Will “Workforce” Housing Actually Solve the Problem

Cape Charles officials and a prospective developer outlined plans Tuesday evening for a proposed workforce housing community on a 16.5-acre town-owned parcel near Old Cape Charles Road and the new Cassatt Parkway. Town Capital Projects Manager Bob Panek said the property was proffered to the town more than a decade ago and has since been the focus of significant infrastructure planning, including roughly $600,000 in water system improvements and an additional $60,000 to $70,000 in sewer engineering. Town Manager Rick Keuroglian said the project remains in the early stages and would require a negotiated development agreement establishing workforce housing requirements, income limits, resale and rental restrictions, financing obligations, and enforcement provisions. Keuroglian said workforce housing would generally target households earning between 60% and 120% of the area median income, or roughly $34,800 to $69,600 annually. Developer Chris Carbaugh said the proposal currently envisions about 170 housing units, with at least half designated as workforce housing and the remaining market-rate units helping subsidize affordability and community amenities.

This sounds nice, but does it actually attack the real housing problem? Historically, developers have been able to take dog poo, cover it with chocolate and nuts, and then convince Cape Charles it’s the best candy bar they’ve ever eaten. Is this happening again? Does Cape Charles have another severe case of the Emperor’s new clothes?

So-called workforce housing is not a federal program but rather a planning and policy concept targeting the “missing middle” — households that earn too much to qualify for traditional subsidized housing but too little to afford market-rate housing. Typically defined as households earning between 80% and 120% of AMI (e.g., teachers, nurses, police officers, firefighters, and service workers).
Financing tools often used include:

Low-Income Housing Tax Credits (LIHTC) — the most common
Local inclusionary zoning requirements
State and local housing trust funds
Community land trusts

Actual Section 8 Housing (Housing Choice Voucher Program)

Section 8 refers to the federal housing assistance program administered by the U.S. Department of Housing and Urban Development (HUD). Key features:

• Who qualifies: Households earning generally below 50% of the Area Median Income (AMI), with priority often given to those at 30% AMI or below (the “extremely low income” tier).
• How it works: The government pays a portion of rent directly to private landlords, and the tenant covers the gap (typically capped at 30% of their income).
• Administered by: Local Public Housing Authorities (PHAs), which maintain waitlists — often years long.
• Portability: Vouchers can move with the tenant, giving them flexibility to rent in the private market.
• Where They Intersect: “Section 8 Workforce Housing”
  The phrase is sometimes used loosely to describe affordable housing developments that:
• Accept Section 8 vouchers as a payment method, and
  Are targeted at lower-to-moderate income working households
• A development might be built with LIHTC financing (restricting rents to households at 60% AMI) while also accepting Section 8 vouchers for eligible tenants. In this sense, “Section 8 workforce housing” describes units that are both subsidized and occupied by working families.
• Key Income Thresholds at a Glance

Note: AMI varies significantly by metro area. In high-cost cities like San Francisco or Washington, D.C., 80% AMI can still represent a six-figure household income, while in lower-cost regions, it may be much less. This is why affordable housing policy is highly localized.

Question: If folks can’t use Section 8 vouchers, are the most vulnerable being taken care of?

Will this really solve anything? Is there just another gratuitous money grab? If you have lived here more than 20 years, your Spidey Sense is probably tingling. It seems a little bit sketchy, but still on-brand for Cape Charles.

We’re hoping for the best, but curbing our enthusiasm.

So it goes.

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Wayne Creed

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