Notice of New Private Activity Bond Allocation Percentages
Effective July 1, 2026, in accordance with revisions to the Code of Virginia enacted during the most recent session of the General Assembly, the state ceiling for calendar year 2026 and beyond has been re-allocated to increase the set aside for single family and multifamily housing bonds. These actions have increased the amount of available Local Housing Authority (LHA) pool allocation relative to previously calculated allocation amounts, which provides an additional opportunity for applicants in Calendar Year 2026 to seek allocation for 2026 tax-exempt private activity bond issuance.
Please see the link below titled Allocation of 2026 Ceiling for Private Activity Bonds for the new allocation percentages.
Update on Local Housing Authority Pool and Governor’s Discretionary Pool
In accordance with its statutory mandate to promote sustainable long-term affordable rental housing, DHCD has completed two rounds of application reviews in calendar year 2026 for tax-exempt bond financing authority that local housing authorities will exercise in the Commonwealth. In addition, DHCD has completed subsequent application reviews on a rolling basis.
Please see the links below for the 2026 Governor Pool Allocation Tracker and the 2026 LHA Pool Allocation Tracker.
As of July 21, 2026 --
- DHCD has allocated more than $167 million from the LHA Pool to 13 projects in 9 localities that will finance the construction, rehabilitation, and preservation of 1,721 units of long-term affordable housing. Based on the revised allocation of approximately $203.8 million, approximately $36.5 million remains available in 2026 LHA Pool allocation.
- The Governor has used her discretionary authority to make additional tax-exempt financing allocations from the Governor’s Discretionary Pool for local affordable projects of more than $128.6 million that will finance the construction, rehabilitation, and preservation of 1,384 units of long-term affordable housing. Based on the allocation of approximately $215.8 million, approximately $87.2 million remains available in 2026 Governor’s Discretionary Pool allocation.
On a rolling basis, DHCD will continue to process applications for the remaining allocation amounts in the LHA Pool and for potential recommendation to the Governor for the Governor’s Discretionary Pool. Any unused funds from the LHA Pool and the Governor’s Pool allocations will be withdrawn and transferred in December 2026 to Virginia Housing for its carryforward balance for future allocation for private activity bond tax-exempt financing, as per the Code of Virginia.
Potential applicants are encouraged to expedite filing of qualifying applications as soon as practicable so that bond issuances can be completed prior to the December 15, 2026, deadline, after which allocations will be withdrawn and applicants will need to re-apply for allocation in calendar year 2027.
