2007 Session

Budget Amendments - SB750 (Committee Approved)

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Workforce Housing

Item 103 #3s

Item 103 #3s

First Year - FY2007 Second Year - FY2008
Commerce And Trade
Housing and Community Development, Department of FY2007 $0 FY2008 ($1,000,000) GF

Page 100, line 19, strike "$46,825,638" and insert "$45,825,638".
Page 101, strike lines 19 through 21 and insert:
"E. Out of the amounts in this Item shall be provided $1,000,000 in the second year from the general fund to support the development of workforce housing. Such housing units will be developed for members of Virginia’s workforce with household incomes up to 150 percent of the area’s median income and located in areas where prohibitive market conditions such as very high fair market housing costs, low vacancy rates and an imbalance between the creation of new jobs and new housing units make it difficult to access decent, safe and affordable housing. These funds will be used as capital subsidies to make workforce housing available and affordable in these markets and all units developed will continue to be available to such members of the workforce for a period of time as determined by the Department based on the level of subsidy. Maximum costs for such housing units will be determined by the Department. Priority will be given to housing development projects that take advantage of local affordable housing development incentives, employer investment for the benefit of its employees or have access to public transit. The Department shall report to the Chairmen of the Senate Finance and House Appropriations Committees by December 1 of each year on the use of the funds and the impact it has had on Virginia’s housing needs.  Any unexpended balances on June 30, 2007 and June 30, 2008 from the amount appropriated in this paragraph shall not revert to the general fund but shall be carried forward and reappropriated."

(This amendment reduces by $1.0 million the general fund deposit proposed in the introduced Budget Bill for the Virginia Housing Partnership Revolving Fund. In its place, the amendment establishes a pilot program to create new housing stock, rental units or homeownership opportunities, for persons in the workforce who cannot access affordable housing because of market conditions. Funds will be used as capital subsidies to reduce the debt on housing development and make it more affordable. Such subsidies could be in the form of interest rate reductions, low or no-interest loans or equity participation in a development.)