AFFORDABLEHOUSI NGFOR

LOWANDMODERATE
I NCOME FAMI LI ES
I N
RESTON

Reston I nterfai th
Housi ng Corporati on
Background Paper

J anuary,
1984
AFFORDABLEHOUSI NG
FORLOWANDMODERATE I NCOME
FAMI LI ES
I N RESTON
RESTON
I NTERFAI THHOUSI NGCORPORATI ON
BACKGROUNDPAPER

RESTON: APLANNEDNEWTOWN
Reston
as
a
pl anned
resi denti al
communi ty
owes
much
of
i ts character to i ts creator,
R. E. Si mon. To thi nk that
j ust
a
l i ttl e more than
twenty years ago
where Reston stands were
j ust
a
handful of homes and the
Bowman
di sti l l ery. Fortunatel y
fi rst
and foremost i n
Si mon' s mi nd was that the
devel opment
of Reston
not be
characteri zed
by
randomsuburban
sprawl
but,
rather, be a
pl anned
NewTown.
Seven
goal s
have
gui ded
Reston' s
devel opment
si nce i ts
begi nni ngs.
The second of these
goal s
states: "I t shoul d
be
possi bl e
for
anyone
to remai n i n a
si ngl e
nei ghborhood throughout
hi s l i fe,
uprooti ng bei ng
nei ther i nevi tabl e
nor
al ways
desi rabl e.
By
provi di ng
the ful l est
range
of
housi ng styl es
and
pri ces
--
from
hi gh-ri se
effi ci enci es to si x-bedroom
townhouses and detached
houses,
housi ng
needs can be met at a
vari ety
of i ncome
l evel s
and at di fferent
stages
of
fami l y
l i fe. Thi s ki nd of mi x
permi ts

resi dents to remai n rooted i n the

communi ty
--
i f
they
so choose
as thei r
parti cul ar housi ng
needs
change.
As a
by-product
thi s
al so resul ts
i n
the
heterogenei ty
that
spel l s
a
l i vel y
and vari ed
communi ty. "
-2-
Cedar
Ri dge,
Reston' s
fi rst rental
devel opment
for l ow
i ncome
fami l i es
was
not
compl eted
unti l 1970. The
process l eadi ng
to Cedar
Ri dge
had,
i n fact,
begun
much earl i er. The Reston
Ti mes
reported
on the
pl an
three
years
earl i er i n a front
page
arti cl e on
August
16, 1967. The headl i ne
read, "Reston Resi dents
Have Formed a Uni fi ed Front
i n
Defense
of the Lower I ncome
Housi ng
Pl ans' . Thi s
l ag
ti me between the
proposal
of a l owand moderate
i ncome
housi ng devel opment,
the
fundi ng
and the constructi on
woul d
prove
to be
typi cal
i n
Reston.
Al so, the
goal
of a ful l
range
of
housi ng styl es
and
pri ces
conti nued
through
the
years
to
have a
l arge
amount
of
support
fromthe Reston
communi ty
and the
Reston
Communi ty
Associ ati on
(RCA).
By earl y
1970,
concern about the l ack of affordabl e
housi ng
for
l owand moderate i ncome fami l i es
wi shi ng
to l i ve and
work i n the new
town of Reston had
brought together representati ves
of seven Reston
rel i gi ous organi zati ons.
The
group,
Reston I nter-
fai th
Housi ng Corporati on,
i s a
nonprofi t corporati on
establ i shed
to
i ncrease the
housi ng opportuni ti es
for l owand moderate
i ncome
persons.
Uti l i zi ng
federal funds, Reston
I nterfai th
sponsored
Laurel Gl ade
Apartments
i n a
j oi nt
venture wi th a
pri vate devel oper.
Wi th the
compl eti on
of Laurel
Gl ade i n 1974, 200 more l owand
moderate i ncome fami l i es were abl e to fi nd affordabl e
housi ng
i n
Reston.
The number of assi sted
fami l y
uni ts
compl eted
i n Reston
at the end of 1974 was 688 uni ts.
Al though
Reston
experi enced
-3-
steady
economi c and
resi denti al
growth,
no addi ti onal
uni ts have
been
bui l t for fami l i es at
the l ower end of Reston' s i ncome scal e
si nce 1980.
Ownershi p
of I sl and Wal k' s 102
cooperati ve
uni ts was
turned
over to the resi dents
that
year.
ASSI STEDFAMI LY . 1/ UNI TS I NRESTON

Numberof assi sted

fami l y
uni ts
avai l abl e at the
438 end of 1973,
the end of Reston' s fi rst decade of
occupancy.
Cedar
Ri dge
( 1970)
-
198
uni ts
Stonegate
( 1973)
-
240 uni ts
Number
of assi sted
fami l y
uni ts
that became avai l -
368 abl e
duri ng
Reston' s second decade of
occupancy,
1974
through
1983.

Laurel Gl ade
( 1974)
-
200 uni ts
The Green ( 1975)
-
50 uni ts
Shadowood
( 1975)
-
16 uni ts
I sl and
Wal k
Coop
( 1980)
-
102

uni ts
806
Total number of assi sted
fami l y
uni ts avai l abl e i n
Reston,
representi ng approxi matel y
5. 9%
of Reston' s
13,550
housi ng
uni ts
Toward the end of 1980
i t became
apparent
to Reston
I nterfai th that a sl owdown i n the
producti on
of assi sted
fami l y
uni ts was
occurri ng
i n Reston.
Thi s was a resul t of
general
communi ty
wari ness
fol l owi ng
the
growth
between
1970-1975.
From
thei r
experi ences
wi th Laurel Gl ade,
Reston I nterfai th
recogni zed

1/
Omi ssi on
of
any
di scussi on i n thi s
paper
of
el derl y
househol ds
does not
i mpl y
that
housi ng
for
el derl y
l owand moderate i ncome
househol ds i s not needed
i n Reston.
-4-
that
typi cal l y
a number of
years el apses
fromthe ti me of a non-
profi t group' s
fi rst i nvol vement and the
occupancy
of
any
assi sted
uni ts. What concerned
Reston I nterfai th was
the
possi bi l i ty
that
l ow- and moderate-i ncome
housi ng
constructi on i n Reston woul d
gri nd
to a
stop.
I n that case, future
vi l l ages
woul d
not contai n
a
ful l
range
of
housi ng,
and l ow- and moderate-i ncome fami l i es
woul d remai n concentrated
al ong
Gl ade Dri ve. As the detri mental
effect of concentrati on of l ow- and moderate-i ncome
housi ng
had
been
demonstrated
i n other
communi ti es, Reston I nterfai th feared
that thi s woul d not be
good
for the newtown of
Reston. Meanwhi l e,
commerci al ,
l i ght
i ndustri al , and busi ness
growth
i n Reston
conti nued to create a
ful l
range
of new
j obs.

FAMI LY
(AND
ELDERLY) ASSI STEDUNI TS 13? VI LLAGES
Hunters North South
Dogwood
Woods
Lake Anne Poi nt Lakes Tal l Oaks
The
(Fel l owshi p (Fel l owshi p
0 0 Cedar
Green
-
House
-
224
House
-
240 )
Ri dge
-
198
50
Laurel
Shadowood
-
I sl andWal k
Gl ade
-
16
Coop
-
10 2
20 0
Stonegate
-
240

Reston I nterfai th
appl i ed
for
Communi ty Devel opment
Bl ock Grant
(CDBG)
fundi ng
i n
1981.
The
appl i cati on
read:
"Funds
wi l l be used to determi ne the
feasi bi l i ty
of
bui l di ng
cl uster,
townhouse and/or
cooperati ve
l owand moderate
housi ng
i n the
-5-
Phase I I I
secti on of
north Reston.
Fundi ng
wi l l cover
admi ni strati ve
costs associ ated
wi th
pl anni ng
and
devel opi ng
communi ty support. "
Subsequentl y
$15,000
of Year 7' s CDBGfunds
were
approved
by
the
Fai rfax
County
Board
of
Supervi sors
and the
Department
of
Housi ng
and Urban
Devel opment
(BUD)
for that
purpose.
Reston Land
Corporati on' s
housi ng
pol i cy
begi ns
wi th
the
second of the
ori gi nal
goal s
set i n
pl anni ng
the
devel opment
of Reston, a ful l
vari ety
of
housi ng
and
i ncome l evel s woul d be
avai l abl e i n the
newtown. Furthermore,
Al
Hagel i s,
a Reston Land
pl anner,
i n a l etter to Reston I nterfai th
i n 1981,
poi nted
out
that Reston has
al ways
been
open
to
the
devel opment
of l owand
moderate i ncome
housi ng.
Mr.
Hagel i s
al so wrote of Reston Land
Corporati on' s
commi tment to
work for the achi evement
of a ful l
range
of
housi ng.
Reston Land has been
qui te
successful i n
attracti ng
devel opers
of townhouses
that sel l at
pri ces
bel ow
the
county
medi an.
Accordi ng
to the Fai rfax
County
Offi ce
of Research and
Stati sti cs (ORS),
the l atest, 1981,
medi an
fami l y
i ncome
fi gure
for
the
Upper
Potomac
Pl anni ng
Di stri ct,
whi ch i ncl udes Reston,
i s
$41,500
compared
to
a
county
medi an
fami l y
i ncome of
$41,600.
The
current Reston Land
Corporati on
Popul ati on
Market Profi l e
gi ves
$41,600
as the medi an househol d
i ncome i n Reston. The
medi an
housi ng
val ues for
Upper
Potomac
and the
County
as a whol e
are
shown bel ow.
-6-
MEDI ANHOUSI NGVALUEOF OWNEDUNI TS
1982 AND1983
Upper
Potomac 1982 1983 Fai rfax
County
1982 1983
Si ngl e Fami l y
$127, 500 $125, 900 $114, 500 $115, 200
Townhouse 81, 900 81, 200 87, 100 87, 300
Condomi ni um 42, 800
44, 800
59, 200
59, 900
Al l 99, 000 98, 800 104, 100
103, 600

EMPLOYMENT I N RESTON
Si mon envi si oned an
economi cal l y
vi abl e newtown whi ch
i ncl uded busi ness, commerci al ,
l i ght
i ndustri al and
governmental
as wel l as resi denti al
devel opment.
Si nce
empl oyment opportuni ti es
and
housi ng
were
pl anned
for Reston,
Si mon' s
fourth
goal
was
feasi bl e,
"Peopl e
shoul d
be
abl e to
l i ve
and work
i n
the same
communi ty. "
Accordi ng
to Reston Land
Corporati on' s
market
profi l es
al most 40%of Reston' s
j obs
are hel d
by
Restoni ans. Themarket
profi l es
al so stress that the number of
young
fami l i es i n Reston
has "been one of the
maj or
attracti ve forces i n
drawi ng
busi ness
to Reston. Resi dents i n
the
25-44
age
bracket
represent
the
heart of an acti ve l abor force. "
Si gni fi cantl y,
between 1970 and
1980
thi s 25-44
age group
i ncreased at an annual rate of 56%i n
Reston
compared
to 6%of the
County
as a whol e.
-7-
Besi des l ocal busi nesses
such as retai l and
grocery
stores and restaurants and l ocal
government i ncl udi ng
school s,
Reston i s home to si x
maj or categori es
of
empl oyers: governmental
agenci es; professi onal
techni cal servi ce fi rms; nati onal trade
and educti on
associ ati ons;
corporate
admi ni strati ve
headquarters
or
operati ons
centers;
speci al i sts
offeri ng
personal
servi ces; and
compani es
engaged
i n el ectroni c
product
desi gn, assembl y
or manu-
facturi ng.
Thi s l ast
category,
more
commonl y
cal l ed
hi gh technol ogy
compani es, currentl y
i s the source of the
greatest
amount of
empl oyment growth. Empl oyment growth
has been so
rapi d
i n Reston
these l ast few
years,
accordi ng
to the Fai rfax
County
Offi ce of
Economi c
Devel opment,
that
j obs
nowoutnumber
househol ds.
Reston
at
present
has
approxi matel y
13,550
househol ds and 14,000
j obs.
Competi ti on
for the desi rabl e
hi -tech market i s keen
i n
Fai rfax
County.
Reston has
emerged
as one of the
most successful
areas i n
attracti ng
hi -tech fi rms. Hi -tech
fi rms
general l y
have
aestheti cal l y pl easi ng
bui l di ngs,
are
envi ronmental l y
sound, and
prefer campus-type
setti ngs.
Reston' s
hi -tech fi rms
empl oy many
techni ci ans and semi -ski l l ed
empl oyees
earni ng
bel ow
$20,000
i n
addi ti onal
to thei r
professi onal
staff of
engi neers, managers,
etc.
accordi ng
to a Reston
I nterfai th
empl oyer survey
conducted
i n 1982. The Reston
Land
Empl oyment
Profi l e states that hi -tech
fi rms have al l been
drawn to Reston not
onl y by
the
qual i ty
of
the
physi cal
envi ronment,
but
al so
by
the
qual i ty
and
avai l abi l i ty
of the l abor force.
-8-
A recent arti cl e
i n The
Washi ngton
Post
outl i ned the
di ffi cul ti es faced
by
l ower
pai d
empl oyees
of hi -tech fi rms i n
Reston
when
tryi ng
to
fi nd affordabl e
housi ng
i n Reston.
I n
parti cul ar, many
of Reston' s newhi -tech fi rms
are
tryi ng
to fi l l
cl eri cal
j obs payi ng
$12,000
to
$16,000.
To
quote
from
thi s
arti cl e, "For Reston,
a
pl anned
town based on
the
concept
of
provi di ng
an
envi ronment where
peopl e
coul d l i ve and work
wi thout
l eavi ng
the
communi ty,
the
growth
of
hi gh-technol ogy
i ndustri es
i n western
Fai rfax
County
has created a
gap
between who works i n
Reston and who
can afford to l i ve there. "
I f
housi ng
i s
ti ght
now
for
empl oyees
at the l ower end
of Reston' s i ncome scal e, consi der
that Reston' s 1000 acre Busi ness
Center
i s
onl y
about one-hal f
devel oped!

RENTAL HOUSI NGSUPPLY
Rental
vacancy
rates are
extremel y
l owfor
pri vate,
unassi sted rental
apartments
i n Reston. A
survey
done
by
the
Wel i born
Real ty
Company September
14, 1983,
reveal ed a rental
vacancy
rate of l ess than
1/3
of
1%
for these
apartments.
Tradi ti onal l y
Restons
806 assi sted
fami l y
uni ts have had substanti al
wai ti ng
l i sts. Thi s
si tuati on has been
exacerbated
by
three
factors: (1)
Unl i ke other
ol der communi ti es i n Fai rfax
County,
Reston contai ns no ol der rental
apartments,
those often
referred
to
as tri ckl e-down
housi ng;
(2)
currentl y,
accordi ng
to the
Fai rfax
County
Offi ce of Research and Stati sti cs,
condomi ni um
-9-

conversi onhas removed

approxi matel y
430 rental uni ts fromthe
housi ng
market i n Reston; j / and
(3)
no new
new
rental
housi ng
compl exes
have
been
bui l t
by
pri vate
enterpri se
i n Reston
duri ng
the l ast few
years.
Rents i n the fal l of 1983 for an unassi sted two bedroom
apartments
i n
Reston,
general l y
not
i ncl udi ng el ectri ci ty, ranged
from
$426
to
$430.
At that same ti me
i n
an assi sted two-bedroom
apartment
at
Cedar
Ri dge,
Laurel Gl ade, and
Stonegate,
rents
ranged
from
$319
to
$412. Wi th the
excepti on
of
Stonegate,
these
rents i ncl uded al l uti l i ti es.
I nvestors
have found rental
housi ng
unattracti ve i n
terms of return onthei r i nvestment
compared
to other real estate
ventures.
Hi gh
i nterests rates combi ned wi th
hi gh
constructi on
costs resul t i n rents that are
unmarketabl e.
Any
rental
housi ng
bui l t si nce 1977
i n
Fai rfax
County
has i nvol ved
some form
of
subsi dy
such as federal subsi di es,
tax-exempt
fi nanci ng
and/or
federal
mortgage
i nsurance
accordi ng
to a
League
of WomenVoters
Fai rfax Area
Housi ng update
rel eased i n March, 1983. Reston' s
devel opers
are no
excepti on.
/ Unl ess conventi onal
mortgage

2/
I f condomi ni umconversi onuni ts return to the rental market,
they usual l y
do so at a
hi gher
rent.
Al though
there are no
fi gures
for Reston, i n 1980 about
33.5%
of Fai rfax
County' s
total condomi numstock was rented
accordi ng
to
the
Housi ng
Needs
Study
RERC, March 1983.
3/
Constructi on
of
rental
housi ng
compl ex
fi nanced wi th conven-
ti onal
fi nanci ng
i s schedul ed to commence i n Reston i n l ate
1984.
-10-
i nterest rates
drop
l ower than
today' s
i nterest rates,
apartment
compl exes
bui l t
by pri vate enterpri se
wi th conventi onal
fi nanci ng
wi l l have
rents too
hi gh
for l owandmoderate i ncome fami l i es.
I f l ow
and moderate i ncome fami l i es have to
pay
more
than 30%of thei r i ncome for rent and uti l i ti es,
they
are cl assi fi ed
as excessi ve rent
payers by
the
Department
of
Housi ng
andUrban
Devel opment.
I n Reston,
though,
even l owand moderate i ncome
fami l i es who want to
pay
more than 30%of thei r i ncome for rent
are not
l i kel y
to fi nd
any
vacanci es
i n
pri vate,
unassi sted
housi ng.
To make matters worse,
accordi ng
to Real Estate
Research
Corporati on' s
Housi ng
Needs
Study,
whi ch was authori zed
by
the
Fai rfax
County
Board of
Supervi sors, Upper
Potomac
al ready
has
the thi rd
hi ghest
number of excessi ve rent
payers among
Fai rfax
County pl anni ng
di stri cts. Furthermore
very
few
of
the
County' s
excessi ve rent
payers
have i ncomes over
$20,000.
FAI RFAX COUNTY' S EXCESSI VE RENT PAYERS
(RERC)
23% Marri ed
22%
wi dowed
32% Di vorcedor
separated
SI 23% Have never been marri ed
The
squeeze
conti nues even
though
addi ti onal househol ds
have been abl e
tomove
up
i nto the for-sal e market because of

4/
Between 1970 and 1980,
accordi ng
to Census
fi gures,
the num-
ber of househol ds wi th one
parent
andchi l dren i ncreased
by
132%
i n Fai rfax
County.
Thi s soci al
phenomenon
i n
i tsel f
creates a
greater
demand for more affordabl e rental
housi ng.
-11-
somewhat l ower i nterest
rates.
Rental
apartments
freed are
qui ckl y
snapped
up by
fami l i es
on the
wai ti ng
l i sts:
fami l i es
who have l ost thei r
apartments
as
a resul t
of
condomi ni umconver-
si ons, new
one-parent
fami l i es, or newfami l i es attracted
by
Reston' s
empl oyment opportuni ti es.
PROJ ECTEDHOUSI NGNEEDS
The Fai rfax
County Comprehensi ve
(Master)
Pl an i denti fi es
the
areas
i n
each
pl anni ng
di stri ct
that
are
pl anned
for
mul ti fami l y
housi ng.
I n the
Upper
Potomac
pl anni ng
di stri ct, vari ous
undevel oped
secti ons of
Reston and Herndon contai n the
pri mary
l ocati on that are
pl anned
for new
mul ti fami l y housi ng.
The
potenti al
for
mul ti fami l y
housi ng
el sewhere i n
Upper
Potomac i s
l owbecause the
Comprehensi ve
Pl an cal l s for l ow
densi ti es.
I n the Fai rfax
County Housi ng
Needs
Study
Real Estate
Research
Corporati on
(RERC)
l ooked at three di fferent
ways
of
proj ecti ng
i ncome di stri buti ons
by pl anni ng
di stri cts
for
the
present
decade, 1980-1990. Those al ternati ves, whi chwere based
on Counci l of Governments
(COG)
cooperati ve
forecasts, were:
1.
Current I ncome Profi l e: The 1980
percentage
i ncome
di stri buti ons i n each
pl anni ng
di stri ct were assumed
to be
mai ntai ned as
the
popul ati on grows;
2 .
Extrapol ati on
of Past Trends: The rate of
change
i n
the number of
househol ds
i n
each i ncome
groupduri ng
the 1970' s was determi ned
by usi ng
Census i ncome di stri -
buti on
data.
Thi s rate of
change
was then used to
-12-
proj ect
the
di stri buti onof househol ds
by
i ncome
groups
for each
pl anni ng
di stri ct; and
3. Share of
Regi onal
Lower
I ncome
Empl oyees: Proj ecti ons
i n thi s al ternati ve were based on the number of l ower
wage j obs
i n Fai rfax
County
i n
1980.
At that ti me i t
was determi ned
that the number of househol ds i n Fai rfax
County
bel owthe
regi onal
medi an i ncome was
equal
to 79%
of the total number
of
county j obs
bel owthe
regi onal
medi an
wage.
I n
other words, there were 1. 27 Fai rfax
County j obs
bel owthe
regi onal
medi an
wage
l evel for
every
househol d i n the
county
bel owthe
regi onal
medi an i ncome.
Thi s
percentage
was
thenused to
proj ect
the number of
househol ds bel owthe
regi onal
medi an i ncome
needi ng
housi ng
i n each
pl anni ng
di stri ct
i n
1985
and 1990,
based
upon anti ci pated
j ob growth
i n the
County.

I n
proj ecti ng
future
housi ng
needs for the househol ds
not
provi ded
for
by
the
pri vate
market, RERC
assumed that assi sted
newconstructi onwoul d be bui l t for the
upper
end
of that
group.
I n
addi ti on, RERCconsi dered that assi sted new
constructi onshoul d
be
emphasi zed
i n the
rapi dl y growi ng pl anni ng
di stri cts l i ke
Upper
Potomac.
Some formof rent
suppl ements
woul d be
necessary
for the
poorer
househol ds.
Housi ng
needs for househol ds not
provi ded
for
by
the
pri vate
market were
proj ected
for each
pl anni ng
di stri ct
-13-
for the
present
decade, 1980-1990. I n eachof the three
proj ected
al ternati ves
of i ncome di stri buti ons, one of the
pl anni ng
di stri cts
wi th the
greatest
need was
Upper
Potomac. The
proj ected
needs were:

NEWUNI TS
REQUI RED
FORHI GHEST I NCOME HOUSEHOLDNOT SERVEDBY
THE PRI VATEMARKET
I NUPPER
POTOMAC
1980-85 1980-1990
Current I ncome Profi l e
1,179
3,061
Extrapol ati on
of
Past
Trends
810 2,265
Share of
Regi onal
Lower I ncome
Empl oyees
5,601 5,568

I NADDI TI ON,
RENT SUPPLEMENTS NEEDFOREXCESSI VERENT PAYERS
I NUPPERPOTOMAC
1980-85 1980-1990
Current I ncome Profi l e
3,733 3,153
Extrapol ati on
of Past Trends 3,612 5,035
Share of
Regi onal
Lower I ncome
Empl oyees
7,252 2,097
Upper
Potomac househol ds wi th i ncomes between
$20,000
and
$24,999
i n 1980 dol l ars are i denti fi ed
by
the fi rst and second
proj ecti ons
as most
needi ng
assi sted newconstructi on
housi ng.
Usi ng
the thi rd
proj ecti on,
househol ds wi th i ncomes bel ow
$20,000
i n 1980 dol l ars woul d most need the newconstructi on assi sted
housi ng.
The 1980
Washi ngton
Metropl i tan
Stati sti cal Area (WMSA)
medi an
fami l y
i ncome was
$27,887.
The
Department
of
Housi ng
and
Urban
Devel opment
(HUD)
has determi ned that the 1983
WMSA
medi an
-14-
fami l y
i ncome for a
fami l y
of
four i s
$35,800.
The i ncome l i mi ts
for
HUD
programs
are
currentl y capped
at
$26,000
for
a
fami l y
of
four.

POSSI BLE SOLUTI ONS
Two
opti ons
for
provi di ng
affordabl e
housi ng
i n Fai rfax
County
have
proved
unworkabl e so far i n Reston. One
opti on
i s
accessory housi ng:
a
separate
l i vi ng
uni t wi thi n a
si ngl e fami l y
home
where ei ther the owner or the renter i s
el derl y
or
handi capped.
I n fact, at thi s
wri ti ng
no owner i n Fai rfax
County
has
appl i ed
for
such
a
zoni ng
vari ance.
The second, a free
county
servi ce,
i s
operati on
Match:
persons
who have
space
i n thei r homes to share are
put
i n touch
wi th i ndi vi dual s
needi ng
housi ng. Unfortunatel y
Reston i s one of
the l owest
pl acement
areas,
Operati on
match does not
pl ace
more
than two
persons
i n
any
househol d.
Another deterrent i s the
necessi ty
of a
personal
i ntervi ewat the
operati on
Matchoffi ce
i n the Route One Corri dor.
Unti l
very recentl y
no federal
programs
for
new
construc-
ti on of l owandmoderate i ncome
fami l y housi ng
was
bei ng
funded
by
Congress.
Constructi on for a l i mi ted number of newuni ts has
nowbeen
authori zed
by
the
Department
of
Housi ng
and Urban
Devel opment
(HUD).
There are at
present
774 certi fi cates avai l abl e for
el i gi bl e
fami l i es i n Fai rfax
County,
Fai rfax
Ci ty,
and Fal l s
-15-

Churchunder the Federal
Secti on
Ei ght
Rental
Assi stance
program.
El i gi bl e
Fai rfax
County
fami l i es are
free to l ocate thei r
apartment
anywhere
i n the
county
froml andl ords
wi l l i ng
to
accept
the
certi fi cates.
Maxi mum
rent for a two bedroom
apartment
i ncl udi ng
uti l i ti es i s
$455.
The
di fference between the
rent and 30%of
the
el i gi bl e
tenant' s
i ncome i s
pai d
for
by
HUD
through
the l ocal
Department
of
Housi ng
and
Communi ty Devel opment
di rectl y
to the
l andl ord.
However, fewer than 40
of the
el i gi bl e
fami l i es wi th
certi fi cates use
themi n Reston
housi ng
that i s not
al ready
consi -
dered
to be assi sted.
State
resources are l i mi ted,
as the
Vi rgi ni a
Housi ng
Devel opment
Authori ty
(VHDA)
recei ves
no
fundi ng
fromthe Common-
weal thof
Vi rgi ni a.
I t
has recei ved
appropri ati ons
fromthe
Federal
government
under assi sted
fami l y housi ng programs
no
l onger bei ng
funded. VHDA
does not fund
cooperati ve
housi ng.
Currentl y
i n
Fai rfax
County,
theVHDA,
through
funds deri ved
from
i ts
power
to
i ssue
tax-exempt
bonds, conti nues to
be i nvol ved i n
provi di ng
bel owmarket
rate
fi nanci ng
for fi rst
ti me home
buyers.
The
Fai rfax
County
Redevel opment
and
Housi ng Authori ty
(RHA)
has recei ved
fundi ng
fromboththe federal
government
and
the VHDA. I n
addi ti on, the RHA,
wi th the
approval
of the
Board of
Supervi sors,
can use i ts own
tax-exempt powers
to
provi de
bel ow
market rate
fi nanci ng
for the constructi on
of l owand moderate
i ncome
fami l y
housi ng.
Proceeds fromthe
tax-exempt
bonds are
l oaned to
qual i fi ed
devel opers.
The
devel oper
real i zes a
savi ngs
-16-
because of hi s l ower i nterest l oan
fromthe
RHA.
Thi s
savi ngs
i s
passed
on i n the formof l ower
rents to l ower i ncome fami l i es who
under Federal l awmust
compri se
at l east 20%of the
resi dents of
a
devel opment
fi nanced
through tax-exempt
bonds. Fami l i es
el i gi bl e
for the l ower rents must be
earni ng
no more
than 80%of the medi an
fami l y
i ncome for the
Washi ngton
area. Thi s
i s
currentl y
an
i ncome of
$28,640
or l ess. The fami l i es
i n the moderate
i ncome
uni ts can
earn
up
to 95%of the Fai rfax
County
Medi an I ncome,
around $42,000.
No cash
subsi dy
or costs
to the
county
are
i nvol ved wi th thi s
type
of
fi nanci ng.
Fai rfax
County
coul d
through
i ts
proffer
(vol untary
offer to
provi de) systemacqui re
l and,
uni ts, or cash
duri ng
the
rezoni ng process.
Sewer
and water
tap
fees, the
pro-rata
cost of
si te
i mprovements
and vari ous
permi ts
coul d be subsi di zed
by
the
County
both to reduce the
pri ce
of the uni ts and to
hel p
ensure
that the
devel oper
wi l l not i ncur fi nanci al l oss on
the
proffered
uni ts. A
proffer
was made
by
Reston
Land
Corporati on
and
accepted
by
the Fai rfax
County
Board of
Supervi sors
on October 31, 1983 i n
rezoni ng
case I fl 83-C-039
i n north Reston. "Reston Land
Corporati on
proffers
to hol d the
parcel desi gnated
for 260
mul ti -fami l y
and/or
si ngl e fami l y
attached
uni ts for a
peri od
of two
(2)
years
and
wi l l seek a
devel oper
for a market
rental
housi ng program
to
i ncl ude
up
to 20%subsi di zed uni ts
(dependi ng
on the subsi di zed
programs
avai l abl e at
the ti me of
devel opment). "
-17-
Reston I nterfai th
pl ans
to
request
seed
money
through
the
Communi ty
Devel opment
Bl ock Grant
process
to
acqui re
an
opti on
on
l and i n NorthPoi nt
Vi l l age
and to cover
"front-end" costs such as
archi tectural and
engi neeri ng
costs,
tap
fees, etc. CDBGfunds
cannot be
di rectl y
used
for constructi on costs.
Appl i cati on
for
CDBG
funds are revi ewed
by
the RHAand a ci ti zens
proj ect
sel ecti on
commi ttee. Fi nal
determi nati on of the di stri buti on of
these
federal al l ocati ons
i s made
by
the Fai rfax
County
Board of
Supervi sors
and must
be
approved by
HUD. The Fai rfax
County
Department
of
Housi ng
and
Communi ty Devel opment
(HOD)
wi l l be
taki ng appl i cati ons
i n
J anuary,
1984.
Other
possi bi l i ti es
for
reduci ng housi ng
costs
i n
Reston
woul d mean the i nvol vement of Reston Land
Corporati on.
I n order
to
encourage
the
devel opment
of a ful l
range
of
housi ng
i n i ts
fi nal
vi l l age,
Reston Land coul d
provi de
free or reduced
cost
l and,
provi de
seed
money,
and/or
provi de
a second
mortgage
for
the
devel opment.
These
possi bi l i ti es
coul d be used i n combi nati on
wi th eachother and/or
wi th
tax-exempt fi nanci ng.
Except
i f
deal i ng
wi th the
Vi rgi ni a
Housi ng Devel opment
Authori ty
(VHDA),
any
affordabl e
fami l y housi ng devel oped
woul d
ei ther be
mul ti -fami l y
rental or
cooperati vel y-owned
housi ng.
Cooperati ves
have
many
of
the
advantages
of home
ownershi p.
I n
the event of the resal e of a share the
return on the i nvestment
i s l i mi ted so
as to
keep
the uni ts affordabl e
to l owand moderate
i ncome fami l i es.
Cooperati ves
do
requi re
more resi dent i nvol vement
than rental
devel opments
as wel l as a down
payment
of about
$700
to
$1,000.
Concerned about these
very
i ssues, a
group
of Restoni ans
from
al l wal ks of l i fe
have
vol unteered to serve on Reston I nterfai th' s
Housi ng Advi sory
Commi ttee.
The fi rst
meeti ng
was hel d
September
27,
1983. These advi sors
recogni ze
the need for more affordabl e
fami l y
housi ng
i n North Poi nt, Reston' s fi fth and fi nal
vi l l age,
and i n
the Town
Center. The commi ttee
hopes
that
through
the
j oi nt
efforts of Reston I nterfai th, the Centervi l l e Di stri ct
Supervi sor,
Mrs. Penni no, the
Redevel opment
and
Housi ng Aughori ty,
and
the
Reston Land
Corporati on,
the
gap
between those who work i n Reston
and those who can afford
to
l i ve there wi l l not
growl arger.
The
commi ttee, as wel l as Reston I nterfai th
Housi ng Corporati on,
i s
commi tted to the
goal
that
any
such
housi ng
be wel l
desi gned,
wel l constructed, and wel l
managed
so as to be a credi t to both
the resi dents and the Reston
communi ty.
-19-

SELECTEDSOURCES
Fai rfax
County Department
of
Housi ng
and
Communi ty
Devel opment,
Three Year
Housi ng
Assi stance Pl an
May
2, 1983.
Fai rfax
County Redevel opment
and
Housi ng Authori ty,
Annual
Report
J ul y
1, 1981 to J une 20, 1982.
League
of Women Voters Fai rfax Area, Affordabl e
Housi ng
for Low
and Moderate-I ncome
Peopl e
i n the
Fai rfax
Area March, 1983.
Letters to the Edi tor, "Reston Resi dents Have
Formed AUni fi ed
Front I n Defense of the Lower I ncome
Housi ng
Pl an, " The
Reston Ti mes
Aug.
8, 1967.
Real Estate Research
Corporati on,
Fai rfax
County
Housi ng
Needs
Study
March,
1983.
NewTown Publ i cati ons, APl ace Cal l ed Reston 1983.
Reston
Communi ty
Associ ati on,
Housi ng
Posi ti on
Paper.
Reston I nterfai th
Housi ng Corporati on, Survey
of Reston
Empl oyers
1982.
Reston Land
Corporati on, Housi ng
Pol i cy August
2, 1983.
Reston Land
Corporati on
Market Profi l es,
Maj or Empl oyers
and
Popul ati on
Swal l ow,
Wendy, "Housi ng
Costs
Hurt
Hi gh-Tech
Fi rms' Low-Pai d
Empl oyees,
The
Washi ngton
Post
August
13, 1983.

ASSI STANCE
Counci l of Governments, U. S.
Department
of
Housi ng
and Urban
Devel opment,
Fai rfax
County Department
of
Housi ng
and
Communi ty
Devel opment,
Fai rfax
County
Economi c
Devel opment Authori ty,
Fai rfax
County
Offi ce
of Research and Stati sti cs,
and Reston
Land
Corporati on
-20-

RESTONI NTERFAI THHOUSI NGCORPORATI ON

-
BOARDOF
DI RECTORS

Robert
Arndur Executi veDi rector:
Anne
Bai l ey
Constance
Petti nger
Frank del a
Fe
Susan Deandrade
Housi ng
Consul tant:
Baba Freeman
Mary
Sue
Lyons
Robert
F.
Hanl on
J anetHowel l
Rev.
Dougl as
I bach
Wi l l i amL. J ackson
Terry
Mi tchel l
LeeRau
Franna Ruddel l
Sondra Smi th
Deena
Sortl and
J eanne
Snyder
Nancy Tayl or

RESTON
I NTERFAI THHOUSI NGADVI SORY COMMI TTEE

PatArthur Ex-Offi ci oMembers:

J oanneBrownsword
Constance
Petti nger
Betty
Butl er
Di ckLeon
Baba
Freeman
Davi d Hi l l Staff Consul tant:
Karl
I ngrebri tson
Mary
Sue
Lyons
J amesJ ones
Fred
Lowry
Harol d
Mi l l er
J oan Smi th
J oeStowers