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Current Studies and Projects
- Tax Abatement Study
- Affordable Dwelling Unit In-Lieu Fee & Student Housing Study
- Charlottesville Supplemental Rental Assistance Program Evaluation
Overview
In April 2025, City staff presented the concept of an affordable housing tax abatement program during a City Council work session. Council asked staff to explore whether this kind of program could help encourage more housing construction in Charlottesville, especially when considering the costs associated with planning, financing, and building homes.
To better understand the potential impact, consultants worked closely with the community and spoke with both for-profit and not-for-profit housing developers. Their goal was to build a financial feasibility model and study how to design a program that would be effective and easy to manage.
Timeline and Opportunities for Public Input
The final report includes key findings and potential recommendations and was shared with the Charlottesville City Council on February 17, 2026. Further recommendations will be shared with City Council Spring 2026.
Overview
The Affordable Dwelling Unit Monitoring and Procedures Manual (“ADU Manual”, linked here) must be reviewed and updated on an annual basis to make sure it reflects current needs and priorities. All projects with 10 or more units must provide 10% of all residential units to households at or below 60% AMI or pay an in-lieu fee.
Student Housing is allowed in all districts where housing is allowed. However, in student housing projects within 1/2-mile of the University of Virginia campus grounds that lease on a per bedroom basis, no on-site affordable units are required and applicants must pay an in-lieu fee.
The scope of this annual ADU Manual review will evaluate and potentially refine expectations for in-lieu fee payments if affordable units are not provided on-site as part of a development project, for:
- student housing project projects
- non-student housing projects
- projects requesting bonus height
The geographic extent of student housing affordable housing requirements will also be evaluated.
Key Research Questions
- Do the current in-lieu fee payment structures accurately reflect construction costs (for non-student housing) and the value gap (for student housing)?
- What are the approaches of other Virginia jurisdictions?
- What approach to requirements for in-lieu fee payments provide the best balance of incentivizing production of on-site units without limiting development feasibility?
Timeline and Opportunities for Public Input
Staff will seek input on guiding principles to inform policy recommendations in early 2026:
- What are the City's goals for in-lieu fee payment policies?
- What are the City's goals for student housing?
- Should affordable housing expectations be the same for student housing as for non-student housing, or is there a reason to differentiate?
- Should in-lieu fee payments be greater for bonus height than for non-bonus height?
- What are the most important things for the policy to achieve?
- What impacts should be avoided?
Recommendations will be shared with Planning Commission and City Council in Spring 2026.
Overview
The Charlottesville Supplemental Rental Assistance Program (“CSRAP”) provides tenant-based rental subsidies to help low-income households access housing in the private rental market. Since its launch in 2018, CSRAP has served households earning up to 60% of Area Median Income (AMI). The program currently supports 68 households at or below 30% AMI.
City staff, in collaboration with the Charlottesville Redevelopment and Housing Authority (CRHA), will conduct a comprehensive program evaluation over the first half of 2026. This evaluation aims to strengthen program administration, improve transparency, and ensure alignment with the City’s housing goals. Recommendations from this process will guide program improvements beginning in FY 2027.
Key Research Questions
The evaluation will explore whether CSRAP’s design and operations effectively meet its goals and identify opportunities for improvement. Key questions include:
- What resources (staffing, technology, funding) are needed for efficient administration?
- Should CSRAP include formal exit timelines and transition procedures?
- Does the number of households served align with program goals? Should goals be adjusted?
- How should CSRAP prioritize funding for households at or below 30% AMI?
- What are allowable uses for unspent funds?
- Could CSRAP target rental assistance for specific housing projects?
Timeline and Opportunities for Public Input
The evaluation process will include multiple phases of stakeholder engagement:
- Early 2026: Inform and consult with program participants, referral agencies, and community partners to finalize evaluation scope and questions.
- Spring 2026: Collect and analyze data, including stakeholder interviews and surveys.
- Summer 2026: Share findings and draft recommendations with stakeholders for feedback.
- July 2026 onward: Implement approved program changes and establish ongoing monitoring.
Recommendations will be shared with City Council in Spring 2026.