The House Appropriations Committee provides funding to increase the Commonwealth’s supply of affordable housing for low-income Virginians, to prevent homelessness, and to make new and existing housing more energy efficient.
Virginia’s housing related programs are extensive, many of which fall outside the scope of the state budget. Virginia Housing is the state’s housing financing agency and is funded primarily through capital raised in the marketplace instead of state appropriations. Virginia Housing offers programs for first-time homebuyers, directs excess earnings to the Resources to Enable Affordable Community Housing program and manages the state’s participation in the federal low-income housing tax credit program.
There are 3 housing related programs with a direct nexus to the state budget: Virginia Housing Trust Fund, Virginia Eviction Prevention and Reduction Program, and the Virginia Housing Opportunity Tax Credit. In addition to these programs, Virginia allocates a large share of its proceeds from the Regional Greenhouse Gas Initiative to housing related efforts focused on improving energy efficiency in existing and new homes.
Budget Overview
The Virginia Housing Trust Fund is the state’s primary vehicle to address affordable housing construction and support homelessness reduction efforts in communities, and is managed by the Department of Housing and Community Development. The Code of Virginia directs 80% of funds deposited into the VHTF to affordable housing projects as low-interest loans and 20% to community organizations for housing stabilization services and permanent supportive housing. To date, the General Assembly has deposited over $514 million of state general fund resources to the VHTF.
The Virginia Eviction and Prevention Reduction Program currently benefits from an annual appropriation of $3.5 million per year in the Department of Housing and Community Development’s annual budget. This program provides funding to regional organizations that help individuals facing eviction with tools like rental, transportation, childcare and other financial assistance. The Virginia Housing Opportunity Tax Credit is reflected in the budget through an estimated revenue loss to the state, which is currently estimated at $575 million over 19 years and is administered by Virginia Housing.
Virginia dedicates 50% of proceeds from its former participation in the Regional Greenhouse Gas Initiative (RGGI) to low-income energy efficiency programs. Virginia has not participated in RGGI for the last several years. The Department of Housing and Community Development manages funds raised from Virginia’s 3 year participation in RGGI on behalf of the state. The Virginia Housing Innovations in Energy Efficiency Program provides funding to low-income housing developments to integrate energy efficiency improvements in building designs and to repair existing low-income housing units that have been deferred from the federal weatherization program. Based on the latest information available, the General Assembly has dedicated an estimated $427.5 million to these efforts.
Program/Policy Highlights
- Virginia Housing Trust Fund
Provides low-interests loan for affordable housing projects and grants to community organizations working to reduce homelessness Provides low-interests loan for affordable housing projects and grants to community organizations working to reduce homelessness
- Virginia Eviction Prevention and Reduction Program
Created in 2020, the VERP program prevents evictions by providing grants to community organizations that work directly with citizens facing eviction and other community partners to stabilize housing
- Virginia Housing Opportunity Tax Credit
Created in 2021, the VHOTC mirrors the Federal Low-Income Housing Tax Credit and provides state incentivizes for developers to raise money for affordable housing projects
- Virginia’s Housing Innovations in Energy Efficiency Program
Uses proceeds from the Regional Greenhouse Gas Initiative to make energy efficient upgrades to new and existing residential buildings
- Low-Income Housing Tax Credits
Federal program that subsidizes the development of affordable rental housing by allowing investors in the project to claim at tax credit allocated to the project over a 10 year period
- Private Activity Bonds
Allows state and local governments to finance private activities that are connected to a public purpose with tax free bonds authorized by the federal government. Code of Virginia directs 57% of its private activity bond capacity to housing projects ($653 million in 2025)
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