RD305 - Virginia Housing Trust Fund Structure and Use Plan FY 2014 Update

Executive Summary:
A 2013 amendment to the FY 2013-2014 biennium budget increased the funding allocated to the Virginia Housing Trust Fund by $1,000,000. It now totals $8,000,000 for FY 2014. In addition, the 2013 General Assembly amended various sections of Chapter 9 of Title 36 of the Code of Virginia to provide a statutory basis for the Virginia Housing Trust Fund. Neither the amended budget nor statutes modified the current provisions for the use of program funds. However, § 36-142 E of the Code of Virginia now requires, under certain conditions, the submission of a plan to the Senate Finance and House Appropriation Committees that details the proposed expenditures of the Trust Fund. Although the threshold actions requiring the submission of a plan did not occur, the Department of Housing and Community Development (DHCD) is submitting a document that updates the Plan previously prepared in conjunction with the Virginia Housing Development Authority (VHDA). The updated plan details how the additional funds are to be allocated among the various categories of eligible activities. At least 80 percent of the Fund is being used to provide short, medium and long-term loans to reduce the cost of homeownership and rental housing. Up to 20 percent of the Fund is being allocated to provide grants for targeted efforts to reduce homelessness.