An affordable housing fund is an ongoing dedicated source of public funding designed to support the preservation and production of affordable housing.

Because creating affordable housing is not very profitable, affordable housing projects often require financial investment from multiple public sources. Federal and state programs also require a matching local investment before they will provide funds for an affordable housing project. An AHF provides a flexible source of local funding to leverage other public, private, and philanthropic investments in affordable housing or support investments (fill gaps) that would not otherwise be filled through existing public programs.

The Town of Blacksburg recently established an Affordable Housing Development Fund using $4 million dollars from the American Rescue Plan Act to incentivize housing developers and builders interested in helping the Town:

• Increase the supply of affordable housing for low and moderate-income households near jobs, services, schools, and public transit.
• Promote diversity and vitality of neighborhoods, with a focus on housing for permanent residents.
• Preserve existing affordable housing through renovation, repair, and retrofitting. 

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.

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.

Long-term affordability is important because these investments are expensive and the Town wants to ensure that they benefit as many households as possible. Permanent affordability for owner-occupied housing would be achieved by writing down 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).

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.

For more information:

Matthew T. Hanratty
Assistant to the Town Manager
Town of Blacksburg
(540) 443 - 1611
mhanratty@blacksburg.gov