The Department of Housing and Community Development (DHCD) plays an integral role in Virginia’s response to homelessness. DHCD continues to be a crucial resource to communities across the commonwealth allowing persons who are experiencing homelessness to access resources with the goal of obtaining permanent housing as quickly as possible.

Virginia saw a 4.6% increase in the overall number of people experiencing homelessness during the Point-in-Time count (based on preliminary reporting) between January 2023 and January 2024. Housing and Urban Development (HUD) will not release the official Point-in-Time count until later in 2024 or early 2025.

The two main reasons for homelessness as reported by the National Alliance to End Homelessness are housing costs and wages. Based on evidence from the National LowIncome Housing Coalition, Virginia ranks 18th in the country with the highest housing wage. The Fair Market Rent (FMR) for a two-bedroom apartment in Virginia is $1,573. To afford this level of rent without paying more than 30% of income on housing – a household needs to make $62,925 annually. This translates into an hourly rate of $30.25 assuming a 40-hour work week, 52-weeks per year. However, the average renter’s wage in Virginia is $23.17 ( https://nlihc.org/housing-needs-by-state/virginia).

Affordable rent for low-income households is as follows:

- Minimum Wage - $624/month
- Household under 30% of Area Median Income - $864/month
- Household at 50% of Area Median Income - $1,440/month

The National Low-Income Housing Coalition also reports that 24% (263,914) of renters in Virginia are extremely low income (defined as below 30% of area median income). To put this in perspective, this income level is $35,110 for a four-person household. The Coalition also reports that there is a shortage of 183,843 rental units that are affordable for these residents ( https://nlihc.org/housing-needs-by-state/virginia)

DHCD administers the Commonwealth of Virginia’s homeless assistance resources. These resources include almost $16.2 million in state and federal funding including an annual allocation for the State Housing Trust Fund Homeless Reduction Grant and the remainder of the COVID Relief Funds.

In the fall of 2023, DHCD held a competitive application for the Housing Trust Fund Homeless Reduction Grant open to nonprofits and units of local government to provide rapid rehousing, permanent supportive housing, and innovative programs for underserved populations.

In the spring of 2024, DHCD held a competitive application process for the Virginia Homeless Solutions Program (VHSP). The VHSP grant application combined state and federal funding sources (HUD’s Emergency Solutions Grant and Housing Opportunities for Persons with AIDS/HIV) along with State General Funds for homeless assistance and homeless prevention). To apply and receive these funds, communities were required to complete a community-based application that demonstrate an effective crisis response system designed to make homelessness rare, brief, and one time.