Fairfax County Gov Buys a Hotel for $2.5 Million OVER its Appraised Value

The Ends Don’t Justify The Means

With a difficult FY 2026 budget forecast on the horizon, the Board voted 9 to 1 to purchase a former hotel property as a potential shelter for 20 percent ($2.5M) over its appraised value and 300 percent ($9.5M) over its assessed value. To make matters worse, the County intends to reduce the capacity of the existing 94 hotel extended stay suites to approximately 40. The reasoning behind the reduction in capacity and more importantly, the estimated cost of these renovations was also unknown at Tuesday’s meeting. The conversion requires a public review process which is being rushed and has a public information meeting scheduled in the middle of the holidays on December 19th. While the County undoubtedly needs shelter housing, the ends shouldn’t justify the means when it comes to a public input process or the spending of taxpayer dollars.

As the weather turns colder, the need for shelter housing for residents and families experiencing homelessness and or domestic violence can be a life-or-death issue. The County runs a Hypothermia Prevention Program at its shelters and faith-based sites for anyone who needs sheltering and basic needs assistance (see more information below). While the County’s existing shelters are oversubscribed and securing additional space is important, it does not eliminate the need for the County to be fiscally prudent with taxpayers’ dollars and respect the public input process while addressing the need. In August, the County purchased the former Extended Stay America building near Route 50 and West Ox Road for $14.5 million to be converted into the Fair Ridge Supportive Family Shelter. The Board approved an even higher purchase price, but staff was able to reduce it. The building had several appraisals, the highest of which was roughly $12 million. The property was assessed at $3.7 million in 2023 and most recently had an assessed value of $5.06 million. Prior to its purchase of the shelter property or any public process related to it, the County somehow requested a federal earmark for $4.1 million to operate a shelter at the site. Since the earmark was publicized when awarded, it is probable the seller had knowledge of the award, weakening the County’s bargaining position and prematurely committing the County to the project, despite its many fiscal challenges and lack of public input. Further, the Board has yet to be briefed on the planned renovations, and their cost was not available at Tuesday’s meeting.

At Tuesday’s meeting I requested data regarding the number of homeless individuals and families currently on our wait list and those that are currently being put up in hotel rooms; unfortunately, this information was not readily available, but staff will be getting this answer for the Board shortly. I have since asked a budget question to also get the fiscal impact of these numbers.

On December 19th from 7-8pm, there will be a virtual community meeting on the Fair Ridge Supportive Family Shelter to finally get public feedback on the project.

Last week the Board of Supervisors received an update on the FY 2026 budget forecast, which is looking like a very difficult budget. The County Executive has already asked agency directors to identify where each agency could potentially cut 10 percent of its budget. While these proposed reductions are only potential reductions, he made it clear that they will impact current programs.

Purchasing a building for $2.5M over its appraised value and $9.5M in excess of its assessed value, reducing its capacity by 50 percent, not knowing the general cost of the proposed renovations prior to acquisition and with all of this taking place prior to any public process is not the way the County should be conducting itself. This is another example of how I believe the County is pursuing affordable housing the wrong way. Earlier this year I shared with you what I think are better approaches(see my housing newsletter).