July/August 2008

Home Sweet Home

Virginia is trying to join 39 states that have housing trust funds. How could it help you realize your dreams?

By Kristen De Deyn Kirk

An assistant at state Sen. Yvonne Miller’s office had to call back when asked if the senator supported the idea of a housing trust fund. “Is that a state or a federal bill?” she wanted to know.

Leaders of the Virginia Housing Coalition, a state-wide organization that wants affordable housing in Virginia, would be disappointed. Del. Terrie Suit, a republican representing parts of Virginia Beach and Chesapeake, and state Sen. Mary Margaret Whipple, a democrat representing Falls Church and parts of Arlington and Fairfax, would be, too.

For the last several years, they’ve sponsored housing trust fund bills in the General Assembly.

The fund, ideally, would offer many different things to many different people—families looking to buy their first home; seniors who need to spruce up their home or move into special-care housing; single parents struggling to make ends meet; families wanting to live closer to work; people with disabilities who need special accommodations; and the homeless.

The money might go directly to individuals through loans or grants. Or cities might win matching dollars if they established a local trust fund. Or builders might receive incentives to build affordable homes. 

Where would the money come from? Virginia Housing Coalition members don’t care. They’re not pushing for a tax increase, and they’re wide open to suggestions. The only thing they insist on: The money must be earmarked for the fund on a regular basis.
One idea is to collect two cents of the 25 cents the state already receives from every $100 of recorded real estate transactions. In 2004, the trust fund would have grown by $23.8 million if that method was used. In 2005, the coffers would have swelled by $42.2 million.

The Coalition appears to be more flexible than a yoga master. Members mention on their website that not only are they willing to negotiate where the money comes from, they’d even decline new funding if the real estate transaction collection dipped below $200,000 in any given year.

Again, all they really want is a dedicated source of income. That way, the fund will stay alive—unlike the Virginia Housing Partnership Fund.

For the rest of this story, see the July/August  issue of ‘Hampton Roads Magazine,’ currently available on newsstands.