Virginia: Tax credit program awards $60M to incentivize affordable rental housing

A program created by Democrats in 2021 has awarded $60 million in Housing Opportunity Tax Credits to investors developing affordable rental housing throughout Virginia.

The first round of tax credits is going to five projects across the state.

• The Rendezvous, Hopewell, $9M
• Block 17, Norfolk, $16.5M
• Block 9 A1, Norfolk, $16.5M
• Smith Ridge Commons, Roanoke County, $15M
• Mecklenburg Manor, Mecklenburg County, $3M

All five projects are in their early stages. Four are new developments, and one is the rehabilitation of an existing rural property with project -based rental assistance.

These awards are expected to create 572 new affordable units and preserve 47 units of deeply affordable housing.

The legislation requires that a portion of the HOTC developments be initially set-aside for developments located in jurisdictions with a population of 35,000 or less. Priority was also given to developments that are part of a strategic initiative for affordable housing such as the HUD Choice Neighborhoods Initiative.

There was also a priority for multi-phase developments that can increase efficiency by incorporating HOTC and combining all phases into a single development.

“Virginia Housing is proud to award Housing Opportunity Tax Credits to make homes more affordable for Virginians. Tax credits are a wonderful tool that allows developers to offer the units at affordable rental rates, impacting individual families and local economies,” Virginia Housing CEO Susan Dewey said.