2022 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Bourne
Establish Restorative Homeownership Pilot Program in Richmond

Item 114 #1h

Item 114 #1h

First Year - FY2023 Second Year - FY2024
Commerce and Trade
Department of Housing and Community Development FY2023 $5,450,000 FY2024 $5,450,000 GF
FY2023 1.00 FY2024 1.00 FTE

Page 96, line 7, strike "$346,496,495" and insert "$351,946,495".
Page 96, line 7, strike "$396,496,495" and insert "$401,946,495".

Page 97, after line 52, insert,

"K. Out of this appropriation, $5,450,000 in the first year and $5,450,000 in the second year from the general fund is provided for the Department to establish the Restorative Homeownership Pilot Program that will provide down-payment assistance for qualifying first-time home-buyers through forgivable second mortgages. The Department, in conjunction with Virginia Housing shall develop guidelines for the program to include 1) income eligibility requirements to target low-income households in the Richmond Metropolitan Statistical Area, 2) priority for Virginians (i) whose ancestors' homes were taken by the government through eminent domain for highway construction and other “urban renewal” projects without just compensation, (ii) who have lost or whose ancestors lost farmland they owned because of discrimination in government and private lending or other policies and practices, (iii) who were or whose ancestors were denied low-interest mortgages for the purchase of a home in an area designated as “Hazardous” by the Home Owners Loan Corporation (iv) who had sub-prime mortgages and lost their homes through foreclosure, and (v) who presently own homes in a neighborhood that has experienced disinvestment due to discriminatory policies or practices and are unable to afford the cost of making needed repairs and improvements to their homes, if they are seeking support to address deferred maintenance at their homes, and 3) a sliding scale of assistance based on income. Funding provided in this paragraph may also be used for grants to non profits and other organizations to help homeowners with counseling, deferred maintenance, and other upgrades."


(This amendment creates a Restorative Homeownership Pilot Program (R-HOME) at the Department of Housing and Community Development (DHCD) with an investment of $5.5 million in each year from general funds. R-HOME will provide qualifying first-time homebuyers down-payment assistance ranging from 6% to 50% of the sales price of the home through forgivable second mortgages. This budget amendment also contains funding for one full-time employee at DHCD to administer the program.)