Virginia Enterprise Zone – Real Property Investment Grant
The Virginia Department of Housing and Community Development (DHCD) is committed to creating safe, affordable, and prosperous communities to live, work and do business in Virginia. DHCD partners with Virginia’s communities to develop their economic potential, regulates building and fire codes, train building officials, and invest more than $100 million each year into housing and community development projects throughout the state. The Community Revitalization Office of DHCD administers the Virginia Enterprise Zone Job Creation and Real Property Investment Grants.DHCD , Regional/Local Assistance , Statutory
The Virginia Enterprise Zone (EZ) program is administered by the Virginia Department of Housing and Community Development (DHCD) and is governed by § 59.1- Chapter 49 of the Code of Virginia. The goal of EZ is to encourage job creation and private investment in distressed communities, through a partnership between the State and local governments. The intent is to spur overall community economic growth and expansion by the use of two stand-alone, but complimentary incentives: the Job Creation Grant (JCG) and Real Property Investment Grant (RPIG).
RPIG incentivizes the rehabilitation, expansion, or new construction of real property by providing cash grants to the entity that capitalizes the investment. There is a qualified real property investment threshold of $100,000 (rehab/expansion) or $500,000 (new construction) to qualify for an RPIG. Grants are awarded the calendar year after the property is placed into service.
For more details on the Enterprise Zone Program, please visit the EZ Website. For details specifically related to the Real Property Investment Grants, please refer to the RPIG Instruction Manual. RPIG uses the following principal metric:
- Value of capital investment in Virginia.
When EZ was first created in 1982, the original program offered a set of tax credit incentives. In 2005, the program underwent a substantial reorganization with the passage of the 2005 Enterprise Zone Grant Act. The legislation replaced existing tax credit programs with performance-based cash-grants in the form of the Job Creation and Real Property Investment Grants. Since 2005, there have been several interactions of RPIG with regards to the thresholds for investment, which were adjusted when high demand for the program lead to the substantial proration of RPIG awards. The current thresholds utilized for RPIG were established in 2009.
Lynchburg Humane Society – In March 2015, the Lynchburg Humane Society held the grand opening of the Edythe Elizabeth Stauffer Center for Pets. The Lynchburg Humane Society invested over $6 million in the new facility.
Hardywood Park Craft Brewery – 2408-2410 Ownby Lane, Richmond, VA. Averaging 100% growth per year since opening in 2011, Hardywood Park Craft Brewery invested over $500,000 into their two-building Richmond facility in 2014, to upgrade the main brewing building, as well as the adjacent building that houses the brewery’s barrel-operations. In discussing the brewery’s plans for continued expansion, Governor Terry McAuliffe said, “Hardywood has built a strong reputation for their award-winning beers and the integrity of their ingredients and business practices[…] Craft beer is an integral part of my plan to build a new Virginia economy, and Virginia is quickly becoming the most significant player in the craft beverage industry on the East Coast. Investments like this create jobs, tourism opportunities, and markets for Virginia’s farmers.”