Governor Youngkin introduces major workforce housing initiative aiming to boost Virginia’s economy and housing availability
Richmond, Virginia – At the Governor’s Housing Conference in Virginia Beach, Governor Glenn Youngkin introduced a landmark initiative aimed at addressing Virginia’s growing need for workforce housing. The Workforce Housing Investment Program, a $75 million initiative managed by Virginia Housing, seeks to catalyze a total investment of up to $750 million, ultimately constructing 5,000 workforce housing units over the next five years. This project aligns housing expansion with economic development, helping to meet the housing demands of Virginia’s expanding workforce.
The initiative comes as Virginia attracts record numbers of businesses and economic investments. “With record employer relocations and expansions in the Commonwealth, over $85 billion in capital investment, nearly 250,000 jobs created, and a reversal of recent trends on net-out migration, it is clear that Virginia is growing, and we need to make sure the supply of housing can meet our surging demand,” Governor Youngkin said.
Executive Order 42: Linking Housing to Economic Development
Additionally, Governor Youngkin signed Executive Order 42, which formally integrates workforce housing development with economic planning in Virginia. The order mandates that new business site investments assess local housing development plans to ensure alignment with the area’s economic growth. It directs the Virginia Economic Development Partnership and the Department of Housing and Community Development to coordinate with Virginia Housing, helping businesses locate in regions that have sufficient housing or plans to increase it.
Virginia’s goal is to streamline economic and housing initiatives so that as new companies establish themselves in the state, housing is available for employees across the income spectrum. This approach addresses both housing shortages and the immediate needs of incoming workforces, supporting both the private sector and local governments in this effort.
Support for Middle-Income Workers and Rural Housing Needs
The Workforce Housing Investment Program will provide grants, loans, and subsidies to localities and nonprofits, targeting workers earning 80-120 percent of the area’s median income, and up to 150 percent for rural regions. To qualify for investment, a locality must be within a 30-minute commute of a business adding a minimum number of jobs: 100 jobs for non-distressed areas, 50 for distressed localities, and 25 for double-distressed communities.
Secretary of Commerce and Trade Caren Merrick noted that the new program will be a powerful resource for companies considering relocation or expansion in Virginia. “The Workforce Housing Investment Program ensures that companies moving to Virginia have a set of tools to work with communities in development of housing for their workforce,” she said. “We will support business growth and encourage increased development of workforce housing for Virginia families.”
Flexible Housing Solutions to Attract New Businesses and Families
The program’s flexible design is intended to allow Virginia Housing to work directly with communities to develop impactful solutions for housing availability, especially for middle-income workers in regions that need immediate workforce support. Tammy Neale, CEO of Virginia Housing, emphasized the broad benefits of workforce housing, which not only supports workers but attracts businesses and contributes to job growth in the area. “Affordable housing changes lives, and it also attracts businesses that grow and add new jobs,” Neale said. “This new, flexible program allows us to magnify our collective impact through partnering directly in the communities that need assistance for middle-income workers.”
With both the public and private sectors involved, the program looks to not only support current housing needs but also anticipate future demands as businesses move to or expand within Virginia. This initiative aims to strengthen the state’s economic ecosystem by creating communities where families, workers, and businesses can grow together.
Driving Economic Growth Through Workforce Housing
The introduction of the Workforce Housing Investment Program, coupled with Executive Order 42, aligns Virginia’s economic development with a robust housing strategy. This approach helps Virginia remain competitive in attracting and retaining businesses by ensuring that housing is not a barrier to economic expansion. The initiative provides Virginia communities with the means to proactively prepare for growth and development, supporting both current and future needs.
The investment from Virginia Housing, in collaboration with local and state partners, demonstrates a significant commitment to advancing the state’s infrastructure and preparing communities for the opportunities ahead. As Virginia continues to attract businesses and capital investment, initiatives like the Workforce Housing Investment Program provide the foundation for long-term prosperity across the Commonwealth.
For more information on the Workforce Housing Investment Program, visit virginiahousing.com.
