8872 - Workforce Housing Investment Program - Round 2
Funding Opportunity Details

02 Community Impact Support

Final Application Deadline: Nov 7, 2025 11:59 PM

Description

• Virginia Housing – Notice of Funding Availability

  Workforce Housing Program

  Round 2 – FY2026

   

  Program Description

  Virginia Housing has allocated $15 million for fiscal year 2026 to support communities developing new housing for homeowners and renters making 80%-120% of Area Median Income (AMI).  This program is available in regions with a recent economic development project announcements bringing in new residents requiring affordable housing options for both rental and homeownership.  These include expansions of current employers as well as those new to the locality.  At the completion of development, new housing units would be available and affordable to households making between 80-120% of the Area Median Income.

  Awards of up to $3 million will be available to communities within a 30-minute drive (45-minute for rural areas) of a new or expanding business where a qualified job announcement was made within the previous fiscal year.  Up to $5 million can be made available for transformational projects of 500 new jobs or more.  This program supports the production of either Homeownership Units or Rental Units.  Receiving a Workforce Housing Investment Program award does not guarantee financing from Virginia Housing.

   

  Eligibility

  The applicant must be one of the following: nonprofit organizations, units of local government, or quasi-governmental entities. The applicant may apply in partnership with a private for-profit entity.  Application for program funds requires that each locality or nonprofit provide matching funds as described in the chart below.

  Location	Eligibility	Match	Award	Local Match
  Nondistressed locality	100 new jobs	1:1	10% of project cost	10% of project cost
  Single-distressed locality	50 new jobs	1:2	13.4% of project cost	6.6% of project cost
  Double-distressed locality	25 new jobs	1:4	16% of project cost	4% of project cost

   

  Application Process

  All applications must be submitted electronically using the Virginia Housing Grants Management System at https://vhdagrants.com/. Applications submitted beyond the end date stated in the Virginia Housing NOFO will not be accepted. For questions concerning this program or assistance with application submission, contact Chris McNamara, Strategic Housing Officer, at (804) 584-4721 or email Chris.McNamara@VirginiaHousing.com. 

  The application must include:

  • Evidence of new economic development announcement  

  • Proof of proximity to new job site to verify the units will be within thirty minutes (45-minutes for rural areas)

  • Market study to show need for new housing 

  • Examples of steps taken in the locality or region to expedite and support further housing development 

  • Other funding sources including meeting requirement for locality match. 

   

  Approval

  Funds will be awarded based on an assessment of the application and the availability of Virginia Housing funds. This is a competitive funding opportunity and applications will be reviewed by a cross agency team.  Awards are anticipated to be announced before the end of 2025. 

  Rental developers seeking Virginia Housing financing must apply for construction-to-permanent or permanent financing with the awarded grant built into the development budget.  Homeownership grants and Rental grants not financing through Virginia Housing will be awarded to the applicant who will contract with Virginia Housing to manage the grant until completion. 

   

  PLEASE REVIEW THE ATTACHED PROGRAM HANDBOOK FOR ADDITIONAL INFORMATION AND RESTRICTIONS. 

  PROGRAM REQUIREMENTS HAVE CHANGED, PLEASE MAKE SURE YOU ARE REFERENCING THE CURRENT FY2026 HANDBOOK.