(The Center Square) – Gov. Glenn Youngkin announced more than $139 million in affordable housing and special needs housing loans, funding 41 projects aimed to create and preserve nearly 3,000 housing units across the commonwealth.
The loans, distributed through the Virginia Department of Housing and Community Development’s Affordable and Special Needs Housing program, will address the ongoing housing shortage by increasing access to affordable rental and homeownership options.
“Providing accessible and affordable housing for all Virginians is more than a fundamental need—it’s a cornerstone of our state’s prosperity,” said Youngkin in a statement.
“When we prioritize housing affordability and availability, we drive economic progress, fortify our communities, and build a stronger, more vibrant Virginia for generations to come,” he continued.
According to the Virginia Housing Landscape, there is a shortage of over 300,000 affordable rental units for low-income households. For every 100 households earning 50% or less of the area median income, only 54 affordable units are available, dropping to 30 units for those earning 30% or less of AMI.
Reports show that one in three Virginia households are cost-burdened, spending 30% of their income on housing, while one in seven is severely cost-burdened, spending over 50%, according to the National Low Income Coalition.
“Affordable and accessible housing is essential for a thriving economy, and our dedication to addressing this critical need remains steadfast,” said Secretary of Commerce and Trade Caren Merrick. “These efforts will not only enhance and grow our affordable housing stock but also pave the way for a stronger, more resilient and prosperous Virginia for everyone.”
To afford a two-bedroom rental at fair market rent, one would need to earn at least $30.25 per hour, more than double the amount of Virginia’s minimum wage of $12 per hour.
“Boosting Virginia’s supply of attainable, affordable and accessible housing is vital to driving economic growth and aligning with this administration’s Make Virginia Home Plan,” said Bryan Horn, Director of the Virginia Department of Housing and Community Development. “These investments will unlock $2.1 billion in combined federal, state, local and private resources to develop and preserve housing options for communities across the Commonwealth.”
The $139 million in loans will fund projects focused on new affordable housing construction and the rehabilitation of existing units, with the long-term goal of expanding affordable housing across the commonwealth.
