Richmond, VA - In an effort to stimulate the development of housing for low-income homebuyers-some with incomes below 50% of AMI (Adjusted Median Income)-VHDA has developed and funded the SPARC (Sponsoring Partnerships and Revitalizing Communities) Program.

This program is intended to encourage innovative ideas and partnerships among local governments, redevelopment and housing authorities, non-profit housing advocates and for-profit developers to create housing that will be affordable to underserved populations with low- or very-low incomes and that often include minorities and people with disabilities. The SPARC program loan funds have an interest rate that is half a percent lower than VHDA's regular, low-interest rate loans, which would place them currently in the 5% to 5.5% range.

An announcement of SPARC funding availability was made in mid-October, proposals were evaluated in December and allocations totaling $46,210,860 were awarded in January to 33 applicants throughout the state.

"The proposals are varied and creative and address housing needs identified by the localities themselves," said VHDA executive director Susan Dewey. "Some will offer the low rate home loans to low-income county municipal workers, for example, or they will use the funds to address barriers facing first time multicultural homebuyers while others will encourage the purchase and renovation of homes in blighted areas."

Many of the proposals use the SPARC funds to leverage funding from a variety of other sources, thus increasing the value of each allocation.

"Programs like SPARC demonstrate what we mean when we characterize VHDA as 'A Mobilizing Force for Affordable Housing', said Dewey.

"We hope this program will be duplicated throughout the nation," said Dewey. "It is a wonderful example of using a variety of resources creatively to produce affordable housing during a time when funding sources are severely strained and dwindling."

The Virginia Housing Development Authority is Virginia's state housing finance agency and is self-supporting. VHDA issues bonds to raise private capital to provide low-interest rate home loans and other home loan financing alternatives to Virginians seeking safe, decent, affordable housing.

SPARC Allocations 2002 (.pdf)