2024 Session

Budget Amendments - HB30 (Floor Approved)

View Budget Item
View Budget Item amendments

Down-Payment Assistance Program (language only)

Item 102 #4h

Item 102 #4h

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.

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 this 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 this pilot program.  

4. 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.

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


(This amendment provides $5.0 million 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.)