Attainable Workforce Housing Performance Grant

The Attainable Workforce Housing Performance Grant is a targeted incentive program developed by the City of Virginia Beach in partnership with the Virginia Beach Development Authority (VBDA). This initiative aims to address the critical need for affordable multifamily rental housing by providing financial support to developers committed to constructing new, income-restricted rental units. The program supports the city’s broader housing and economic development goals, building on the 2024 Housing Study and legislative changes such as Virginia’s HB 1194, which expanded the powers of local development authorities to fund affordable housing initiatives. The grant program operates by reimbursing developers for the incremental increase in real estate taxes resulting from the new construction of qualifying projects. This performance-based reimbursement continues for an initial period of 15 years and may be extended for another 15 years if the project complies with reinvestment requirements. The eligible projects must involve new construction of multifamily rental units that have not commenced construction prior to a set date. Mixed-use and mixed-income developments are eligible as long as they include affordable rental units that serve households earning at or below 80% of the Area Median Income (AMI). Projects that provide at least 20% of residential units affordable to those earning 50% or less of AMI may receive enhanced grant levels. To apply, developers must submit a completed application, including the application form, calculation spreadsheet (in Excel format), project map, and proformas. Applications can be delivered in person, by mail, or via email to the VBDA, specifically to Sharon Shoff. Only complete applications will be considered, and all materials must be submitted at least 90 days before a decision is required. Applicants should also anticipate a processing timeline of approximately 90 days for completed applications. Incomplete submissions will not be evaluated until all required materials are received. The evaluation process is coordinated by the VBDA in conjunction with the Department of Housing and Neighborhood Preservation. After an internal review, eligible applications are recommended for approval through a formal process involving both the VBDA board and the Virginia Beach City Council. Key evaluation criteria include the project’s ability to demonstrate a financing gap, alignment with city objectives, and compliance with the housing affordability and SWaM (small, woman, and minority-owned business) participation goals. Successful applicants are required to adhere to a structured development timeline, with specific milestones for submission of development plans, construction commencement, and completion. Grantees must also provide ongoing compliance documentation, including occupancy and rent restrictions verified through Virginia Housing, and reports on SWaM expenditures. Projects with a 30-year grant period must reinvest in capital improvements before the 15-year mark. All grant payments are contingent upon proof of full and timely property tax payments and compliance with grant agreement terms. This program is not automatically renewable, and any changes to the project or financing after award may require reapplication. Furthermore, the City and VBDA reserve the right to update the guidelines at any time. Prospective applicants are encouraged to maintain open communication with the VBDA and to review all application materials carefully to ensure eligibility and compliance with the program’s standards.

Submit a complete application with financial documentation to demonstrate funding gap. Incomplete applications will not be evaluated.