Panel advances permissive bill letting localities reimburse utility‑connection fees for first‑time buyers

The subcommittee voted to report House Bill 1141, a permissive measure from Delegate Martinez that would allow localities to reimburse first‑time homebuyers for water and sewer connection fees or to waive those fees for developments subject to affordable dwelling unit ordinances.

Martinez said fees are an important upfront barrier: "In Virginia, the average single family home faces about $12,243 in water and sewer connection fees, with some localities as high as $30,000," he told the committee, adding that the bill is an enabling local‑option that respects local control. Supporters included the Home Builders Association of Virginia and the Virginia Municipal League, which said the tool helps lower costs without creating a new state entitlement; supporters also noted the bill is permissive and localities would opt in.

Witnesses said connection fees vary widely and that the bill lets local governments tailor eligibility and income caps. The committee reported the bill as amended by a 5‑2 vote; the amendments add a reporting mechanism asking participating localities to share data with the Department of Housing and Community Development to inform future policy.