Northern Virginia Building Industry Association 2021 Industry Impact Report

WETLAND AND STREAM MITIGATION CREDITS; SERVICE AREA FLEXIBILITY Over the last several years, the volatility in the wetland and stream mitigation credit market has deterred, delayed, or increased the cost of residential, commercial, and infrastructure projects in various regions of the Commonwealth. Our members have struggled to deliver lots to the market because of the fluctuation in credit prices and the credit supply shor tage. To address this issue, the Home Builders Association of Virginia (HBAV) and the Virginia Association for Commercial Real Estate (VACRE) worked with over 25 stakeholders from the environmental and conser vation community, local governments, and state and federal regulator y agencies to introduce HB 1983, patroned by Delegate David Bulova (D – Fairfax). We are happy to repor t that this legislation passed the General Assembly, was signed by Governor Northam, and became effective July 1, 2021. ESTABLISHING A VIRGINIA HOUSING OPPORTUNITY TAX CREDIT During the 2020 Session, HBAV and the Virginia Housing Alliance worked with Delegate Jeff Bourne (D – Richmond) to pass legislation that established a stakeholder advisory group to evaluate how Virginia could structure and implement a housing tax credit to attract private equity investment to affordable housing developments, similar to the Federal Low-Income Housing Tax Credit (LIHTC). The LIHTC program gives investors a dollarfor-dollar reduction in their federal tax liability in exchange for providing financing to develop affordable rental housing. Since 1987, the program has attracted enough private equity to finance over 100,000 affordable units in Virginia; in the last five years alone, Virginia has allocated approximately $200 million in credits that have leveraged nearly $2.9 billion in private equity. Despite the effectiveness of the program, the supply of affordable housing continues to lag surging demand, and it has become increasingly more difficult to finance affordable housing developments through traditional mechanisms. Using the recommendations of the workgroup established in 2020, HBAV and the Virginia Housing Alliance worked with Delegate Jeff Bourne and Senator Mamie Locke to introduce HB 2050 and SB 1197 to establish and “fund” the Virginia Housing Oppor tunity Tax Credit. Although HB 2050 was defeated in a House Finance Subcommittee, SB 1197 ultimately was passed by the General Assembly, signed by the Governor, and became effective July 1, 2021. The bill directs Virginia Housing (formerly the Virginia Housing Development Authority) to promulgate regulations and guidelines necessary to implement the program. The HBAV will be involved in that process throughout the year. NOVA BUILD PAC NVBIA’s political action committee (PAC) is a large par t of what makes so much of what we do possible: It ensures that suppor t goes to the right candidates and helps those candidates win office seats to enact better housing policies. It helps the Association strengthen its voice, and it provides more oppor tunities for us to sit down with key leaders at the state and local level. In the November 2021 elections, all of the candidates who the NoVA Build PAC suppor ted won their elections, which will enable us to maintain a strong relationship with our elected officials. The PAC once again held its ver y popular and successful clay shooting fundraiser in May after a hiatus in 2020 due to the COVID pandemic. The event attracted a sold-out capacity crowd and netted near ly $20,000. This event enables NVBIA to spread awareness of NoVA Build PAC and help NVBIA members better understand the impor tance of PAC and its three overarching goals: to protect and preser ve the availability of housing affordability for all people; to practice fiscal responsibility with the public funds entrusted to them; and to protect, preser ve, and fur ther the free enterprise system. If NoVA Build PAC is going to continue to overcome the challenges that will inevitably come up year after year, it is impor tant that all who can suppor t the PAC do so by donating at www.nvbia.com or by sending a check to NoVA Build PAC at 3684 Center view Drive, Suite #110-B, Chantilly, VA 20151. For more information about NoVA Build PAC, contact Debbie Rosenstein at drosenstein@nvbia.com. In the November 2021 elections, all of the candidates who the NoVA Build PAC supported won their elections, which will enable us to maintain a strong relationship with our elected officials. Advocacy. Networking. Education. Philanthropy. | 9

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