VHFA off‑site modular housing study to proceed without full budget allocation, committee told

The committee discussed a VHFA study on off‑site modular home construction that was included in an earlier draft but lost its appropriation during the budget process. Lawmakers said they still wanted VHFA to complete the work and agreed to keep the study language in the bill while clarifying schedule and resource language.

Background: VHFA had proposed a study to explore financing, in‑state fabrication capacity, and the role the state could play as a guarantor for factory‑built homes. Legislators said the agency had requested funding to accelerate the work but that the appropriation was reduced in the budget.

Agency response and next steps: Committee members reported VHFA told them it would still produce the study but on a slower timeline absent the earlier appropriation. Committee negotiators proposed removing a statutory phrase that would make the study conditional on “sufficient resources,” or changing a statutory “shall” to a permissive “may,” so the bill recognizes the study without mandating an unfunded schedule.

Quote and clarification: Committee members said the language should acknowledge VHFA’s capacity constraints while signaling legislative interest in the work.

Ending: The committee agreed to preserve the study directive in the draft language and to work with VHFA to adjust timing so the work can proceed without a new immediate appropriation.