Roanoke, Virginia – The City of Roanoke Economic Development Authority has announced a significant investment to support affordable housing initiatives within the city. In a strategic move to address housing shortages and high rental costs, the Economic Development Authority has allocated $225,000 of its operating funds to the Roanoke Workforce Housing Development Fund.
This funding is aimed at increasing the availability of affordable housing by providing low-interest loans to housing developers. A stipulation of these loans is that at least 20 percent of the units in any new development must be affordable for families earning no more than 60 percent of the area’s median income. Furthermore, these units must maintain their affordability for a period of 20 years.
“We believe that housing for everyone is a crucial component of economic development,” stated Economic Development Authority Chair Braxton Naff. He emphasized the importance of available housing for attracting both companies and workers, highlighting that “A community cannot attract companies and workers if there is insufficient housing stock available.”
The need for such measures is underscored by a 2021 study conducted by Virginia Tech’s Institute for Policy and Governance along with the Virginia Center for Housing Research. The study indicated a shortfall of 4,500 housing units in Roanoke and pointed out that more than half of the city’s renters are cost-burdened, spending over 30 percent of their income on housing. This investment by the Economic Development Authority is a step towards mitigating these issues, aiming to make housing more accessible and affordable for the city’s residents.
