Ten localities in Virginia will receive a share of nearly $17 million to support workforce housing development resulting in 740 housing units.
The City of Harrisonburg received more than $1.2 million toward the redevelopment of a former office building. The Flats at West Market should increase affordable rental housing options for the regional workforce.
In addition to Harrisonburg, other awardees were located in Washington County, Suffolk, Winchester, South Boston, Danville, Alexandria, Blacksburg, Bristol and Wytheville.
Virginia Governor Glenn Youngkin made the announcement last week and said the projects will leverage more than $250 million in private investment.
“Through this new innovative program, we are catalyzing workforce housing construction by partnering with the private sector and local governments,” said Youngkin. “The efforts through our workforce housing investment program are supporting housing affordability, availability and accessibility for a growing Virginia.”
Virginia Housing administers the program which aims to increase the workforce housing supply in areas that have new or expanding businesses.
The program provides loans, loan subsidies and grants to support communities developing housing for homeowners and renters in rural areas.
Awards of up to $3 million are available to localities within a 30-minute drive of a new or expanding business where a qualified job announcement was made within the previous fiscal year. Up to $5 million is available for transformational projects of 500 new jobs or more.
“These projects represent the strategic collaboration that this program promotes to create more affordable housing for our middle-income families,” said Tammy Neale, Virginia Housing CEO. “Through Virginia Housing’s investment, Virginia is affirming its place as a national leader in housing innovation, which will spark new businesses and industries, as well as the new jobs and other investments they bring to Virginia.”
2025 workforce housing investment program awardees
$3,000,000: King Mill Pike
- Washington County
- Mount Rogers Planning District Commission
- This project will receive funding through a revolving loan fund to create new homeownership housing units to support new regional employers. In addition, local employers will offer homebuyer education and resources to employees to market the available units.
$3,000,000: Peanut Crossing Phase II
- City of Suffolk
- This project is the second phase of the redevelopment of a historic peanut processing plant, which will be transformed into new rental units to support the local workforce.
$3,000,000: Winchester Grove
- City of Winchester
- This rental project will revitalize a cold storage facility into a mixed-use development to support new job growth in the region.
$2,000,000: Community Housing Partners
- Industrial Development Authority of Halifax
- Town of South Boston
- This project is part of a larger middle-income project that will utilize land donated by the county to increase affordable housing and maintain long-term affordability for the surrounding workforce.
$1,824,000: Morotock Lofts
- City of Danville
- This adaptive reuse project in Danville’s Main Street district will develop 41 new units of rental housing to support regional job growth.
$1,223,813: Flats at West Market
- City of Harrisonburg
- Through the redevelopment of this former office building, the city will increase affordable rental housing options for the regional workforce.
$1,080,000: Seminary Road
- Housing Alexandria
- City of Alexandria
- Located close the new INOVA campus, this project is part of the Landmark Mall redevelopment, which will bring new homeownership opportunities to workforce households in the region.
$923,888: Prices Fork Elementary
- New River Valley Regional Commission
- Town of Blacksburg
- In its fourth and final phase of development, this project will develop new rental housing units to support increased regional job growth in the surrounding communities.
$480,000: Wagner Road
- Mount Rogers Planning District Commission
- City of Bristol
- To support recent job growth in the city and region, this project will build 48 townhomes to increase homeownership opportunities for middle-income households. In addition, local employers will offer homebuyer education and resources to employees to market the available units.
$400,000: 140 South 1st Street
- Joint Industrial Development Authority of Wythe County
- Town of Wytheville
- This project will redevelop a once derelict downtown building into a mixed-use complex that will include eight rental units targeted to the regional workforce.
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Crystal Graham
