Low-cost housing for Norfolk city employees wins preliminary OK

Posted to: News

By Amy Jeter
Meghan Hoyer
The Virginian-Pilot
© March 14, 2008

NORFOLK

As housing prices soared in recent years, city officials heard the same complaints from employees: They couldn't afford to live in Norfolk.

On some occasions, the city lost teachers and other workers to long commutes.

"It's harrowing finding somewhere to live," said Monte Lloyd Mercer, president of the Education Association of Norfolk. "Somewhere to live is usually outside of Norfolk."

To combat the problem, Old Dominion University and Virginia Beach developer L.M. Sandler & Sons have partnered to build 51 low-cost townhomes for the city's teachers, firefighters and police officers.

It's the first time Norfolk has developed housing aimed specifically at city employees.

On Thursday, Norfolk's Planning Commission gave the project preliminary approval.

Targeting households making $32,000 to $51,300 annually, the complex will stretch 3-1/2 blocks along 43rd Street, from Powhatan Avenue to Bowdens Ferry Road, across the street from ODU's campus.

The city has been working on a road-widening project there and donated some of the land to keep costs down, said Stanley Stein, Norfolk's assistant city manager. ODU owned the rest of the property, which has been used mainly for parking.

Representatives of Chesapeake Homes, a Sandler subsidiary, said sales prices hadn't been set yet but added that a mortgage on one of the townhouses would be affordable to a single teacher making $35,000.

That's good news to school officials, who said teachers who live in Norfolk are more likely to bond with the community and remain with the school system.

"If we have them here in Norfolk, we tend to keep our teachers," said Patricia Dillard, the school division's senior director for human resources.

The concept for teacher housing near Old Dominion arose from a conversation between the school system's superintendent and the university's president, said Michael Spencer, the school division's chief operations officer.

ODU's Community Development Corporation, the university's economic development arm, is developing the project with the Sandlers.

On Tuesday, three officials with the university declined to comment and said that despite giving public presentations to the City Council and Planning Commission in recent weeks, the project wasn't far enough along to announce.

The university plans to unveil the project in about a month. Stein said the tentative groundbreaking date is June 25.

This is unbelievable

Submitted by BBinVB on Sat, 03/15/2008 at 7:17 pm.

Government workers get much better benefits and, in many cases, better pay than the average worker for private companies. Additionally, I would bet MOST of Norfolk's residents can't afford decent housing. Why should all of those people be paying for Norfolk to subsidize their employees' housing???

So many thoughts

Submitted by Nikki M. on Sat, 03/15/2008 at 6:34 am.

The vast majority of the city's employees also qualify for workforce housing, not just the teachers, firemen and cops. The average city employee, not executive or management, makes equal to or less than the stated threshhold amount. What about those employees; they have housing needs too.

By the same token, the average employee working for the average employer, again not executive or management, also qualifies for workforce housing, their salaries are also equal to or less than the stated threshold amount. What about those employees; they also have housing needs.

Until the developers, builders, realtors, bankers, city leaders, etc., come to grips with the fact that area is supported by average blue collar wages, we'll continue to see a total disconnect in housing prices. Average wages ($35,000/$40,000 per year) don't support mcmansion ($300,000 to $1,000,000)lifestyles, no matter what you call it or how you dress it up.

Mind Reader

Submitted by johnh31265 on Fri, 03/14/2008 at 4:07 pm.

Ethan are you a mind reader?? I read it different. The comment compared it to communist ideas.

Uh John

Submitted by Ethan on Fri, 03/14/2008 at 9:23 am.

Uh John, BubnBarb was being sarcastic. Notice the workforce housing is for people who make up to $51K a year. From CNN Money Magazine, the median *family* income in Norfolk Virginia was $40,000 in 2005. While businesses in the entire region suffer when it comes to attracting workforce due to the high costs of living, perhaps there are other reasons teachers and police officers don't want to work there? Are the jobs enjoyable? Does management make it un-enjoyable? There could be other factors. While I want the people to be able to afford housing, I know that these types of programs distort the market. A market so distorted already by greed and corruption, with some get-rich-quick mentality.

No!

Submitted by robertl75440 on Fri, 03/14/2008 at 9:09 am.

And I thought Portsmouth had problems with it's mayor and city council's conflicts of interests with most of their decisions that go against their citizens best interests. Does this mean that Norfolk's taxpayers are going subsidize their government's employees housing...you bet it does....Portsmouth city council meetings are like a church service, Norfolk is what...a commune collective

Following Communist Ideas

Submitted by johnh31265 on Fri, 03/14/2008 at 9:08 am.

Budnbarb57 thinks we should behave more like communist countries. Stop your rambling and if you don't like America then go live in your communist countries. This is America and we need to continue "FREE" competative ideas not follow communist concepts. How unAmerican to compare us with communists!!!!

Insanity

Submitted by patv27806 on Fri, 03/14/2008 at 7:41 am.

These people chose their professions and knew what the salary was. Why are tax dollars going to subsidize housing for people who aren't even indigent? I am sure many, including myself would like low cost housing but I am not lucky enough to have a government job. They get a good salary, benefits and pensions how many average workers get those things? All those people laid off from Ford will they even be able to keep their homes? No wonder our taxes are sky high I had no idea part of government was to build housing for its employees it's outrageous! Maybe these people should do what everyone else does and cut back and save for a decent down payment instead of getting another government handout!

Housing

Submitted by budnbarb57 on Fri, 03/14/2008 at 5:40 am.

I've traveled extensive in Socialist Republic of Vietnam and much in Communist China...that's exactly the way they handle housing. Each factory has employee housing. Good job, Norfolk...you're getting there.

Low cost housing

Submitted by jamess64908 on Fri, 03/14/2008 at 5:24 am.

Now the government ,whos main job is to govern , is going into the housing business.Anyone thought about raises and letting the system work. Reminds me of the old coal mine towns where everything was owned by the company and they controlled your life. It also has the ''smell'' of communism.

Worst idea ever

Submitted by Ethan on Fri, 03/14/2008 at 1:04 am.

When gov't meddles with the market it breaks things. Subsidizing housing isn't going to fix the problems with the market, it will just continue to help distort it. Housing prices are disconnected from salaries due to lax lending standards and fraud. We need the lenders and banks who enabled this to go down. The investors should also suffer. There should be criminal charges if wrongdoing is found on behalf of mortgage brokers, banks, ratings agencies, and buyers who lied about their income on stated income loan applications. If GOVT DOESN'T MEDDLE WITH THE MARKET and prop up the criminals, then values will correct. I've seen figures from $1 trillion to $8 trillion need to be "lost" in housing for it to correct.