Delegate Thomas advances pilot to help localities cover infrastructure costs for housing

Delegate Thomas introduced House Bill 196 during a Virginia House subcommittee meeting, proposing a pilot program authorizing the Commonwealth to cover certain infrastructure costs — specifically water distribution, wastewater and stormwater — in order to make marginal housing development deals financially viable in two planning districts.

Supporters told the committee the policy aims to reduce upfront infrastructure barriers that often prevent builders from delivering more affordable housing. "Sometimes it's hard for builders to do housing that's more affordable because of the infrastructure costs and by lowering that infrastructure cost, we can up a little up a lot more housing in a lot of our communities," Joe Lerch of the Virginia Association of Counties said in testimony. Andrew Sinclair of the Virginia Chamber of Commerce said the proposal aligns with Blueprint Virginia priorities and could help expand workforce housing where needed.

During questioning, the chair asked whether proponents could estimate the percentage increase in housing supply the pilot would generate. Sinclair said the Chamber had not modeled a percentage for the substitute and did not offer a specific figure. Proponents described the measure as a discretionary, limited pilot intended to give DTCD the authority to test targeted infrastructure support in planning districts with acute needs.

The subcommittee took a motion to report the substitute; the clerk recorded the vote and the bill was reported by a 3–2 recorded vote.

The bill now moves to the next stage of committee consideration in the General Assembly process; proponents said further detail and modeling would likely be developed if the pilot advances.