Virginia Housing announced more than $1.4 million in funding for six organizations through the Innovation Grant Program, which is aimed at driving breakthroughs in housing affordability and services across the state.
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.
2026 Innovation Grant Program Awardees:
Innovation Program Martinsville: Fayette and Beaver Street Development Project, West Piedmont Planning District Commission, $500,000
The West Piedmont Planning District Commission will develop 10 units of small-scale affordable housing in the city of Martinsville using innovative duplex manufactured homes to create attainable homeownership opportunities for households earning at or below 80% of the area median income. By combining high-quality manufactured construction with a replicable, neighborhood-compatible development model, the project reduces costs, shortens timelines and establishes a scalable solution for increasing affordable housing in Martinsville.
Property Management for Success, Habitat for Humanity of Greater Charlottesville, $200,000
Habitat for Humanity of Greater Charlottesville will receive funding to support a pilot resident-led property management model at a mobile home community. By developing a scalable, cost-effective and community-driven approach to preserving mobile home communities without displacing residents, the initiative will serve as a replicable blueprint, with strategies and best practices widely disseminated through a comprehensive step-by-step Preserving Virginia Mobile Home Communities with a Resident-Centric Approach guide.
Bridging Systems of Care to Better Serve People, Homeward, $200,000
Homeward will expand the regional homeless triage and assessment program, Homeless Connection Line, into a cross-sector referral hub. Using protocols developed in this project, staff will assess caller needs and make structured referrals to adult services, employment, behavioral health and targeted prevention programs. This approach will move beyond sharing resource lists to developing cross-system referrals to increase housing stability while protecting data confidentiality.
Virginia Affordable Housing Preservation Coalition 695-Innovation Program, Locus, $200,000
Locus, in partnership with the Virginia Housing Alliance, leads the Virginia Affordable Housing Preservation Coalition (VAHPC), a statewide initiative to preserve affordable housing at risk of conversion. Funding will support the design and launch of the Housing Preservation Dashboard, an interactive, data-driven tool that will use a vetted At-Risk Score incorporating compliance timelines, ownership profiles, and local market pressures. Findings will inform recommendations to Locus and coalition partners for new lending products, capital structures, and funding streams needed to support a coordinated preservation capital approach.
ToolBOX Program: The Richmond ToolBank, Richmond Community ToolBank, $200,000
ToolBOX is a skill and capacity program that utilizes hands-on interactive training and education to empower current and aspirational homeowners. Funding will support growth by increasing workshop capacities to meet the growing needs of communities. These efforts also include expansion into the Southside region by implementing the first ToolBOX hub in the currently unserved region. In total, ToolBOX will triple current workshop offerings to nearly 75 in 2026.
Scalable Housing through Additive Production Evaluation (SHAPE), Virginia Center for Housing Research at Virginia Tech, $187,000
The Virginia Center for Housing Research at Virginia Tech will advance Virginia’s 3D4VA initiative from successful demonstration into a scalable, certifiable housing production system by standardizing additive construction processes, expanding low-carbon material deployment, and enabling statewide workforce and builder adoption. This funding will support integration of the UL 3401 performance verification pathways to accelerate code acceptance, reduce construction costs and timelines, and expand access to high-quality affordable housing across Virginia.
