James Baker

The main Board of Commissioners meeting focused heavily on the 2025 9% low-income housing tax credits (LIHTC) round, including the final rankings where points for socially disadvantaged individuals (SDI) were excluded as directed. This exclusion required a good cause waiver of the Qualified Allocation Plan (QAP). The Board approved reservations of credits to fund various deals and authorized a forward allocation of 67% of Calendar Year 2026 credits, also constituting a good cause waiver of the QAP pre-allocation cap. The Board also authorized a deviation from the standard two-year cycle to study and revise the QAP, aiming to bring final regulations for a vote in September. Informational reports covered updates from the Chief Executive Officer on organizational matters, Fiscal Year 2025 accomplishments, and strategic plan progress. The Finance Committee reported recommending the adoption of the Fiscal Year 2026 budget, which was subsequently approved by the full Board. The financial report highlighted YTD performance, including $71.0 million in excess revenue over expenses and total assets of $12.2 billion. The Consent Agenda included the approval of the minutes from the April 28-29, 2025, meeting and the resolution establishing 2026 meeting dates. The Executive Committee met to review the Board agenda, discuss QAP impacts, and nominate Commissioner Stedfast for Chair and Commissioner Gray for Vice Chair for FY26. The Finance Committee reviewed and recommended the FY26 budget to the full Board.

The Finance Committee convened virtually, following policy guidelines for all-virtual meetings. The primary discussion focused on a budget briefing for the proposed Fiscal Year 2026 (FY26) budget. This briefing addressed budget development, economic factors, estimated loan production, mortgage balances, interest rates, income and expenses, staffing costs, REACH Virginia grant expenses, and expected net revenue. It was noted that the Executive Committee would review staff compensation, and the Finance Committee would meet again to finalize its recommendation on the FY26 budget for the full Board.

The Commissioners received an informational report from the CEO on various topics, including the status of the Governor's signature on the Qualified Allocation Plan (QAP) amendments, the new Community Heroes program, the parking deck construction status, the Workforce Housing Investment Program, a recent Deed Fraud study, the Virginia Chamber's Blueprint priorities, and the Annual Report. The Department of Housing and Community Development reported on activities, including engagement with the Governor-elect's transition team and discussions regarding Enterprise Zones and a workforce housing project in Russell County. An informational discussion was held regarding the recently ended federal government shutdown and its impact on programs like the Housing Choice Voucher Program (HCVP), as well as updates concerning a Notice of Funding Opportunity (NOFO) from HUD and announcements from HUD and CFPB. The discussion also covered recent statewide elections and upcoming transition team meetings. Financial and budget reports detailed year-to-date revenue, net interest margin, programmatic and administrative expenses, total assets and liabilities, net position, investment return, and the status of the mortgage portfolio. Discussions also covered the bond issuance calendar, private activity bond cap allocation, and salient features memoranda for upcoming bond series. There were no specific action items other than the approval of the minutes from the October 22, 2025, Board meeting.

The document contains minutes from two committee meetings held on the same date: the Audit Committee and the Executive Committee of the Board of Commissioners of the Virginia Housing Development Authority. Key discussions for the Audit Committee included the presentation of the financial statement audit results for the period ending June 30, 2025, where an unmodified opinion was issued with no material weaknesses or significant deficiencies noted. The committee also reaffirmed the Audit Committee Charter and the Internal Audit Committee Department Charter, and reviewed the status of open audits. The Executive Committee reviewed and discussed the agenda for the main Board Meeting. The Chief Executive Officer provided an update on various activities, including capturing exit interview comments, plans for individual commissioner meetings, seeking input on the Internal Audit Director's performance, preparation for state Administration transition, a recent filming for a Bloomberg television series, and pending Governor's approval for Rental Housing bonds. Finally, the Committee approved the Fiscal Year 2026 Chief Executive Officer goals.

The meeting included discussions and updates on several key areas. Amendments to the Low-Income Housing Tax Credit (LIHTC) Qualified Allocation Plan (QAP) were approved, with some commissioners expressing interest in future discussions about incentives for emerging developers. An informational report covered topics such as a promotional video on Virginia Housing, favorable results from a HUD compliance test, the Workforce Housing Investment Program, Advisory Councils, and recent events involving Virginia Housing staff. There were discussions on the One Big Beautiful Bill Act (OB3) and its impact on affordable housing, as well as the potential effects of the federal government shutdown on Virginia Housing's programs. The proposed strategic plan, Pathways to Housing 2030, was approved. The Executive Committee approved CEO goals for fiscal year 2026, and the Audit Committee received an update on the external audit of Virginia Housing's financial statements. Financial performance and budget matters were reported, including revenue, expenses, net interest margin, and investment returns. Updates were provided on bond issuance, Virginia Housing's private activity bond cap allocation, and salient features memoranda for various bond series. The board approved repealing the rules and regulations for several programs.