Virginia Housing Announces $1.7 Million in Innovation Grants to Support Housing Affordability Efforts

Funding will support innovative solutions to increase affordable housing and deliver support services to low-income and vulnerable populations across Virginia

RICHMOND, Va., June 12, 2025 /PRNewswire/ -- Virginia Housing announced $1.7 million in funding for five organizations through the Innovation Grant Program, which is aimed at driving breakthroughs in housing affordability and services across the state.

"Creating safe, affordable and quality housing is foundational to building thriving communities, and Virginia Housing encourages holistic innovation that supports ingenuity in housing solutions," said Virginia Housing CEO Tammy Neale. "Through our Innovation Grant Program, we are supporting our partners and investing in cutting-edge technologies that create more housing opportunities and more efficient and creative ways to help Virginians, as well as affirming the Commonwealth as a national leader in housing innovation."

The Innovation Grant Program is designed to support solutions that address the housing needs of low- and moderate-income households. By fostering innovative technical and process-based approaches, Virginia Housing seeks to pave the way for scalable and replicable models that can transform housing affordability and services over the long term. Virginia Housing evaluates applications based on the novelty of the innovation, its potential for replication, and the applicant's approach to assessing and sharing their results.

The program offers three distinct types of grants: Innovation Planning, Innovation Program and Innovation Construction. Innovation Planning Grants provide up to $50,000 for exploring innovative ideas that are not yet ready for implementation. This grant is awarded on a noncompetitive basis to all eligible applicants. Innovation Program Grants offer up to $200,000 to organizations integrating new approaches to programs, services and financing. This includes advancements in property management, community engagement and funding models. Innovation Construction Grants allocate up to $500,000 to support innovative construction methods that reduce costs and construction time. This can involve the development of affordable materials or new techniques that conserve resources while improving quality and efficiency.

To learn more, visit VirginiaHousing.com.

2025 Innovation Grant Program Awardees:

Moton Circle Innovation Project
Norfolk Redevelopment and Housing Authority
$500,000
Funding will support the comparison of the key elements and metrics of two building types including cost, impact, market appeal and flexibility. The plan will include an innovative approach to construction of 28 residential townhome units, 14 of which will be stick-built and 14 modular units. An additional 20 units will be incorporated in the future.

Prefabricated Approaches and Volunteer-based Enhancements (PAVE) for
Virginia Nonprofit Builders
Virginia Center for Housing Research (VCHR) at Virginia Tech
$400,000
In partnership with Habitat for Humanity affiliates across Virginia, VCHR will utilize the Prefabricated Approaches and Volunteer-based Enhancements (PAVE) method to reduce labor risks, materials costs and increase access to affordable housing options. PAVE is an innovative building approach optimizing volunteer-based homebuilding systems, and funding will specifically increase access for local Habitat affiliates to high-performance housing, including training, software-based design, volunteer-based pre-assembly and site-based assembly, and performance monitoring.

YWCA Richmond Housing Campus
YWCA Richmond
$400,000
Funding will support the construction of The Heights, a multi-use development that will provide deeply affordable housing, early childhood education and comprehensive supportive services for survivors of domestic and sexual violence. The grant will support construction costs, and equipment and administrative expenses, ensuring the successful development of this community resource. The Heights will provide a survivor-centered, trauma-informed housing model with no fixed time limits, allowing individuals to progress at their own pace.

Solar Lease Program for Low-Income Homeowners
Habitat for Humanity Virginia
$200,000
Funding will expand the installation of solar panels on the homes of Habitat homeowners. The grant will foster program sustainability and continue the implementation of the solar-lease model, ensuring that the homeowner's investment into their system does not hinder their ability to realize financial savings from the first day the panels are active.

Mobile Drop-in Center
Pathway Homes Inc.
$200,000
This grant will support innovative services delivered through PathV, a comprehensive drop-in center for people experiencing homelessness. This mobile unit will be the only one of its kind in the region and will travel to homeless encampments to provide community-based supports.

About Virginia Housing 
By investing in the power of home, Virginia Housing transforms where and how thousands of Virginians live and thrive, strengthening communities and the economy. Virginia Housing has worked for over 50 years in partnership with the public and private sectors to help Virginians attain quality, affordable housing. While receiving no state taxpayer dollars, Virginia Housing raises money in capital markets to provide mortgages to first-time homebuyers, financing for rental developments and neighborhood revitalization efforts. Virginia Housing invests in innovations in affordable housing and makes homes for people with disabilities and older Virginians more livable. Learn more at VirginiaHousing.com and review the most recent annual report.

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SOURCE Virginia Housing