Winchester City explores $2M Home ARP funds for affordable housing initiatives

The Winchester City Council Finance Committee convened on June 3, 2025, to discuss critical funding issues related to affordable housing and community development. A significant focus of the meeting was the allocation of $2 million in Home ARP (American Rescue Plan) funds, which are intended to support affordable housing initiatives in the region.

Committee members expressed concern that, despite the availability of these funds, they have not yet been utilized. The funds, administered by the Northern Shenandoah Valley Regional Commission, were originally approved in the city’s annual action plan in 2022. However, the lack of engagement from local nonprofits and the complexities associated with federal funding requirements have hindered progress. Officials noted that many nonprofits in the area may lack the necessary expertise to manage such projects effectively.

The discussion highlighted the challenges of navigating federal regulations, which can impose additional costs and requirements on projects. These include environmental reviews and specific labor standards, which some organizations may find daunting. The committee acknowledged that while there is awareness of the funding, community participation in voicing opinions and proposals remains limited.

In addition to the Home ARP funds, the committee allocated $532,626 from the Community Development Block Grant specifically for improvements at 3 Battle Drive. This funding is intended to enhance local infrastructure and support the development of non-congregate shelters.

Looking ahead, the committee is exploring ways to leverage both the Home ARP and Community Development Block Grant funds to maximize their impact on the community. They are also considering the possibility of securing loans from HUD to further support rehabilitation efforts, which could be repaid using future block grant funds.

The meeting underscored the urgency of addressing affordable housing issues in Winchester and the need for effective partnerships between the city and local nonprofits to ensure that available resources are utilized efficiently. The Finance Committee plans to continue refining its strategies to engage the community and enhance the effectiveness of these funding opportunities.