Subcommittee expands first‑time homebuyer savings program limits and eligibility
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Summary
The subcommittee approved a substitute for SB 629 to raise contribution and account caps, add townhomes and condos (and owner‑occupied duplexes/fourplexes) to eligible purchases, and modernize the first‑time buyer definition; motion passed 5–1.
The Senate housing subcommittee voted to report SB 629 as amended, a bill updating Virginia’s tax‑advantaged first‑time homebuyer savings accounts. The substitute increases the per‑account principal cap and raises the overall retention limit, expands eligible property types and modernizes the first‑time buyer definition.
Senate staff and the bill’s sponsor described three changes: raising the principal contribution limit from $50,000 to $100,000, increasing the total account cap from $150,000 to $200,000, and broadening the definition of eligible residences to explicitly include townhomes and, by friendly amendment, condos and owner‑occupied duplexes or fourplexes under certain conditions. The sponsor said the changes reflect today’s housing market and aim to improve program usefulness for first‑time buyers.
Senator Williams Graves proposed and the sponsor accepted a friendly amendment to include condos and to allow owner‑occupied duplexes or fourplexes that meet program standards. After testimony of support from housing advocates and clarifying committee questions, the subcommittee voted 5–1 to report the bill as amended.
Supporters framed the update as a measured modernization of an existing program that remains administratively unchanged; account holders would still be responsible for compliance and existing tax recapture rules would apply if funds are used for nonqualified purposes.