Cape Charles residents and officials hear outline on proposed workforce housing

Cape Charles officials and a prospective developer outlined plans for a proposed workforce housing development on town-owned property near Old Cape Charles Road and the new Cassatt Parkway at a public information session Tuesday evening.

Town Capital Projects Manager Bob Panek said the roughly 16.5-acre parcel has been owned by the town for more than a decade after it was proffered during a prior rezoning. He said the town did not purchase the land, but has already invested in infrastructure planning to make housing possible at the site.

Panek said the town has committed roughly $600,000 toward water improvements, including two new wells and a planned 12-inch water main. The town has also spent between $60,000 and $70,000 on engineering for a sewer force main. The developer would be responsible for installing the sewer extension, estimated at about $1.5 million.

Town Manager Rick Keuroglian said the project is still in the early stages and would require a negotiated development agreement. He said that agreement would define workforce housing requirements, income limits, resale restrictions, rental rules, deadlines, public improvements, financing requirements, and enforcement provisions.

Keuroglian said workforce housing is generally aimed at households earning between 60% and 120% of area median income. Using an estimated median income of about $58,000, he said that would translate to a range of roughly $34,800 to $69,600 annually. He said housing costs would generally be expected to fall near 30% of household income.

Keuroglian said short-term rentals would not be allowed under the proposed agreement, and affordability restrictions could run for 20 to 30 years, depending on what is negotiated.

Developer Chris Carbaugh said the proposal calls for about 170 housing units, with at least 50% reserved as workforce housing and the remainder offered at market rate. He said the market-rate units would help subsidize the lower-cost units and make amenities possible.

Carbaugh said the development would use a “one-over-one” townhouse-style design, with one unit on the first floor and another above it. Units could range from one to three bedrooms and generally be around 1,000 to 1,300 square feet. The concept also includes open space, a pool, clubhouse, playground, parking, and boat or RV storage.

The project is expected to be built in phases, potentially over three to four years after construction begins.

During public comment, residents raised questions about the value of the town-owned land, the length of affordability restrictions, potential HOA fees, whether enough market research had been done, and how residents would be selected if demand exceeds supply.

Several speakers said the need for affordable and workforce housing is significant across Cape Charles, Northampton County, and the Eastern Shore, particularly for teachers, police officers, service workers, medical staff, and other working families.

Town officials reiterated that no final agreement has been approved and said there would be additional opportunities for public input before the project moves forward.