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.
Summary
HB1144 amends Virginia Code § 15.2-2119, which governs how localities may charge and collect water and sewer fees and connection-related charges. The bill keeps the existing framework for user fees, billing, penalties, liens, and service shutoff for nonpayment, but adds new authority for local governments to reduce the upfront cost of water and sewer connection fees in housing-related situations. Specifically, a locality may adopt an ordinance to fully or partially reimburse first-time homebuyers for water and sewer connection fees, capital recovery charges, and availability fees tied to new residential development, subject to eligibility criteria such as sales-price caps, income limits, or other local requirements.
The bill also authorizes localities, by ordinance or policy, to reimburse developers or applicants for those same charges, and allows localities with an affordable dwelling unit ordinance to waive those fees for developments covered by that ordinance. It preserves existing bondholder contract rights and requires any locality adopting or changing an ordinance or policy under the act to report the action to the Department of Housing and Community Development. The measure is aimed at lowering up-front housing costs and supporting affordable housing production and first-time homeownership.
Impact
HB1144 changes state law by expressly permitting localities to use reimbursement or waiver tools for water and sewer connection-related charges in connection with new residential development and affordable housing programs. It does not require localities to do so, but gives them clear statutory authority to reduce or offset these fees for first-time homebuyers, affordable dwelling unit developments, and other qualifying projects. The bill also adds a reporting requirement to the Department of Housing and Community Development, creating a state-level record of local actions taken under the new authority.
Sentiment
The bill appears to have generally favorable support, as reflected by its advancement through committee and passage in both chambers, including a unanimous Senate floor vote. The vote history suggests the measure was broadly acceptable to lawmakers, likely because it is permissive rather than mandatory and is framed as a housing affordability tool. At the same time, the House and committee votes were not unanimous, indicating some reservations about the policy or its fiscal and local-government implications.
Contention
The main points of contention likely centered on whether localities should be given discretion to reimburse or waive utility connection fees, and whether such authority could affect local revenue streams or existing financing arrangements. The bill specifically protects existing contracts with bondholders, which suggests concern about potential conflicts with utility-system debt obligations. Another likely area of debate was the balance between affordability goals and local fiscal autonomy, since the bill authorizes fee relief but leaves implementation to local ordinance or policy.