Virginia expands workforce housing investment program to support economic growth
Richmond, Virginia – In a move to address the growing demand for affordable housing linked to economic development, Governor Glenn Youngkin has announced a new round of funding for the Virginia Workforce Housing Investment Program. This initiative, originally launched nearly a year ago, commits a total of $75 million over five years, with the goal of supporting the development of 5,000 workforce housing units across the Commonwealth. These housing projects are intended to align with the growth of new and expanding businesses, helping communities accommodate a growing labor force.
The announcement included an additional $15 million in funding for the program, which will accelerate the deployment of capital to high-demand areas. However, this additional amount does not increase the total program commitment beyond the $75 million originally allocated. “We are delivering needed workforce housing supply in partnership with the private sector and localities,” said Governor Glenn Youngkin. “Nearly one year ago, we came together to launch the Virginia Workforce Housing Investment Program to align Virginia’s housing development with the tremendous economic growth we are seeing all across the Commonwealth. Housing is one of the most critical tools for economic competitiveness, and communities that have housing supply for their workforce are gaining new jobs and generating new private investment. Through this innovative program, Virginia is building affordable housing to support economic growth, strengthen our communities and ensure Virginians have the housing necessary to build their future right here in the Commonwealth.”
Targeting Housing for Virginia’s Workforce
The Workforce Housing Investment Program is administered by Virginia Housing and is designed to support housing development for people earning between 80% and 120% of the Area Median Income (AMI) — with the upper range increased to 150% AMI in rural communities. By targeting this income bracket, the program helps middle-income workers, such as teachers, healthcare professionals, and first responders, access affordable housing near their workplaces.
Funding through the program is offered in the form of loans, loan subsidies, and grants, and localities can receive up to $3 million in funding. For transformational projects associated with 500 or more new jobs, the funding cap increases to $5 million.
Virginia Housing has also made strategic updates to the program to improve its reach and effectiveness. These updates include expanding eligibility to more rural communities, offering greater flexibility for matching funds, and adjusting program guidelines to better align available resources with community needs.
Connecting Housing with Economic Development
The creation of the Workforce Housing Investment Program followed Executive Order 42, which Governor Youngkin signed to formalize the connection between economic development and workforce housing. This order ensures that housing planning becomes a key part of Virginia’s strategy to attract and retain businesses.
The first round of funding, announced in May, awarded $16.9 million to 10 localities, supporting their efforts to build housing for incoming workers connected to business growth in those areas. “The bedrock of thriving communities and lasting success throughout the Commonwealth lies in the creation of affordable, high-quality housing,” said Secretary of Commerce and Trade Juan Pablo Segura. “The Workforce Housing Investment Program complements the investment of companies moving to or expanding in Virginia to ensure adequate workforce housing for the regions and communities.”
Keeping Virginia Talent at Home
Virginia Housing CEO Tammy Neale emphasized the critical role that housing plays in economic stability and business decisions. “Housing is the foundation of economic vitality, and companies want to locate where their employees can live and thrive,” she said. “Virginia Housing continues to explore more effective ways to increase the reach of this program, and with the updates, we are continuing to invest in workforce housing, supporting the growth of our economy and keeping our workforce talent rooted in Virginia.”
For more information about the Workforce Housing Investment Program or to view program updates, visit VirginiaHousing.com.
