HD69 - Interim Report: Review of the Virginia Housing Development Authority


Executive Summary:
House Joint Resolution 731, approved by the 1999 General Assembly, directs JLARC to study the programs administered by the Virginia Housing Development Authority (VHDA) as well as the organization and management of the Authority. VHDA was created by the General Assembly in 1972 as a separate political subdivision for the purpose of providing safe and sanitary housing that families of low and moderate income can afford.

HJR 731 specifically directs JLARC staff to examine a number of issues regarding VHDA. The resolution directs JLARC to evaluate whether VHDA is addressing the housing needs of low and moderate income Virginians and is administering its programs in accordance with the statutory intent set forth in $36-55.25 of the Code of Virginia. This section of the Code of Virginia is the Authority's enabling legislation and directs VHDA to stimulate investment in construction and rehabilitation of affordable residential housing. The resolution expressly requests that JLARC examine VHDA's administration of the federal Section 8 program. This program provides rental assistance to very low income households and is administered in some areas of Virginia by VHDA. HJR 731 also directs JLARC to review the performance, operation, management, and organization of the Authority. A copy of HJR 731 is attached as Appendix A.

JLARC staff originally intended to report on VHDA's administration of the federal Section 8 program and the recapture of Section 8 funds by the U.S. Department of Housing and Urban Development (HUD) in this interim review. However, staff findings on the Section 8 program are not included in this interim report because the Office of the Inspector General of HUD has recently conducted an investigation of VHDA's administration of the Section 8 program but has not yet made public the written findings of this review. JLARC staff will examine the findings of this review prior to reporting on the Section 8 program.

The remainder of Chapter I discusses the statutory mission and organizational structure of VHDA. In addition, it provides some financial background on VHDA financing. Chapter II discusses VHDA's housing programs as well as the other entities involved in the provision of affordable housing in Virginia.