Virginia bill passed by Senate and House permits localities to use nonstate funds for homeownership grants

Sen. Russet Perry’s recently enacted bill permits Virginia localities to use nonstate money for homeownership grants benefiting locality and school employees seeking to purchase homes, as reported by the Virginia State Senate.

The legislation cleared both chambers before it was officially enrolled March 10, 2026, passing the House with a 62-35 vote and the Senate with a 25-14 vote.

Filed as SB328 on Jan. 14, 2026, during the regular session, the measure came with the official legislative description: “Housing for local employees; grants for homeownership.”

The following summary is our analysis based on the complete bill text, with some interpretive explanation of its rules.

Fundamentally, the law gives local governing bodies the authority to pass ordinances allowing nonstate funds to be used for homeownership grants up to $25,000 per eligible worker, subject to a $25,000 lifetime limit. These funds assist locality or school board employees and constitutional officers in buying primary residences in the same locality. Such grants need to comply with Virginia Housing and Development Authority regional pricing and income standards, while localities may impose additional protections for the program. Localities, in collaboration with schools, can also deliver similar grants and seek public-private partnerships for affordable housing projects for school staff.

Sixty-two Democrats in the House voted in favor of the legislation while 35 Republicans voted against it.

For the Senate vote, 21 Democrats and 4 Republicans supported the bill, whereas 14 Republicans opposed.

The sponsors are Sen. Russet Perry (Democrat-31st District) and Sen. Kannan Srinivasan (Democrat-32nd District).

Perry is a graduate of George Washington University and he later received a JD from Georgetown University.

Perry, a Democrat, was chosen for the Virginia State Senate in 2024 to serve the 31st Senate district seat, previously held by Barbara Favola.

The law-making process in Virginia starts with bill introduction in either chamber—the House or Senate. Committee referrals follow, where discussion and proposed changes occur. Upon committee approval, legislation is sent for debate and votes in both houses. If the bill passes both, it reaches the governor, who may sign, veto or allow it to become law automatically. Each year, the General Assembly meets starting the second Monday in January for a regular session, considering hundreds of proposed bills, though only some are enacted.

Details in this article come from the Virginia State Senate. Source data are available here.