PRINCE WILLIAM COUNTY, VA — After approval of an ordinance to boost affordable housing supply earlier this year, Prince William County supervisors endorsed guidelines to allow a loan program for affordable housing development to proceed in 2026.

In June, the Prince William Board of County Supervisors approved an affordable dwelling unit ordinance that became effective on Dec. 1. The action provides density bonuses to developers who include affordable housing in their developments for households making 80 percent or less of the area median income. The ordinance also created an Affordable Housing Fund to provide gap financing for projects creating or preserving affordable housing.

"This is such an important milestone for our county," said Chair Deshundra Jefferson (D-at large). "We talk a lot about housing, and we need to make sure that we're making it affordable. I've seen a lot of statistics about the average income that one needs in order to buy a house now. Homeownership is still a very important part of the American Dream. For a lot of people, it's a way to build financial stability."

"We are so close to getting there," said Supervisor Kenny Boddye (D-Occoquan). "It's something frankly that other jurisdictions have had for years longer than us, and it's really paid dividends in actually delivering committed housing for folks who really need these set limits on their housing."

Prince William County and other Northern Virginia counties have faced challenges with increasing affordability of housing. The average home sale price was $568,500 in October, up from $550,000 the previous October, according to a report from the Realtor Association of Prince William. RentCafe estimates the average rent price in Prince William County is $2,076 as of October, although prices can be more or less based on rental size and location. However, their data shows the typical rent budget is no more than $2,000 for 47 percent.

Boddye noted the average price of a detached home in Prince William County is $720,000, and about half of renters are paying more than the recommended 30 percent of income toward housing.

On Tuesday, Joan Duckett, director of Prince William County's Housing and Community Development, presented affordable housing program guidelines to supervisors. For the affordable housing loans provided through the Affordable Housing Fund, recipients would be selected from a competitive application process. The types of projects allowed under the program can be development of multifamily affordable units, acquisition of affordable housing to be be preserved and renovation of affordable units. The fund will support housing for households making 50 percent to 80 percent of the area median income. According to the guidelines, the fund would not support units to be rented or sold at market rate.

To be eligible for a loan, developers must have secured funding sources, have an affordability period of 15 to 50 years, and have rent and mortgage affordability restriction covenants. The loan amount would be no more than 20 percent of the non-county development costs — a maximum $100,000 per unit for households making 50 percent of the area median income or $50,000 per unit for up to 80 percent of the area median income. Duckett said the average loan amount would be $75,000 per affordable unit.

The Board of County Supervisors initially allocated $16 million to the fund and will seek a $5 million annual commitment starting with the upcoming fiscal year 2027 budget.

Duckett said the Office of Housing and Community Development will host introduction meetings on the Affordable Housing Fund for interested developers in January. The first 90-day application period is expected to open on May 1, 2026, followed by Housing Board consideration in October 2026 and funding decisions by the Board of County Supervisors in December 2026.