An initiative to support new workforce housing across Virginia has received a new round of funding.
The Virginia Workforce Housing Investment Program has committed $75 million over the next five years to build 5,000 workforce housing units to coincide with other economic development projects.
Republican Gov. Glenn Youngkin said in a press release that public-private partnerships are helping deliver workforce housing to further grow Virginia’s economy.
“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. “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.”
The program is administered through Virginia Housing, and aims to increase workforce housing in areas seeking new business or business expansion. It distributes loans, subsidies, and grants to communities developing housing for homeowners and renters earning between 80% and 120% of the Area Median Income (AMI) or up to 150% AMI in rural Virginia.
It further awards funding grants of up to $3 million to localities, and up to $5 million for transformational projects that create 500 jobs or more. The Virginia Legislature has also implemented measures to enhance the program, including extending access to rural communities, refining guidelines, and enhancing flexibility.
Secretary of Commerce and Trade Juan Pablo Segura said in a statement that job creation is the “bedrock of thriving communities,” and Virginia’s success lies in building affordable, high-quality housing for those workers.
“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,” Segura said.
The program was created alongside Executive Order 42, which ties economic development to workforce housing supply and availability. The first round of awards topped $16.9 million for 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.”
