RD625 - Virginia Housing Trust Fund Structure and Use Plan and Loan and Grant Fund Impacts – FY2024 Update

Executive Summary:

The following report complies with the requirements as specified in Item 114 E.2. of Chapter 1 of the 2023 Acts of Assembly Special Session I and § 36-142 E. of the Code of Virginia.

The Department of Housing and Community Development (DHCD) must submit a plan outlining the proposed uses of funds appropriated to the Virginia Housing Trust Fund (VHTF) required by § 36-142 E., Code of Virginia. DHCD must also report on the impact of the loans and grants awarded through the fund, including but not limited to: (i) the number of affordable rental housing units repaired or newly constructed, (ii) the number of individuals receiving down payments and/or closing assistance, (iii) the progress and accomplishments in reducing homelessness achieved by the additional support provided through the fund, and (iv) the progress in expanding permanent supportive housing options per Item 114 E.2. of Chapter 1 of the 2023 Acts of Assembly Special Session I.

The Virginia Housing Trust Fund (VHTF) creates and preserves affordable housing and reduces homelessness in the Commonwealth. The two components of the VHTF are administered separately.

The Competitive Loan Pool for the production and preservation of affordable rental and homebuyer housing is administered through the Affordable and Special Needs Housing (ASNH) Program.

The Virginia Housing Trust Fund grants, used to reduce homelessness, are allocated through the Homeless Reduction Grants (HRG) administered through the Homeless and Special Needs Housing (HSNH) Program.

FY2023 Summary for Competitive Loan Pool

- In FY2023, approximately $59.5 million was requested for the $60 million VHTF made available in the Competitive Loan Pool. ASNH overall had $212.8 million requested with $163 million available across all sources.

- Through the Competitive Loan Pool, VHTF assisted in expanding affordable homeownership with 16 of the 80 awarded projects, creating 195 for-sale units.

FY2023 Summary for Homeless Reduction Grant (HRG) Pool

- In FY2023, over $16.8 million was requested for $12.9 million in Homeless Reduction Grants. Contracts follow the calendar year from January 1 – December 31. Final FY 2023 service numbers will be reported in next year’s report.

- During the last full year of implementation, a total of 1,886 households experiencing homelessness were served.