Private Activity Bond Housing Allocation Increase

Virginia Legislative Events

Published March 31st, 2026

Detected April 3rd, 2026

Summary

Virginia General Assembly enacted HB1227, increasing the housing allocation of the state ceiling on private activity bonds from 57% to 67%. The Virginia Housing Development Authority allocation rises from 43% to 50%, and local housing authorities from 14% to 17%, while industrial development bonds for manufacturing and exempt facilities decrease from 25% to 15%.

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What changed

Virginia HB1227 modifies the allocation formula for the state ceiling on private activity bonds. The housing allocation increases by 10 percentage points total, distributed as follows: Virginia Housing Development Authority from 43% to 50%, and local housing authorities from 14% to 17%. The Governor's state allocation portion remains unchanged at 18%. To offset these increases, industrial development bonds for manufacturing and exempt facilities are reduced from 25% to 15%.

Housing developers, local housing authorities, and the Virginia Housing Development Authority should prepare for increased bond allocation capacity beginning July 1, 2026. Manufacturing entities relying on industrial development bond financing should anticipate reduced allocation availability and may need to explore alternative financing mechanisms. Bond issuers should update allocation tracking systems to reflect the new percentage distribution.

What to do next

Review and update bond allocation tracking systems for the new percentage distributions
Identify potential housing development projects eligible for increased Virginia Housing Development Authority bond capacity
Assess impact on manufacturing project financing given the reduced 15% allocation for industrial development bonds

Source document (simplified)

ChangeBridge / Virginia / HB1227 Enacted HB1227 House Bill Enacted 2026-03-31

Private activity bonds; allocation of state ceiling.

Private activity bonds; allocation of state ceiling. Increases the housing allocation of the Virginia state ceiling on private activity bonds from 57 to 67 percent by (i) increasing the allocation to the Virginia Housing Development Authority from the current 43 percent to 50 percent and (ii) increasing the allocation to local housing authorities from the current 14 percent to 17 percent. The bill also maintains the current 18 percent for the Governor's state allocation portion and reduces the industrial development bonds for manufacturing and exempt facilities portion of the ceiling from 25 to 15 percent.

Bill Details

State Virginia

Session 2026 Regular Regular Session

Chamber House

Official Source lis.virginia.gov/bill-details/20261/HB1227

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Action History

2026-03-31 Acts of Assembly Chapter text (CHAP0037) 2026-03-31 Approved by Governor-Chapter 37 (effective 7/1/2026) 2026-03-10 Governor's Action Deadline 11:59 p.m., April 13, 2026 2026-03-10 H Enrolled Bill communicated to Governor on March 10, 2026 2026-03-05 H Fiscal Impact Statement from Department of Planning and Budget (HB1227) 2026-03-04 S Signed by President 2026-03-04 H Signed by Speaker 2026-03-04 H Bill text as passed House and Senate (HB1227ER) 2026-03-04 H Enrolled 2026-02-27 S Passed Senate (37-Y 0-N 0-A) 2026-02-27 S Read third time 2026-02-26 S Passed by for the day Block Vote (Voice Vote) 2026-02-26 S Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A) 2026-02-26 S Rules suspended 2026-02-25 S Reported from Finance and Appropriations (15-Y 0-N) 2026-02-06 S Referred to Committee on Finance and Appropriations 2026-02-06 S Constitutional reading dispensed (on 1st reading) 2026-02-05 H Read third time and passed House (92-Y 6-N 0-A) 2026-02-04 H Read second time and engrossed 2026-02-04 H Moved from Uncontested Calendar to Regular Calendar 2026-02-03 H Read first time 2026-01-30 H Reported from Appropriations (21-Y 0-N) 2026-01-28 H Subcommittee recommends reporting (3-Y 2-N) 2026-01-26 H Fiscal Impact Statement from Department of Planning and Budget (HB1227) 2026-01-23 H Assigned HAPP sub: Commerce Agriculture & Natural Resources 2026-01-14 H Referred to Committee on Appropriations 2026-01-14 H Prefiled and ordered printed; Offered 01-14-2026 26103260D

Votes

2026-01-28 Subcommittee recommends reporting (3-Y 2-N) Yea: 3 Nay: 2 2026-01-30 Reported from Appropriations (21-Y 0-N) Yea: 21 Nay: 0 2026-02-05 Read third time and passed House (92-Y 6-N 0-A) Yea: 92 Nay: 6 2026-02-25 Reported from Finance and Appropriations (15-Y 0-N) Yea: 15 Nay: 0 2026-02-26 Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A) Yea: 40 Nay: 0 2026-02-27 Passed Senate (37-Y 0-N 0-A) Yea: 37 Nay: 0

Committee Referrals

2026-01-14 H Appropriations 2026-01-23 H Appropriations: Commerce Agriculture & Natural Resources 2026-02-06 S Finance and Appropriations

Bill Text Versions

2026-01-14 Introduced 2026-03-04 Enrolled 2026-03-31 Chaptered Legislative data powered by LegiScan (CC BY 4.0)

Named provisions

Private activity bonds allocation Virginia Housing Development Authority allocation Local housing authority allocation Industrial development bond allocation