In 2012 and 2013, the General Assembly took big steps for Virginians struggling with housing needs by creating and funding the Virginia Housing Trust Fund. Virginia was the 44th state to establish a state housing trust fund, and the initial $8 million in funding was allocated to projects and organizations in the summer of 2013. This funding was dedicated to the VHTF through the appropriations process, but it is important to note that this money came from the National Mortgage Settlement and the”robo-signing” settlement – both of which stemmed from the housing market crash in 2008.
In just the first year of operation, the VHTF received funding requests that far exceeded the capacity of the fund. In the face of shrinking funding sources to support affordable housing and growing housing needs, the VHTF can play an increasingly crucial role in improving housing opportunities across the state. This is one of the many reasons that a dedicated source of funding is necessary for the VHTF.