Operating Budget 2025-2026

Affordable Housing Development Fund (continued)

Budget: In FY 2022-2023, the Affordable Housing Development Fund was funded through a $4 million appropriation of American Rescue Plan Act (ARPA) funding to support several housing initiatives aimed at addressing the availability and increasing cost of non-student housing in Blacksburg. These efforts are to be realized over the next four years as homes are being constructed. The expenses to support the operation of the New River Home Trust are included in the FY 2023-2024 budget. A plan to determine long-term funding for the Affordable Housing Development Fund is currently being developed and Town Council may appropriate other dedicated sources of revenue in future years. Looking Ahead: The Town of Blacksburg established the Affordable Housing Development Fund to support the community’s workforce through affordable housing initiatives for low and moderate-income residents. Long-term affordability is an important issue and because these investments are expensive, the Town wants to ensure that they benefit as many households as possible. Possible projects include the construction of new housing for sale or rent, the preservation of existing affordable housing, the conversion or adaptive reuse of existing non-residential structures for housing, or the purchase and rehabilitation or conversion of market-rate developments to affordable housing. Permanent affordability for owner occupied housing will be achieved by comparing the price of the home to a price that is affordable for a lower-income family and then restricting the sales price upon resale so it can remain affordable to all subsequent low-income families who purchase the home. For rentals, long-term affordability would come in the form of a requirement that the developer keep rents affordable to households of specific Area Median Incomes for a specified period (greater than 30 years). The Affordable Housing Development Fund will financially support, through either a grant or a no-interest loan, proposals that address the need for long-term affordable housing. Applicants must have a demonstrated track record in one or more of the following areas: residential real estate development/construction (multi-unit experience where applicable), affordable housing development, and/or management. They must also be willing to provide long-term affordable housing to a mix of low to moderate-income households. Interested applicants are encouraged to reach out to the Town’s Housing staff to answer any questions related to the fund or the application process. More information regarding the Affordable Housing Development Fund and affordable housing in general, including ways to stay informed, ask questions, and get engaged in the process can be found online at https://letstalkblacksburg.org/affordable-housing.

126