SB 490: Mixed-income housing; creating a two-year pilot program that provides loan origination, etc. - Virginia

Finance and Appropriations Substitute → Appropriations Substitute · 4 edits

MODERATE

The bill was revised from a Senate Finance Substitute to an Appropriations Substitute, shifting the proposing committee from the Senate to the House of Delegates. The core policy regarding a two-year pilot program for mixed-income housing loans remains largely intact, but the new version establishes a permanent 'Virginia Housing Revolving Loan Fund' instead of a temporary pilot. Additionally, the new text adds a requirement for a consolidated annual report on the Virginia Growth and Opportunity Fund outcomes.

Scope change

The bill's scope expanded from a temporary two-year pilot program to the creation of a permanent revolving loan fund. It also added new reporting requirements for the Virginia Growth and Opportunity Fund.

TIMELINE

The program changed from a temporary two-year pilot to a permanent fund structure.

REQUIREMENT

New requirements mandate a consolidated annual report combining multiple housing statutes and specific reporting on the Virginia Growth and Opportunity Fund outcomes.

FISCAL

Funding sources were updated; the specific provision allowing the use of up to 15 percent of the Virginia Housing Trust Fund annual deposit was removed in the new version.

TECHNICAL

The proposing committee changed from the Senate Committee on Finance and Appropriations to the House Committee on Appropriations, and the date was updated to February 25, 2026.

General Laws and Technology Substitute → Finance and Appropriations Substitute · 4 edits

MODERATE

The bill was amended by the Finance and Appropriations Committee to shift from establishing a permanent revolving loan fund to creating a two-year pilot program. This change limits the program's duration and modifies the funding source to utilize up to 15% of annual deposits to the Virginia Housing Trust Fund, while retaining the core goal of providing loans for mixed-income housing projects.

Scope change

The bill's scope changed from a permanent legislative establishment of a new fund to a temporary, two-year pilot program.

TIMELINE

The program is now explicitly limited to a two-year pilot duration instead of being established as a permanent fund.

FISCAL

Funding for the pilot is now restricted to up to 15% of annual deposits made to the Virginia Housing Trust Fund, subject to the annual appropriation act.

REQUIREMENT

Reporting requirements were updated to specifically cover the duration of the pilot program rather than annual reporting for a permanent fund.

DEFINITION

The bill text was updated to refer to 'this act' and 'this pilot program' rather than a permanent 'chapter' and 'fund' in the Code of Virginia.

Enrolled → General Laws and Technology Substitute · 5 edits

MODERATE

The bill was converted from an enacted law into a substitute draft version, which fundamentally changes its status from active legislation to a proposal under review. The substantive content was also significantly altered: the original bill created a pilot program funded by the Virginia Housing Trust Fund, while the new draft establishes a permanent 'Virginia Revolving Loan Fund' with different administrative responsibilities and a broader scope of eligible projects.

Scope change

The bill's scope shifted from a temporary two-year pilot program focused on mixed-income housing to a permanent revolving loan fund that also covers a wider range of housing developments and infrastructure.

TIMELINE

Removed the specific 'two-year pilot program' designation and the November 1 reporting deadline.

FISCAL

Created a new permanent 'Virginia Revolving Loan Fund' in the state treasury instead of using a percentage of the Virginia Housing Trust Fund.

ELIGIBILITY

Expanded the definition of eligible projects to include various types of housing developments and infrastructure, not just mixed-income projects.

REQUIREMENT

Added a new requirement for the Department to create a public-facing performance dashboard for projects receiving GO Virginia grants.

DEFINITION

Changed the administrative structure, assigning loan origination and servicing duties to the Department in collaboration with HDA, whereas the original bill placed primary responsibility on the HDA.

Introduced → Enrolled · 5 edits · Mar 31, 2026

MODERATE

The bill was converted from an introduced draft to an enrolled law, changing its focus from a permanent amendment to the Virginia Housing Trust Fund into a specific two-year pilot program. This pilot authorizes the Department of Housing and Community Development and the Housing Development Authority to provide lower-interest loans specifically for mixed-income housing construction and related infrastructure. The program is funded using up to 15% of annual deposits to the Trust Fund and requires detailed annual reporting to the General Assembly.

Scope change

The bill's scope narrowed from a broad amendment affecting the entire Virginia Housing Trust Fund to a targeted, temporary pilot program exclusively for mixed-income housing loan origination and servicing.

SCOPE

The legislation changed from a permanent amendment to the Code of Virginia to a specific two-year pilot program.

Provisions regarding general grants for homelessness reduction and other broad uses of the Trust Fund were removed or significantly altered to focus solely on the mixed-income pilot.

FISCAL

A new funding mechanism was established, allowing up to 15 percent of annual deposits to the Virginia Housing Trust Fund to be used for this pilot program.

REQUIREMENT

New requirements mandate that the Department and HDA submit annual reports to the General Assembly by November 1 detailing loan awards, project financing, and unit creation statistics.

DEFINITION

New definitions were added for 'Eligible entity' and 'Housing project' to specifically describe who can receive loans and what constitutes a mixed-income development.

Mixed-income housing; creating a two-year pilot program that provides loan origination, etc.

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