2024 Session

Budget Amendments - HB30 (Conference Report)

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Down Payment Assistance Program (language only)

Item 102 #6c

Item 102 #6c

Commerce and Trade
Department of Housing and Community Development


Page 99, after line 39, insert:

"M.1. Notwithstanding the provisions of § 10.1-1330, Code of Virginia, the department shall utilize $5,000,000 of unobligated balances in the Low-Income Energy Efficiency Program Fund (02017) for the purpose of creating a down payment assistance pilot program. The grants awarded under this pilot program shall be issued as a forgivable, second trust mortgage. New homes purchases with a grant from this program must meet Earth Craft or Energy Star energy efficiency standards or their equivalent.

2. The department, in administrating the funds provided in this paragraph, may elect to contract with an organization exempt from taxation under 501(c)3 of the Internal Revenue Code with expertise in providing, constructing, or renovating affordable housing.

3. The department shall develop criteria and guidelines for the pilot program on or before December 1, 2024. At a minimum, the guidelines shall include eligibility criteria that targets grants to recipients earning less than 60 percent of the Area Median Income. The guidelines shall also stipulate a process for forgiving the grants awarded by the department that includes: (i) regular payments by the recipients on the first mortgage and (ii) residing in the home for at least fifteen years from date of closing. The guidelines shall detail a process for recovering any awards made under the pilot program.

4. The department shall develop performance metrics and monitoring mechanism to evaluate the long term effectiveness of the program and its outcomes.

5. The department shall report on or before December 1, 2025, to the General Assembly the results of this pilot program. The report, at a minimum, shall contain information on the number of applicants, number and dollar amount of grants made, number of homes purchased, and an estimated cost of continuing the program.

6. The department may recover administrative costs from the amounts provided in this paragraph."


(This amendment provides $5.0 million the first year from the unobligated balances of the Regional Greenhouse Gas Initiative for the Department of Housing and Community Development to create a new grant program to provide second forgivable mortgages to home buyers.)