VirginiaHB8062026 Regular SessionHouseWALLET

Industrial development authorities; promoting safe and affordable housing.

Sponsored By: Betsy B. Carr (Democratic)

Became Law

Summary

Industrial development authorities; housing. Allows industrial development authorities to exercise their powers with respect to facilities used primarily for single or multi-family residences in order to promote safe and affordable housing in the Commonwealth. Under current law, such powers may be exercised only in a locality where a housing authority has not been activated. The bill also grants industrial development authorities the power to issue bonds associated with the construction of affordable housing.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 5 benefits, 1 costs, 1 mixed.

Authorities can back more community facilities

Local development authorities can now support more kinds of community projects. These include medical and elder-care facilities; facilities for 501(c)(3) nonprofits (not solely religious); accredited private colleges (not mainly religious); museums and historical sites; pollution control at industrial or medical facilities; and equine event venues (not racing) run by government or nonprofit, nonreligious groups. They can also help with facilities for cities, counties, state agencies, and nonprofits. The law broadens what counts as an authority facility, and residential facility powers apply only where a local housing authority is not activated. Authorities do not operate these enterprises themselves.

Help modernize public school buildings

Industrial development authorities can help school boards update public school buildings. They can help buy land, build, equip, expand, improve, finance, or refinance projects under the state’s school modernization program. Students, parents, and teachers may see safer, more up-to-date schools as projects proceed.

More tools to finance industrial parks

Authorities can buy, build, and run industrial parks and related utilities. They can issue revenue bonds backed by park or utility income or other authority funds. Authorities can also refinance bonds, and the term “bonds” includes notes and other obligations. These tools can lower financing costs for local projects.

More local financing for affordable homes

Local industrial development authorities can now help build affordable housing using bonds, grants, or both. In places where the local housing authority has not been activated, these authorities can work on single- or multi-family housing to promote safe, affordable homes. They cannot operate the housing or use eminent domain. Renters and low-income families may see more affordable homes built as projects move forward.

Help landowners join carbon markets

Industrial development authorities can group landowners so they can sell carbon credits. Pooling small farms or forests can attract private investment. Farmers and forest landowners may gain new income if authorities form these portfolios and buyers purchase the credits.

Limits on tax-exempt financing for some projects

The law lists certain private facilities as “taxable authority facilities,” such as country clubs, private golf courses, massage parlors, and some retail food and beverage services (not grocery stores). These projects generally do not qualify for tax‑exempt authority financing. A project financed with federal enterprise zone facility bonds remains outside this taxable list.

Competitive bidding for public projects

Public facilities covered by the Virginia Public Procurement Act must follow competitive bidding. The law removes an exemption that let some authority-backed public projects skip competition. This increases transparency for taxpayers and may change how contractors win work or timelines.

Sponsors & Cosponsors

Sponsor

  • Betsy B. Carr

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 189 • No: 27

Senate vote 3/4/2026

Passed Senate

Yes: 27 • 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: 0 • Other: 5

House vote 2/5/2026

Read third time and passed House

Yes: 85 • No: 12

House vote 1/30/2026

Reported from Counties, Cities and Towns

Yes: 19 • No: 2

House vote 1/29/2026

Subcommittee recommends reporting

Yes: 8 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0221)

    4/6/2026Governor
  2. Approved by Governor-Chapter 221 (effective 7/1/2026)

    4/6/2026Governor
  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 (HB806ER)

    3/11/2026House
  7. Enrolled

    3/11/2026House
  8. Signed by President

    3/11/2026Senate
  9. Passed Senate (27-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 0-N 5-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 (85-Y 12-N 0-A)

    2/5/2026House
  18. Read second time and engrossed

    2/4/2026House
  19. Read first time

    2/3/2026House
  20. Reported from Counties, Cities and Towns (19-Y 2-N)

    1/30/2026House
  21. Subcommittee recommends reporting (8-Y 0-N)

    1/29/2026House
  22. Assigned HCCT sub: Subcommittee #2

    1/28/2026House
  23. Referred to Committee on Counties, Cities and Towns

    1/13/2026House
  24. Prefiled and ordered printed; Offered 01-14-2026 26102283D

    1/13/2026House

Bill Text

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