THE STARTING POINT
Executive summary
The opportunity, principal findings, and an invitation to county leaders and housing partners.
Read the summary Download PDF ↓HOUSING RESEARCH · 2026
Unlocking Affordable Housing Production in the DMV
A practical path to lower development costs, reduce local funding gaps, and deliver more attainable homes.
175
Homes in the modeled Case Study
A mix of one- to four-bedroom rentals$270K
Modeled complete cost per home
$270,469, including land, financing, and reserves300+
Separate homes in predevelopment
With development partners; local approvals still required01 / THE OPPORTUNITY
More attainable homes begin with what they cost to build.
Restricted rents limit what affordable housing can finance. When development costs rise, counties are asked to fill the gap. This research examines a different starting point: lowering the complete cost of delivery.
~$95,000
in requested local support per home
Six selected 2025 Northern Virginia LIHTC applications averaged $94,790 per home in identified local support, giving each application equal weight.
The proposed model combines modern factory-built homes, federal 4% Low-Income Housing Tax Credit financing, and zoning that allows a unified, professionally managed rental community.
Explore the financing problemCOMPLETE DEVELOPMENT COST PER HOME
47%lower modeled cost per home
than the application average
An illustrative comparison, not a controlled construction-cost study. Sites, dates, building forms, and requirements differ. The entire difference cannot be attributed to factory construction. Methods: Appendix E ↗
02 / THE CASE STUDY
A complete community.
A different cost structure.
A proposed 175-home community on a real, anonymized site in the Washington-area HUD income-limit region. The model balances the development budget without additional local or state gap funding.
$47.33Mmodeled complete development budget
60% AMIBlended modeled affordability
95 homesWith three or four bedrooms
$0Additional local or state gap funding in the model
Federal tax-credit equity remains essential. No property-tax abatement is assumed. Costs, income, financing, and approvals remain project-specific.
| Senior mortgage | $31,003,150 |
|---|---|
| Federal LIHTC equity | $12,980,242 |
| Deferred developer fee | $2,000,000 |
| Interim operating income | $1,347,422 |
| Residual sponsor cash | $1,298 |
| Total sources | $47,332,112 |
The residual sponsor-cash line is a permanent-financing balance, not the upfront cash requirement. Approximately $1.67 million of predevelopment equity and construction bridge financing are also required.
| Land | $3,110,000 |
|---|---|
| Hard costs, excluding contingency | $28,599,454 |
| Soft costs, excluding developer fee | $3,685,834 |
| Construction interest | $2,646,432 |
| Financing costs, excluding interest | $1,445,804 |
| Developer fee | $4,111,000 |
| Construction contingency | $1,423,111 |
| Deposits, reserves, working capital | $2,310,477 |
| Total cost | $47,332,112 |
03 / THE HOMES & NEIGHBORHOODS
Familiar neighborhood character.
New possibilities for delivery.
Single-story homes with individual entrances, shared outdoor space, and professional management. The paper explores how duplexes, quadplexes, and selected detached homes can work together.
All imagery is conceptual. Final products, engineering, accessibility, site plans, and approvals remain to be established.
Explore floor plans & site conceptsWHO COULD THIS SERVE?
Room for working households at different stages of life.
The paper examines one- and two-income households, young professionals, families, and older adults. Eligibility depends on actual household size, countable income, and the applicable local limits—not occupation.
Households, incomes & rents04 / A PATHWAY FOR COUNTIES
Make room for the model.
The paper calls for a predictable zoning pathway in suitable districts, allowing qualifying factory-built homes to operate together as one commonly owned rental community.
- 01
Bring the right staff together
Coordinate housing, planning, zoning, and counsel to review how existing definitions treat HUD-code homes and multifamily rental communities.
- 02
Identify where it can work
Focus on districts with developable land, sufficient density, utility capacity, road access, and practical connections to jobs and services.
- 03
Clarify the zoning pathway
Address multiple principal buildings on a common parcel, dwelling-unit density, exterior setbacks, internal separation, and shared infrastructure.
- 04
Keep ordinary safeguards in place
Retain applicable fire, accessibility, environmental, engineering, and public-safety requirements, with enforceable long-term maintenance responsibilities.
These are the white paper’s recommended review steps. Local counsel and staff must determine the appropriate ordinance language and process for each jurisdiction.
THE PUBLICATION
Start with the summary.
Go deeper into the evidence.
Published October 14, 2026. The full white paper is the authoritative publication; this site provides selected findings and a guide to the research.
THE COMPLETE RESEARCH
Full white paper
Financial analysis, household examples, zoning recommendations, visual concepts, and supporting evidence.
Read the full paper Download PDF ↓A CONVERSATION WORTH STARTING
Will your county be next?
Explore the findings. Share the research. Help establish a clear path for more attainable homes.
Stefan Kronenberg
Founder, Kronenberg Enterprises
The strategy reflects several years of research, financial analysis, product evaluation, and engagement with development and public-sector partners.
stefan@kronenbergenterprises.com