Alliance for Innovation:

2008 J. Robert Havlick and Thomas H. Muehlenbeck Awards

FairfaxCounty’s Magnet Housing Program

Jurisdiction Name: Fairfax County, Virginia

Organization: FairfaxCounty Redevelopment and Housing Authority

Contact: Kristina Norvell, Director of Public Affairs

Address: 3700 Pender Drive, Suite 300, Fairfax, VA22030

Phone: 703-246-5104

Fax: 703-246-5115

E-mail:

1. Program Overview:

FairfaxCounty is one of the key areas of job growth in not only the WashingtonD.C. area, but in the nation. The abundance of jobs and resulting need for a skilled and available workforce demands that the county have a range of affordable housing. In fact, in recent analysis prepared for the county by GeorgeMasonUniversity, there is currently a deficit of more than 40,000 units of housing needed to meet workforce needs. The Magnet Housing Program is an innovative approach to address both issues. Magnet Housing provides affordable housing to individuals moving from a job to a career. Affordable, attractive housing is provided in partnership with employers to their employees who may be in training, participating in an apprenticeship program, at an entry level, or filling critical, hard-to-fill positions.

The Magnet Housing Pilot Program was conceived to address FairfaxCounty’s workforce needs and to assist residents to achieve economic self-sufficiency. Similar to the Magnet School concept where students are enrolled based on interest and ability, the Magnet Housing Pilot Program provides short-term, affordable housing to local residents who are enrolled in an employer-sponsored training program and who will likely succeed if given some additional supports, such as affordable housing. It is an integrated approach to enhance workforce skills and economic status by linking training, housing and supports into a single program, ultimately increasing the participants’ earnings and career options.

The Fairfax County Redevelopment and Housing Authority (FCRHA) commissioned Abt Associates to do national research on similar programs and host focus groups with potential participants and information meetings with potential stakeholders. Abt’s findings indicated that there were no other models similar to the one in FairfaxCounty. It is the first of its kind—a program designed specifically to meet the housing needs of a local workforce that includes partnerships with major area employers and an employer-sponsored training component for residents. Since the county’s implementation of this program numerous locales in Virginia and around the nation have contacted the county in an interest to learn more about the program and how they could possibly replicate it.

2. Description of FairfaxCounty and the Need for the Magnet Housing Program:

FairfaxCounty is faced with the challenge of a workforce that cannot afford to live where they work. Employees are forced to commute to their jobs in Fairfax from different counties and sometimes different states. As much as the added commute is a stress on the workforce, it also is a hardship on county employers who can see higher turnover rates, lower staff moral, increased absences and high burn-out rates among employees who must add hours to their day to commute from home to their jobs. It is also a challenge to the economy as workers take their earnings back to their places of residences for shopping and entertainment, resulting in FairfaxCounty workers supporting the economies and local businesses outside of Fairfax more than FairfaxCounty’s economy.

FairfaxCounty employers face difficulty finding qualified workers for many entry-level career tracks. Housing costs continue to rise and the supply of affordable housing units is decreasing, thus making it even more difficult for employers to find and retain qualified workers. For first responders, such as the Fire and Rescue personnel, living a distance away from their place of employment can be an added challenge when they must traveled through inclement weather or extended distances to reach the county when their services are needed. The Magnet Housing Program includes partnerships with the Fairfax County Fire and Rescue Department, the Fairfax County Police Department, FairfaxCountyPublic Schools, Fairfax County Sheriff’s Office, Fairfax County Government Human Resources and Inova Health Services.

3. Description of Magnet Housing’s Importance, Internal Impact, and

Benefits:

The Magnet Housing Program directly benefits the workforce of FairfaxCounty and the employers within the county. The ability to live near where one works increases employee retention for employers and eases the burden of a commute on employees. It also benefits the local economy as employees who live near where they work support the local entertainment options, grocery stores, etc. The transportation issues of the local jurisdiction also benefit from Programs such as Magnet Housing as it decreases the number of cars traveling on the roadways and eases congestion.

4. The Magnet Housing Program’sInitiation and Implementation:

The Magnet Housing Program was originally launched as a pilot program with the Fairfax County Fire and Rescue Department. It began with ten units at the Courts of Westcott Ridge located near the GovernmentCenter. The Program has since then expanded to include partnerships with Fairfax County Police, Public Schools and Human resources as well as Inova Health Services and provides affordable workforce housing for firefighters, police officers, public health nurses, teachers and school bus drivers. The most recent evolution of the Magnet Housing Program was the expansion of each of the properties in the program to accept employees from each partner. Initially, the Program was designed so that housing units at specific properties were designated for employees from one FCRHA partner in the Program. In March 2007, the FCRHA approved a resolution opening all of the properties to every partner to allow for more flexibility within the Program.

5. Associated Risks with Planning and Developing Magnet Housing

The risks associated with planning and developing Magnet Housing have been few. Providing affordable housing as an incentive to attract and retain workers is a win-win for employers and employees. HCD has learned that it is important to include a variety of partners in the program to keep to ensure minimal vacancies. For example, the Fairfax County Fire and Rescue Department operates three training programs per year and new teachers start with the Fairfax County Public Schools in the summer. But having a variety of partners, if there is a vacancy, the waiting list will include others who can take advantage of the program instead of waiting until the next training program or school year.

6. Description of the Environment in which Magnet Housing was Created and

Sustained

The Magnet Housing Pilot Program was started when units were offered for sale in the Affordable Dwelling Unit program. When the neighbors found out that the FCRHA was buying units in their condominium complex, they were concerned. After holding several meeting, attended by HCD staff and Fairfax County Fire and Rescue Staff (including the Fire Chief), the neighbor’s concerns were significantly diminished. This has been the case for most of the properties where we expanded.

7. Execution Costs and Savings

The start up costs for the Magnet Housing Program were fairly minimal. When the Program became fully implemented within the county, other costs such as marketing costs and the cost to the owners for occasional vacancies was included into the overall cost of the program. Start up costs for the Magnet Housing Program are listed below.

ABT Consultant:$99,900

Program Manager Salary $39,520

Acquisition of First Units

Individual Unit Cost at Courts at Westcott Ridge

2 bedroom/1 bath:$61,870
2 bedroom/2 bath:$80,592
3 bedroom/2 bath:$84,119

*The FCRHA purchased 3—2 bed//1 bath units totaling $185,610

4—2 bed/2 bath units totaling $322,368

3—3 bed/2 bath units totaling $252,357

These units were purchased by the FCRHA at below market costs through the Fairfax County Affordable Dwelling Unit program. Comparable units in the development sold for $300,000 - $400,000.

Although, HCD does not have any empirical data on the cost savings of the Magnet Housing Program, the cost of employee turnover that can be abated by the availability of additional affordable housing within FairfaxCounty is significant. By providing employees the opportunity to live closer to where they work, costs from employee turnover and absences will decrease. In addition, the increase of affordable housing that allows the workforce to live closer to where they work also eases congestion and decreases costs associated with transportation issues.

8. Lessons Learned to Share with Other Jurisdictions

There are several important lessons to share with other jurisdictions:

  1. Utilize a variety of housing unit sizes, especially smaller units for single applicants, as the single applicants seem most interested in the program.
  2. Partner with several entities. It generally takes at least four applicants to apply to fill each unit.
  3. Be flexible. The Magnet Housing Program require flexibility to meet the needs of the employer.

9. Department and/or Individuals Who Championed Magnet Housing

The Magnet Housing Program was championed by the Fairfax County Redevelopment and Housing Authority (FCRHA) and the Department of Housing and Community Development with the support of the Fairfax County Board of Supervisors. The first partner with the FCRHA in the Program was the Fairfax County Fire and Rescue Department who actively marketed the Program to their recruits.