Virginia Housing board approves 2025 9% LIHTC reservations, waives SDI points and forward‑allocates CY26 credits

The Virginia Housing Development Authority Board of Commissioners voted June 17 to approve staff recommendations for the 2025 9% low‑income housing tax credit (LIHTC) awards, direct Chief Executive Officer Tammy Neale to sign a good‑cause waiver removing Socially Disadvantaged Individuals (SDI) points from the Qualified Allocation Plan (QAP), and forward‑allocate 67% of calendar year 2026 credits.

Stephanie Flanders, Director of Tax Credits, presented the final rankings and told the Board that "the deletion of the points would require the Board to direct Ms. Neale, as Chief Executive Officer, to sign a waiver of the Qualified Allocation Plan (QAP) for good cause." Staff recommended funding all deals scoring high enough, fully funding four remaining Tier 1 At‑Large Pool deals (501‑A Cherry Ave; New Gilpin Court Offsite Phase A; Roanoke Gateway; Grand Lake), funding DRPI in the Local Housing Authority pool, and funding four previously awarded developments seeking additional credits (Madison Roads Apartments; Witter Place; Choice Neighborhoods V‑Downtown; Northwood Village).

The Board approved the motion to implement those recommendations. Commissioners Sarah B. Stedfast, Matthew Fields, Davon Gray, Michael Olivieri, David L. Richardson and Dare Ruffin voted in favor; Commissioners William C. Shelton, Abigail Johnson and Donald E. Scoggins voted in opposition. The action includes a waiver for good cause of the QAP’s 50% cap on pre‑allocations, allowing staff to forward‑allocate 67% of CY26 credits.

During the public comment period, a mix of housing providers, advocates and nearby residents spoke for and against specific projects and for retaining SDI points. Mary Mayrose of the Lynchburg Housing Authority and Michael Henzy of Smith & Henzy expressed support for the DRPI development; Greta Harris of the Better Housing Coalition, Bruce Watts of Woda Cooper, Erik Hoffman of the Virginia Housing Alliance and Tavaris McCoy of The Real McCoy Companies urged the Board to retain SDI points in the QAP. Other commenters supported or opposed Wesley‑Melwood and other named projects.

Separately, the Board voted to deviate from the normal two‑year QAP amendment cycle to study Sponsor Characteristics point categories and begin a formal QAP revision process, including public notice, hearings and publication in the Virginia Register of Regulations, with final regulations to be brought back for a vote at the September 10, 2025 meeting.

The Board’s action changes how 9% LIHTC awards are being allocated in this round and initiates a regulatory process to revisit scoring categories in the QAP. Next steps include staff implementation of the reservations, execution of the CEO waiver, and the public notice/hearing process for proposed QAP revisions.