A BILL to amend the Code of Virginia by adding in Chapter 8 of Title 36 a section numbered 36-140.02, relating to Department of Housing and Community Development; Virginia Rural Housing Infrastructure Fund and Program.
HB1057 creates the Virginia Rural Housing Infrastructure Fund and a related grant program within the Department of Housing and Community Development. The bill defines “rural community” as a county with 75,000 or fewer residents or a city with 50,000 or fewer residents, and it establishes a special nonreverting fund in the state treasury to support infrastructure projects tied to increased housing development in those communities.
Under the program, the Department would award grants for qualifying projects such as public water, sewer, and stormwater upgrades; lot clearing and site development for new housing; and roads or other transportation fixes that remove barriers to development. The bill caps total annual grants at $20 million, with $5 million reserved for rural communities in southern and southwestern Virginia, and directs the Department to create guidelines, eligibility rules, and accountability measures for recipients.
The bill would add a new section to Title 36 of the Code of Virginia and create a dedicated funding mechanism for rural housing-related infrastructure. It would authorize the Department of Housing and Community Development to administer grants, set criteria, monitor compliance, and suspend or recoup funds if recipients fail to comply. Local industrial development authorities, economic development authorities, housing authorities, and planning district commissions in qualifying rural communities would be eligible to apply, potentially expanding access to state support for infrastructure needed to enable housing construction.
The bill appears generally supportive of rural development and housing expansion, with a focus on practical infrastructure needs that can unlock new housing supply. Its patron list suggests broad sponsorship, especially among legislators likely interested in rural economic development. However, the bill was left in the House Committee on General Laws, indicating that it did not advance and may not have received sufficient committee support or prioritization.
No committee transcript or recorded vote is available, so specific objections are not documented. Potential points of contention likely include the creation of a new special fund, the $20 million annual grant cap, the geographic set-aside for southern and southwestern Virginia, and whether the state should directly subsidize infrastructure for housing development rather than rely on local or private financing. Another possible issue is how the Department would define and prioritize eligible projects and ensure accountability for grant recipients.