Developed with feedback from staff of Virginia Housing and the Virginia Department of Housing and Community Development, the program’s goal is to make the Commission’s footprint more attractive for economic development by directly addressing a major concern of expanding employers: insufficient housing for their workforce.
Total allocation: $2 million, Maximum award: $1 million
Purpose: Enhance the appeal of the Tobacco Region for major economic development projects by incentivizing localities and employers to develop affordable housing options for employees.
Incentive structure:
- Applications are made by political subdivisions of the Commonwealth on behalf of the housing developer, which may be for-profit or non-profit.
- Applications are received and evaluated on a rolling basis.
- Funds require a minimum three-to-one match and generally follow existing Tobacco Commission funding policies.
- The maximum incentive award is $35,000 per unit, with funds spent on site development, infrastructure, or direct housing construction costs.
- Units can be for rent or for sale.
Minimum qualifications for award:
- Award must be tied to an economic development project in the Tobacco Region.
- Recipient locality must have a workforce housing plan in place or commit to creating a plan that meets the needs of the incoming employer.
- The new housing development must, at least in part, target middle-income households (generally 80 -120% of Area Median Income) and meet affordability requirements (i.e. housing budget is generally 30% of income).
- The new units should be densely constructed, such as multifamily and duplexes, so as to improve affordability.
- Applicant must show a demand for housing and explain how the new jobs will impact that demand; applicant must also show proof of funding gap with completed pro-forma that shows demonstrated utilization of different funding sources.
Stronger proposals will include:
Employer participation in the housing project, such as:
- Savings match for employees to help build up their ability to purchase the unit
- Monthly housing payment-matching program to help employees keep housing costs below 30% of their total household income
- Direct financial investment by the employer in the new housing units
- Employer-provided or subsidized transportation to and from work for residents of the new units
Innovative and meaningful support from the locality for new workforce housing, for example:
- Establishment of a Tax Increment District to help pay for the infrastructure on which the new workforce housing will be built
- The rezoning and up-zoning of parcels that are within easy commuting distance from the employer to allow for more dense and affordable housing construction
- Taking significant steps towards implementing the locality’s workforce housing plan
- Meaningful public investment in the project, such as cash, land donation, infrastructure improvements, waived fees, etc.
Involvement from multiple partners leveraging one another’s investment in the effort, for example:
- The participation of key state and federal housing resource organizations such as Virginia Housing, Department of Housing and Community Development, and HUD
- The participation of local and regional housing organizations, including non-profits and community development organizations
- Eligibility for financing from Virginia Housing
- Achieving other community development goals, such as being mixed-use, located in a revitalization zone, or redeveloping an historic structure
- Building on previous efforts to improve housing in the region (e.g., CIG planning grants, inclusionary zoning, zoning/policy analysis and changes to promote housing) and featuring meaningful public engagement and regional collaboration
Applications are accepted on a rolling basis. A Pre-Application detailing the proposed project is required and serves as an opportunity for Commission staff to conduct a preliminary assessment of the likelihood of the project’s eligibility for funding, as well as to provide meaningful feedback to applicants before they prepare a full application package. Candidates will be notified by Commission staff if their pre-application is selected to move on to the full application process. Full applications are evaluated by Commission staff and funding recommendations are put forward to the full Commission for further discussion and approval at its spring, fall and winter meetings.
Click here to view plans for the implementation and administration of this pilot program.
Staff intends to implement the program as a pilot, being flexible in how projects are developed, evaluated, and ultimately recommended for funding. The goal is to learn from this process and evaluate the outcomes to inform the eventual development of more traditional, structured documents for application, project development, evaluation, and implementation. The following illustrates the process staff will follow to implement each element of the pilot:
Application: Project proposals will be received through either a pre-application submitted through our website or through introduction by an economic development organization, such as VEDP. The proposal will be assessed, considering whether it includes an eligible housing project with realistic and meaningful participation identified for its development from an economic development prospect, local government, members of the state housing community, and housing project developer. If the proposal seems promising, the applicant will be invited to develop a complete application.
Project Development: One of the key players involved in the project, preferably someone from the state’s housing community, will be selected as the staff’s point of contact for the housing project. They will serve as the de facto project manager for the grant, working with all parties to develop a project that implements the program’s goals. This individual will regularly update Commission staff on progress and seek feedback on how well the project is conforming to the goals of the program.
Evaluation: Once all the major pieces of the project are in place, a decision on Commission funding needs to be finalized in order for the project to proceed. The applicant will compile a project narrative, budget, timeline, scope of work, and other relevant supporting documentation for review by staff. Once staff believes the project is ready for review and approval by the Commission, the application materials will be shared with members of the I&L Committee for evaluation. The Committee will decide, based in part on staff’s recommendation, whether or not to recommend the project to the Commission for funding.
Implementation: Once the project is approved by the Commission, staff will develop a grant agreement for the project to ensure the project complies with the program outline, our rules, and best practices, including pay for performance. Each grant agreement will differ regarding the specifics of the project and will have the provisions needed to protect the Commission’s interests in the project. For example, if funds are awarded to spend up front for the infrastructure needed for a future workforce housing development, the agreement may require that a lien be placed on those assets until the workforce housing units are built.
PROGRAM CONTACTS
For media inquiries:
Jordan Butler
Public Relations Director & Tobacco Region Opportunity Fund Manager
(804) 894-9652
JButler@revitalizeva.org
Questions from partners or potential applicants:
Stephen Versen
Deputy Director
(804) 229-4824
SVersen@revitalizeva.org