Subcommittee hears bill to create Virginia Rural Housing Infrastructure Fund; bill laid on table after stakeholder support

House Housing Subcommittee · February 6, 2026

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Summary

HB 1057 would create a DHCD-administered fund to subsidize water, sewer and road infrastructure for small rural housing developments. Business and industry groups supported the bill; the subcommittee laid it on the table by recorded vote 4–2 to allow further consideration.

Delegate Dahlia Phillips presented HB 1057 to establish the Virginia Rural Housing Infrastructure Fund within the Department of Housing and Community Development, saying high infrastructure costs—water, sewer and neighborhood roads—make small rural developments economically infeasible. "These infrastructure costs have to be divided across fewer homes in rural areas, so a subsidy can make projects viable," Phillips said.

Witnesses including Andrew Sinclair of the Virginia Chamber of Commerce and Randy Grumbine of the Virginia Manufactured Modular Housing Association testified in favor, calling the fund an important tool to expand housing supply and affordability across regions expecting job growth. No speakers offered formal opposition in the committee room.

After brief discussion the subcommittee voted to lay the bill on the table; the clerk reported the motion carried by a vote of 4 to 2. The motion and vote leave the bill available for further work but halt immediate progress until sponsors and staff decide next steps.

The committee recorded the lay-on-table action; proponents said they will continue stakeholder outreach and seek to return with refined language and a clear appropriation path.