A Virginia program aimed at making it easier for individuals working at new business locations to find housing is seeking a second round of proposals for residential projects.
There is $15 million available in this round that Gov. Glenn Youngkin announced earlier this month. The Workforce Housing Investment Program launched last fall, and the governor identified 10 projects in May that were selected to receive the first $17 million batch of funding. The state has set aside $75 million for the program over five years, with the goal of building 5,000 workforce homes.
Funding is targeted at housing projects located within a half-hour drive of economic development sites where new jobs were announced within the previous year. In more rural areas of the state, the homes must be within a 45-minute drive to qualify.
“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 an Oct. 7 statement.
Among the projects selected in May are a mix of 31 townhouses and five condos that Housing Alexandria, a nonprofit developer, plans in Alexandria's Seminary Hill neighborhood near Washington, D.C. Other selected projects included 48 townhouses in Bristol, a city on the Tennessee state line, and in South Boston, where 96 homes are planned to support a new Hitachi Energy electrical transformer factory that will create 825 jobs.
The intent of the state’s $75 million is to leverage private-sector investment in housing. The state hopes its commitment will catalyze $750 million in overall funding. The state support is in the form of loans and grants for homeowners and renters making between 80% and 120% of the area median income, or up to 150% in rural areas.
Grants of up to $3 million are available, or up to $5 million when a new or expanding business will create at least 500 jobs. The South Boston housing received a $2 million grant, while just over $1 million went to the Alexandria project.