2 new Henrico townhome communities become first beneficiaries of Affordable Housing Trust Fund program

Two new townhome communities in Henrico County are set to become the first beneficiaries of the county's Affordable Housing Trust Fund program, county officials announced recently. A total of 30 units in the Parkside Townes community and Discovery Ridge soon will be available to first-time homebuyers who meet specific household income requirements.

The announcement came during a press conference at Parkside Townes, a 123-unit townhouse community currently under construction by HHHunt on Whiteside Road in Sandston. Mungo Homes is building the second community, Discovery Ridge, at Gayton Road and Lauderdale Drive in western Henrico.

"Between Parkside Townes (25) and Discovery Ridge (5), we’ll soon have 30 new townhomes that will be affordable and available to qualifying first-time homebuyers, like hardworking nurses and others in health care, restaurant staff and office employees,” said Henrico Board of Supervisors Chair Tyrone E. Nelson. He emphasized that the homes will be integrated into their respective communities, indistinguishable from other residences. "These beautiful homes will be blended throughout these communities, and they’ll look just like the other homes. Just a few months ago, Henrico County’s Affordable Housing Trust Fund was an idea to put homeownership within reach for more of our workforce. Now, it’s a reality that’s helping us build a stronger, more vibrant community for everyone.”

The Affordable Housing Trust Fund, established by the board of supervisors July 1, is funded by $60 million in previously unbudgeted revenue from data centers. The program is administered by the nonprofit Partnership for Housing Affordability, which works in conjunction with Henrico’s Department of Community Revitalization.

The PHA established its program criteria and began accepting project applications in September. A review committee gave Parkside Townes and Discovery Ridge conditional approvals for the program on recently, pending formal agreements.

The program aims to assist working adults in achieving homeownership by bridging the gap between their financial capabilities and escalating home prices caused by a surge in demand and high interest rates.

According to county officials, the household income required to afford a home in Virginia has skyrocketed by 76% in the past four years. In Henrico, the median home price increased to $355,000 in 2023, making homeownership affordable for less than one-third of the county's households.

Jonathan Ridout, vice president of real estate development and general manager of HHHunt, expressed enthusiasm for the partnership with Henrico County and the Maggie Walker Community Land Trust, highlighting the affordability-driven design of Parkside Townes.

"We have been diligent in optimizing our land plan and our home plans to maximize the value we are able to offer in this community," he said.

Tim Parent, market president for Mungo Homes, echoed the sentiment, saying that Discovery Ridge aims to provide safe, secure, and quality homes for first-time homebuyers. Parent said he hoped that Mungo Homes would have other communities selected to participate in the program in the future.

“Opening the doors for additional first-time homebuyers in the Henrico housing market, along with providing safe, secure and quality dwellings that buyers can call home, is so very important to us," he said.

Builders and developers can apply for funding through the PHA, and upon review and conditional approval, they enter an agreement with PHA, outlining the maximum sales price for participating units based upon ZIP code and setting income limits for eligible buyers.

Qualifying developments receive reimbursements for eligible land and construction costs, as well as waivers for county fees associated with utility hookups and permits. They also benefit from expedited plan reviews.

To be eligible, buyers must have household incomes between 60% and 120% of the area median income, as determined by the U.S. Department of Housing and Urban Development. All purchased homes must be owner-occupied, and the properties are subject to deed restrictions for at least 10 years, ensuring affordability for subsequent buyers. Prospective buyers must meet the same qualifications as the original purchaser. Homes in Parkside Townes could retain the program's affordability goals forever, officials said.

The program's initial target is to support the construction and sale of 100 to 150 homes annually. As awareness and interest grow, the county anticipates scaling the program accordingly.

Prospective homebuyers can expect a portal linking them with qualifying developers and builders to be available through the PHA website in November. Builders and developers must have five years of experience developing, constructing, and selling at least 30 homes. Applicants must begin construction within 12 months and meet additional project deadlines.