Virginia Housing Victories Clouded, But Not Obscured, By Pandemic

Historic. Best year in a generation. Best session in recent memory.

That’s how Arlington’s state senators and delegates described Virginia’s 2020 General Assembly during an April 16 roundtable (read: Zoom call) with the Alliance for Housing Solutions.

But also: Bittersweet.

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“Sweet, because there are a lot of policies we can be proud of,” said Del. Patrick Hope. “But bitter because of the budget situation we are in.”

Champions of affordable housing barely had time to celebrate legislative and budgetary victories before COVID-19 swept Virginia into a state of emergency, leaving budget allocations up in the air and revealing gaps in State and local safety nets.

Among the budgetary victories was a total allocation of $74 million ($14M in FY20 and $30M each for FY21 and FY22) for Virginia’s Housing Trust Fund, designed to create and preserve affordable housing and reduce homelessness. The VHTF was funded at $11 million for FY19.

The budget also provided substantial increases for permanent supportive housing programs to reduce homelessness and provide housing options for Virginians with intellectual and developmental disabilities.

“We’ve never seen this kind of funding,” Senator Barbara Favola said. “Supportive housing has been a best practice for years and Virginia finally stepped up to the plate.”

> “Supportive housing has been a best practice for years and Virginia finally stepped up to the plate.”
— Sen. Barbara Favola

Now those dollars may need to be delayed due to declining state revenues and the need to respond to immediate needs related to COVID-19. Exactly how budget allocations may change will be taken up when the Assembly meets for its one-day veto session on April 22. (Senator Adam Ebbin noted that Governor Ralph Northam has already indicated that the minimum wage increase that was passed may be pushed back to 2021.)

Del. Rip Sullivan said the reality of how COVID will affect budget allocations is disappointing and some progress will be delayed, but “we have made the priorities very clear.”

Representatives also noted that budgetary allocations weren’t the only victories for housing. New protections were signed into law, including:

  • Eviction Prevention: Among several new tenant protections is a requirement that landlords include information about where tenants can find legal services on eviction notices.

  • Source of Income Protection (HB6): Landlords (who own more than four units) can no longer discriminate against families and individuals who use housing choice vouchers to pay part of their rent.

  • Sexual Orientation and Gender Identity (SB868): LGBTQ people are now protected against discrimination in housing, credit, employment, and public accommodations.

Del. Mark Levine, who worked on the eviction prevention and sexual orientation and gender identity bills, said these protections will last through the pandemic. He said the Assembly accomplished “a lot of good things, and even if they get pared back for a while, we will get past this.”

“We need more eviction protection,” said Del. Alfonso Lopez, whose constituents are calling him because they’ve lost jobs and can’t pay rent. Governor Northam has proposed moving up the effective date of some protections to respond to the crisis.

While foreclosures and evictions are on hold and with a promise that no one’s utilities will be turned off during the pandemic, Del. Hope said affordable housing should be prioritized and some protections will need to go longer than 60 to 90 days.

The session also laid the groundwork for future policies and expanded existing programs to support affordable housing in the state, including:

  • The Department of Housing and Community Development and Virginia Housing Development Authority will study statewide housing needs and produce a report on ways to incentivize affordable housing development.

  • A stakeholder group will convene to devise a plan for a new state Low-Income Housing Tax Credit program, which would encourage the development of affordable rental housing and provide incentives for private investors to participate in the construction and rehabilitation of housing for low-income families.

  • An expansion of the Communities of Opportunity Tax Credit to Northern Virginia, which provides a credit in certain cases to landlords renting to households with housing choice vouchers. The program was originally established for other areas of Virginia to help deconcentrate poverty by enhancing access to affordable housing units in higher income areas.

With this year’s successes, and the ongoing health and economic challenges presented by COVID-19, in mind, AHS will be working with partners and elected officials throughout 2020 to develop new proposals for the 2021 session. Additional tenant protections, incentives for local governments to plan for and approve affordable housing, and an update to Arlington’s 15-year old Affordable Housing Ordinance are among the ideas that may be on the table for future consideration.