Affordable Dwelling Unit Real Estate Assessment Information
Important Information Regarding Affordable Dwelling Units
Please note that there is a change in the methodology used to calculate Affordable Dwelling Unit (ADU) real estate assessments as of January 1, 2018.
Steps & Ordinances
During the initial 15-year control period, the property’s assessment is calculated on the basis of the restricted control price established by Article 7 of the Loudoun County Zoning Ordinance (PDF) and Chapter 1450 of the Loudoun County Codified Ordinances. Once the initial 15-year control period has expired, the annual re-assessment of the property will now reflect the fact that the sales price control restriction no longer applies to the ADU property. The ADU property can now be sold at fair market value on the open market to any person or entity, subject to any terms and conditions established in Chapter 1450 of the Loudoun County Codified Ordinances, the county’s ADU ordinance.
As a reminder, the 15-year control period begins at the time of the initial sale which occurs on the date the deed of conveyance from the declarant is recorded. Therefore, the ADU control period ends 15 years after the date that the deed of conveyance from the declarant to the first purchaser of the ADU is recorded. For example, if an ADU was first purchased and the deed was recorded on July 1, 2003, then the 15-year control period ends on July 1, 2018.
Once the 15-year control period expires, the ADU property will be assessed and taxed based on market sales prices of similar properties within each respective neighborhood, including any sales of former ADU properties, occurring during the reassessment review period which is generally 12 months prior to the valuation date of January 1 of each year. This change in assessment methodology will result in a significant increase to the property assessment, according to preliminary market research.
ADU owners should familiarize themselves with the following documents, of which the ADU property is subject to:
- A Declaration of Affordable Dwelling Units Covenants recorded in the Loudoun County land records in the chain of title to the ADU property.
- Article 7 of the Loudoun County Zoning Ordinance (PDF) Opens a New Window. (Use the bookmark feature to navigate to Article 7 or page 932)
- Chapter 1450 of the Loudoun County Codified Ordinances Opens a New Window.
For More Information
Any questions about the assessment methodology or restrictions before or after the expiration of the control period should be directed to the Loudoun County ADU Program at 703-737-8043 between the hours of 8:30 am and 5:00 p.m., Monday through Friday.