Governor Glenn Youngkin has announced a new round of funding for the Virginia Workforce Housing Investment Program, aiming to boost workforce housing development in communities across Virginia. The program will continue to commit $75 million over five years, with the potential to leverage $750 million and create 5,000 units of workforce housing linked to economic development projects.
The announcement comes after a successful first round of awards, which saw high demand driven by job creation. The latest funding round includes an additional $15 million but does not change the overall $75 million program commitment.
“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 manages the program, which is designed to increase housing options for workers in areas experiencing business expansion or new business arrivals. The program offers loans, loan subsidies, and grants for communities developing housing for those earning 80%–120% of Area Median Income (AMI), or up to 150% AMI in rural areas. Localities near qualifying job announcements can receive up to $3 million, while projects tied to at least 500 new jobs may qualify for up to $5 million.
To extend the program’s impact, enhancements have been made, including expanding eligibility for rural communities, allowing greater flexibility for matching funds, and refining guidelines to make better use of 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 initiative was first announced as part of Executive Order 42, connecting economic development more closely with workforce housing availability. In May, Governor Youngkin announced that $16.9 million had been awarded during the program’s initial funding round, benefiting 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.”
More information about the program is available at https://www.virginiahousing.com/.
