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HB 352

Local authority; authorized by ordinance to establish affordable housing performance grant programs.

2026 Regular Session Introduced by Karen Keys-Gamarra and 4 co-sponsors

HB 352 allows Virginia localities to offer tax-funded performance grants incentivizing private developers to build affordable housing units through local ordinances.

Signed by Speaker
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WeVote Research Nonpartisan
Bill Summary · HB 352

Legislative bill overview

HB 352 authorizes Virginia local governments to establish affordable housing performance grant programs through ordinance. The bill enables municipalities to create financial incentive mechanisms to encourage development of affordable housing units, giving localities discretionary power to design and implement their own grant structures.

Why is this important

Virginia faces significant housing affordability challenges, particularly in Northern Virginia and urban centers. By authorizing local grant programs, the bill provides municipalities with a flexible tool to incentivize private developers to build affordable units without requiring state mandates, allowing communities to tailor solutions to local market conditions and needs.

Potential points of contention

  • Public funding allocation: Questions about whether local tax dollars should subsidize private developer profits through performance grants, and concerns about fiscal sustainability
  • Equity and effectiveness: Debate over whether performance grants effectively create truly affordable housing for lowest-income residents versus moderate-income households, and geographic distribution of benefits
  • Program design variation: Risk that inconsistent local ordinances create disparate standards across regions, potentially limiting accountability and creating precedent concerns for future housing mandates

Compiled from official sources — confirm details with the bill’s official record.

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