Subcommittee advances bill to expand first-time homebuyer savings accounts

A House subcommittee on commerce and agriculture reported out HB 183, a bill sponsored by Delegate Delia Reid that would update Virginia’s First-Time Homebuyer Savings Program to expand eligibility and increase contribution flexibility.

Delegate Delia Reid, the bill’s patron, told the panel the program — enacted in 2014 to allow tax-exempt savings for down payments and closing costs — needs updates to reflect today’s housing market. "What this is is this is the first time homebuyer savings program that was originally put in place in 2014," Reid said, and the substitute makes "some improvements to the definition of what would be qualified as a first time homebuyer." She said the substitute explicitly adds townhomes and increases the amounts that may be placed in accounts to better match current home prices.

The bill’s importance, supporters said, rests on escalating home prices and a shortage of available housing. Reid noted the median home price she cited was about $401,000 and said higher contribution limits (she gave $100,000 as an example) would constitute roughly a 25% down payment on many homes. "This is one of the ways to try to address that from a homeowners' standpoint," she said.

Cassie Taylor, representing the Loudoun County Chamber of Commerce, testified in support of the bill: "we support this bill and thank the patron for bringing it forward." There was no testimony in opposition.

Committee members asked about the scope of expansion and how much contribution limits would change; Reid described the substitute as a cleanup and an expansion of options rather than a wholesale redesign. After discussion, a motion to report the bill (as substituted) was made, seconded and approved; the clerk recorded the report vote as 7–0 in favor.

The subcommittee reported HB 183 to the next legislative step with a unanimous vote. The committee did not take further amendments during the subcommittee session.