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HB1057 • 2026

Virginia Rural Housing Infrastructure Fund and Program; created and established.

<p class=ldtitle>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.</p>

Housing
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Phillips
Last action
2026-02-18
Official status
Failed
Effective date
Not listed

Plain English Breakdown

The bill text does not provide detailed information on how the fund will be managed or funded beyond its creation.

Virginia Rural Housing Infrastructure Fund and Program

This bill establishes the Virginia Rural Housing Infrastructure Fund to provide grants for infrastructure projects that support increased housing development in rural communities.

What This Bill Does

  • Creates the Virginia Rural Housing Infrastructure Fund to finance infrastructure projects in rural areas associated with increased housing development.
  • Establishes guidelines and criteria for awarding grants from the Fund, focusing on water and sewer upgrades, lot clearing, and road improvements.
  • Sets a yearly grant limit of $20 million, with $5 million designated specifically for southern and southwestern Virginia.
  • Prioritizes funding for projects that enhance job creation and involve partnerships between public and private sectors.

Who It Names or Affects

  • Rural communities in Virginia with populations of 75,000 or less (counties) and 50,000 or less (cities).
  • Local authorities such as industrial development agencies, economic development authorities, housing authorities, and planning district commissions.

Terms To Know

Rural community
A county with a population of 75,000 or less or a city with a population of 50,000 or less in Virginia.
Infrastructure projects
Projects that improve public water systems, sewers, stormwater management, roads, and other essential services.

Limits and Unknowns

  • The total amount of grants available each year is limited to $20 million, with a specific allocation for southern and southwestern Virginia.
  • Details about how the fund will be managed and funded are not provided in this summary.

Bill History

  1. 2026-02-18 House

    Left in Committee Education

  2. 2026-02-18 House

    Left in Committee General Laws

  3. 2026-02-05 Housing/Consumer Protection

    Subcommittee recommends laying on the table (6-Y 4-N)

  4. 2026-01-26 Housing/Consumer Protection

    Assigned HGL sub: Housing/Consumer Protection

  5. 2026-01-26 House

    Fiscal Impact Statement from Department of Planning and Budget (HB1057)

  6. 2026-01-14 House

    Prefiled and ordered printed; Offered 01-14-2026 26104894D

  7. 2026-01-14 General Laws

    Referred to Committee on General Laws

Official Summary Text

Department of Housing and Community Development; Virginia Rural Housing Infrastructure Fund and Program.
Establishes the Virginia Rural Housing Infrastructure Fund and Program, to be administered by the Department of Housing and Community Development, for the purpose of financing infrastructure projects in rural communities associated with increased housing development within such communities. The bill directs the Department to develop criteria and guidelines for awarding grants under the Program.

Current Bill Text

Read the full stored bill text
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.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 8 of Title 36 a section numbered
36-140.02
as follows:

§
36-140.02
. Virginia

Rural Housing Infrastructure Fund
and Program
.

A. As used in this section:

"
Fund" means the Virginia Rural Housing Infrastructure Fund
established
in subsection B.

"Program" means the
Virginia Rural Housing Infrastructure
Program
established
in subsection C.

"Rural
community
" means
any c
ounty
in the Commonwealth with a population of
75,000
or less

or any city in the Commonwealth with a population of 50,000 or less.

B.
There is hereby created in the state treasury a special nonreverting fund to be known as the Virginia Rural Housing Infrastructure Fund. The Fund shall be established on the books of the Comptroller. All funds appropriated for such purpose and any gifts, donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purpose of
financin
g
infrastructure projects in rural communities
associated with increased housing development within such
communities
. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by
the
Director.

C. The
Virginia Rural Housing Infrastructure
Program is established for the purpose of awarding grants to Fund and Program projects pursuant to subsection
D
from such funds as may be available from the Fun
d. The aggregate amount of grants payable under this section in any fiscal year shall not exceed $
20
million
,
and $5 million
of such funds shall be designated for
grants to
rural communities
in southern and
south
western Virginia
.
The De
partment shall establish guidelines to identify such regions.

D. The Department shall develop criteria and guidelines for the
purpose of administ
ering the Program pursuant to subsection C
and shall establish monitoring and accountability mechanisms for rural comm
unities
receiving funding.
Such
criteria
and guidelines
shall
:

1
. Identify
qualifying
infrastructure projects including
(i)
u
pgrades to, or development of, infrastructure for public water, public sewer,
and
stormwater management systems
; (ii)
lot clearing and development for new housing projects
;
and
(iii) r
oads or other remedies to transportation impediments
.

2. To the extent practicable, prioritize funding projects
(i)
with a
high potential for enhanced job creation
and

capital investment in rural communities;
(ii) that have
previously
secured alternative funding
from any source
contingent on a
cash match
; and (iii)
that
promote collaborati
on
and cooperati
on
with public and private sector partners.

3.
Establish eligibility
and application criteria includ
ing
permitting applications from
any
local industrial development authority
, eco
nomic
development authority,
housing authority
,
or
planning district commission
within a rural community
.

E.
Any grant recipient shall only use awarded funds for the purposes of the
Program pursuant to this section.
If the Department determines that a grant recipient is not in substantial compliance with the terms and requirements of a grant provided under this section, the Department may revoke or suspend funding of such grant, in whole or in part, or require repayment of grant funds.