Virginia’s Affordable Housing Challenge

Across Virginia, families are struggling to find homes they can afford, and the supply of quality affordable housing cannot keep pace with demand. This crisis disproportionately affects our most vulnerable neighbors living in low- to moderate-income communities. Stable, safe, and sustainable housing is a fundamental need, yet housing affordability and access remain among the top challenges facing our Commonwealth.

The cost of building housing has skyrocketed, and projects often require complex capital structures that can feel daunting. But the challenge is not just about bricks and mortar, it’s also about people. Affordable housing must be centered on the residents it serves, and that requires a collaborative ecosystem. This is where funders play a critical role.

Why Funders Matter

While foundations and nonprofit funders may not always have large sums to contribute to a project’s capital stack, their support is often catalytic. Grants, program funding, and capacity-building resources can unlock other investments, strengthen local organizations, and ensure that housing strategies are comprehensive. Funders help make projects viable by supporting essential services that stabilize families and communities like housing counseling, workforce development, and financial coaching.

LISC’s Holistic Approach to Community Development

For more than 35 years, LISC has worked to uplift communities of low wealth and catalyze investment. LISC Virginia partners with grassroots organizations to revitalize neighborhoods through grants, loans, and technical expertise. Our approach is holistic, and we know that building houses alone is not enough. We must build communities.

Innovative Partnerships Driving Change

As a community development financial institution (CDFI), LISC provides accessible capital and resources like technical assistance and training. But what sets us apart is our commitment to comprehensive community development. For example, through the Wealth Opportunities Realized Through Homeownership (WORTH) RVA initiative, LISC has led the implementation of a strategy and has collaborated with local housing service partners to create and preserve 5,000 homeowners who have historically encountered barriers to homeownership in the Richmond region. Since 2023, the WORTH RVA Collaborative, has helped more than 2,300 families achieve homeownership through a comprehensive toolbox of services including housing counseling, down payment assistance and specialized mortgage products.

We also invest in the future of affordable housing development. Our Housing Developer Training Institute, a partnership with Virginia Housing, the City of Richmond, and Freddie Mac, equips emerging developers with the skills to deliver quality, affordable housing. By building local capacity, we strengthen the pipeline of projects that communities desperately need.

How You Can Help Close the Gap

Funders can engage at every stage, from development, to preservation, to programmatic support. These investments are essential to addressing Virginia’s housing crisis. Together, we can ensure that every family has access to a safe, stable home and the opportunities that come with it.

LISC Virginia is committed to helping our Commonwealth thrive. We invite funders to join us in this work. When we invest in housing, we invest in people, and when we invest in people, we build stronger communities.