Newport News City Council approved a new housing development plan aimed at addressing concerns about affordable housing in the city.
Mayor Phillip Jones called the plan a “thoughtful, action-oriented framework” that will expand housing options and maintain existing neighborhoods.
City Manager Alan Archer said the Strategic Housing Initiatives Plan, or SHIP, will serve as a “practical roadmap for translating policy ideas into actionable strategies.”
Rooted in the results of a 2024 housing study, the plan provides Newport News with ways to accommodate expected population growth through 2050.
The SHIP features a list of recommended housing policy changes and projects. Included among the list is a suggestion to explore a land value tax (LVT). Land value taxes are based on the assessed value of the land itself without the value of buildings on it. A landowner holding onto an undeveloped plot in hopes that its value will increase could be incentivized to build a residential property, which they could sell or rent, increasing the profitability of the plot.
An assessment by the Progress and Poverty Institute of Richmond, found that LVTs are “broadly progressive, tending to reduce the tax burden in neighborhoods which are lower-income.”
Other ideas in the SHIP include establishing a land bank. Those are public entities that purchase and manage abandoned properties (like one in Chesapeake). Also mentioned is the possibility of repurposing churches and shopping centers, as well as exploring employer assisted housing programs where employers would help their workers cover the costs of renting or owning a home.
The average cost of rent in Newport News is currently $1,687 per month, about the same as Hampton and Norfolk. Just under half of the renters in Newport News are considered cost-burdened, meaning they spend more than 30% of their income on housing.
“With the typical age of first-time homebuyers reaching a record high, it is imperative that we explore alternative opportunities to make the American dream of homeownership a possibility for individuals across the economic spectrum,” Councilmember Cleon Long said in a statement after the SHIP passed.
“With the current state of the national real estate market, we must begin exploring innovative options… to make buying a home more affordable for the residents of the City of Newport News.”
In parallel with SHIP planning, the city reached a major milestone in its housing revitalization initiative last summer with the opening of Legacy Landing, a 155-unit apartment complex that replaced the old Ridley Place public housing project. It was completed in part with a $30,000,000 Choice Neighborhoods Initiative (CNI) grant from the U.S. Department of Housing and Urban Development.
Recent cuts to federal funding have changed the landscape for public housing grants, which could make securing money for projects outlined in the SHIP more difficult.
The SHIP does not include any sort of attached funding. City officials emphasized that the SHIP is intended to be a living document that will evolve over time as new information becomes available.
