Committee advances S328 omnibus housing bill with pilot shift, loan eligibility change and municipal bond clarification

The House Committee on General and Housing met May 20, 2026 to consider S328, an omnibus housing bill that consolidates multiple House housing provisions and several Senate-concurred items. Committee counsel summarized recent committee amendments and appropriations changes ahead of expected floor consideration.

For the record, Cameron Wood of the Office of Legislative Council told members the Ways and Means committee made several changes: it moved an off‑site construction pilot from the Department of Housing and Community Development to the treasurer’s office with substitute language; it incorporated a rental revolving-loan program through VHFA into statute; and it removed the program’s lower income “floor,” allowing the program to serve households below the previously stated minimum income threshold.

Wood also described two additions to clarify that municipalities that create special assessment districts can use revenue bonds backed by those assessments to finance infrastructure in such districts. He said many of the Ways & Means changes were made at VHFA’s or the bond bank’s request.

Appropriations added two further edits. One creates a service‑supported advisory council under the department that advises on developing permanently affordable housing for people with developmental disabilities and directs the council to identify funding sources for such housing. The other adds a per diem for council members who are not otherwise compensated; the committee cited a Joint Fiscal Office estimate that the per diem would total roughly $8,000 annually.

Committee members discussed budget status and an FY24 appropriation that was the subject of prior debate. Witnesses told the committee the BHCB umbrella appropriation was originally $50 million; within that, a $10 million sub‑bucket had been identified for related purposes and committee testimony indicated about $2 million remained available for reallocation toward Medicaid‑funded developmental disability housing. Appropriations recommended striking a duplication in S328 because the conference budget already includes the language.

The chair conducted advisory straw polls of committee members on the Ways & Means and Appropriations changes; members were reminded these polls are advisory and any formal vote will occur on the House floor. Committee staff said the bill will return to the Senate for further action if amended on the floor.

The committee did not take a final, formal committee vote on S328 at this meeting; members were told to monitor messages for possible recall if Senate action produces further changes.

The committee adjourned after the discussion.