VirginiaSB7292026 Regular SessionSenateWALLET

Private activity bonds; allocation of state ceiling.

Sponsored By: Jerrauld C. "Jay" Jones (Democratic)

Became Law

Summary

Private activity bonds; allocation of state ceiling. Increases the housing allocation of the Virginia state ceiling on private activity bonds from 57 to 67 percent by (i) increasing the allocation to the Virginia Housing Development Authority from the current 43 percent to 50 percent and (ii) increasing the allocation to local housing authorities from the current 14 percent to 17 percent. The bill also maintains the current 18 percent for the Governor's state allocation portion and reduces the industrial development bonds for manufacturing and exempt facilities portion of the ceiling from 25 to 15 percent. This bill is identical to HB 1227.

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Bill Overview

Analyzed Economic Effects

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

More bond money for housing projects

Starting in 2026, Virginia sets 67% of its private activity bond ceiling for housing. This share covers single‑family and multifamily projects. Of the total ceiling, 17% goes to Local Housing Authorities and 50% goes to the Virginia Housing Development Authority. This gives housing agencies more tax‑exempt bond capacity each year.

18% state reserve for key projects

Beginning in 2026, 18% of the bond ceiling is reserved for state issuing authorities. The Governor decides how this pool is used. Money can go to housing, exempt projects, or manufacturing projects of state or regional interest. This creates a set pool under state control while reducing the share left in other pools.

Smaller share for industrial bond deals

From 2026 on, only 15% of the state bond ceiling is set aside for manufacturing and exempt facility bonds. On July 1, 2026, the state checks allocations made since January 1, 2026. If those allocations are above 15%, VHDA’s 2026 set‑aside is cut by the excess to honor them. Still, industrial allocations in 2026 cannot exceed 25% of the state ceiling.

2026 rules govern private activity bonds

The law applies these allocation rules to all private activity bonds issued in 2026 and after. Each year now uses the 2026 shares: 67% housing, 15% industrial, and an 18% state reserve. That means housing issuers often have more access, while industrial issuers have less than before. The new framework controls how all issuers draw from the yearly ceiling.

Sponsors & Cosponsors

Sponsor

  • Jerrauld C. "Jay" Jones

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 266 • No: 8

House vote 3/2/2026

Passed House

Yes: 90 • No: 8

House vote 2/25/2026

Reported from Appropriations

Yes: 22 • No: 0

Senate vote 2/16/2026

Engrossed by Senate Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/16/2026

Read third time and passed Senate Block Vote

Yes: 39 • No: 0

Senate vote 2/16/2026

Constitutional reading dispensed Block Vote (on 3rd reading)

Yes: 39 • No: 0

Senate vote 2/13/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 35 • No: 0

Senate vote 2/12/2026

Reported from Finance and Appropriations

Yes: 15 • No: 0

Senate vote 2/3/2026

Continued to 2027 in Finance and Appropriations

Yes: 15 • No: 0

Senate vote 1/28/2026

Rereferred from General Laws and Technology to Finance and Appropriations

Yes: 11 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0038)

    3/31/2026Governor
  2. Approved by Governor-Chapter 38 (effective 7/1/2026)

    3/31/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026Senate
  5. Fiscal Impact Statement from Department of Planning and Budget (SB729)

    3/5/2026Senate
  6. Bill text as passed Senate and House (SB729ER)

    3/5/2026Senate
  7. Enrolled

    3/5/2026Senate
  8. Signed by President

    3/5/2026Senate
  9. Signed by Speaker

    3/5/2026House
  10. Passed House (90-Y 8-N 0-A)

    3/2/2026House
  11. Read third time

    3/2/2026House
  12. Moved from Uncontested Calendar to Regular Calendar

    3/2/2026House
  13. Read second time

    2/27/2026House
  14. Reported from Appropriations (22-Y 0-N)

    2/25/2026House
  15. Assigned HAPP sub: Commerce Agriculture & Natural Resources

    2/25/2026House
  16. Read first time

    2/20/2026House
  17. Referred to Committee on Appropriations

    2/20/2026House
  18. Placed on Calendar

    2/20/2026House
  19. Read third time and passed Senate Block Vote (39-Y 0-N 0-A)

    2/16/2026Senate
  20. Constitutional reading dispensed Block Vote (on 3rd reading) (39-Y 0-N 0-A)

    2/16/2026Senate
  21. Engrossed by Senate Block Vote (Voice Vote)

    2/16/2026Senate
  22. Blank Action

    2/16/2026Senate
  23. Rules suspended

    2/16/2026Senate
  24. Read second time

    2/16/2026Senate
  25. Constitutional reading dispensed Block Vote (on 1st reading) (35-Y 0-N 0-A)

    2/13/2026Senate

Bill Text

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