(Richmond) — The Tobacco Commission is kicking off a program to help with the housing crunch.
Commission member Danny Marshall of Danville is also with the state Housing Commission. He introduced the idea to the Commission several months ago, and it’s taken off from there. “The housing shortage is state-wide, nation-wide, really,” Marshall says. “One of the biggest contributing factors is the mortgage rates which are pushing eight percent.”
And Marshall says the problem will reach crisis levels locally if we get some good economic news soon. “If we land a major company at Berry Hill, we’ll have a real housing shortage pretty quickly.”
The Economic Development Workforce Housing Incentive Pilot Program will incentivize localities and employers to develop affordable housing options. Localities can submit developer proposals to the Tobacco Commission. They will review them the same way they review businesses who apply for grant money, and award grants based on merit.
“The Tobacco Commission in the past has done projects targeting water and sewer, land acquisition and natural gas lines,” Marshall noted. “This is the next step to help differentiate our region from other parts of the state, making it more enticing for a major employer to choose Southside.”
Marshall says this housing effort will help people who fall in between affordable housing programs and the upper-scale developments.
Any funds will require a local match. The program is starting off with two million dollars. The grants are available to owner-occupied and rental developments in the cities and counties that make up the Tobacco Commission’s geographic footprint.
The Virginia State Housing Commission cites Danville as having an acute housing shortage, especially for rental properties. The Commission is studying ways to remove barriers to residential construction in Virginia.