With a number of economic development projects under way in Virginia, a new program will provide loans, subsidies and grants to localities and nonprofits to develop workforce housing.
The Workforce Housing Investment Program will invest $75 million over five years to potentially build 5,000 units.
Virginia Gov. Glenn Youngkin announced the program through Virginia Housing at a housing conference in Virginia Beach on Thursday.
“The Workforce Housing Investment Program ensures that companies moving to Virginia have a set of tools to work with communities in development of housing for their workforce,” said Caren Merrick, Secretary of Commerce and Trade. “We will support business growth and encourage increased development of workforce housing for Virginia families.”
The governor also issued an executive order which will address workforce housing supply and economic development together. The Virginia Economic Partnership and the Department of Housing and Community Development will work with Virginia Housing to ensure business site investment decisions include nearby localities’ plans to foster housing development to support economic growth.
“Affordable housing changes lives, and it also attracts businesses that grow and add new jobs. This new, flexible program allows us to magnify our collective impact through partnering directly in the communities that need assistance for middle-income workers,” said Tammy Neale, CEO of Virginia Housing.
Depending on the nature of each award, the $15 million could leverage $100 million of financing for housing development and $150 million in total development costs, according to Virginia Housing.
Breaking down the Workforce Housing Investment Program
For fiscal year 2025, Virginia Housing has set aside $15 million of its net revenues and plans to repeat the program funding annually, for the next five years. The program will specifically accelerate development of affordable housing for individuals and families making 80 to 120 percent of Area Median Income.
- Will provide loans, loan subsidies and grants up to $3 million to localities and nonprofits to develop housing for workers
- Up to $5 million available for transformational projects of 500 new jobs or more
- Applications will be scored by a cross-agency team from Virginia Housing, VEDP, and DHCD, and awards will occur by June 30, 2025
- Will be for housing for workers earning 80-120 percent of area median income or up to 150 percent in rural areas
To be eligible for investment:
- a locality must be within a 30-minute drive of a business adding new jobs
- 100 for a non-distressed locality
- 50 for a distressed locality
- 25 for a double-distressed locality.
As a self-supporting, not-for-profit organization created by the Commonwealth in 1972, Virginia Housing helps Virginians attain quality, affordable housing through a variety of innovative programs.
Visit virginiahousing.com for more information.
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Crystal Graham
