Governor Glenn Youngkin has announced more than $16.9 million in funding for the Virginia Workforce Housing Investment Program to support workforce housing development in 10 localities across the Commonwealth to create 740 workforce housing units. In total, the projects will leverage over $254 million in private investment.
“Through this new innovative program, we are catalyzing workforce housing construction by partnering with the private sector and local governments,” said Governor Glenn Youngkin. “The efforts through our Workforce Housing Investment Program are supporting housing affordability, availability and accessibility for a growing Virginia.”
Virginia Housing administers the Workforce Housing Investment Program, which aims to increase the workforce housing supply in areas that have new or expanding businesses. In total, the Workforce Housing Investment Program commits $75 million over five years with the potential to catalyze $750 million and build 5,000 units of workforce housing in conjunction with economic development projects in the Commonwealth.
The program provides loans, loan subsidies, and grants to support communities developing housing for homeowners and renters making 80%-120% of the area median income (AMI), or up to 150% of AMI in rural areas. Workforce Housing Investment Program awards of up to $3 million are available to localities within a 30-minute drive of a new or expanding business where a qualified job announcement was made within the previous fiscal year. Up to $5 million is available for transformational projects of 500 new jobs or more.
“To propel economic growth across the Commonwealth, we must cultivate a skilled workforce, and that starts with ensuring safe, stable and affordable housing for them,” said Secretary of Commerce and Trade Juan Pablo Segura. “The Workforce Housing Investment Program ensures that companies moving to Virginia have the necessary resources to work with communities to develop workforce housing for their employees.”
Governor Youngkin first announced creation of the Workforce Housing Investment Program during the 2024 Virginia Governor’s Housing Conference, in conjunction with Executive Order 42, which formally ties economic development to workforce housing supply by enhancing the alignment between economic development announcements and housing availability in the Commonwealth. Under the governor’s direction, the Virginia Economic Development Partnership and the Department of Housing and Community Development are coordinating with Virginia Housing to ensure business site investment decisions include nearby localities’ plans to foster housing development and support economic growth.
“These projects represent the strategic collaboration that this program promotes to create more affordable housing for our middle-income families,” said Virginia Housing CEO Tammy Neale. “Through Virginia Housing’s investment, Virginia is affirming its place as a national leader in housing innovation, which will spark new businesses and industries, as well as the new jobs and other investments they bring to Virginia.”
To learn more, visit virginiahousing.com.
2025 Workforce Housing Investment Program Awardees:
King Mill Pike
Mount Rogers Planning District Commission | Washington County
$3,000,000
This project will receive funding through a revolving loan fund to create new homeownership housing units to support new regional employers. In addition, local employers will offer homebuyer education and resources to employees to market the available units.
Peanut Crossing Phase II
City of Suffolk
$3,000,000
This project is the second phase of the redevelopment of a historic peanut processing plant, which will be transformed into new rental units to support the local workforce.
Winchester Grove
City of Winchester
$3,000,000
This rental project will revitalize a cold storage facility into a mixed-use development to support new job growth in the region.
Community Housing Partners
Industrial Development Authority of Halifax | Town of South Boston
$2,000,000
This project is part of a larger middle-income project that will utilize land donated by the county to increase affordable housing and maintain long-term affordability for the surrounding workforce.
Morotock Lofts
City of Danville
$1,824,000
This adaptive reuse project in Danville’s Main Street district will develop 41 new units of rental housing to support regional job growth.
Flats at West Market
City of Harrisonburg
$1,223,813
Through the redevelopment of this former office building, the city will increase affordable rental housing options for the regional workforce.
Seminary Road
Housing Alexandria | City of Alexandria
$1,080,000
Located close the new INOVA campus, this project is part of the Landmark Mall redevelopment, which will bring new homeownership opportunities to workforce households in the region.
Prices Fork Elementary
New River Valley Regional Commission | Town of Blacksburg
$923,888
In its fourth and final phase of development, this project will develop new rental housing units to support increased regional job growth in the surrounding communities.
Wagner Road
Mount Rogers Planning District Commission | City of Bristol
$480,000
To support recent job growth in the city and region, this project will build 48 townhomes to increase homeownership opportunities for middle-income households. In addition, local employers will offer homebuyer education and resources to employees to market the available units.
140 South 1st Street
Joint Industrial Development Authority of Wythe County | Town of Wytheville
$400,000
This project will redevelop a once derelict downtown building into a mixed-use complex that will include eight rental units targeted to the regional workforce.