byline: Department of Housing and Community Development

At the Governor’s Housing Conference in Virginia Beach Thursday, Gov. Glenn Youngkin unveiled the Workforce Housing Investment Program, an initiative at Virginia Housing that will invest $75 million over five years to spur the creation of workforce-priced housing.

The funding holds the potential, according to a news release from the Governor’s Office, to “catalyze $750 million and build 5,000 units of workforce housing in conjunction with economic development projects in the commonwealth.”

Additionally on Thursday, Youngkin issued an executive order directing the Virginia Economic Development Partnership and the Department of Housing and Community Development to coordinate with Virginia Housing — which was created by the General Assembly in 1972 to help Virginians attain affordable housing — to ensure business site investment decisions take into account nearby localities’ plans to foster housing development.

Virginia has a housing supply of about 3.6 million residential units but has a housing demand of 4.1 million units, according to an analysis performed by the Department of Housing and Community Development. The current shortage of workforce housing in Virginia is 41,000 homes, according to the executive order.

The executive order also notes that an analysis from the Virginia Economic Development Partnership found Virginia’s metro areas are building new housing units at a lower rate than metro areas in competing states. Metro areas outside of Virginia are also issuing permits for new residential units at a faster rate than the commonwealth’s metro areas, according to the order.

“With record employer relocations and expansions in the commonwealth, over $85 billion in capital investment, nearly 250,000 jobs created, and a reversal of recent trends on net-out migration, it is clear that Virginia is growing and we need to make sure the supply of housing can meet our surging demand,” Youngkin stated. “The private sector is ready to step in and meet the needs of our growing workforce with much-needed workforce housing, and today’s announcement advances these efforts by accelerating workforce housing development and requiring local governments to support the housing growth that Virginia needs.”

Under the Workforce Housing Investment Program, Virginia Housing will provide loans, loan subsidies and grants up to $3 million to localities and nonprofits to develop housing for workers earning between 80% and 120% of the area median income, or up to 150% in rural areas.

To be eligible, a locality must be located within a 30-minute drive of a business adding new jobs. For a locality that isn’t economically distressed, that business must add 100 jobs. For a distressed locality — a locality with an unemployment rate above the state average or with a poverty rate above the statewide average poverty rate — the business must add 50 jobs. For a double-distressed locality — a locality with both an unemployment rate above the state average and with a poverty rate above the statewide average — the business must add 25 jobs.

The Virginia Governor’s Housing Conference, which opened Wednesday and continues through Friday, attracts more than 900 affordable housing advocates, providers and policy makers.