Authority: Title 36, Chapters 8, 9, and 11; and Title 58.1, Chapter 3, Articles 4 and 13, Code of Virginia.
A. Out of the amounts in this Item, $3,482,705 from the general fund, $100,000 from dedicated special revenue, and $3,427,000 from federal trust funds the first year and $3,482,705 from the general fund, $100,000 from dedicated special revenue, and $3,427,000 from federal trust funds the second year shall be provided to support services for persons at risk of or experiencing homelessness and housing for populations with special needs, and $4,050,000 the first year and $4,050,000 the second year from the general fund shall be provided for homeless prevention. Of the general fund amount provided, the department is authorized to use up to two percent in each year for program administration. The amounts allocated for services for persons at risk of or experiencing homelessness may be matched through local or private sources. Any balances for the purposes specified in this paragraph which are unexpended on June 30, 2025, and June 30, 2026, shall not revert to the general fund but shall be carried forward and reappropriated.
B. The department shall report to the Chairs of the Senate Finance and Appropriations, the House Appropriations Committees, and the Director, Department of Planning and Budget, by November 4 of each year on the state's homeless programs, including, but not limited to, the number of (i) emergency shelter beds, (ii) transitional housing units, (iii) single room occupancy dwellings, (iv) homeless intervention programs, (v) homeless prevention programs, and (vi) the number of homeless individuals supported by the permanent housing state funding on a locality and statewide basis and the accomplishments achieved by the additional state funding provided to the program. The report shall also include the number of Virginians served by these programs, the costs of the programs, and the financial and in-kind support provided by localities and nonprofit groups in these programs. In preparing the report, the department shall consult with localities and community-based groups.
C. Out of the amounts in this Item, $1,775,000 the first year and $1,775,000 $1,100,000 the second year from the general fund shall be provided for rapid re-housing efforts. In keeping with the specific goals of the Balance of State Continuum of Care, $200,000 of this amount in each year shall be focused on ensuring that no veteran is homeless or in a shelter for more than 30 days. These funds shall be used to supplement other state and federal programs, shall be directed to areas throughout the state where federal funds are not available, and shall be used to serve those veterans ineligible for federal benefits. The department shall provide these funds as grants in a formula determined by the department with input from stakeholders. Any balances for the purposes specified in this paragraph which are unexpended on June 30, 2025, and June 30, 2026, shall not revert to the general fund but shall be carried forward and reappropriated.
D. The department shall continue to collaborate with the Department of Veteran Services to ensure coordinated efforts towards reducing homelessness among veterans.
E.1. Out of the amounts in this Item, $87,500,000 the first year and $87,500,000 the second year from the general fund shall be deposited to the Virginia Housing Trust Fund, established pursuant to § 36-142 et seq., Code of Virginia. Notwithstanding § 36-142, Code of Virginia, when awarding grants through eligible organizations for targeted efforts to reduce homelessness, priority consideration shall be given to efforts to reduce the number of homeless youth and families and to expand permanent supportive housing.
2. As part of the plan required by § 36-142 E., Code of Virginia, the department shall also report on the impact of the loans and grants awarded through the fund, including but not limited to: (i) the number of affordable rental housing units repaired or newly constructed, (ii) the number of individuals receiving down payments and/or closing assistance, (iii) the progress and accomplishments in reducing homelessness achieved by the additional support provided through the fund, and (iv) the progress in expanding permanent supportive housing options.
3. In any year where claims for the Virginia Housing Opportunity Tax credit exceed revenue loss assumptions in "The Economic Outlook and Revenue Forecast" report (GACRE Report) prepared by the Secretary of Finance and submitted to the General Assembly annually in December (net lost revenues), the Governor is authorized to direct the State Comptroller to transfer an amount equal to these net lost revenues from the Virginia Housing Trust Fund to the general fund.
F. Out of the amounts in this Item, $15,800,000 the first year and $15,800,000 the second year from federal trust funds shall be provided to support Virginia affordable housing programs and the Indoor Plumbing Program.
G. Out of the amounts in this Item, $50,000 the first year and $50,000 the second year from the general fund and one position shall be provided to support the administrative costs associated with administering the tax credits authorized pursuant to § 58.1-439.12:04, Code of Virginia.
H. The department shall develop and implement strategies, that may include potential Medicaid financing, for housing individuals with serious mental illness. The department shall include other agencies in the development of such strategies including the Virginia Housing Development Authority, Department of Behavioral Health and Developmental Services, Department of Aging and Rehabilitative Services, Department of Medical Assistance Services, and Department of Social Services. The department shall also include stakeholders whose constituents have an interest in expanding supportive housing for people with serious mental illness, including the National Alliance on Mental Illness Virginia, the Virginia Housing Alliance and the Virginia Sheriff's Association. An annual report on such strategies and the progress on implementation shall be provided to the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by the first day of each General Assembly Regular Session.
I. Out of the amounts appropriated in this Item, $3,450,000 the first year and $3,450,000 the second year from the general fund shall be used to establish a competitive Eviction Prevention and Diversion Pilot Program that will support local or regional eviction prevention and diversion programs that utilize a systems approach with linkages to local departments of social services and legal aid resources. This program shall prioritize grant applications that provide a local match at an amount deemed appropriate by the Department.
J. The authorization provided under Item 113, Paragraph L., Chapter 1, 2022 General Assembly, Special Session I, that directs the department to use up to $11,400,000 of unobligated balances in the Low-Income Energy Efficiency Program Fund (02017) for flood relief is hereby continued. Using these funds, the department shall continue to administer a program established for the purposes of providing relief to residents of Virginia that lost or sustained property damage as a result of a flood disaster, mudslide, or landslide occurring on or after August 1, 2021, but before September 31, 2021, and subject to a Major Disaster Declaration (FEMA-4628-DR) issued by President Biden on October 26, 2021.
K. The authorization provided under Item 113, Paragraph O., Chapter 1, 2023 General Assembly, Special Session I, that directs the department to use up to $18,000,000 of unobligated balances in the Low-Income Energy Efficiency Program Fund (02017) for flood relief is hereby continued. Using these funds, the department shall continue to administer a program established for the purposes of providing relief to residents of Virginia that lost or sustained property damage as a result of a flood disaster, mudslide, or landslide occurring on or after July 1, 2022, but before August 31, 2022, and subject to a Major Disaster Declaration (FEMA-4674-DR) issued by President Biden on September 30, 2022
L. Out of this appropriation, $200,000 the first year and $200,000 the second year from the general fund is provided for the department to support the comprehensive statewide housing assessment, pursuant to § 36-139, Code of Virginia.
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 establishing a pilot program to assist residents of a manufacturing home park or organizations exempt from taxation under 501(c)3 of the Internal Revenue Code with acquiring manufactured home parks located in Virginia.
2. The department shall award the funds provided in this paragraph as revolving loans to either: (i) associations consisting of residents of one or more manufactured home parks in Virginia, or (ii) organizations exempt from taxation under 501(c)3 of the Internal Revenue Code that provide, construct, or renovate affordable housing in Virginia.
3. The department shall develop criteria and guidelines for this pilot program on or before December 1, 2024. At a minimum, the guidelines shall prohibit any loans that result in the involuntary displacement of any person residing in the park at the time of its acquisition. The interest rate of loans issued under this pilot program shall not exceed the lowest annual interest rate offered on a loan from the Virginia Housing Trust Fund.
4. Up to twenty-five percent of funds provided in this paragraph may be distributed to organizations exempt from taxation under 501(c)3 of the Internal Revenue Code that provide, construct, or renovate affordable housing in Virginia that have been assigned a right of first refusal to purchase a manufactured home park by a locality, pursuant to the provisions of House Bill 1397 of the 2024 General Assembly. Upon receipt of notice from a nonprofit that they have: (i) been assigned right of first refusal by a locality to purchase manufactured home parks, or (ii) received notice from the locality that such owner has entered into a contract to sell the park contingent upon providing the right of first refusal, the department shall expedite the application for a loan, and notify the applicant of its decision within 30 days of receiving the application.
5. The department shall report to the General Assembly on or before December 1, 2025, the results of the pilot program. At a minimum, the report shall contain information on the number of applications, the number and dollar amount of loans made, number of parks acquired, and the estimated costs of continuing the program.
6. The department may recover administrative costs from the amounts provided in this paragraph.
7. The department shall implement this program no later than May 4, 2025. Such implementation shall include making funds available to successful applicants.
N.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.
7. The department shall implement this program no later than May 4, 2025. Such implementation shall include making funds available to successful applicants.
O. Out of this appropriation, $150,000 the first year and $150,000 the second year from the general fund is provided to the department's housing division.
P. Out this appropriation, $125,000 the first year from the general fund is provided to the City of Richmond for Housing Opportunities Made Equal to provide statewide education and outreach about the protected classes covered under Virginia's Fair Housing law.
Q.1. Out of this appropriation, $50,000,000 the first year from the general fund is provided for disaster mitigation and relief for qualified communities. Of the amounts in this paragraph, $25,000,000 is provided for the department to establish and administer a program for the purposes of providing relief to residents of Virginia that lost or sustained residential property damage as a result of a disaster occurring on or after September 25, 2024, but before October 3, 2024, and subject to a Major Disaster Declaration (FEMA-4831-DR) issued by President Biden on October 1, 2024.
a. The department shall establish procedures for filing and resolving claims, which shall include measures to prevent fraud, and which may include any criteria the department determines reasonable to carry out the provisions of this paragraph. The amount of relief provided to an eligible applicant shall be up to 100 percent of the property value for the realty that represents a total loss and up to 50 percent of the property value for the realty that sustained major damage, as defined by Q.1.f. and Q.1.g. below, not to exceed $500,000. If an eligible applicant owns multiple, noncontiguous properties in an area affected by the disaster in paragraph Q.1. of this item, the eligible applicant may file separate claims for each parcel, and the maximums described in this paragraph shall apply to each separate claim. The department shall reduce payments by any federal or state relief or insurance payments received by the eligible applicant for property repairs or damage related to the disaster described in paragraph Q.1. of this item.
b. Payments under paragraph Q.1. of this item shall be subject to the availability of funds. If claims exceed available funds, the department shall make payments in the order that claims were received.
c. The department shall not provide relief under this section for a residential realty that was abandoned or uninhabited at the time of the disaster described in paragraph Q.1 of this item.
d. No recourse may be had by any person, organization, or entity against a recipient of payment under this paragraph, absent any evidence of misuse of funds. Misuse of funds shall be established by a showing that a recipient knowingly misapplied the proceeds of a payment received under this paragraph. If a showing of misuse of funds has been made, then a person may seek recourse against the recipient for an amount no greater than the extent of the payment.
e. Relief awarded pursuant to this paragraph is excluded from gross income and is not subject to taxation.
f. "Total loss" means real property that has been destroyed, such that there is a total loss of the structure, the structure is not economically feasible to repair, or there is a complete failure to major structural components, such as the collapse of the basement, wall, or roof.
g. "Major damage" means real property that has substantial failure to its structural elements, such as walls, floor, or foundation, or that has sustained damage that will take more than 30 days to repair.
h. "Eligible applicant" means any individual property owner that lost or sustained residential property damage as a result of a disaster occurring on or after September 25, 2024, but before October 3, 2024, and subject to a Major Disaster Declaration (FEMA-4831-DR) issued by President Biden on October 1, 2024.
i. Any funding remaining in paragraph Q.1. of this item after all claims for residential property damage and loss are executed by the department may be directed by the department to provide assistance for commercial property loss including fencing and crop loss as a result of the disaster described by paragraph Q.1. of this item. The program provisions of this paragraph Q.1. shall apply to any commercial assistance provided by the department; however, the maximum assistance awarded for commercial property loss shall not exceed 100 percent of the property value lost or damaged by the disaster described in by paragraph Q.1. of this item.
2. Of the amounts in this paragraph, $25,000,000 is provided for the department to supply major weather event disaster mitigation funding to affected communities to counter the cycle of disaster damage, reconstruction, and repeated damage. Grants under this paragraph shall be made to local governments, nonprofit entities, or individuals to supplement disaster recovery funding by improving the characteristics of the physical structures of houses and multi-family dwellings including the building materials, energy efficiency profile, and hazard mitigation features which influence the accessibility of the home, cost of cooling and heating, and the likelihood that the structure withstands hazards.
a. The department, in administering the funds provided in this paragraph, may elect to contract with organizations exempt from taxation under 501(c)3 of the Internal Revenue Code with expertise in planning for, providing, constructing, or renovating, weather resilient housing.
b. The department shall develop criteria and guidelines for the program on or before December 1, 2025. Funding shall be prioritized for communities eligible under paragraph Q.1.; however, any funding remaining shall be made available for the same relief to residents of Virginia that sustained property damage as a result of a flood disaster, mudslide, or landslide that was subject to a Major Disaster Declaration occurring on or after August 1, 2021. Grants to individuals shall not exceed $500,000.
c. Out of the amounts in this paragraph, the department shall direct $350,000 to pilot a statewide emergency management mobile application communications platform in Health Service Area 3. The platform shall provide care coordination across local, regional, and state entities for mass casualty, evacuation, and other events involving patient transport. The pilot program will evaluate the effectiveness of an emergency management mobile application communications platform in Southwest Virginia by measuring its impact on key performance indicators, including: number of participating organizations/personnel, platform usage, time to treatment, and user satisfaction. An interim report detailing the pilot program launch will be submitted to the Chairs of the Senate Finance and Appropriations Committee and the House Appropriations Committee by December 1, 2025. A final report including quantitative data and qualitative feedback gathered from participating organizations and personnel will be submitted to the Chairs by October 1, 2026.
3. The department shall report to the General Assembly on the expenditure of funds from paragraph Q.1. within 90 days of the completion of this assistance program to include total assistance deployed by type of loss, total victims served, and completion of funded repairs or new residential construction. The department shall report to the General Assembly on the expenditure of funds from paragraph Q.2. on or before December 1, 2026, except as provided in Q.2.c. At a minimum the report shall contain information on the number and type of applicants, the number of grants made, and expenditure of grant funding, and the projects completed.
4. The department may recover administrative costs from the amounts provided in this paragraph including any necessary costs for partnerships with local departments of social services to effectuate the provisions of this paragraph. The amounts provided in this paragraph Q. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated.
R. Out of this appropriation, $675,000 the second year from the general fund shall be provided to support the organizational capacity and administrative needs of the Continuum of Care lead agencies in Virginia, including local planning groups in the Balance of State Continuum of Care, as they serve persons at risk of or experiencing homelessness in their regions. The department shall determine, with input from Continuum of Care lead agencies and other stakeholders, the activities that are eligible for funding, which shall include but are not limited to: (i) the development and management of homeless crisis response systems; (ii) grant administration and reporting; (iii) staff training; and (iv) essential operational tasks. The department shall provide these funds as grants in a formula determined by the department with input from stakeholders.
S.1. Out of the amounts appropriated in this item, $20,000,000 the first year from the general fund shall be used to establish and implement a rental assistance pilot program in Planning District Commission Regions 8 and 23. The department may utilize up to five percent of the funding for the administrative costs associated with implementing the program. The amounts provided in this paragraph S. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated.
2. For the purposes of this paragraph, "qualifying household" means a family unit that resides together in one dwelling (i) that includes at least one person 16 years of age or younger and (ii) whose income does not exceed 50 percent of the area median income for the locality in which such family resides, as calculated by the U.S. Department of Housing and Urban Development.
3. The department shall establish criteria and guidelines for this pilot program on or before December 1, 2025. The guidelines shall provide that qualifying households may receive monthly rental assistance equal to the lesser of (i) the amount necessary to reduce their housing costs to 30 percent of the monthly adjusted net income of the household or (ii) the applicable payment standard as determined by the department. Rental assistance issued pursuant to this paragraph may be used for housing in any locality in Planning District Commission Regions 8 and 23, and for housing costs other than rent, such as security deposits and application fees.
4. The guidelines for the administration of the pilot program shall be informed by the 2022 Virginia Housing Stability Fund Model Program Guidelines report and by consultations with various stakeholders, including the Department of Social Services, Virginia Housing, the Department of Education, McKinney-Vento liaisons, Continuum of Care lead agencies, housing providers, public housing authorities, tenants, and others. The department may administer the pilot program in partnership with local and regional agencies, with a priority for partnerships with local school divisions and McKinney-Vento liaisons. The department shall determine rental assistance payment standards for each size of a dwelling unit in a market area, which shall be greater than or equal to the Small Area Fair Market Rent, as established annually by the U.S. Department of Housing and Urban Development, for the same size of dwelling unit in the same market area. The department shall develop a process to ensure that each dwelling unit for which rental assistance is used is safe and habitable.
5. The department shall collect data on the utilization of the rental assistance issued in each fiscal year under the pilot program and submit an annual report to the General Assembly on or before December 1 of each year with an update on the implementation and impact of the pilot program.
6. The department shall convene a group of stakeholders to consider and make recommendations regarding potential funding sources to support the program's continuation beyond the initial pilot stage, and it shall submit the recommendations of the stakeholder group to the Chairs of the Senate Finance and Appropriations Committee and House Appropriations Committee on or before November 1, 2025. The department shall convene this stakeholder group no later than June 1, 2025, and shall include as members of the stakeholder group representatives of the following: Virginia Housing, McKinney-Vento liaisons, legal aid, affordable housing providers, public housing authorities, residential landlords, residential tenants, and others identified by the department.
7. Any funds remaining on June 30 of either fiscal year shall carryforward to the next fiscal year and be reappropriated for the same purpose.
T. Out of this appropriation, $1,500,000 the first year from the general fund is provided to the City of Charlottesville to support the repurposing of an existing facility to create a low-barrier emergency shelter to address urgent need. The funding in this paragraph shall be contingent on the approval of the project by the Charlottesville City Council. Any funding remaining at the end of the fiscal year 2025 shall be carried forward to the next fiscal year and reappropriated for the purposes described in this paragraph T.
U. Out of the appropriation in this item, $10,000 the second year from the general fund is provided to support the provisions of Senate Bill 1128 and House Bill 1638, 2025 General Assembly Session.
V. Out of the appropriation in this item, $20,000 the second year from the general fund is provided to support the Income Qualified Energy Efficiency and Weatherization Task Force, established under the provisions of Senate Bill 777 and House Bill 1935, 2025 General Assembly Session.
W. Out of the appropriation in this item, $1,500,000 the first year from the general fund is provided to the City of Portsmouth to support ForKids' expansion of eviction prevention programs and targeted support for McKinney-Vento children in Portsmouth, Chesapeake, and the surrounding areas. The amounts provided in this paragraph W. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated.
X.1. Out of this appropriation, $15,000,000 the first year from the general fund is provided for the department to establish the First-Time Homebuyer Grant Program to assist eligible first-time homebuyers in paying for first-time homebuyer expenses. The department shall award eligible first-time homebuyers a grant in an amount equal to five percent of first-time homebuyer expenses incurred during the calendar year, not to exceed $10,000, on a first-come, first-served basis. Any grant awarded pursuant to this paragraph shall be repaid to the Commonwealth in the event that the residential real property for which first-time homebuyer expenses were incurred and such grant was awarded is sold within three years from the purchase date of such property. Repayment pursuant to this subsection shall not be required if such sale was made following a natural disaster or other act of God that made such residential real property uninhabitable. The Department shall develop guidelines for administering the program and for any repayment requirements provided by this paragraph on or before August 1, 2025. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).
2. For the purposes of this paragraph, "First-time homebuyer expenses" means costs incurred by a first-time homebuyer in the purchase of direct ownership in residential real property in an amount equal to the purchase price value of such property detailed on the standard purchase agreement.
3. For the purposes of this paragraph, "Eligible first-time homebuyer" means an individual or married individuals filing jointly (i) who has had no ownership interest in a principal residence during the preceding three-year period ending on the date of purchase of the residential real property detailed on the standard purchase agreement and (ii) who has an annual household income in the most recent taxable year that does not exceed the greater of (a) $100,000 or (b) the median annual household income for the locality in which such residential real property is situated according to the most recent data available from the U.S. Census Bureau.
4. Of the amounts in this paragraph, the department may use up to $300,000 to administer this program. The amounts provided in this paragraph X. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated.
Y. Out of this appropriation, $13,000,000 the first year from the general fund is provided for the department to award grants to localities or planning district commissions that have established or will establish by December 31, 2025, a local Housing Trust Fund for long-term local investments related to affordable housing. The department shall develop criteria and guidelines for these one-time grants on or before August 1, 2025. Of the amounts in this paragraph, $5,000,000 shall be provided to Prince William County to support affordable housing. Of the amounts in this paragraph, $1,000,000 shall be provided to the City of Emporia to support an affordable housing project. Of the amounts in this paragraph, $250,000 shall be provided to Tazewell County for remediation of blighted properties in the Town of Richlands to create affordable housing construction sites. The amounts provided in this paragraph Y. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated.
Z. The department shall identify programs designed to keep long-term residents in their primary homes as real property tax liabilities increase, including the Longtime Owner Occupancy Program (LOOP) as implemented in Philadelphia, Pennsylvania. The department shall review and provide recommendations for eligibility criteria based on financial indicators, financing options including voluntary locality contributions or offsets, and assess feasibility, equity, and efficiency of administration and implementation at the local, regional, or state level. The department shall convene a group of national, state, and local tax and housing experts to assist with developing recommendations, with the support of the Department of Taxation and the Commission on Local Government. The department shall submit their findings to the Chairs of House General Laws and Senate General Laws and Technology by September 1, 2025.
AA. Out of this appropriation, $500,000 the first year from the general fund is provided to the City of Suffolk to support the construction of a homeless shelter. The amounts provided in this paragraph AA. shall not revert to the general fund at the end of any fiscal year, but shall be carried forward and reappropriated.