Governor Glenn Youngkin has announced a new round of funding for the Virginia Workforce Housing Investment Program. The program, which began nearly a year ago, is designed to increase workforce housing in areas experiencing economic growth across Virginia. The initiative commits $75 million over five years and aims to catalyze up to $750 million in total investment, supporting the construction of 5,000 workforce housing units connected to economic development projects.
The latest announcement adds an additional $15 million for this round, though it does not change the total intended program funding of $75 million. This move follows the success of the program’s first round of awards and increased demand driven by job creation.
“We are delivering needed workforce housing supply in partnership with the private sector and localities,” said Governor Glenn Youngkin. “Nearly one year ago, we came together to launch the Virginia Workforce Housing Investment Program to align Virginia’s housing development with the tremendous economic growth we are seeing all across the Commonwealth. 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. 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.”
Virginia Housing administers the program, which offers loans, subsidies, and grants for developing housing targeting those earning 80%-120% of the Area Median Income (AMI), or up to 150% AMI in rural areas. Awards can reach up to $3 million for localities near new or expanding businesses that have announced qualified jobs within the last fiscal year. For larger projects that bring 500 or more new jobs, awards may be as high as $5 million.
Program enhancements include expanded eligibility for rural communities, greater flexibility with matching funds, and refined guidelines aimed at maximizing available resources.
“The bedrock of thriving communities and lasting success throughout the Commonwealth lies in the creation of affordable, high-quality housing,” said Secretary of Commerce and Trade Juan Pablo Segura. “The Workforce Housing Investment Program complements the investment of companies moving to or expanding in Virginia to ensure adequate workforce housing for the regions and communities.”
The creation of the Workforce Housing Investment Program was first announced by Governor Youngkin through Executive Order 42, linking economic development more closely with housing supply. In May, the first round of awards distributed $16.9 million across 10 localities.
“Housing is the foundation of economic vitality, and companies want to locate where their employees can live and thrive,” said Virginia Housing CEO Tammy Neale. “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.”
Further details about the program can be found at VirginiaHousing.com.
