DCR Resilient Virginia Revolving Loan Fund

The DCR Resilient Virginia Revolving Loan Fund (RVRF) is a permanent fund providing loans and grants to help Virginia communities withstand and recover from flood events. It is managed by the Virginia Department of Conservation and Recreation (DCR) in partnership with the Virginia Resources Authority (VRA).

 

Project Type

Funding Category

Focus Area

Emergency Access

Category 1A

Residential bridges/culverts samaged by Helene or 2025 storms.

Home Mitigation

Category 1B

Elevations, buyouts, and flood-proofing.

Infrastructure

Category 2

Nature-based solutions, drainage improvements, and sea-level rise.

Capacity Building

Category 3

Local resilience plans and vulnerability assessments.

Category 1A

DCR has prioritized Category 1A specifically for rebuilding after recent disasters. This category is open on a rolling basis until funds are exhausted.

  • Priority Projects: Repair or replacement of access bridges, culverts, retaining walls, and water control structures.
  • Target: Privately owned structures that serve as the only legal access to a primary residence.
  • Gap Funding: If a project qualifies for the Virginia Disaster Assistance Fund (VDAF) but exceeds its limit, it is automatically considered for an RVRF loan.

Other Active Loan Categories

  • Federal Match: Loans to help local governments cover the 10%–25% non-federal share for FEMA (BRIC/FMA) or HUD grants.
  • Hazard Mitigation of Buildings: Loans for structural elevation, flood-proofing, or mitigation reconstruction (excluding buyouts).
  • Local Program Capitalization: Loans to help a city or county start their own "local" revolving loan fund for residents.

Eligibility & Application Path

  • Direct Applicants: Only Local Governments (Counties, Cities, Towns) and the New River Valley Regional Commission (NRVRC) can apply directly to DCR.
  • Individual Property Owners: You must apply through the NRVRC. The NRVRC bundles local needs into a regional application.

Key Requirements for Approval

  1. Resilience Plan: The locality must have a DCR-approved Resilience Plan on file.
  2. Nature-Based Solutions: Priority scoring is given to projects using "green" infrastructure (e.g., restored floodplains).
  3. CFM Endorsement: Applications must be reviewed/endorsed by a Certified Floodplain Manager.
  4. 10-Year Lifespan: Projects must demonstrate a projected lifespan of at least 10 years.

 

Category 2

 Topic: Hazard Mitigation of Buildings

Category 2 provides low-interest loans to local governments, which are then used to help property owners (residential and commercial) upgrade their buildings to survive future flood events.

Who is Eligible?

  • Direct Applicant: Local Governments (Cities, Counties, Towns).
  • Beneficiaries: Individual homeowners and business owners work through their local government to access these funds.

Eligible Project Types

Category 2 funds "property-scale" projects that reduce flood risk to existing structures:

  • Structural Elevation: Raising a home or business above the Base Flood Elevation (BFE).
  • Flood-proofing: Dry flood-proofing (sealing the building) or wet flood-proofing (allowing water to move through crawlspaces via vents).
  • Mitigation Reconstruction: Demolishing an existing high-risk structure and rebuilding a resilient one on the same site.
  • Relocation: Moving an existing building out of a high-risk flood zone to a safer location on the same property or a different one.
  • Accessory Structures: Protecting essential secondary buildings (e.g., utility sheds housing electrical/pump equipment).

Loan Terms & Financials

These loans are designed to be significantly more affordable than traditional bank financing.

Feature

Standard Terms

Low-Income / Underserved

Interest Rate

~1.75% + 0.2% fee

~1.2% + 0.2% fee

Max Loan Term

15 Years

20 Years

Project Minimum

$100,000 (total for locality)

$100,000

Project Maximum

$1,000,000 per building

$1,000,000 per building

 

Key Performance Requirements

To receive a Category 2 loan, the project must:

  1. Useful Life: Have an expected functional life of at least 10 years.
  2. Maintenance Plan: Include a written plan for how the resilience features will be maintained.
  3. Local Resilience Plan: The locality must have a DCR-approved Resilience Plan to participate.
  4. No "Buyouts Only": Unlike other categories, Category 2 is for improving or moving structures. Projects that involve only land acquisition (buyouts) are typically handled through the Community Flood Preparedness Fund (CFPF).

How the Process Works

  1. Locality Application: The City or County applies to DCR for a "block" of funding based on local interest.
  2. DCR/VRA Approval: The state approves the loan at a below-market interest rate.
  3. Local Disbursement: The locality lends the money to the property owner or pays contractors directly for the mitigation work.
  4. Repayment: The property owner repays the locality, often through a special assessment or a low-interest monthly payment.