development (HUD) refers to workforce housing as housing that is affordable to incomes between 80% and 120% of AMI (Area Median Income) and pay no more than 30% of their income for housing. ⁽¹⁵⁾ The area used by HUD in this case is the Hampton Roads Metropolitan Statistical Area (MSA).  Affordable housing is affordable to those with incomes at or below 80% AMI.  These households often qualify for some kind of federal assistance.  Although, those with incomes less than 80% qualify for assistance, most do not receive it because of limited HUD resources. Anything that is over 120% AMI is referred to as upper income housing.

The table below illustrates the 2006 income limits, as established by HUD.  The first row indicates the total number of persons in the family, and the column on the left illustrates what the income limits are as a percentage of the Area Median Income (AMI).

The middle income group is typically defined as the workforce.  It is this middle group that has very few housing options. In a 2006 survey conducted by the Wessex Group, 54% of 1,000 respondents thought the City should do more to provide new housing for average or middle income households.  Out of the remaining respondents, 34% thought the city should do about the same to provide housing for average or middle income households, 8% thought the city should do less, and 4% did not answer.

Recent Development Activity

Over the past years, the city has approved several projects based on the neo-traditional development concept.  Neo-traditional developments are characterized by higher densities, mixed-uses, pedestrian oriented design, and interconnected street patterns.  Neo-traditional developments have become an alternative to the conventional suburban development.  One of the key elements of neo-traditional development is the variety of housing types and densities offered to renters and homeowners.  By offering a variety of housing opportunities, these developments attract people of all diverse backgrounds.  

There have been two recent developments that reflect the neo-traditional development concept, Port Warwick and City Center at Oyster Point.  Port Warwick features 270 single family dwellings, 19 live/work units, 93 condominiums, 147 market-rate apartments, and 98 senior apartments.  The current phase of City Center at Oyster Point is nearly complete.  The commercial and retail space will contain 400 apartments and 60 condominiums.  

In addition to neo-traditional developments, the city has continued to develop traditional single-family neighborhoods.  Lake Cambridge was established adjacent to Kiln Creek and contains 305 lots.  Additional new developments include:  Hilton Heights - 83 lots, Hollymeade - 78 town homes, Robinson Terrace - 93 lots, and Sycamore Grove - 35 lots.

Multi-family development is also occurring. Christopher Newport Commons was constructed along Warwick Boulevard and features street level retail with rental units above.  Christopher Newport University Suites with 100 units was constructed in Port Warwick.  A mixed-use development, Villages of Stoney Run, contains 306 units, some of which are multi-family. 

Affordable Housing

It is a belief among housing professionals that homeowners create more stable neighborhoods than renters. Homeowners tend to maintain their homes and yards better and become more involved in their community.  This improves neighborhood appearance and strengthens community stability.  The future direction in national and local low income housing programs is to develop more opportunities for people to own their own homes.

The following section describes various initiatives in Newport News for increasing home ownership opportunities for low-to moderate-income families. It is a major goal in the Framework for the Future to increase home ownership in Newport News.

Newport News Redevelopment and Housing Authority (NNRHA)

From 1983 to 2000, NNRHA created or preserved 1,071 home ownership units utilizing federal, state, and local financing. From 1985 until 1988, NNRHA developed 15 scattered site single-family homes under the Affordable Home Ownership Program (AHOP). This program was targeted to public housing residents participating in the Family Self-Sufficiency Program (FSS).

In 1989, NNRHA expanded the program to all low-to-moderate income first time home buyers. The program, called HOMEbuilder, involved the construction of new single-family homes in concentrated areas targeted by the City's Southeast Community Redevelopment Corridor Plan. By 2006, the HOMEbuilder Program produced 93 new houses.

The future redevelopment activities will continue in Madison Heights, and will expand to include South Jefferson Park.  A redevelopment plan for this area has been adopted under Title 36 of the Code of Virginia and it is expected that activities will be complete within the 5-year time frame outlined in the Code.  The area is comprised of the 600 block of 39^th to 41^st Streets.  It is envisioned that a mix of attractive rental town homes and for-sale single-family dwellings will be placed in this neighborhood.  

In 1993, NNRHA started consolidating adjoining 25-foot wide lots to create 50-foot wide lots for new single-family home development. This enabled the NNRHA to offer a variety of house designs and amenities to prospective low-to-moderate income home buyers. NNRHA has used the HOMEbuilder Program to develop Madison Heights. Madison Heights is a concentrated urban-infill development located on the 600, 700 and 800 blocks of 25th through 28th Streets in the Southeast Community. This project received the Governor's Housing Achievement Award in 1997.  In 2006, this redevelopment project is continuing and the NNRHA has worked with three general contractors to make home ownership a reality for many families.

Community Housing Development Organizations (CHDO)

As part of the HOME Program, the City and NNRHA facilitated the emergence of community-based non-profit housing developers to undertake affordable housing projects in Newport News. Seventy-five affordable single-family homes have been produced by CHDO’s, through a combination of acquisition and rehabilitation and new construction. Currently, several CHDOs are active in Newport News. They include the Friends of the Homeless, Peninsula Community Development Corporation, Peninsula Community Homes, Center for Community Development, Inc., and Community Housing Partners Corporation.

Condominium Option

Single-family detached homes represent the strongest component of the Newport News home ownership market. However, condominium and townhouse ownership are often viewed as a viable entry point for first-time homeowners since the greater unit density reduces land and construction costs. Unfortunately, many of these units often become rental properties because of limited local interest by potential homeowners. When a condominium owner-occupancy rate slips below 50%, the ability of potential home buyers to obtain FHA-insured mortgages is jeopardized. Some condominium developments in Planning Districts II and III have experienced challenges in maintaining a strong home ownership component.

Habitat for Humanity International

Habitat for Humanity International was founded in 1976. It is a housing ministry to provide decent shelter for all persons. It is a means of providing home ownership to persons who could not otherwise afford to buy a home. Through volunteer labor and tax-deductible contributions, Habitat builds and rehabilitates homes by enlisting the help of the future homeowners. Future homeowners and their families are required to invest sweat equity hours in the construction of their new home to reduce the cost and increase pride in ownership. Houses are sold, at no profit, to families with no interest mortgages issued over a fixed period.

Costs of homes differ relative to location, labor, land and materials.  The home is purchased by the homeowner with a no-interest mortgage, including taxes and insurance, and is repaid over an average of 20 years. Payments are deposited into a revolving "Fund for Humanity" which supports the construction of more houses. The NNRHA has partnered with Habitat for over 20 years and donated 30 lots to facilitate development of new homes.  Habitat has built over 40 homes in Newport News.

Assisted Housing

The main types of housing assistance in Newport News are public housing and Section 8 programs for project based units, and tenant based Section 8 certificates and vouchers. The locations of public housing and project based Section 8 apartments are shown on Map 7-1.

Public Housing

The Newport News Redevelopment and Housing Authority owns and manages 2,119 public housing units. This total has decreased because of the demolition of obsolete complexes. Public housing provides 2.7% of the total number of housing units in the city.  

On average in Newport News, 25% of the public housing units turn over every year.  The number of people on the waiting list for public housing varies by month. As of July 2007, there were 422 persons on the Newport News Redevelopment and Housing Authority's waiting list to access only 2,119 housing units.  

The Newport News Redevelopment and Housing Authority gives priority to people who are Newport News residents and are employed.

Project Based Section 8 Assisted Housing

Project Based Section 8 assisted housing projects are privately owned and managed. Either the tenants or the owners receive rent subsidies from the U. S. Department of Housing and Urban Development. There are 2,315 project based Section 8 housing units in Newport News. Project based Section 8 housing units provide approximately 3% of the City's housing.   

Section 8 housing is typically, multi-family housing complexes which have a Housing Assistance Payment (HAP) agreement to maintain the units as affordable housing for at least 15 years.  Once the agreement with HUD expires, the units can convert to market rate.  It is important that NNRHA and the city are aware of which units may be eligible to convert to market rate.  In doing so, the city and NNRHA can work together to ensure that there is an adequate amount of affordable housing stock remaining and in some cases there may be an opportunity for the property to be purchased by either the city or NNRHA to maintain affordability.

Tenant Based Section 8 Assisted Housing  

In 2007, there were approximately 2,071 recipients of the Section 8 vouchers for housing assistance. This program provides rent subsidies to low-income families who live in privately owned housing. The families find their own rental housing, which is inspected by the Housing Authority.  The families pay no more than 30% of their income on rent.  Because of the low apartment vacancy rates, people using tenant based Section 8 vouchers are having difficulty finding apartments to rent.

Percentage of Assisted Housing

Citizens have expressed concerns about assisted housing because of social problems that accompany large low-income housing projects. There is also concern by the Framework Task Forces that the City is providing more than its fair share of assisted housing compared to other cities and counties on the Peninsula. In 2000, the percentage of assisted housing in Newport News was 11.4% compared to 7.8% for the Peninsula and 6% for the Hampton Roads Region. Newport News had the highest percentage of assisted housing on the Peninsula. (See Tables 7-6 through 7-9).

Since 1992, the Framework's policy has been to limit the amount of public and assisted housing in the city to 10% of the total number of housing units, with another two percent allowance for the waiting list. New assisted housing units were to be dispersed in small clusters.

In 2000, assisted public housing units, project based Section 8 units and Section 8 vouchers in Newport News were 11.4% of the City's housing. The Task Forces recommend reducing assisted housing to less than 125% of the Peninsula's percentage of assisted housing. This recommendation will lower the City's percentage of assisted housing from 11.4% to 9.75%.  

An allowance of 1% is recommended to provide additional housing for elderly and displaced people, and other special needs populations on the Redevelopment and Housing Authority's waiting list.

The reduction in the city's percentage of assisted housing can be achieved by attrition in project based Section 8 units as they lose their HUD subsidies.

Tax Credit Financing for Assisted Housing

The federal government encourages the partnership between public and private entities, and more private developers are developing affordable housing projects.  One way private developers finance these projects is to use the Low Income Housing Tax Credit program (LIHTC). LIHTC is used for multiple-family rental unit development.

The tax credits are usually syndicated which means they are purchased by a group of investors. Projects can include a mix of market rate and affordable apartment units. In 2007, there were 3,197 tax credit financed housing units in Newport News.

 

 

Special Needs Housing

The City's Consolidated Plan for Housing and Community Development, 2005-2010 estimates the need for 240 additional beds or units (170 for individuals, 70 for families) providing emergency shelter, transitional housing and permanent housing.  In a 2006 survey, 54% of 1,000 city residents thought homeless shelters and services were a very important need and 38% thought it was a somewhat important need in the city.

Senior Citizen Housing

There is not enough affordable senior citizen housing that exists in places convenient to services and shopping. Federally subsidized senior citizen housing complexes in Newport News are: Great Oak with 143 units, Pinecroft with 140 units, Spratley House with 50 units, Checed Warwick with 48 units, and Ashe Manor, a new 50-unit public housing complex for the elderly. Oyster Point Retirement Village, which has 22 multi-family senior apartments, was recently completed.  Additional private, large scale, senior citizen communities are proposed and some nursing homes and smaller group homes currently exist.