Bill > HB820

This bill allows the Department of Housing and Community Development to use up to 20 percent of the funds in the Virginia Housing Trust Fund to provide loans for mixed-income housing projects, which are developments that include both lower-income and market-rate residential units. These loans will have a maximum of $60,000 per housing unit. Generally, loans cannot exceed 25 percent of a project's total development costs, but exceptions are made if the developer is a public entity or nonprofit that secures at least 10 percent of the funding from other sources, or if a significant portion of the housing units are reserved for specific income levels, including at least 10 percent for households earning 30 percent or less of the Area Median Income (AMI), which is the median income for a specific geographic area. The bill also establishes the Virginia Housing Revolving Loan Fund, administered by the Department in collaboration with the Virginia Housing Development Authority (HDA), to provide these lower-interest loans for mixed-income housing projects and necessary infrastructure. The Department will develop guidelines defining terms like "mixed-income housing project" and will report annually to the General Assembly on the fund's activities, including the number of awards, loan purposes, project financing, and the number of housing units created by income level and rent. The provisions of this act will take effect on January 1, 2027.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB820