An Act to amend and reenact § 15.2-2119 of the Code of Virginia, relating to water and sewer connection fees; first-time homebuyers; affordable housing.
HB1144 amends Virginia law governing local water and sewer connection fees. The bill keeps the existing framework that allows localities to charge and collect water and sewer service fees, but it adds and clarifies authority for local governments to reduce the upfront cost of those fees in certain housing situations. Specifically, a locality may adopt an ordinance to provide full or partial reimbursement of water and sewer connection fees, capital recovery charges, and availability fees for first-time homebuyers purchasing new residential development. It also allows localities to set eligibility criteria such as income limits and maximum sales price thresholds.
The bill further authorizes localities to provide reimbursement for applicants in new residential development and, for localities that have adopted an affordable dwelling unit ordinance, to waive these fees entirely for developments subject to that ordinance. The measure preserves existing protections for bondholders and does not disturb conflicting contractual obligations tied to outstanding debt. The bill also retains the general rule that water and sewer fees must be fair, reasonable, and periodically reviewed by the locality.
HB1144 changes § 15.2-2119 of the Code of Virginia by expressly authorizing localities to use fee reimbursements and waivers as housing affordability tools. It affects local governments that set water and sewer connection charges, developers of new residential projects, and first-time homebuyers who may benefit from reduced upfront housing costs. The bill does not mandate fee reductions statewide; instead, it gives localities discretionary authority to adopt these policies by ordinance or policy, subject to existing bondholder protections and local affordability programs.
The available record shows no committee transcript or recorded votes, so there is no documented debate or split vote to indicate opposition. Based on the bill’s subject and final enactment as Chapter 449, the overall sentiment appears supportive and aligned with housing affordability goals. The bill’s framing suggests it was viewed as a targeted local-option measure rather than a broad mandate, which often reduces controversy.
The main potential points of contention are the effect of fee waivers or reimbursements on local utility revenue, the fairness of shifting costs away from first-time homebuyers or affordable housing projects, and whether such incentives could affect financing for water and sewer infrastructure. Localities may also differ on how to define eligibility, including income and price thresholds, and on whether waivers for affordable dwelling unit developments should be used. The bill addresses one likely legal concern by stating that it does not impair existing contracts with bondholders.