Affordable Housing News Roundup: October 2026
A few things caught our attention in affordable housing this month. USDA released new numbers on rural rental funding and signaled a larger round ahead. The Housing Credit reached its 40th anniversary, with new bills in Congress to watch. In Virginia, two lawmakers are pushing building code changes aimed at lowering construction costs, and a World War II-era Norfolk apartment community reopened as affordable housing. Here is a quick look at each, with links to the full articles.
USDA Reports on Section 515 and Plans a Larger Funding Round for FY 2027
USDA Rural Development released its fiscal year 2026 fact sheet for the Section 515 Rural Rental Housing Program. This year, the agency put $34 million into 26 rural rental properties, covering nearly 900 affordable units. It also invested more than $102 million through the Multifamily Preservation and Revitalization (MPR) Program, which supported 39 properties and nearly 4,400 units. Together, the two programs preserved more than 5,200 units. Looking ahead, USDA expects to open a new Section 515 funding opportunity in FY 2027 with at least $100 million available. Rural owners and sponsors who want to apply should start getting their properties and paperwork ready now.
Read the full release from USDA Rural Development.
LIHTC Turns 40: Bills to Watch in Congress
The Low-Income Housing Tax Credit marked its 40th anniversary on October 22. It has been a cornerstone of affordable housing finance since the Tax Reform Act of 1986. NH&RA highlighted several recently introduced bills that could shape its future. The Affordable Housing Credit Carryback Act would create a five-year carryback period for the Housing Credit. The Affordable Housing Construction Act would triple state allocations and extend affordability requirements to 50 years. The Transit-Oriented Housing Development Act would raise state private activity bond caps by 30% and add basis boosts for properties near transit. The FIXER Act would let states exclude tax-exempt bonds from their volume caps when used to preserve or replace affordable housing. Congress is in recess and plans to return on November 9, 2026, after the midterm elections.
Read the full article from NH&RA.
Virginia Lawmakers Propose Building Code Changes to Encourage Affordable Housing
On October 21, state Sen. Schuyler VanValkenburg and Del. Adele McClure asked Virginia’s Department of Housing and Community Development to make six changes to the state building code. The department is currently reviewing the code. The proposals include allowing one stairway in apartment buildings of up to six stories and 24 units, and putting three- and four-unit buildings under the residential code. They also include fewer elevator mandates, scissor stairs in some buildings, a separate code for multifamily buildings with five to 24 units, and licensed third-party permit inspections. The lawmakers say the single-stair change could cut construction costs by 6% to 13%, and the residential code change by 28% to 33%. They also say health and safety standards would be maintained. The department’s board is scheduled to consider proposed regulations in December, with final regulations expected in mid-2027.
Read the full article from The Daily Progress.
295 Affordable Apartments Open in Norfolk’s Talbot Park
A ribbon-cutting on October 21 celebrated the opening of the Estates at Talbot Park in Norfolk. The complex dates to World War II, and its 295 apartments were previously market-rate. Genesis Properties spent about a year and $29 million turning them into affordable one- and two-bedroom homes, with new plumbing and electrical and refinished original hardwood floors. About 50 residents from before the renovation were able to stay. For a single person, income limits start a little over $40,000. One-bedroom units begin just over $1,000 a month, and renters approved before the end of the year get $300 off monthly. The opening comes as Hampton Roads faces a shortage of nearly 56,000 units affordable to households earning under 50% of median income, according to the National Low Income Housing Coalition.