Blog posts are the personal views of Letty Hardi and not official statements or records on behalf of the Falls Church City Council

Dear Friends,

Happy weekend! This week’s post will be briefer with highlights across a number of topics:

• Budget – we’re nearly the finish line, with final comment opportunity next Monday
• Affordable housing – what’s the latest at Virginia Village?
• Coming soon “Little City Sips”
• City Manager search process underway – how to share input

Happy Mother’s Day weekend – it will be a busy weekend in the Little City all about celebrating women. I’ll be volunteering at the Women’s History Walk today and then supporting a good cause and local restaurants at the Women’s Crawl this afternoon! Hope to see you.

Best,
Letty

What Happened This Week:

(1) FY27 Budget – we reached consensus during our final markup session of budget season, with a half penny real estate tax rate reduction, slight increases to other fees to keep up with inflation and costs, a few changes on the margin, and largely following the recommendation of the City Manager’s proposed approximately $130M operating budget for the city. We have a final public hearing next Monday night before our final vote and we’d welcome continued public input.

Letty’s Thoughts:

A half penny tax rate cut is a small change to the tax bill, but signals an important reminder that we need to keep taxpayers at the table and remember sustainable budget growth, especially when there is a mostly positive revenue picture (we’ll end the current year with a surplus and local revenues are solid, especially residential real estate values). I’ve written plenty about the budget over the past two months so I’d encourage you to go back to those posts – the last two should catch you up.

Looking ahead, a few things that are top of mind for me:

• Uncertainty ahead – between rising fuel costs, continued disruption to the region, lack of a state budget, and more – being conservative and prudent with our budget is important. I expect FY28 to actually be a difficult budget.
• True needs-based budgeting – how to balance flexibility, taxpayer burden, with the schools’ request for budget predictability in the revenue sharing model. The reality is that needs are not always 50-50. I expect we’ll revisit revenue sharing this summer.
• Feels like 2017 again – how to fund capital vs operating budgets. We are likely on the cusp of another round of expensive capital needs following a “facilities conditions assessment” now underway of school and city buildings.
• Long term vs short term – it’s human nature to be most responsive to issues that are urgent and important, but as the governing body and fiscal stewards of the city, it’s also our job to keep the future in mind.
  • Climate – this is one of those “important, but doesn’t always feel urgent” issues. We’ve received the most comments this year about funding solar panels at the Community Center (thank you!). As part of our commitment to the energy action plans we adopted in 2023 the staff recommendation is to fund the project with likely surplus dollars we’ll have this fall. As we all believe in climate change and our role in reducing greenhouse gas emissions, how do we ensure we keep climate is an evergreen investment in the budget?
  • Housing affordability – because this seems like a big, national issue, I often hear how Falls Church can’t solve it alone. Of course we can’t and we aren’t. But if budgets are to reflect our inclusive values and if we care about who can live here in the future, this will need to be an investment we make not just with yard signs, but with budgets.

(2) Affordable Housing – Virginia Village Updates

A good segue to the Virginia Village project! If you haven’t checked out the project’s city webpage (again you should use city resources as the main source of information which is why I generally link to those), I encourage you to check it out for a good primer especially the 4 sets of FAQs which I’m including below. I’m hearing some misinformation beginning to circulate so I really encourage you to skim this if you want to get up to speed.

FAQs

The Big Picture — What’s Happening and Why 

What’s Going On? 
The City of Falls Church is exploring whether reinvestment or redevelopment of the City owned Virginia Village properties could create modern, safe, affordable homes for current and future residents. No final decision has been made.  

Why Now?
Over the last decade, the City has used grant money to purchase 9 of the 20 Virginia Village properties to preserve affordability and prevent private, high-priced redevelopment. Some of the City owned buildings which are over 80 years old, need major repairs to stay livable, so the City is weighing whether reinvestment or redevelopment is best in the long term to protect and expand affordable housing on this site.  Several needed improvements to some of the buildings have already occurred, addressing things like roofs, laundry facilities, and more. 

What’s Decided vs. What’s Not 

What’s NOT decided: 

• There is no approved renovation or redevelopment plan.
• There is no rehabilitation or demolition schedule.
• Details like building designs, number of stories, and construction timing are not set.
• Renovation vs. redevelopment is still being evaluated. 

What is decided: 

• Only City owned properties are being considered; privately owned buildings on the Virginia Village site are not part of this effort, and the City is not using eminent domain to acquire additional lots. Past acquisitions and transfers were voluntary.
• If any project moves forward, it will include resident protections.

Who Could Be Affected? 

If you live in a privately owned building in Virginia Village (yellow building address on the map above): 

• Your building will not be included in potential renovation or redevelopment plans. The City is not pursuing eminent domain, and private owners have not indicated interest in selling at this time.

If you live in a City owned building in Virginia Village (green properties on the map above): 

• You may be affected in the future if a plan is approved — but nothing changes immediately. Many steps must still occur (public meetings, policy and funding decisions, approvals). Even under the most aggressive schedule, renovation or construction efforts would not begin for at least 18–24 months (and likely longer).
• Renovations would require extensive (full building) rehab that willbe quite lengthy. Duration of this process could be further extended if any expansions to the existing buildings is considered.
• Should redevelopment be pursued, new buildings would require several years to complete and become occupiable.

Resident Protections 

If renovations or redevelopment move forward, current residents of City owned units have these protections: 

• Advance Notice: You’ll receive months of notice before any physical changes or relocations happen. Much prior updates will also help set the stage for anticipated changes to ensure adequate planning and support services.
• Relocation Support: Renters will have assistance with temporary housing during renovation or construction, and individual needs will be prioritized (e.g., keeping kids in Falls Church City Public Schools and individual renters within City limits).
• Right of Return: You will have priority to move into the new homes once they’re ready and your household meets the income and eligibility requirements. The affordability levels of any new units will consider current residents’ incomes.

Bottom line: No one is being left without options, and you will have support and a path back if renovation or redevelopment happens.

Affordability Considerations 

Relevant Definitions

• Market rate affordable (or naturally occurring affordable): These units have cheaper rents mainly because they’re older or have fewer amenities compared to newer units available in this area. They are not, however, protected from large rent increases. Many privately owned Virginia Village buildings fit this category.
• Committed affordable: These homes are legally guaranteed to remain affordable, with annual rent increases being limited. The City owned units today are committed affordable, and any new affordable units built on City owned Virginia Village land would also be committed affordable. Residing in such units requires annual income verification that verifies renters qualify for the lower rent (this practice is required to prevent fraud and ensure those in need can find this limited supply of housing).
• Mixed Income developments: These are developments and properties that have a mix of committed affordable units at different affordability levels and market rate units. It’s a common way to produce more affordable homes while keeping housing financially sustainable. 

This week, the Planning Commission and Housing Commission had a joint work session to discuss the next steps – proposed edits to the small area plans based on the community input sessions (small area plans are some of the planning documents that envision the future of the city and guide future public and private investments) and the draft RFP (note it’s in draft form and based on input over the next few weeks, it will likely change ahead of City Council’s turn at it.) Our joint work session on May 18 will include the Planning Commission, Housing Commission, and Economic Development Authority where we’ll deep dive into the RFP.

(3) Little City Sips

In this week’s EDA meeting, staff previewed a project that will hopefully pilot this summer! Virginia allows local jurisdictions to apply for DORA licenses (designated outdoor refreshment areas). You may have heard of or experienced “sip and strolls” – where you can take your alcoholic beverage outside of a licensed restaurant and stroll on public streets or other designated areas. The city has submitted an application for a DORA license with the Virginia ABC. We hope to pilot Little City Sips in a small section of the downtown with 9 licensed businesses and 16 participating businesses this summer. A great way to enjoy our downtown and support local businesses. More soon!

(4) City Manager Search Process – Community Input

The search for the city’s next City Manager is underway, starting with an opportunity for community members and staff to provide feedback to the City Council on attributes we should look for in its next City Manager. The feedback form is now open and closes on Thursday, May 21.

What’s Coming Up:

May 11 – City Council Meeting* (budget adoption)

May 18 – City Council Work Session*

May 26 – City Council Meeting*

*All Mondays (except 5th Mondays and holidays) at 7:30 pm. You can access the agenda and livestream here, including recordings of past meetings