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HB1130 • 2026

Workforce housing for employees; county bd. of supervisor or school bd., lease of surplus property.

An Act to amend and reenact § 15.2-958.2 of the Code of Virginia, relating to workforce housing for employees of a county or county school board; lease of surplus property.

Education Housing Labor
Enacted

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

Sponsor
Reid
Last action
2026-04-13
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Workforce Housing for County Employees

This act allows counties to lease surplus or underutilized property to create affordable housing for employees with up to 80% of the area's median income.

What This Bill Does

  • Allows county boards and school boards to lease extra land they own to build homes for their workers.
  • Requires that the houses built on leased land must be affordable for people who earn up to 80% of what is considered a middle-income in the area.
  • Limits the smallest lot size allowed for these houses to 5,000 square feet if there are public water and sewer services available.

Who It Names or Affects

  • County boards
  • School boards
  • Employees who earn up to 80% of the area's median income

Terms To Know

Surplus property
Land or buildings that a government no longer needs for its operations.
Workforce housing
Housing designed to be affordable for people who work in the area, often those with low to moderate incomes.

Limits and Unknowns

  • The bill does not specify what happens if public water or sewer services are unavailable.
  • It is unclear how many counties will choose to use this option and lease their extra land for workforce housing.

Bill History

  1. 2026-04-13 Governor

    Approved by Governor-Chapter 740 (effective 7/1/2026)

  2. 2026-04-13 Governor

    Acts of Assembly Chapter text (CHAP0740)

  3. 2026-03-14 House

    Enrolled Bill communicated to Governor on March 14, 2026

  4. 2026-03-14 Governor

    Governor's Action Deadline 11:59 p.m., April 13, 2026

  5. 2026-03-13 House

    Signed by Speaker

  6. 2026-03-13 Senate

    Signed by President

  7. 2026-03-13 House

    Enrolled

  8. 2026-03-13 House

    Bill text as passed House and Senate (HB1130ER)

  9. 2026-03-06 House

    Senate substitute agreed to by House (71-Y 26-N 0-A)

  10. 2026-03-04 Senate

    Read third time

  11. 2026-03-04 Senate

    Read third time

  12. 2026-03-04 Senate

    Engrossed by Senate - committee substitute

  13. 2026-03-04 Local Government

    Local Government Substitute agreed to

  14. 2026-03-04 Senate

    Passed Senate with substitute (22-Y 17-N 0-A)

  15. 2026-03-03 Senate

    Rules suspended

  16. 2026-03-03 Senate

    Passed by for the day

  17. 2026-03-03 Local Government

    Committee substitute printed 26109008D-S1

  18. 2026-03-03 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

  19. 2026-03-03 Senate

    Passed by for the day Block Vote (Voice Vote)

  20. 2026-03-02 Local Government

    Reported from Local Government with substitute (8-Y 7-N)

  21. 2026-02-06 Senate

    Constitutional reading dispensed (on 1st reading)

  22. 2026-02-06 Local Government

    Referred to Committee on Local Government

  23. 2026-02-05 House

    Read third time and passed House (73-Y 24-N 0-A)

  24. 2026-02-04 House

    Read second time and engrossed

  25. 2026-02-03 House

    Read first time

  26. 2026-01-30 Counties, Cities and Towns

    Reported from Counties, Cities and Towns (18-Y 3-N)

  27. 2026-01-29 Subcommittee #2

    Subcommittee recommends reporting (7-Y 1-N)

  28. 2026-01-28 Subcommittee #2

    Assigned HCCT sub: Subcommittee #2

  29. 2026-01-14 House

    Prefiled and ordered printed; Offered 01-14-2026 26104886D

  30. 2026-01-14 Counties, Cities and Towns

    Referred to Committee on Counties, Cities and Towns

Official Summary Text

Workforce housing for employees of a county or county school board; lease of surplus property.
Allows any county board of supervisors or county school board to lease as lessor surplus or underutilized property. The bill provides that such leases shall be conditioned on the development of workforce housing serving employees of the county or school division with up to 80 percent of area median household income. The bill also prohibits establishment of a minimum lot size exceeding 5,000 square feet for such workforce housing and provides that the placement of manufactured houses that are on a permanent foundation and on individual lots shall be permitted subject to development standards that are equivalent to those applicable to site-built single-family dwellings.

Current Bill Text

Read the full stored bill text
An Act to amend and reenact §
15.2-958.2
of the Code of Virginia, relating to workforce housing for employees of a county or county school board; lease of surplus property.
Be it enacted by the General Assembly of Virginia:
1. That §
15.2-958.2
of the Code of Virginia is amended and reenacted as follows:
§
15.2-958.2
. Grants for homeownership; lease of surplus property; workforce housing.
A. In order to ensure its competitiveness as an employer, a locality may, by ordinance, provide for the use of funds, other than state funds, to provide homeownership grants to employees of the locality, employees of the school board
,
and employees of constitutional officers
,
to purchase their primary residences in the locality. The ordinance shall require that individual grants not exceed $25,000 per employee, nor lifetime cumulative grants exceed $25,000 per employee. Any such grants issued shall be subject to the Virginia Housing and Development Authority regional sales price and household income limitations. The ordinance may establish such other terms and conditions to ensure the integrity of the homeownership grant program.
B. In addition to the homeownership grants authorized in subsection A, a locality may
,
by ordinance
,
and in cooperation with the local school division, offer residential housing assistance grants in amounts not to exceed those permitted in subsection A and, with the local school division, enter into public-private partnerships and other arrangements to provide affordable workforce housing alternatives to school division personnel.
C. 1. Any county board of supervisors or county school board may lease as lessor surplus or underutilized property for terms of up to 99 years, or such term as permitted by law, provided such property is not needed for core governmental or instructional functions or projected school enrollment growth. A county or school board may partner with housing authorities, nonprofit organizations, or private developers to create dedicated workforce housing while retaining public ownership of the property. Leases shall be conditioned on the development of workforce housing serving employees of the county or school division with up to 80 percent of area median household income. Revenues from ground leases shall be directed to the county or school division for capital maintenance, educational enhancements, or workforce housing stipends for employees of the county or school division. Affordability requirements shall remain in place for the duration of the lease.
2. For any workforce housing developed pursuant to this subsection, a county shall not establish a minimum lot size exceeding 5,000 square feet where public water and sewer are available. Where public water or sewer are not available, a county may set a minimum lot size consistent with public health requirements.
3. For any workforce housing developed pursuant to this subsection, a county shall provide that the placement of manufactured houses that are on a permanent foundation and on individual lots shall be permitted subject to development standards that are equivalent to those applicable to site-built single-family dwellings. The standards shall not have the effect of excluding manufactured housing built in compliance with the Virginia Manufactured Housing Construction and Safety Standards Law (§
36-85.2
et seq.).