Senate advances SB1 to give local governments more housing tools; two amendments adopted, one fails

Senate Bill 1, described by sponsor Sen. Roberts as the first Senate bill of the session to provide local governments with additional tools to address housing affordability, passed second reading on Feb. 3, 2026, in the Committee of the Whole and was ordered engrossed and placed on the calendar for third reading.

The committee adopted Amendment L012, which clarifies recapture provisions for the middle‑income housing tax credit and adds the term "qualified" in certain places. It then adopted Amendment L014, which defines "transferee" for purposes of the tax credit and adjusts recapture language. Both amendments were explained by the sponsor and adopted by voice vote.

Senators raised concerns during debate about the use of ad valorem property tax revenue, potential tax exemptions when housing authorities acquire property, and the long‑term effects on local taxing capacity. Senator Riche offered Amendment L013, proposing a five‑year sunset on the use of ad valorem revenue for workforce housing; supporters of L013 argued it would allow performance review, while opponents said it undermined local control. L013 failed on a voice vote.

Sponsor Sen. Roberts emphasized the bill is voluntary for counties, municipalities and housing authorities and said it responds to requests from county commissioners and housing authorities for more local flexibility. The committee report recorded that SB1, as amended, passed on second reading and was ordered engrossed for third reading and final passage.