VHA’s 2026 legislative agenda prioritizes strategic investments and policies to increase access to quality affordable housing and end homelessness across Virginia.
Established in 2013 and supported by every administration, the Virginia Housing Trust Fund (HTF) is the Commonwealth’s primary financing tool for affordable housing production and homelessness response. Administered by the Department of Housing and Community Development (DHCD) in partnership with Virginia Housing, the HTF uses public dollars to leverage private investment in the creation and preservation of affordable homes for Virginia’s lowest income residents, including individuals who are elderly, disabled, or formerly homeless. The HTF also provides funding for Homeless Reduction Grants to support the activities of homeless service providers across the state, including the provision of permanent supportive housing. Currently, statute requires that 80% (~$70M) of the $87.5M currently allocated to the HTF be provided as loans and 20% (~$17M) as grants.
Safe, decent, affordable housing is essential for individual and family stability, yet the Commonwealth has a shortage of at least 300,000 affordable rental homes. Continued and increased funding is required to meet the housing needs of all of our neighbors and stabilize our communities. In addition, we must especially increase the HTF right now to respond to impending federal funding cuts to permanent supportive housing and rapid rehousing programs for Virginians exiting homelessness. Right now, Virginia stands to lose at least $42.5 million annually in federal funding that currently provides housing to over 2,000 households. Without state action, 3,200 people, including people with disabilities, families with children, and youth aging out of foster care will lose their homes.
VHA is advocating for an additional $112.5M for the Virginia Housing Trust Fund in FY27 and FY28, which would result in a total annual investment of $200M. At a minimum, Virginia must add $30M set-aside for Homeless Reduction Grants to respond to the federal funding crisis.
The Virginia Homeless Solutions Program (VHSP), administered by the Department of Housing and Community Development, provides state funding for the development and implementation of housing-focused, coordinated community-based solutions to reduce the overall length of homelessness in the community, the number of households becoming homelessness, and the overall rate of formerly homeless households returning to homelessness. Funding is dispersed through Virginia's Continuum of Care agencies, which are regional or local planning bodies that coordinate housing and services funding among providers in their area, administer homeless services systems, and more. In Virginia's state budget, funding for the VHSP is divided into 3 categories: support services for persons at risk of or experiencing homelessness and housing for populations with special needs, homeless prevention, and rapid rehousing.
Virginia's homeless service providers do a lot with a little. Since 2010, overall homelessness has decreased by 25% in Virginia and chronic homelessness has decreased by 33%. However, homelessness has grown slightly in recent years due to stagnant funding, inflation, and the global pandemic. Since 2019, homelessness has increased by 22.3%. In particular, unsheltered homelessness (those living outside) has increased significantly, about 76% since 2019, especially in rural areas. As a result, CoC agencies are now serving more people than ever before despite limited resources. At the same time, our state's base funding for homeless services through VHSP has only increased by $675,000 since 2013.
Furthermore, Virginia is likely to see drastic cuts to our largest source of federal funding for homeless services, the Continuum of Care program, in the upcoming year due to significant changes in program priorities. As mentioned in the above blurb for the HTF, Virginia stands to lose up to $42.5M that currently provides housing to over 2,000 households.
VHA supports increasing investments in FY27 and FY28 in the VHSP for rapid rehousing by $13M and an additional $2M set-aside for capacity building for homeless service providers to preserve existing programs at risk of significant federal funding cuts.
Decriminalizing sleeping in public in Virginia is a crucial step towards addressing homelessness and protecting human rights. Decriminalization fosters a more compassionate approach, allowing resources to be redirected towards housing solutions and supportive services that promote stability and dignity for all residents, rather than punishment for a basic survival need.
Virginia does not currently have any state-level laws that criminalize homelessness from the top down. However, Virginia code does enable local governments to restrict the life-sustaining activities of the unhoused through ordinances that make it a crime to loiter in public places and stand in roadways for the purpose of solicitation. Because these enabling laws are not prescriptive in nature, localities have broad discretion in defining and penalizing the activities that they encompass. Unfortunately, we know of at least 16 localities that have exercised this authority and passed ordinances that in some way or another criminalize homelessness.
In partnership with several advocates, VHA supports bill language that would grant people experiencing homelessness an affirmative defense against tickets, fines, or arrests for simply resting on publicly-owned and publicly-accessible land, provided that such activities do not obstruct access or create a hazard for others.
Currently, Virginia state code allows localities to pass ordinances that would provide a partial or full property tax abatement for residential properties owned by a nonprofit. However, affordable housing has not historically been included under such ordinances due to the complex ownership structure of the Low Income Housing Tax Credit (LIHTC), which finances the vast majority of affordable housing across the nation. At the same time, property taxes can be quite burdensome for the ongoing provision of affordable housing, taking away significant funds that could go towards building maintenance and resident services.
VHA supports a technical fix to our existing code language that would allow localities the option of partially or fully exempting affordable housing from property taxes if one or more of the managing members, general partners, or equivalent controlling interests in the ownership entity is held by a nonprofit, to account for the financial requirements of the LIHTC program. In this way, localities can support existing affordable housing and encourage future development of affordable housing in their jurisdictions.
As we work to address our shortage of at least 300,000 affordable homes in Virginia, it is critical that we do everything we can to protect our current stock of affordable housing. Over the next five years, more than 13,000 subsidized rental homes in Virginia are at risk of becoming unaffordable.
Unfortunately, these types of properties are often targeted by out-of-state corporate investment entities that prioritize high returns over affordability for tenants. When such groups purchase affordable properties, it is common for tenants to be displaced through rent increases or redevelopment. For example, the RVA Eviction Lab found that a small number of such corporations were responsible for nearly 87% of Richmond's eviction filings between July and September of 2022. It is important that we have tools to prevent such displacement and that we do all we can to protect what little naturally occurring affordable housing we have. Virginia must ensure that our state and federal investments in affordable housing continue to benefit low-income households.
VHA supports legislation that would enable localities to establish a Right of First Refusal (ROFR) when publicly assisted multifamily properties reach the end of their affordability period. For the purposes of this legislation, a ROFR would be executed by matching an offer by a private third-party buyer within a certain time period. Participating localities will be able to designate qualified entities to exercise the ROFR on their behalf, as long as affordability is preserved.
The State Rental Assistance Program (SRAP) was created to comply with Olmstead as part of the Department of Justice Settlement Agreement, which requires Virginia to serve adults with disabilities in the most integrated settings appropriate to meet their needs consistent with their choice. In other words, SRAP was created to provide more independent living opportunities for people with disabilities. Administered by the Department of Behavioral Health and Disability Services (DBHDS), SRAP provides housing assistance to adults with intellectual and developmental disabilities. Eligibility for SRAP is tied to eligibility for the Developmental Disabilities (DD) Medicaid Waiver.
Because the cost of living has increased faster than state investments in the program, Virginia has lost funding for about 150 SRAP vouchers since 2024. At the same time, the overall need for these housing supports has grown. The overall population of eligible Virginians has increased significantly as more have been able to access the DD Medicaid Waiver. Virginia may be at risk of falling out of compliance with the Settlement Agreement if SRAP does not increase alongside any additions to the DD Medicaid Waiver. As a result, VHA supports an additional $5 million in FY27 and FY28 to SRAP.
The Permanent Supportive Housing (PSH) program utilizes existing partnerships between DBHDS and Community Services Boards (CSBs) to provide stable housing and basic behavioral and primary health care services to individuals to serious mental illness (SMI) throughout Virginia. Specifically, this program provides a rent-subsidized place to live paired with resources such as counseling, community treatment, and support.
About 3,400 PSH slots were funded through FY25, but the need for supportive housing is much greater. Research indicates that over 21,500 units of supportive housing are necessary to meet the needs of Virginians who currently utilize our crisis and institutional systems but would be better, and more affordably, served through PSH. Furthermore, we face significant threats at the federal level to existing funding for permanent supportive housing so Virginia must take on more responsibility for investing in this evidence-based, cost-effective solution. Therefore, VHA supports an additional $5 million in FY27 and FY28 for PSH.
Many Virginia families face high housing costs throughout the Commonwealth. In fact, one in three Virginian households are cost burdened, meaning that they pay more than 30% of their income on housing costs. As a result, many families experience housing instability, including displacement and eviction. The lack of a permanent, reliable, and stable home has a profound impact on students’ health, development, and education. Numerous studies indicate that children experience declines in educational achievement when they change schools or are frequently absent, both common consequences of housing instability. Secure housing can lead to improved cognitive, developmental, and mental health outcomes for students, which in turn can lead to improved academic success. According to a well-respected national research study, children whose families achieve housing stability through rental assistance have substantially higher adult earnings and rates of college attendance than children who are not able to access such assistance. As Virginia seeks to grow its economy through the expansion of its workforce, it is critical that we equip parents with the resources they need to ensure the best possible education for their children, including a place to call home.
VHA supports the 5,000 Families pilot program which will invest $60M towards the future of Virginia students and families by providing housing opportunity and stability. Through this program, rent relief will be granted over a two year period to 5,000 low-income families to keep their rent affordable for the long term. This initiative will empower families and their children by ensuring they have a stable home and thus a strong foundation for success at school and beyond.
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