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VCC’s Annual Learning Exchange
The Jefferson Hotel, Richmond, VA
12/11/2014 - 12/11/2014

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Planning has already begun for VCC's 2014 Learning Exchange luncheon.

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December 11, 2014

 

Affordable Housing Program Grants Create Jobs and Preserve Homes

9/19/2013

VCC assists communities with more than lending services. Many times, we help to identify and facilitate funding sources that move projects to the next important stage of planning or actual construction. When this funding can be used to support affordable housing for low-income residents, we are especially enthusiastic about the results. Two grant awards from the Federal Home Loan Bank in Atlanta will serve two projects—one in Pearisburg and one in Lynchburg. We couldn’t be happier to share the details.

The Affordable Housing Program Awards (AHP) at the Federal Home Loan Bank in Atlanta are part of an annual competitive process distributing grants for the acquisition, new construction, rehabilitation, or preservation of affordable rental and homeownership housing units. Member institutions from eight states in the region can apply for the funding, which is then distributed to partners in the successful applications.

This is the first year VCC has applied, doing so in partnership with two local developers. Both grants were successful, resulting in over $525,000 in support toward affordable housing in two communities.

Hillside Apartments - Severn Development Company (developer)

Hillside Apartments is a multifamily housing development consisting of three, three-story apartment buildings with 36 one-, two-, and three-bedroom units. A $330,000 AHP grant will be used for a complete rehabilitation, with an emphasis on preserving affordability for very low- and low-income families in Pearisburg, a small town in Giles County.

Summary of Findings for FHLB Atlanta's AHP:

Leveraging of AHP with Private Sector Investment and Other Funds:

For every $1 million of AHP Funding, $14.3 million of housing is built or rehabilitated.

Job Creation:

For every $1 million of AHP funding, 158 jobs are created. AHP-assisted housing has helped create approximately 46,000 jobs in its 20 years.

Tax Revenues:

For every $1 of AHP funding, $2.79 in taxes is generated. More than $811 million of federal, state, and local taxes has been generated due to AHP funding.

Housing Production:

An AHP investment of only $290.5 million has stimulated housing development with a total development cost of $4.1 billion.

AHP Multiplier Effect:

Every $1 million of AHP funding generates $24.6 million of economic activity. About $8 million of that figure is earnings/income. The multiplier effect and leveraging mean total economic activity far exceeds the value of housing built or rehabilitated.

Armstrong Place - RUSH Lifetime Homes (developer)

Armstrong Place provides 28 apartments for people with disabilities and low incomes through the historic adaptive reuse of the Armstrong Elementary School combined with new construction, all located in Lynchburg. This project received $195,477 in grant support. Fifty percent of the apartments will be fully accessible to Section 504 standards and the remainder will be adaptable for people with disabilities.  Fifty percent of the tenants served will have incomes that are less than or equal to 40 percent of the area median income and the remaining units will serve households up to 60 percent of the area median income. Armstrong Place will be EarthCraft certified and designed in context with both the neighborhood and the historic character of the school. The local community will be encouraged to pursue activities in the school gym per a partnership with the City of Lynchburg.

 "Supporting the creation and preservation of affordable housing in Virginia is one of VCC's core principles," explains Monique Johnson, Senior Loan Officer who worked on the winning grant applications. "Programs like the AHP serve as catalysts and often help move plans to actual construction. Tools such as these also make sure that affordable housing stays dedicated to that purpose and population."

The AHP program is also good for the economy. See the Summary of Findings presented by the Federal Home Loan Bank of Atlanta. Or, as a congratulatory letter from Senator Mark R. Warner so eloquently put it: “The capital received will help revitalize neighborhoods, create jobs, and facilitate economic development.”

 

 

 

About Virginia Community Capital:
With offices in Christiansburg, Richmond, and Springfield, Virginia Community Capital (VCC) is dedicated to the prospect of building wealth for all through our lending, deposits, and advisory services. As a community development financial institution (CDFI), our mission is to offer innovative, flexible financial products designed to support housing and community development ventures, increase jobs, and encourage sustainable communities. In partnership with our for-profit bank, Community Capital Bank of Virginia (CCB), the non-profit VCC offers loan capital broader and more flexible than bank lending in low-to-moderate income communities in underserved geographies and markets. Learn more at  vacommunitycapital.org.