Virginia Senate Bill SB566

Virginia 2026 Regular Session

• Introduced: 1/14/26
• Refer: 1/14/26

Caption

A BILL to amend and reenact § 2.2-2240.3 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 2.2-2240.7, relating to Virginia Workforce Housing Assistance Program established; report.

Impact

The bill proposes that eligible employers can apply for grants equivalent to the lesser of 15% of their incurred housing down payment assistance expenses or a maximum of $25,000 per employer in a fiscal year. Furthermore, an employer that meets specific criteria, such as operating in an economically distressed area, can qualify for higher grant amounts. By assisting in funding housing costs, the bill aims to bolster workforce recruitment and retention efforts, helping businesses to sustain and expand their operations within the Commonwealth.

Summary

Senate Bill 566 introduces the Virginia Workforce Housing Assistance Program aimed at improving access to homeownership for the workforce in Virginia. This initiative will support employers in offsetting housing expenses related to down payments and closing costs, thereby incentivizing them to provide financial assistance to their employees. The program seeks to alleviate some of the financial burdens associated with homeownership, particularly for those with lower incomes, by making grants available on a first-come, first-served basis. The maximum aggregate funding available for this program is capped at $1.5 million per fiscal year.

Contention

A notable aspect of SB566 is the stipulation that grant awards will be assessed based on the income level of participating employees relative to the Area Median Income (AMI) of the locality. This condition is likely to spark discussions among stakeholders about the equitable distribution of funds and whether the criteria adequately support the intended recipients. Additionally, while the bill emphasizes economic development, concerns may arise regarding the potential long-term sustainability of funding sources for this program and how these decisions might impact local housing markets.