VirginiaHB11442026 Regular SessionHouseWALLET

Water and sewer connection fees; first-time homebuyers, affordable housing.

Sponsored By: Marty Martinez (Democratic)

Became Law

Summary

Water and sewer connection fees; first-time homebuyers; affordable housing. Provides that any locality may provide for the full or partial reimbursement to a first-time homebuyer of water and sewer connection fees, capital recovery charges, and availability fees paid in connection with any new residential development conveyed to such homebuyer. The bill also permits any locality that has adopted an affordable dwelling unit ordinance pursuant to general law to provide for a waiver of such fees and charges for any development subject to the requirements of such ordinance.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 0 costs, 4 mixed.

Refunds of water hookup fees for first-time buyers

Localities can repay some or all water and sewer hookup fees for first-time homebuyers. The reimbursement can cover connection fees, capital recovery charges, and availability fees tied to a new home. Your locality must pass an ordinance to offer this. The ordinance may set limits, like the home’s maximum price or your income.

Developers can get hookup fee refunds

A locality may repay some or all water and sewer connection fees, capital recovery charges, and availability fees that an applicant paid for a new residential development. The locality must adopt an ordinance or policy to offer this. This can reduce upfront costs for builders or sponsors of new housing.

Waived hookup fees for affordable housing

Localities that have an affordable dwelling unit ordinance can waive water and sewer connection, capital recovery, and availability fees. The waiver applies to developments that are covered by that local affordable housing ordinance. This can lower upfront costs for those projects.

Unpaid bills face penalties, shutoff, and liens

If water or sewer charges go unpaid, you owe penalty and interest, and the owner must stop sending sewage into the system until paid. After 30 days, the supplier must notify the owner. If still unpaid 60 days after the due date, service may be shut off, but a health officer can block shutoff for health reasons. The supplier must give at least 10 business days’ written notice before shutoff. Unpaid amounts can become a property lien after 30 days’ written notice; the lien can include delinquent charges, penalties and interest, and attorney or collection costs up to 20% of the delinquent charges, and cannot be for less than $25. A $5 clerk indexing fee per entry is added to the lien. After you pay the total lien and interest, the locality must provide a signed lien release (within 10 business days if you did not appear in person), and the clerk marks it satisfied with no extra release fee.

Who pays and how water/sewer fees are set

Localities can bill for water and sewer service. They may charge the person with the service contract, the owner-occupant or an owner where one meter serves many units, or a tenant where allowed by law. They may also charge residents on combined systems for overflow control. Fees must be fair and, as practicable, uniform for similar use. Localities can set fees based on water use, outlets, fixtures, number of people, or other factors, and can require up to six months paid in advance.

Small town sewer service for outside businesses

A town with 11,000 to 14,000 people can, with county agreement, sell sewer service to industrial and commercial users outside the town. The town can charge for service by contract. It does not have to serve other outside users.

Existing bondholder contracts remain in force

The law keeps any existing contracts with bondholders in effect. If those contracts conflict with this law, the contracts still control.

Sponsors & Cosponsors

Sponsor

  • Marty Martinez

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 160 • No: 58

Senate vote 3/4/2026

Passed Senate

Yes: 26 • No: 13

Senate vote 3/3/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 3/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 3/2/2026

Reported from Local Government

Yes: 10 • No: 3 • Other: 2

House vote 2/5/2026

Read third time and passed House

Yes: 64 • No: 34

House vote 1/30/2026

Subcommittee recommends reporting with amendment(s)

Yes: 5 • No: 2

House vote 1/30/2026

Reported from Counties, Cities and Towns with amendment(s)

Yes: 15 • No: 6

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0449)

    4/8/2026Governor
  2. Approved by Governor-Chapter 449 (effective 7/1/2026)

    4/8/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/14/2026Governor
  4. Enrolled Bill communicated to Governor on March 14, 2026

    3/14/2026House
  5. Signed by Speaker

    3/12/2026House
  6. Bill text as passed House and Senate (HB1144ER)

    3/11/2026House
  7. Enrolled

    3/11/2026House
  8. Signed by President

    3/11/2026Senate
  9. Passed Senate (26-Y 13-N 0-A)

    3/4/2026Senate
  10. Read third time

    3/4/2026Senate
  11. Passed by for the day Block Vote (Voice Vote)

    3/3/2026Senate
  12. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    3/3/2026Senate
  13. Rules suspended

    3/3/2026Senate
  14. Reported from Local Government (10-Y 3-N 2-A)

    3/2/2026Senate
  15. Referred to Committee on Local Government

    2/6/2026Senate
  16. Constitutional reading dispensed (on 1st reading)

    2/6/2026Senate
  17. Read third time and passed House (64-Y 34-N 0-A)

    2/5/2026House
  18. Engrossed by House as amended

    2/4/2026House
  19. committee amendments agreed to

    2/4/2026House
  20. Read second time

    2/4/2026House
  21. Read first time

    2/3/2026House
  22. Reported from Counties, Cities and Towns with amendment(s) (15-Y 6-N)

    1/30/2026House
  23. House subcommittee offered

    1/30/2026House
  24. Subcommittee recommends reporting with amendment(s) (5-Y 2-N)

    1/30/2026House
  25. Assigned HCCT sub: Subcommittee #1

    1/28/2026House

Bill Text

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