State to allocate $15M to support workforce housing

The Virginia Workforce Housing Investment program will soon distribute an additional $15 million in funding to support workforce housing development statewide, Gov. Glenn Youngkin announced this week.

That’s on top of $75 million committed over five years to affordable housing for middle-income employees across the state, a plan announced last year. In May, Youngkin announced the first round of $16.9 million going to 10 localities, including Suffolk, Washington County, Winchester, Danville, South Boston and Harrisonburg.

Virginia Housing, a self-supporting state authority, administers the Virginia Workforce Housing Investment program, which provides loans, loan subsidies and grants to support communities developing housing for homeowners and renters making 80% to 120% of the area median income (AMI), or up to 150% of AMI in rural areas.

“Housing is one of the most critical tools for economic competitiveness, and communities that have housing supply for their workforce are gaining new jobs and generating new private investment,” Youngkin said in a statement Tuesday. “Through this innovative program, Virginia is building affordable housing to support economic growth, strengthen our communities and ensure Virginians have the housing necessary to build their future right here in the commonwealth.”

Including matching investments from developers, private investors and localities, the program is expected to leverage up to $750 million in total housing investment and support the construction of 5,000 workforce housing units statewide.

According to the governor’s office, awards of up to $3 million are available to localities within a set radius of a new or expanding business where a qualified job announcement was made within the previous fiscal year. The office said up to $5 million is available for “transformational projects of 500 new jobs or more.”

Local governments and nonprofit organizations are eligible to apply for funding, and the deadline to apply is Nov. 7. A spokesperson said the goal is to have the housing projects completed within two years of the award.

“Housing is the foundation of economic vitality, and companies want to locate where their employees can live and thrive,” Virginia Housing CEO Tammy Neale said in a statement. “Virginia Housing continues to explore more effective ways to increase the reach of this program, and with the updates, we are continuing to invest in workforce housing, supporting the growth of our economy and keeping our workforce talent rooted in Virginia.”