EDITORIAL: Inexpensive housing incentives will assist | Discover
BY THE STAFF OF THE EDITORIAL PAGE OF THE FREE LANCE-STAR
INSTEAD of simply speaking concerning the lack of inexpensive housing in Virginia, the Common Meeting is lastly doing one thing about it. Earlier this month, Richmond lawmakers handed a invoice that might give builders who construct inexpensive models an identical tax credit score for initiatives that additionally qualify for a federal housing tax credit score. low lease.
The state’s $ 15 million program can be used to assist builders safe financing for below-market models.
If signed into regulation by Governor Ralph Northam, SB 1197, which was sponsored by Sen. Mamie Locke, D-Hampton, the Virginia housing tax credit is not going to be refundable and builders can carry them over. as much as 5 years. Seventeen different states presently supply comparable tax incentives.
A regional housing research performed final 12 months by Housing Ahead Virginia for the George Washington Regional Fee made 42 suggestions to extend inexpensive housing within the Fredericksburg space.
The research outlined “inexpensive” as housing prices that didn’t exceed 30% of median earnings. By this definition, half of the tenants in Planning District 16 (which incorporates Caroline, Fredericksburg, King George, Spotsylvania and Stafford) are “burdened with the price of housing” as a result of their month-to-month lease exceeds 30% of their earnings.
In the meantime, the median worth of single-family houses has elevated 19% since 2015, from $ 265,000 to $ 325,000, placing them past the attain of many households.