Accomack Manor to remain affordable housing for at least 10 years

Accomack County officials are preparing to take action that would preserve affordable housing at Accomack Manor in Parksley for at least the next ten years.

The county says the Virginia Department of Housing and Community Development approved the proposed agreement on August third, clearing the way for the Accomack Board of Supervisors to approve and execute the documents.

Accomack Manor, located on Metompkin Road, contains 90 affordable apartments and two management units. The complex was built in 2005 with the help of a 700-thousand-dollar Community Improvement Grant from DHCD.

The county loaned 630-thousand dollars of that grant to Accomack Manor LLC for infrastructure improvements, including a well water system, sewage treatment, roads and sidewalks. The loan is secured by a deed of trust.

The original agreement called for the loan to mature after 20 years, with one-percent annual interest. Questions arose last year over whether the loan was supposed to be forgiven if the property continued providing below-market rents.

County officials say the documents they reviewed did not contain any provision forgiving the loan.

After months of negotiations with the property owner and DHCD, the county has now reached an agreement designed to preserve the affordable housing.

The proposed amendment would extend the loan’s maturity date to November first, 2030. It would also allow the note to be extended for another 50 years.

Most importantly, Accomack Manor would be required to continue serving low-income households and maintaining rents below fair-market value for at least ten years after the agreement is executed — and potentially longer as long as the debt remains outstanding.

The agreement also requires the owner to apply for Virginia Housing low-income housing tax credits before 2030. If awarded, those credits could help finance a substantial renovation of the property.

The developer would also have the option of purchasing the county’s deed of trust note. But even if that occurs, the requirement to maintain affordable rents for at least ten years would remain in effect.

County officials say the agreement fulfills Accomack’s longstanding goal, dating back to the construction of Accomack Manor in 2005, of providing affordable housing for county residents.

DHCD said that once the documents are executed and recorded, the county will have satisfied the state’s Community Development Block Grant requirements associated with the project.