A Housing Trust Fund for Harrisonburg and Rockingham County

A housing trust fund receives public revenues, which can only be spent on affordable housing.

The key characteristic of a housing trust fund, is that it receives ongoing revenue from dedicated public funding and contributions from private sources, such as fees or loan repayments. Typically, an existing revenue source is increased and that increase is committed to a housing trust fund. The key benefit to a housing trust fund, is that it provides a more secure and stable way to fund needed housing.

Our goals

Joint establishment

The City of Harrisonburg and Rockingham County will jointly administer an affordable housing trust fund. The purpose of the fund will be to the preservation of existing affordable housing and the creation of new affordable housing for households at 80% of area median income and below.

Joint funding

The City and County will both contribute $750,000 annually to the fund.

Equitable application

We will establish a Housing Advisory Committee comprised of low-income residents, city/county staff, members of the real estate sector, and other members at large to ensure racial and economic equity to advise on the use of the trust funds.

Endorse our Housing Trust Fund Resolution

FAQs

What is Affordable Housing?

Housing is considered affordable if it consumes no more than 30% of a household's income. Affordable housing serves households whose income levels are below specific targets: a household is considered 'low income' if their income is below 80% of an area's median income (AMI) and 'very low income' if their income is below 50% AMI. For Harrisonburg and Rockingham County the AMI is $68,700, for a family of four. Typically, families making less than $54, 950, would qualify for affordable housing.

How efficient is a Housing Trust Fund?

There are over 800 housing trust fund models to draw from in order to create a fund that best suits our needs. One of the strengths of a housing trust fund is the ability to attract other sources. For example in Ithaca, New York, Cornell University contributed $1.2 million to the housing trust fund. The county, city, and university all committed to $1.2 and now has reached $2.4 million invested into this trust fund. On average, city housing trust funds indicated they leveraged $6.00 in additional public and private funds for every $1.00 the trust fund invested in affordable housing activities.

What is the goal of a Harrisonburg and Rockingham County Trust Fund?

The goal is to create a fund that receives at least $1.5 million annually that will be spent on building and preserving affordable housing in Harrisonburg and Rockingham County. The trust fund aims to: maximize public-private participation; secure a dedicated continuous funding source; leverage other resources. A potential list of uses include: new construction, rehabilitation, acquisition, rental assistance, land trusts, cooperative housing, transitional or emergency housing, preservation of assisted housing, weatherization, emergency repairs, housing-related services and more.

Success stories

Lexington, Kentucky

Over 1,400 housing units have been created or preserved since a Housing Trust Fund was established in Lexington in 2012.

Ithaca, New York

Cornell University helped financially secure a Housing Trust Fund in Ithaca, NY.

Pittsburgh, Philadelphia

The City of Pittsburgh committed to put 10 million dollars into a Housing Trust Fund for 12 years starting in 2016.

Resources