VirginiaHB3522026 Regular SessionHouseWALLET

Local authority; authorized by ordinance to establish affordable housing performance grant programs.

Sponsored By: Joshua E. Thomas (Democratic)

Became Law

Summary

Local authority; affordable housing performance grant programs. Allows any locality that has created an industrial development authority or economic development authority (the Authority) to establish, by ordinance, an affordable housing performance grant program. The bill outlines that such ordinance authorizes the Authority to award affordable housing performance grants to qualifying applicants. Such an ordinance must include: (i) a definition of affordable housing; (ii) grant application guidelines and processes, including an identification of the local officer that is designated to receive applications; (iii) criteria for determining whether the construction or improvement of property qualifies for the awarding of the grant; (iv) provisions that require an applicant seeking the award of a grant to acquire appropriate permits and complete the construction or improvement to develop affordable housing before such a grant will be awarded; (v) provisions that require an applicant seeking the award of a grant to present evidence demonstrating that he has filed and recorded a restrictive covenant to provide affordable housing on the property for a set term, as determined by the ordinance, provided that such term shall be no more than 30 years, on the subject qualifying property before such a grant will be awarded; and (vi) a timeline for the Authority to award grants to qualifying applicants, which may be either upon the completion of the construction or improvement of the property, or on January 1 of the year following the completion of the construction or improvement of the property. The bill also limits the total amount of any such grant to being no more than the amount equal to the increase in assessed value resulting from the construction or improvement of a property. Finally, the bill permits a locality that adopts such ordinance to impose a fee, not to exceed $250, to offset the costs of processing an application.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Grants for building affordable housing

Localities with an industrial or economic development authority can create a grant program by ordinance. Property owners can apply after getting permits and finishing the work, confirmed by the local assessor. Applicants must record a covenant to keep the homes affordable for a term set locally, up to 30 years. The maximum grant equals the increase in the property’s assessed value from the work. Grants are paid at completion or on January 1 after completion, as the ordinance states. A locality may charge up to $250 per application.

Local authorities expand financing, face limits

Local industrial or economic development authorities can make loans and grants for economic development and affordable housing using money not pledged to bonds. They may forgive loans when it furthers those goals. Any board meeting where formal action is taken is open to the public. Authorities cannot run businesses beyond acting as a lessor and cannot operate single‑ or multi‑family housing.

Front Royal projects can include Warren County

The Town of Front Royal can create its own industrial development authority. That authority may include Warren County in its projects for five years, ending July 1, 2025.

Sponsors & Cosponsors

Sponsor

  • Joshua E. Thomas

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 181 • No: 41

Senate vote 3/4/2026

Passed Senate

Yes: 25 • No: 15

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: 11 • No: 4

House vote 1/29/2026

Read third time and passed House

Yes: 78 • No: 21

House vote 1/23/2026

Reported from Counties, Cities and Towns

Yes: 19 • No: 1

House vote 1/22/2026

Subcommittee recommends reporting

Yes: 8 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0386)

    4/8/2026Governor
  2. Approved by Governor-Chapter 386 (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 (HB352ER)

    3/11/2026House
  7. Enrolled

    3/11/2026House
  8. Signed by President

    3/11/2026Senate
  9. Passed Senate (25-Y 15-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 (11-Y 4-N)

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

    1/30/2026Senate
  16. Constitutional reading dispensed (on 1st reading)

    1/30/2026Senate
  17. Read third time and passed House (78-Y 21-N 0-A)

    1/29/2026House
  18. Read second time and engrossed

    1/28/2026House
  19. Read first time

    1/27/2026House
  20. Reported from Counties, Cities and Towns (19-Y 1-N)

    1/23/2026House
  21. Subcommittee recommends reporting (8-Y 0-N)

    1/22/2026House
  22. Assigned HCCT sub: Subcommittee #2

    1/20/2026House
  23. Referred to Committee on Counties, Cities and Towns

    1/12/2026House
  24. Prefiled and ordered printed; Offered 01-14-2026 26104537D

    1/12/2026House

Bill Text

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