Virginia was awarded $7.5 million to increase and preserve the supply of decent, safe and sanitary affordable housing for low-income households including families experiencing homelessness.
The funding was announced today and allocated from the U.S. Department of Housing and Urban Development, or HUD, from the Housing Trust Fund. The affordable housing program should complement existing federal, state and local efforts.
“We’re proud to invest in states to create more affordable housing,” said HUD Secretary Marica L. Fudge. “The Biden-Harris Administration is committed to improving the nation’s housing affordability crisis and the Housing Trust Fund provides communities resources they need to produce more safe, sustainable and affordable housing.”
HTF is a formula-based program for states and U.S. territories. By law, each state is allocated a minimum of $3 million.
State affordable housing planners may use these funds for:
- Real property acquisition
- Site improvements and development hard costs
- Related soft costs
- Demolition
- Financing costs
- Relocation assistance
- Operating cost assistance for rental housing (up to 30 percent of each grant)
- Reasonable administrative and planning costs
The Housing Trust Fund is being capitalized through contributions made by Fannie Mae and Freddie Mac. In December 2014, the Federal Housing Finance Agency directed these Government Sponsored Enterprises to begin setting aside and allocating funds to the Housing Trust Fund. The Housing Trust Fund helps to strengthen and broaden the federal housing safety net for people in need by increasing production of, and access to, affordable housing for the nation’s most vulnerable populations. One hundred percent of funds must be used for extremely low-income families. This targeting ensures the priority of this program is helping those with the greatest needs.
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Crystal Graham
