Workforce Housing Investment Program

The Workforce Housing Investment Program is administered by Virginia Housing, a state-level housing finance agency that works to expand access to affordable and attainable housing across the Commonwealth of Virginia. The program was developed in response to identified gaps in middle-income housing availability, particularly in areas experiencing economic growth and job expansion. As highlighted in a statewide analysis, housing availability has become a key factor in economic competitiveness, with employers increasingly prioritizing quality of life and housing access when making location decisions. This program is designed to address those needs by incentivizing the development of workforce housing tied directly to new or expanding employment centers. The primary purpose of the program is to support the creation of new housing units for households earning between 80 percent and 120 percent of Area Median Income, with flexibility up to 150 percent in rural areas. Funding is provided in the form of grants and loan subsidies to support either rental or homeownership unit production. Eligible activities include new construction or adaptive reuse projects that result in net new housing units. The program does not support land banking, infrastructure costs, or rehabilitation of existing owner-occupied units. Funding is capped based on project characteristics, including distress level of the locality and job creation thresholds, and is further limited to a percentage of total development costs. Eligibility for funding is limited to nonprofit organizations, units of local government, and quasi-governmental entities, though partnerships with private for-profit developers are permitted. Applicants must demonstrate that proposed projects are located within a defined proximity to qualifying job announcements and must provide verification of those announcements through official documentation. Additional eligibility requirements include demonstrating readiness to proceed, alignment with Virginia Housing’s mission, and the ability to complete the project within a 24-month performance period. Projects must also meet minimum unit thresholds and adhere to affordability requirements for a defined period following completion. The application process is conducted through Virginia Housing’s Grants Management System and requires electronic submission in response to a formal Notice of Funding Opportunity. Applicants must provide detailed documentation including evidence of job announcements, proximity analysis, market need studies, project budgets, confirmed funding sources, and documentation of required locality match contributions. Matching requirements vary depending on the economic distress level of the locality, with ratios ranging from 1:1 to 1:4 and corresponding variations in maximum award percentages. Applications are evaluated competitively based on criteria such as project readiness, alignment with program goals, funding commitments, and anticipated impact. Program timelines are structured around an annual application cycle, with exact opening and closing dates provided in the Notice of Funding Opportunity. Once awarded, projects must be completed within a 24-month period of performance, during which time grantees are required to submit quarterly progress reports and a final report upon completion. Claims for reimbursement may be submitted quarterly, and all expenditures must be documented and aligned with approved project workplans. Additional compliance requirements include maintaining affordability standards for a specified duration and participating in periodic program reviews. Contact for the program is provided through Virginia Housing, with a designated Strategic Housing Officer available for application support and inquiries. The program reflects a strategic effort to align housing development with economic growth, ensuring that workforce populations have access to affordable, high-quality housing near employment opportunities. By linking funding to job creation and regional collaboration, the program aims to create scalable housing solutions that can be replicated across the Commonwealth.

Ensure strong alignment with job growth; confirm match funding early; complete all predevelopment before applying; emphasize housing innovation and locality support.