HB 1805 — Virginia Resources Authority; community development and housing projects.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2023 SESSION CHAPTER E440 An Act to amend and reenact §§ 62.1-198, 62.1-199, 62.1-216, and 62.1-218 of the Code of Virginia, relating to Virginia Resources Authority;

community development and housing projectR.projects.

O [H 1805] Approved LMarch L23, 2023 Be it enacted by the General Assembly of Virginia:

That §§ 62.1-198, 62.1-199, 62.1-216, and 62.1-218 of the Code of Virginia are amended and E reenacted as follows:

D§ The62.1-198. General Assembly finds that there exists in the Commonwealth a critical need for additional sources of funding to finance the present and future needs of the Commonwealth for water supply;

Legislative findings and purposes.

The General Assembly finds that there exists in the Commonwealth a critical need for additional sources of funding to finance the present and future needs of the Commonwealth for water supply;

oyster restoration projects, including planting and replanting with seed oysters, oyster shells, or other material that will catch, support, and grow oysters;

certain heavy railHtransportationrail transportation facilities;

the remediation of brownfields and co1taminatedcontaminated publicproperties, parkingincluding garages,properties andcontaminated other public transportation facilities, and facilities for public transportation by commuterdefective rail;drywall;

the design and construction of roads, public parking garages, and other public transportation facilities, and facilities for public transportation by commuter rail;

and renewable energy projects, including solar, wind, biomass, authority.waste-to-energy, and geothermal.

This need can be alleviated in part through the creation of a resources authority.

the design and construction of roads, public parking garages, and other public transportation facilities, and facilities for public transportation by projects,;commuter rail,;

communitysite developmentacquisition projects,and tosite includedevelopment projectswork relatedfor to the productionbenefit andopment preservation of housing,economic includingdevelopment housingprojects,; for persons and families of low and moderate income;

community development projects, to include projects related to the production and preservation of housing, including housing for persons and families of low and moderate income;

§ 62.1-199.

Definitions.

"Capital Reserve Fund" means the reserve fund created and established by the Authority in acc"Cost,"accordance aswith applied§ to62.1-215. any project financed under the provisions of this chapter, means the total of all costs incurred by the local government as reasonable and necessary for carrying out all works and of 4 undertakings necessary or incident to the accomplishment of any project.

It"Cost," includes,as withoutapplied limitation,to all necessary developmental, planning and feasibility studies, surveys, plans and specifications, architectural, engineering, financial, legal or other special services, the cost of acquisition of land and any buildingsproject andfinanced improvementsunder thereon, including the dischargeprovisions of anythis obligationschapter, ofmeans the sellerstotal of suchall land, buildings or improvements, real estate appraisals, site preparation and development, including demolition or removal of existing structures, construction and reconstruction, labor, materials, machinery and equipment, the reasonable costs of financing incurred by the local government inas thereasonable courseand ofnecessary thefor development of the project, including the cost of any credit enhancements, carrying chargesout incurredall beforeworks placingand theundertakings projectnecessary inor service,incident interest on local obligations issued to finance the projectaccomplishment to a date subsequent to the estimated date the project is to be placed in service, necessary expenses incurred in connection with placing the project in service, the funding of accountsany andproject. reserves which the Authority may require, and the cost of other items which the Authority determines to be reasonable and necessary.

It includes, without limitation, all necessary developmental, planning and feasibility studies, surveys, plans and specifications, of 4 architectural, engineering, financial, legal or other special services, the cost of acquisition of land and any buildings and improvements thereon, including the discharge of any obligations of the sellers of such land, buildings or improvements, real estate appraisals, site preparation and development, including demolition or removal of existing structures, construction and reconstruction, labor, materials, machinery and equipment, the reasonable costs of financing incurred by the local government in the course of the development of the project, including the cost of any credit enhancements, carrying charges incurred before placing the project in service, interest on local obligations issued to finance the project to a date subsequent to the estimated date the project is to be placed in service, necessary expenses incurred in connection with placing the project in service, the funding of accounts and reserves which the Authority may require, and the cost of other items which the Authority determines to be reasonable and necessary.

In addition, the term means any project as defined in § 5.1-30.1 or of 4 10.1-603.28 and any professional sports facility, including a major league baseball stadium as defined in § 15.2-5800, provided that the specific professional sports facility projects have been designaEeddesignated by the General Assembly as eligible for assistance from the Authority.

The term also means facilities supporting, related to, or otherwise used for public safety, including but not limitRdlimited to of 4 law-enforcement training facilities and emergency response, fire, rescue, and police stations.

The term also means the remediation, redevelopment, and rehabilitation of property contaminated by the release of hazardous substances, hazardous wastes, solid wastes, or petroleum, where such remediation has notasenot of clearly been mandated by the United States Environmental Protection Agency, the Department of L Environmental Quality, or a court pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C.

§ 6901 et seq.), the Virginia Waste Management Act (§ 10.1-1400 et seq.), the StEteState Water Control Law (§ 62.1-44.2 et seq.), or other applicable statutory or common law or where jurisdiction of those statutes has been waived.

The term also means any program or project for land conservation, parks, park facilities, land for recreational purposes, or land preservation, including but not limited to any program or project involving the acquisition of rights or interests in land for the projectconservation undertakenor topreservation benefit the economic and community development goals of asuch localland. government but does not include any dredging program or dredging project undertaken for or by the Virginia Port Authority.

The term also means any dredging program or dredging project undertaken to benefit the economic and community development goals of a local government but does not include any dredging program or dredging project undertaken for or by the Virginia Port Authority.

The Hermterm also means any program or project to perform site acquisition or site development work for the benefit of economic and community development projects for any local government.

The term also means any 8 undertaking by a local government to build or facilitate the building production or preservatio5preservation of housing or a recovered gas energy facility;

and any local government renewable energy project, R including solar, wind, biomass, waste-to-energy, and geothermal projects.

The term also means any undertaking by a local government to facilitate the remediation of residential properties contaminated by providethe grants,presence loans,of financialdefective assistance,drywall. or any other incentives pursuant to § 15.2-958.

toThe "Recoveredterm gasalso energy facility" means aany facility,undertaking located at or adjacent to (i) a solid waste management facility permitted by the Department of Environmental Quality or (ii) a seweragelocal systemgovernment or sewage treatment work described in § 62.1-44.18 that is constructed and operated for the purpose of treating sewage and wastewater for discharge to stateprovide waters,grants, whichloans, facilityfinancial orassistance, work is constructed and operated for the purpose of (a) reclaiming or collectingany methane or other combustibleincentives gaspursuant fromto the biodegradation or decomposition of solid waste, as defined in § 10.1-1400,15.2-958. that has been deposited in the solid waste management facility or sewerage system or sewage treatment work and (b) either using such gas to generate electric energy or upgrading the gas to pipeline quality and transmitting it off pre§ 62.1-216.

Purchase"Recovered gas energy facility" means a facility, located at or adjacent to (i) a solid waste management facility permitted by the Department of Environmental Quality or (ii) a sewerage system or sewage treatment work described in § 62.1-44.18 that is constructed and creditoperated enhancementsfor the purpose of localtreating obligations.orsewage and wastewater for discharge to state waters, which facility or work is constructed and operated for the purpose of (a) reclaiming or collecting methane or other combustible gas from the biodegradation or decomposition of solid waste, as defined in § 10.1-1400, that has been deposited in the solid waste management facility or sewerage system or sewage treatment work and (b) either using such gas to generate electric energy or upgrading the gas to pipeline quality and transmitting it off premises for sale or delivery to commercial or industrial purchasers or to a public utility or locality.

§ 62.1-216.

Purchase and credit enhancements of local obligations.

The Authority shall also have the power and authority to issue credit enhancements, on terms which anythe project.yAuthority determines, to credit enhance local obligations issued to finance or refinance the cost of The Authority may require, as a condition to the purchase or credit enhancement of any localproject. obligations, that the local government issuing the local obligations covenant to perform any of the following:

The Authority may require, as a condition to the purchase or credit enhancement of any local obligations, that the local government issuing the local obligations covenant to perform any of the following:

any,B. and interest on the local obligations and any other amounts becoming due under any agreement, if entered into in connection with the local obligations, or for the operation, maintenance, repair or of 4 replacement of the project or any portions thereof or other property of the local government, and deposit into any fund or funds amounts sufficient to make any payments as they become due and payable;

Create and maintain a special fund or funds for the payment of the principal of and premium, if any, and interest on the local obligations and any other amounts becoming due under any agreement entered into in connection with the local obligations, or for the operation, maintenance, repair or replacement of the project or any portions thereof or other property of the local government, and deposit into any fund or funds amounts sufficient to make any payments as they become due and payable;

Perform other acts, including the conveyance of real and personal property together with all right, title and interest therein to the Authority, or take other actions as may be deemed necessary or desirable by the Authority to secure payment of the principal of and premium, if any, and interest on the local obligations or obligations to the Authority with respect to any credit enhancement and to provide for the remedies of the Authority or other holder of the local obligations in the event of any default by the of 4 local government in the payment, including, without limitation, any of the following: