                                 CODE OF VIRGINIA

(EFFECTIVE UNTIL JANUARY 1, 2026) CREATION AND MANAGEMENT OF FUND (§ 36-142)

A. There is hereby established in the state treasury a special permanent,
nonreverting fund, to be known as the &#8220;Virginia Housing Trust Fund.&#8221;
The Fund shall be established on the books of the Comptroller and consist of
sums appropriated to the Fund by the General Assembly, all receipts by the Fund
from loans made by it to housing sponsors and persons and families of low and
moderate income, all income from the investment of moneys held in the Fund, and
any other sums designated for deposit to the Fund from any source, public or
private. The Fund shall also consist of such other sums as may be made available
to it and shall include federal grants solicited and received for the specific
purposes of the Fund and all interest and income from investment of the Fund.
Any sums remaining in the Fund, including interest thereon, at the end of each
fiscal year shall not revert to the general fund but shall remain in the Fund.
All moneys designated for the Fund shall be paid into the state treasury and
credited to the Fund.

B. The Department shall:

   1. Work in collaboration with the HDA to provide loan origination and
   servicing activities as needed to carry out the purposes of the Fund. The
   costs of such services shall be considered an eligible use of the Fund; and

   2. Use, through HDA, at least 80 percent of the moneys from the Fund to
   provide flexible financing for low-interest loans through eligible
   organizations. Such loans shall be structured to maximize leveraging
   opportunities. All such funds shall be repaid to the credit of the Fund. Loans
   may be provided for (i) affordable rental housing to include new construction,
   rehabilitation, repair, or acquisition of housing to assist low or moderate
   income citizens, including land and land improvements; (ii) down payment and
   closing cost assistance for homebuyers; and (iii) short-term, medium-term, and
   long-term loans to reduce the cost of homeownership and rental housing. Moneys
   required by the HDA to fund such loans and perform loan closing and
   disbursement services shall be transferred from the Fund to the HDA.
   				The Department may use up to 20 percent of the moneys from the Fund to
   provide grants through eligible organizations for targeted efforts to reduce
   homelessness, including (a) temporary rental assistance, not to exceed one
   year; (b) housing stabilization services in permanent supportive housing for
   homeless individuals and homeless families; (c) mortgage foreclosure
   counseling targeted at localities with the highest incidence of foreclosure
   activity; and (d) predevelopment assistance for permanent supportive housing
   and other long-term housing options for the homeless.

C. The Fund shall be administered and managed by the Department as prescribed in
this chapter. In order to carry out the administration and management of the
Fund, the Department is granted the power to contract with or employ officers,
employees, agents, advisers and consultants, including, without limitation,
attorneys, financial advisers, public accountants, engineers and other technical
advisers and, the provisions of any other law to the contrary notwithstanding,
to determine their duties and compensation without the approval of any other
agency or instrumentality. The Department may disburse from the Fund its
reasonable costs and expenses incurred in the administration and management of
the Fund, including reasonable fees and costs of the HDA.

D. For the purposes of this section, eligible organizations include (i)
localities, (ii) local government housing authorities, (iii) regional and
statewide housing assistance organizations that provide assistance to low and
moderate income or low income citizens of Virginia, and (iv) limited liability
companies expressly created for the purpose of owning and operating affordable
housing.

E. In any year prior to the expenditure of any general funds appropriated for
the Fund for the next succeeding fiscal year, the Department, in conjunction
with HDA, shall submit a plan outlining the proposed uses of such funds to the
General Assembly. The plan shall be provided to the Chairmen of the House
Committee on Appropriations and the Senate Committee on Finance and
Appropriations no later than November 1 of each year.

HISTORY: 1988, c. 687; 2013, c. 754.