The problems surrounding hundreds of cost-controlled affordable dwellings in Fairfax County have widened the already deep schism between housing officials and their critics on the Board of Supervisors.
While supervisors blame homeowners and the lending industry for approving the improperly large loans, they also say the county should have had more stringent controls to prevent the practice.
“It seems like it’s just another in a long series of problems with the housing authority,” said Springfield District Supervisor Pat Herrity, a Republican.
Lee District Supervisor Jeff McKay, a Democrat, called the housing department “asleep at the switch” on the issue.
County housing staff members said they gave ample notice to the restrictions that should have been heeded. Anyone making a title search should have noticed the loans weren’t allowed. The same warning is provided in other land and tax records. Before they buy one of the units, homeowners are required to go through a counseling session that details the restrictions and are required to sign a yearly affidavit to ensure they’re following the rules.
“The county … should expect that title companies and lenders undertake appropriate due diligence before making a loan,” staff said in the statement. “However, we know that the recent real estate market has been fraught with lenders who took undue risk and insufficient diligence.”
The debate over affordable housing has typically centered on how much the county should spend to buy homes and apartments.
The units in question are generally not owned or subsidized by the county, but instead are set aside by developers seeking to build subdivisions or apartments. The private ownership makes the properties harder for the county to track, said Board of Supervisors Chairwoman Sharon Bulova.
