At least 80 percent of the fund is to be used for short-, medium- and long-term loans to reduce the cost of homeownership and rental housing. Up to 20 percent of the fund may be used to provide grants for targeted efforts to reduce homelessness.
The two components of the VHTF are administered separately. First, the Competitive Loan Pool for the production and preservation of affordable rental and homebuyer housing is administered through the Affordable and Special Needs Housing (ASNH) Program. The Virginia Housing Trust Fund grants, used to reduce homelessness, are allocated through the Homeless Reduction Grants.
The housing development loans are awarded to developers that supply affordable housing that meet or match goals aligned with gubernatorial initiatives or state housing policies. The loans are low-interest and are administered through the ASNH program and through Vibrant Community Initiative (VCI). The provisions of the loan encourage developers to use outside funding sources, such as tax credits or other federal and local funding programs. Criteria used in awarding funding include, but is not limited to: the project’s impact on state housing policy; affordability; financial sustainability; feasibility; and readiness.