Tactics vary, but goal is making more housing affordable for more people in Williamsburg area
Examples include a nonprofit senior-living facility, community land trusts, aging-in-place initiatives, home mortgage assistance and hotel conversions
Efforts to address housing affordability are gaining momentum across the Greater Williamsburg region as local governments, nonprofits and developers implement a range of strategic initiatives. Keep reading to learn how these new developments and funding shifts are reshaping the local housing landscape:
Senior Housing: Details on several Forest Heights projects, including a senior living facility specifically for residents 55+ earning 60% or less of the Area Median Income.
Permanent affordability: How James City County’s community land trust model for The Moores on Clark Lane intends to decouple land costs from home prices, keeping the homes affordable going foward.
Aging in place: Details about York County’s use of Community Development Block Grants (CDBG) to help elderly residents perform essential safety and accessibility repairs.
Direct mortgage assistance: A look at the “Williamsburg Way Home” and York County’s HOME program, offering grants and forgivable loans to bridge the gap for first-time buyers.
Hotel conversions to workforce housing: As some of the region’s hotel stock has aged and tourism has flattened, many see these properties as prime candidates for conversion to housing. Examples include Fort Magruder on Pocahontas Trail, which has been approved by James City County and a proposal for the MainStay Hotel on Capitol Landing Road, which still needs city approval.
Senior living proposal in James City
The James City County Board of Supervisors recently revisited plans for the Forest Heights Senior Independent Living Facility proposed for 6015 Richmond Road. The project was originally approved in 2019, but COVID-related challenges meant construction could not begin within the required 36-month window and the approved Special Use Permit (SUP) expired. At the meeting on February 10, 2026, project applicant Doug Harbin of Wayne Harbin Builder, partnering with local nonprofit Bay Aging, sought reapproval with the same proposal and conditions.
Bay Aging is a regional nonprofit established in 1978 that serves older adults in Virginia’s Middle Peninsula, Northern Neck, and Greater Williamsburg. Their services include comprehensive transportation, housing, and healthcare. During comments made to the board, Alan Walker, Assistant Director, Multifamily Housing Development at Bay Aging, added that acquisition funding for affordable housing is highly competitive and vulnerable to shifting state and federal priorities. He explained that gaining the Board’s approval is a prerequisite to pursue low-income housing tax credits and other grants. Walker noted that the organization has already completed a market study, Phase I environmental assessment, while preliminary site and floor plans were underway. Pre-construction would follow if financing is secured.
Discussion at the meeting indicated that the county faces increasing demand for affordable senior housing, especially for older residents living on fixed incomes such as Social Security or modest pensions. The 55+ Forest Heights community will address this need by making all 50 units income-restricted, serving those earning between 30% and 60% of the Area Median Income (AMI). Projected rents will be variable based on income tier, and will range from $800 to $1,200 per month for one-bedroom units and $1,000 to $1,500 per month for two-bedroom units.
Behind the site of the proposed senior living facility, Wayne Harbin Builder has already begun constructing another community that will eventually include 46 townhomes, all of which are also proffered as affordable. Projected prices range up to $212,000 for four units, up to $281,750 for three units and up to $394,350 for the remaining 39, though the board was told that the builder expects most to sell between $325,000 and $345,000. The builder indicated that roughly 90% of infrastructure is complete with the first model homes currently being framed and expected to be ready within a few months.
James City pursues Community Land Trust
James City County is establishing a Community Land Trust (CLT) to provide permanently affordable housing for residents earning up to 80% of the Area Median Income, after a feasibility study confirmed the CLT model effectively maintains long-term affordability while allowing homeowners to build equity. The initial project, The Moores on Clark Lane, will put 47 planned affordable units into the CLT. The county also views the Moses Lane Area as a future site for affordable lots through infrastructure and rehabilitation efforts.
A CLT is a nonprofit that owns the land and leases it to homeowners via a 99-year ground lease, removing land costs from the purchase price. For example, a home valued at $350,000 might be sold through the CLT for $200,000. Homeowners build equity by paying down their mortgage and through a shared-appreciation formula. In one scenario, a homeowner who pays down $30,000 in principal and earns 25% of a $200,000 market gain would exit with $80,000 in total equity. The remaining appreciation stays with the property as a permanent subsidy, allowing the home to be resold affordably—perhaps for $250,000—without further public funding. By embedding income limits in governing documents, the county ensures the trust remains a sustainable resource for the community.
Community development block grants in York County
A Community Development Block Grant (CDBG) is a federal funding tool designed to improve living conditions for low- to moderate-income residents through a variety of targeted local projects. These competitive grants are frequently utilized for housing rehabilitation, providing funds or forgivable loans to repair substandard homes or demolish dilapidated structures to ensure they meet modern safety standards. Beyond direct construction, CDBG resources support planning and needs assessments to prioritize a community’s revitalization goals.
Penniman Road Housing Study
A recent community meeting in York County focused on the Penniman Road Housing Study, an initiative funded through a $75,000 Community Development Block Grant (CDBG) awarded to the county by the Virginia Department of Housing and Community Development. The funding is intended to provide a comprehensive assessment of housing conditions and needs along the Penniman Road corridor, which the county states contains some of the county’s most affordable single-family homes, while also noting that many need rehabilitation.
The county notes that accessibility upgrades and other improvements that would allow residents to safely age in place. By identifying specific housing deficiencies and prioritizing needs, the county can develop a phased strategic plan and pursue additional grant funding for hands-on rehabilitation and revitalization efforts.
Carys Chapel Road Housing Rehabilitation Project
The Carys Chapel Road Housing Rehabilitation Project, awarded in July 2023, demonstrates how CDBG funding can be used to benefit residents, resulting in the rehabilitation of 14 homes, the substantial reconstruction of one home and the demolition of one vacant structure. In total, 27 low- to moderate-income residents in York County benefited from the project. The Carys Chapel Road initiative provides a model for what could follow the Penniman Road Housing Study: targeted investments in aging housing stock, improved living conditions for residents and long-term neighborhood stabilization through phased, grant-supported revitalization.
Mortgage assistance efforts
Local governments around the area are actively addressing mortgage-related challenges through several strategies, including lowering the barrier to entry for new buyers and providing a safety net for current homeowners in distress.
“Williamsburg Way Home”
During its Feb. 9, 2026, work session at the Stryker Center, Williamsburg City Council discussed a proposed affordable housing partnership presented by C&F Mortgage called “The Williamsburg Way Home.” The initiative is designed to expand access to homeownership for first-time buyers by addressing common barriers such as higher interest rates and upfront down payment and closing costs. The program would rely on $900,000 in federal COVID-19/ARPA relief funds previously designated by the City for housing initiatives. The broader funding vision totals $2.7 million, combining the City’s allocation with potential contributions from William & Mary and community partners.
The proposal is described as a focused strategy aimed at helping first-time buyers navigate the homebuying process, providing a centralized, branded campaign and website that would serve as a single hub for grant information, educational materials and homeownership resources. To help reduce upfront expenses, C&F would offer a 0.5% lender credit, capped at $5,000 per loan. In addition, the City would provide grants ranging from $5,000 to $10,000 per household for down payment assistance or interest rate buydowns, though that figure could increase based on feedback. If approved by the City Council as expected, an educational marketing campaign could launch soon, followed by activation of the grant program.
York County HOME Down Payment and Closing Cost Program
York County offers a program designed to help first-time homebuyers bridge the financial gap when purchasing a new or existing home within the county. To be considered a first-time buyer under this program, applicants must not have owned a primary residence within the last three years. Beyond residency requirements, all participants must complete a VHDA-approved First-Time Homebuyer Education Class and ensure the selected property passes both a qualified whole-house inspection and all local building codes.
Financial eligibility is strictly determined by household size and income. To qualify, a household’s total income must not exceed 80% of the area median income. These limits scale from $55,450 for a single-person household up to $104,550 for a household of eight. The program offers up to $10,000 in assistance, though the buyer is still required to contribute at least 1% of the sales price toward the purchase. This assistance is structured as a loan secured by a signed Promissory Note, though it carries a unique forgiveness clause. If the homeowner remains in the home for a full five years without selling, leasing, or transferring the deed, the note is cancelled and no repayment is required. However, if the property is sold or transferred before this five-year period ends, the note is considered in default and must be repaid, though homeowners do reserve the right to repay the sum early without any premium fees.
James City County Mortgage Assistance Program (MAP)
This mortgage assistance program is designed to support low-income homeowners facing sudden financial instability. The program specifically serves individuals and families who find themselves in a temporary crisis due to “unavoidable circumstances.” To ensure the program’s long-term impact, assistance is reserved for those whose current hardships are situational rather than the result of chronic financial mismanagement or long-term patterns of debt.
To qualify, a household’s total income must not exceed 80% of the Area Median Income. The assistance is strictly limited to the applicant’s primary residence, ensuring that funds are used to maintain stable housing for local residents. Additionally, applicants must be in good standing with the local government; those with delinquent loans or unpaid taxes owed to James City County are ineligible for the program.
The financial structure of the assistance depends on the total amount requested, with a maximum cap of $5,000 to cover mortgage costs and past-due payments. For smaller interventions under $2,500, recipients are only required to sign a promissory note. However, for larger amounts exceeding $2,500, the county requires the signing of a deed of trust note, and a lien is placed on the property to secure the investment.
Converting hotels into workforce housing
Fort Magruder / The Foundry at Williamsburg
In a unanimous decision last year, the James City County Board of Supervisors approved the conversion of the Fort Magruder Hotel and Conference Center into a new 126-unit apartment community named “The Foundry at Williamsburg.” This adaptive reuse project on Pocahontas Trail addresses a critical shortage of workforce housing by repurposing an aging hospitality asset, a strategy that aligns with the county’s 2045 Comprehensive Plan. By utilizing the existing structure, the developer, Conserve Holdings LLC, is able to provide a mix of residential and commercial space without the need to develop local green space.
A central feature of the approval is a 20-year commitment to housing affordability, with 40% of the units specifically set aside for the local workforce. These units are distributed across three income tiers to serve a broad range of residents: 14% are reserved for those earning 60% or less of the Area Median Income (AMI), 14% for those at or below 80% AMI, and 12% for households making up to 120% AMI. To prevent residents from becoming rent-burdened, the developer has proffered that rent for these units will be capped at 30% of the tenant’s household income.
The project also balances modern residential needs with historical preservation. While the site will feature updated stormwater infrastructure, a fitness center, and two pools, the developers have committed to leaving a significant Civil War-era fortification on the property untouched. Known as Redoubt Number Three, the site played a key role in the 1862 Battle of Williamsburg. County officials and the Planning Commission highlighted the project as a vital step in helping young families and essential workers afford to live in the community where they work.
MainStay Suites on Capitol Landing Road
A proposal to convert the MainStay Suites on Capitol Landing Road into 88 workforce housing units remains in the conceptual phase as it awaits official review. While the project was initially expected to appear before the Planning Commission, a public hearing has not yet been scheduled. As a result, the application has not yet begun the formal cycle of commission recommendations or City Council votes required for approval.
The concept involves rezoning the nearly five-acre property from the “Culinary Arts and Hospitality District” (B-4) to Planned Development Housing (PDH). This zoning category was specifically designed by the city to facilitate the adaptive reuse of older hotels into affordable residential spaces. If the plan eventually moves forward, it would transform the 1980s-era hotel into a mix of studio and one-bedroom apartments.
As a potential PDH project, the development would be subject to strict city affordability standards. These include reserving units for households earning 80% or less of the Area Median Income (AMI) and capping rents at 30% of a resident’s gross income. These regulations are intended to ensure that adaptive reuse projects provide genuine relief for the local workforce. In addition to the rezoning, any formal advancement of the project would require the developer to provide a detailed management plan. This plan must address long-term affordability compliance, property maintenance, and partnerships with local social services. For now, the proposal serves as a potential blueprint for increasing Williamsburg’s housing stock by repurposing existing infrastructure along the Capitol Landing Road corridor.
The writer used AI tools and these sources:
Agenda - James City County Board of Supervisors Retreat, February 12, 2026
Agenda - James City County Board of Supervisors regular meeting, February 10, 2026
Video - James City County Board of Supervisors regular meeting, February 10, 2026
Agenda Packet - Williamsburg City Council work session, February 9, 2026
Video - Williamsburg City Council work session, February 9, 2026
York County Carys Chapel Road Housing Rehabilitation Project website
York County HOME Down Payment and Closing Cost Program website
Some moderate-income home buyers could get boost in James City
Initiative Aiding Williamsburg Homebuyers Likely to Get $900K in COVID Relief Funds
Hotel Conversion to Workforce Housing Proposed on Capitol Landing Road
James City Approves Hotel Conversion to Apartments Near Williamsburg
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Thank you. So very informative.