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The FWD #221 • 792 Words
HUD Funding Reaches All Parts of Virginia
As the Trump administration presses forward with significant layoffs and funding cuts at HUD, it’s all the more important to appreciate its significant presence in Virginia. And while many of you are likely quite familiar with one or more specific programs, we’re using this blog to make sure the full scope of HUD’s investments throughout the state are well known.
The big picture
- HUD programs directly support 194,664 affordable homes for Virginians.
- In FY2023 alone, HUD provided $1.7 billion to housing and community development work in Virginia — more than DHCD’s current annual budget three times over.
- FHA mortgage insurance products support an additional 274,000 single-family homes and apartments.
- Without HUD-funded shelters, over 5,800 fellow Virginians would find themselves on the street with no other options.
Strengthening communities
HUD’s community development programs focus on building stronger, more resilient neighborhoods through flexible funding that addresses local priorities.
The cornerstone Community Development Block Grant (CDBG) program provides substantial flexible funding to many Virginia communities, totaling over $57.5 million in FY2023. These funds support infrastructure improvements, economic development initiatives, and community facilities that enhance quality of life.
For transformative revitalization of public housing communities, the Choice Neighborhoods program has directed $61.2 million to six cities from 2010 to last year.
Creating affordable rental housing
HUD’s rental assistance programs represent its largest investment in Virginia, helping households access quality, affordable housing while supporting property owners and managers.
Project-Based Rental Assistance alone supports 31,024 housing units with funding exceeding $308 million. Combined with other multifamily housing programs (including Section 811 for people with disabilities), these investments maintain housing stability for over 33,900 units across 478 properties.
The Public Housing program provided $618.5 million in FY2023 to support operations and capital improvements for 13,321 public housing units maintained by 41 Public Housing Authorities throughout Virginia. These authorities maintain an 85% occupancy rate for their properties.
The Rental Assistance Demonstration (RAD) program has facilitated the conversion of 1,080 public housing units to more stable, long-term subsidy platforms, helping to preserve affordable housing assets that might otherwise be at risk.
Through the Federal Housing Administration (FHA), HUD also supports multifamily mortgage insurance across 54,334 units, with particularly strong activity in refinancing and improvements ($3.67 billion) and new construction ($1.98 billion).
Expanding housing choice
The Housing Choice Voucher program currently enables nearly 50,000 low-income households to find rental housing in the private market, supported by $561.2 million in funding in FY2023. These vouchers have a utilization rate of 86%, reflecting both their popularity and the challenges of finding available units.
The demographics of voucher recipients reveals the critical importance of this assistance to serve Virginia’s most economically vulnerable residents: 30% are elderly, 24% have disabilities, and 63% have incomes below $20,000.
Addressing homelessness
HUD’s targeted homelessness programs work to provide immediate shelter and long-term solutions for Virginians struggling to find stable housing.
For those experiencing homelessness, HUD recently provided more than $5 million through Emergency Solutions Grants to 7 grantees (FY2023) and over $35 million to 16 Continuum of Care programs (FY2022). These investments help address the needs of the 7,141 homeless Virginians identified in the 2024 Point-in-Time count.
The Housing Opportunities for Persons with AIDS (HOPWA) program also allocated $19.4 million to 4 grantees in FY2023 to support projects that benefit low-income persons living with HIV/AIDS and their families.
Supporting homeownership
HUD’s homeownership programs help make the dream of buying a home attainable for many Virginians who might otherwise be unable to find and afford one of their own.
The FHA maintains a substantial footprint in Virginia’s single-family housing market, with 219,361 homes carrying FHA-insured mortgages. The cumulative unpaid principal balance of these loans exceeds $42.6 billion, demonstrating FHA’s critical role in supporting homeownership.
Through the HOME Investment Partnerships grant, HUD enables local communities to build and rehabilitate new units for affordable homeownership, and to assist existing homeowners with needed repairs. In FY2022, $7.6 million of these funds supported more than 130 new homebuyers and homeowners statewide.
Ensuring fair housing and educating consumers
Programs focused on protecting rights and providing information help ensure housing markets work fairly for everyone.
HUD’s commitment to fair housing in Virginia is reflected in grants totaling $1.27 million in FY2023, including $716,422 to the Fair Housing Assistance Program and $550,000 to the Fair Housing Initiatives Program.
Additionally, 55 HUD-approved housing counseling agencies received $1.69 million to provide crucial education and guidance to potential homebuyers and those at risk of foreclosure.
Sources
Community Assessment Reporting Tool (Current through FY2023)
Picture of Subsidized Households (2024 based on 2020 Census)
Housing Choice Voucher Data Dashboard (November 2024)
CoC Homeless Populations and Subpopulations Report – Virginia (2024)
HOME Activities Report – Virginia (April 30, 2024)