Panel debates reviving long‑dormant urban redevelopment fund; carries bill to next year

The subcommittee held an extended policy discussion on House Bill 1376, a proposal to update the Urban Public‑Private Partnership Redevelopment Fund that the General Assembly created in 2000 but never funded. Delegate Bulova said the bill would expand eligible partners beyond private developers to include nonprofits, land banks and regional authorities, give the Department of Housing and Community Development discretion on match and grant amounts, and target funds at fiscally stressed localities or places with large declines in commercial assessments.

Laura Bateman of Virginia First Cities told the committee the statute was drafted before tools such as land banks and many community development nonprofits existed and that updating the statute could make it a usable tool for converting vacant offices into housing and other productive uses. ‘‘This was a piece of public policy that ran through the Virginia Housing Commission in 2025,’’ Bateman said, noting Fairfax County requested language to address office vacancy. Several jurisdictions, including Fairfax and Arlington counties, described high commercial vacancy rates and urged the committee to pursue the policy but to pair it with an appropriation.

Members and witnesses emphasized the bill’s policy value but noted it is ineffective without funding. After discussion, the subcommittee voted to carry the bill over to 2027 to allow more time for funding and interagency work on implementation guidelines.