{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/10.1-603.25.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/10.1-603.25.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/10.1-603.25.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/10.1-603.25.html"}],"law_id":65812,"edition_id":1,"section_id":65812,"structure_id":14875,"section_number":"10.1-603.25","catch_line":"Virginia Community Flood Preparedness Fund; loan and grant program","history":"2016, c. 762; 2020, cc. 1199, 1219, 1254, 1280; 2021, Sp. Sess. I, c. 401; 2024, c. 753; 2025, cc. 527, 542.","full_text":"A\n\nThe Virginia Community Flood Preparedness Fund is hereby established as a permanent and perpetual fund. All sums that are designated for deposit in the Fund from revenue generated by the sale of emissions allowances pursuant to subdivision C 1 of § 10.1-1330, all sums that may be appropriated to the Fund by the General Assembly, all receipts by the Fund from the repayment of loans made by it to local governments, federally recognized tribes, and Virginia recognized tribes, all income from the investment of moneys held in the Fund, and any other sums designated for deposit to the Fund from any source, public or private, including any federal grants and awards or other forms of assistance received by the Commonwealth that are eligible for deposit in the Fund under federal law, shall be designated for deposit to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including any appropriated funds and all principal, interest accrued, and payments, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. All loans and grants provided under this article shall be deemed to promote the public purposes of enhancing flood prevention or protection and coastal resilience.B\n\nMoneys in the Fund shall be used solely for the purposes of enhancing flood prevention or protection and coastal resilience as required by this article. The Authority shall manage the Fund and shall establish interest rates and repayment terms of such loans as provided in this article in accordance with a memorandum of agreement with the Department. The Authority may disburse from the Fund its reasonable costs and expenses incurred in the management of the Fund. The Department shall direct distribution of loans and grants from the Fund in accordance with the provisions of subsection D.C\n\nThe Authority is authorized at any time and from time to time to pledge, assign, or transfer from the Fund or any bank or trust company designated by the Authority any or all of the assets of the Fund to be held in trust as security for the payment of principal of, premium, if any, and interest on any and all bonds, as defined in § 62.1-199, issued to finance any flood prevention or protection project undertaken pursuant to the provisions of this article. In addition, the Authority is authorized at any time and from time to time to sell upon such terms and conditions as the Authority deems appropriate any loan or interest thereon made pursuant to this article. The net proceeds of the sale remaining after payment of costs and expenses shall be designated for deposit to, and become part of, the Fund.D\n\n1. The Fund shall be administered by the Department as prescribed in this article. The Department, in consultation with the Secretary of Natural and Historic Resources and the Chief Resilience Officer of the Commonwealth, shall establish guidelines regarding the distribution and prioritization of loans and grants, including loans and grants that support flood prevention or protection studies of statewide or regional significance. The Department shall develop and provide an opportunity for a 30-day public comment period prior to each new grant or loan offering to solicit feedback on proposed revisions to the Virginia Community Flood Preparedness Manual. A record of each application for a grant or loan and the action taken thereon shall be available for public inspection at the office of the Department and on a publicly accessible website.2\n\nThe Director shall convene an Advisory Review Committee (the Committee) to assist in the distribution of loans and grants from the Fund. The Committee shall review applications to the Fund and make recommendations on the disbursement of moneys from the Fund and any other appropriate issues to the Department, the Secretary of Natural and Historic Resources, and the Chief Resilience Officer of the Commonwealth. The Committee shall include representatives from the Department of Emergency Management, the Department of Environmental Quality, the Department of Housing and Community Development, a nonprofit group engaged in resilience efforts, the agriculture industry, the manufacturing industry, and the business community, the Virginia Director of the Chesapeake Bay Commission, and others as the Director deems appropriate. Appointed members of the Committee shall serve without compensation.E\n\nLocalities, federally recognized tribes, and Virginia recognized tribes shall use moneys from the Fund primarily for the purpose of implementing flood prevention and protection projects and studies in areas that are subject to recurrent flooding as confirmed by a locality-certified floodplain manager. Moneys in the Fund may be used to mitigate future flood damage and to assist inland and coastal communities across the Commonwealth that are subject to recurrent or repetitive flooding. No less than 25 percent of the moneys disbursed from the Fund each year shall be used for projects in low-income geographic areas. Priority shall be given to projects that implement community-scale hazard mitigation activities that use nature-based solutions to reduce flood risk.F\n\nAny locality, federally recognized tribe, or Virginia recognized tribe is authorized to secure a loan made pursuant to this section by placing a lien up to the value of the loan against any property that benefits from the loan. Such a lien shall be subordinate to each prior lien on such property, except prior liens for which the prior lienholder executes a written subordination agreement, in a form and substance acceptable to the prior lienholder in its sole and exclusive discretion, that is recorded in the land records where the property is located.G\n\nAny locality, federally recognized tribe, or Virginia recognized tribe using moneys in the Fund to provide a loan for a project in a low-income geographic area is authorized to forgive the principal of such loan. If a locality, federally recognized tribe, or Virginia recognized tribe forgives the principal of any such loan, any obligation of the locality, federally recognized tribe, or Virginia recognized tribe to repay that principal to the Commonwealth shall not be forgiven and such obligation shall remain in full force and effect. The total amount of loans forgiven by all localities, federally recognized tribes, and Virginia recognized tribes in a fiscal year shall not exceed 30 percent of the amount appropriated in such fiscal year to the Fund by the General Assembly.","order_by":null,"text":{"0":{"id":239206,"text":"The Virginia Community Flood Preparedness Fund is hereby established as a permanent and perpetual fund. All sums that are designated for deposit in the Fund from revenue generated by the sale of emissions allowances pursuant to subdivision C 1 of § 10.1-1330, all sums that may be appropriated to the Fund by the General Assembly, all receipts by the Fund from the repayment of loans made by it to local governments, federally recognized tribes, and Virginia recognized tribes, all income from the investment of moneys held in the Fund, and any other sums designated for deposit to the Fund from any source, public or private, including any federal grants and awards or other forms of assistance received by the Commonwealth that are eligible for deposit in the Fund under federal law, shall be designated for deposit to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including any appropriated funds and all principal, interest accrued, and payments, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. All loans and grants provided under this article shall be deemed to promote the public purposes of enhancing flood prevention or protection and coastal resilience.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":239207,"text":"Moneys in the Fund shall be used solely for the purposes of enhancing flood prevention or protection and coastal resilience as required by this article. The Authority shall manage the Fund and shall establish interest rates and repayment terms of such loans as provided in this article in accordance with a memorandum of agreement with the Department. The Authority may disburse from the Fund its reasonable costs and expenses incurred in the management of the Fund. The Department shall direct distribution of loans and grants from the Fund in accordance with the provisions of subsection D.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":239208,"text":"The Authority is authorized at any time and from time to time to pledge, assign, or transfer from the Fund or any bank or trust company designated by the Authority any or all of the assets of the Fund to be held in trust as security for the payment of principal of, premium, if any, and interest on any and all bonds, as defined in § 62.1-199, issued to finance any flood prevention or protection project undertaken pursuant to the provisions of this article. In addition, the Authority is authorized at any time and from time to time to sell upon such terms and conditions as the Authority deems appropriate any loan or interest thereon made pursuant to this article. The net proceeds of the sale remaining after payment of costs and expenses shall be designated for deposit to, and become part of, the Fund.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":239209,"text":"1. The Fund shall be administered by the Department as prescribed in this article. The Department, in consultation with the Secretary of Natural and Historic Resources and the Chief Resilience Officer of the Commonwealth, shall establish guidelines regarding the distribution and prioritization of loans and grants, including loans and grants that support flood prevention or protection studies of statewide or regional significance. The Department shall develop and provide an opportunity for a 30-day public comment period prior to each new grant or loan offering to solicit feedback on proposed revisions to the Virginia Community Flood Preparedness Manual. A record of each application for a grant or loan and the action taken thereon shall be available for public inspection at the office of the Department and on a publicly accessible website.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D2"},"4":{"id":239210,"text":"The Director shall convene an Advisory Review Committee (the Committee) to assist in the distribution of loans and grants from the Fund. The Committee shall review applications to the Fund and make recommendations on the disbursement of moneys from the Fund and any other appropriate issues to the Department, the Secretary of Natural and Historic Resources, and the Chief Resilience Officer of the Commonwealth. The Committee shall include representatives from the Department of Emergency Management, the Department of Environmental Quality, the Department of Housing and Community Development, a nonprofit group engaged in resilience efforts, the agriculture industry, the manufacturing industry, and the business community, the Virginia Director of the Chesapeake Bay Commission, and others as the Director deems appropriate. Appointed members of the Committee shall serve without compensation.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D","next_prefix":"E"},"5":{"id":239211,"text":"Localities, federally recognized tribes, and Virginia recognized tribes shall use moneys from the Fund primarily for the purpose of implementing flood prevention and protection projects and studies in areas that are subject to recurrent flooding as confirmed by a locality-certified floodplain manager. Moneys in the Fund may be used to mitigate future flood damage and to assist inland and coastal communities across the Commonwealth that are subject to recurrent or repetitive flooding. No less than 25 percent of the moneys disbursed from the Fund each year shall be used for projects in low-income geographic areas. Priority shall be given to projects that implement community-scale hazard mitigation activities that use nature-based solutions to reduce flood risk.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D2","next_prefix":"F"},"6":{"id":239212,"text":"Any locality, federally recognized tribe, or Virginia recognized tribe is authorized to secure a loan made pursuant to this section by placing a lien up to the value of the loan against any property that benefits from the loan. Such a lien shall be subordinate to each prior lien on such property, except prior liens for which the prior lienholder executes a written subordination agreement, in a form and substance acceptable to the prior lienholder in its sole and exclusive discretion, that is recorded in the land records where the property is located.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"7":{"id":239213,"text":"Any locality, federally recognized tribe, or Virginia recognized tribe using moneys in the Fund to provide a loan for a project in a low-income geographic area is authorized to forgive the principal of such loan. If a locality, federally recognized tribe, or Virginia recognized tribe forgives the principal of any such loan, any obligation of the locality, federally recognized tribe, or Virginia recognized tribe to repay that principal to the Commonwealth shall not be forgiven and such obligation shall remain in full force and effect. The total amount of loans forgiven by all localities, federally recognized tribes, and Virginia recognized tribes in a fiscal year shall not exceed 30 percent of the amount appropriated in such fiscal year to the Fund by the General Assembly.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":14875,"edition_id":1,"name":"Virginia Community Flood Preparedness Fund","identifier":"1.3","label":"article","depth":4,"order_by":1,"parent_id":12894,"metadata":{},"date_created":"2026-06-26 03:50:31","date_modified":"2026-06-26 03:50:31","permalink":{"id":144373,"object_type":"structure","relational_id":14875,"identifier":"1.3","token":"10.1\/I\/6\/1.3","url":"\/10.1\/I\/6\/1.3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12894,"edition_id":1,"name":"Flood Protection and Dam Safety","identifier":"6","label":"chapter","depth":3,"order_by":1,"parent_id":12893,"metadata":{},"date_created":"2026-06-26 03:43:59","date_modified":"2026-06-26 03:43:59","permalink":{"id":144271,"object_type":"structure","relational_id":12894,"identifier":"6","token":"10.1\/I\/6","url":"\/10.1\/I\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12893,"edition_id":1,"name":"Activities Administered by the Department of Conservation and Recreation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12740,"metadata":{},"date_created":"2026-06-26 03:43:59","date_modified":"2026-06-26 03:43:59","permalink":{"id":143315,"object_type":"structure","relational_id":12893,"identifier":"I","token":"10.1\/I","url":"\/10.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12740,"edition_id":1,"name":"Conservation","identifier":"10.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":143313,"object_type":"structure","relational_id":12740,"identifier":"10.1","token":"10.1","url":"\/10.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":61922,"structure_id":14875,"section_number":"10.1-603.24","catch_line":"Definitions","url":"\/10.1-603.24\/","token":"10.1\/I\/6\/1.3\/10.1-603.24","metadata":false},{"id":65812,"structure_id":14875,"section_number":"10.1-603.25","catch_line":"Virginia Community Flood Preparedness Fund; loan and grant program","url":"\/10.1-603.25\/","token":"10.1\/I\/6\/1.3\/10.1-603.25","metadata":false},{"id":80614,"structure_id":14875,"section_number":"10.1-603.26","catch_line":"Deposit of moneys; expenditures; investments","url":"\/10.1-603.26\/","token":"10.1\/I\/6\/1.3\/10.1-603.26","metadata":false},{"id":56814,"structure_id":14875,"section_number":"10.1-603.27","catch_line":"Annual audit","url":"\/10.1-603.27\/","token":"10.1\/I\/6\/1.3\/10.1-603.27","metadata":false}],"previous_section":{"id":61922,"structure_id":14875,"section_number":"10.1-603.24","catch_line":"Definitions","url":"\/10.1-603.24\/","token":"10.1\/I\/6\/1.3\/10.1-603.24","metadata":false},"next_section":{"id":80614,"structure_id":14875,"section_number":"10.1-603.26","catch_line":"Deposit of moneys; expenditures; investments","url":"\/10.1-603.26\/","token":"10.1\/I\/6\/1.3\/10.1-603.26","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/10.1-603.25\/","history_text":"

This law was first created in 2016. The record of its establishment is cataloged in chapter 762<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2020, chapters 1199<\/a>, 1219<\/a>, 1254<\/a>, and 1280<\/a>; in 2024, chapter 753<\/a>; in 2025, chapters 527<\/a> and 542<\/a>.<\/p>","references":[{"id":67912,"section_number":"10.1-1329","catch_line":" Definitions","order_by":null,"url":"\/10.1-1329\/"},{"id":61922,"section_number":"10.1-603.24","catch_line":"Definitions","order_by":null,"url":"\/10.1-603.24\/"}],"refers_to":[{"id":74339,"section_number":"10.1-1330","catch_line":" Clean Energy and Community Flood Preparedness","order_by":null,"url":"\/10.1-1330\/"},{"id":80022,"section_number":"62.1-199","catch_line":"Definitions","order_by":null,"url":"\/62.1-199\/"}],"permalink":{"id":144379,"object_type":"law","relational_id":65812,"identifier":"10.1-603.25","token":"10.1\/I\/6\/1.3\/10.1-603.25","url":"\/10.1-603.25\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/10.1-603.25\/","token":"10.1\/I\/6\/1.3\/10.1-603.25","dublin_core":{"Title":"Virginia Community Flood Preparedness Fund; loan and grant program","Type":"Text","Format":"text\/html","Identifier":"\u00a7 10.1-603.25","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Virginia Community Flood Preparedness Fund<\/span> is hereby established as a permanent and perpetual fund<\/span>. All sums that are designated for deposit in the Fund<\/span> from revenue generated by the sale of emissions allowances pursuant to subdivision C 1 of § 10.1-1330<\/a>, all sums that may be appropriated to the Fund<\/span> by the General Assembly, all receipts by the Fund<\/span> from the repayment of loans made by it to local governments<\/span>, federally recognized tribes, and Virginia recognized tribes, all income from the investment of moneys held in the Fund<\/span>, and any other sums designated for deposit to the Fund<\/span> from any source, public or private, including any federal grants and awards or other forms of assistance received by the Commonwealth that are eligible for deposit in the Fund<\/span> under federal law<\/span>, shall be designated for deposit to the Fund<\/span>. Interest earned on moneys in the Fund<\/span> shall remain in the Fund<\/span> and be credited to it. Any moneys remaining in the Fund<\/span>, including any appropriated funds<\/span> and all principal, interest accrued, and payments, at the end of each fiscal year shall not revert to the general fund<\/span> but shall remain in the Fund<\/span>. All loans and grants provided under this article shall be deemed to promote the public purposes of enhancing flood prevention or protection<\/span> and coastal resilience. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Moneys in the Fund<\/span> shall be used solely for the purposes of enhancing flood prevention or protection<\/span> and coastal resilience as required by this article. The Authority<\/span> shall manage the Fund<\/span> and shall establish interest rates and repayment terms of such loans as provided in this article in accordance with a memorandum<\/span> of agreement with the Department<\/span>. The Authority<\/span> may disburse from the Fund<\/span> its reasonable costs and expenses incurred in the management of the Fund<\/span>. The Department<\/span> shall direct distribution of loans and grants from the Fund<\/span> in accordance with the provisions of subsection D. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Authority<\/span> is authorized at any time and from time to time to pledge, assign, or transfer from the Fund<\/span> or any bank or trust company designated by the Authority<\/span> any or all of the assets<\/span> of the Fund<\/span> to be held in trust as security for the payment of principal of, premium, if any, and interest on any and all bonds<\/span>, as defined in § 62.1-199<\/a>, issued to finance any flood prevention or protection<\/span> project undertaken pursuant to the provisions of this article. In addition, the Authority<\/span> is authorized at any time and from time to time to sell upon such terms and conditions as the Authority<\/span> deems appropriate any loan or interest thereon made pursuant to this article. The net proceeds of the sale remaining after payment of costs and expenses shall be designated for deposit to, and become part of, the Fund<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> 1. The Fund<\/span> shall be administered by the Department<\/span> as prescribed in this article. The Department<\/span>, in consultation with the Secretary of Natural and Historic Resources and the Chief Resilience Officer of the Commonwealth, shall establish guidelines regarding the distribution and prioritization of loans and grants, including loans and grants that support flood prevention or protection<\/span> studies of statewide or regional significance. The Department<\/span> shall develop and provide an opportunity for a 30-day public comment period prior to each new grant or loan offering to solicit feedback on proposed revisions to the Virginia Community Flood Preparedness Manual. A record of each application for a grant or loan and the action taken thereon shall be available for public inspection at the office of the Department<\/span> and on a publicly accessible website. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Director<\/span> shall convene an Advisory Review Committee (the Committee) to assist in the distribution of loans and grants from the Fund<\/span>. The Committee shall review applications to the Fund<\/span> and make recommendations on the disbursement of moneys from the Fund<\/span> and any other appropriate issues<\/span> to the Department<\/span>, the Secretary of Natural and Historic Resources, and the Chief Resilience Officer of the Commonwealth. The Committee shall include representatives from the Department<\/span> of Emergency Management, the Department<\/span> of Environmental Quality, the Department<\/span> of Housing and Community Development, a nonprofit group engaged in resilience efforts, the agriculture industry, the manufacturing industry, and the business community, the Virginia Director<\/span> of the Chesapeake Bay Commission, and others as the Director<\/span> deems appropriate. Appointed members of the Committee shall serve without compensation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Localities, federally recognized tribes, and Virginia recognized tribes shall use moneys from the Fund<\/span> primarily for the purpose of implementing flood prevention and protection projects and studies in areas that are subject to recurrent flooding as confirmed by a locality-certified floodplain manager. Moneys in the Fund<\/span> may be used to mitigate future flood damage and to assist inland and coastal communities across the Commonwealth that are subject to recurrent or repetitive flooding. No less than 25 percent of the moneys disbursed from the Fund<\/span> each year shall be used for projects in low-income geographic areas<\/span>. Priority shall be given to projects that implement community-scale hazard mitigation activities that use nature-based solutions<\/span> to reduce flood risk. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Any locality, federally recognized tribe, or Virginia recognized tribe is authorized to secure a loan made pursuant to this section by placing a lien<\/span> up to the value of the loan against any property that benefits from the loan. Such a lien<\/span> shall be subordinate to each prior lien<\/span> on such property, except prior liens<\/span> for which the prior lienholder executes a written subordination<\/span> agreement, in a form and substance acceptable to the prior lienholder in its sole and exclusive discretion, that is recorded in the land records where the property is located. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Any locality, federally recognized tribe, or Virginia recognized tribe using moneys in the Fund<\/span> to provide a loan for a project in a low-income geographic area<\/span> is authorized to forgive the principal of such loan. If a locality, federally recognized tribe, or Virginia recognized tribe forgives the principal of any such loan, any obligation of the locality, federally recognized tribe, or Virginia recognized tribe to repay that principal to the Commonwealth shall not be forgiven and such obligation shall remain in full force and effect. The total amount of loans forgiven by all localities, federally recognized tribes, and Virginia recognized tribes in a fiscal year shall not exceed 30 percent of the amount appropriated in such fiscal year to the Fund<\/span> by the General Assembly. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVIRGINIA COMMUNITY FLOOD PREPAREDNESS FUND; LOAN AND GRANT PROGRAM (\u00a7\n10.1-603.25)\n\nA. The Virginia Community Flood Preparedness Fund is hereby established as a\npermanent and perpetual fund. All sums that are designated for deposit in the\nFund from revenue generated by the sale of emissions allowances pursuant to\nsubdivision C 1 of § 10.1-1330, all sums that may be appropriated to the\nFund by the General Assembly, all receipts by the Fund from the repayment of\nloans made by it to local governments, federally recognized tribes, and Virginia\nrecognized tribes, all income from the investment of moneys held in the Fund,\nand any other sums designated for deposit to the Fund from any source, public or\nprivate, including any federal grants and awards or other forms of assistance\nreceived by the Commonwealth that are eligible for deposit in the Fund under\nfederal law, shall be designated for deposit to the Fund. Interest earned on\nmoneys in the Fund shall remain in the Fund and be credited to it. Any moneys\nremaining in the Fund, including any appropriated funds and all principal,\ninterest accrued, and payments, at the end of each fiscal year shall not revert\nto the general fund but shall remain in the Fund. All loans and grants provided\nunder this article shall be deemed to promote the public purposes of enhancing\nflood prevention or protection and coastal resilience.\n\nB. Moneys in the Fund shall be used solely for the purposes of enhancing flood\nprevention or protection and coastal resilience as required by this article. The\nAuthority shall manage the Fund and shall establish interest rates and repayment\nterms of such loans as provided in this article in accordance with a memorandum\nof agreement with the Department. The Authority may disburse from the Fund its\nreasonable costs and expenses incurred in the management of the Fund. The\nDepartment shall direct distribution of loans and grants from the Fund in\naccordance with the provisions of subsection D.\n\nC. The Authority is authorized at any time and from time to time to pledge,\nassign, or transfer from the Fund or any bank or trust company designated by the\nAuthority any or all of the assets of the Fund to be held in trust as security\nfor the payment of principal of, premium, if any, and interest on any and all\nbonds, as defined in § 62.1-199, issued to finance any flood prevention or\nprotection project undertaken pursuant to the provisions of this article. In\naddition, the Authority is authorized at any time and from time to time to sell\nupon such terms and conditions as the Authority deems appropriate any loan or\ninterest thereon made pursuant to this article. The net proceeds of the sale\nremaining after payment of costs and expenses shall be designated for deposit\nto, and become part of, the Fund.\n\nD. 1. The Fund shall be administered by the Department as prescribed in this\narticle. The Department, in consultation with the Secretary of Natural and\nHistoric Resources and the Chief Resilience Officer of the Commonwealth, shall\nestablish guidelines regarding the distribution and prioritization of loans and\ngrants, including loans and grants that support flood prevention or protection\nstudies of statewide or regional significance. The Department shall develop and\nprovide an opportunity for a 30-day public comment period prior to each new\ngrant or loan offering to solicit feedback on proposed revisions to the Virginia\nCommunity Flood Preparedness Manual. A record of each application for a grant or\nloan and the action taken thereon shall be available for public inspection at\nthe office of the Department and on a publicly accessible website.\n\n 2. The Director shall convene an Advisory Review Committee (the Committee) to\n assist in the distribution of loans and grants from the Fund. The Committee\n shall review applications to the Fund and make recommendations on the\n disbursement of moneys from the Fund and any other appropriate issues to the\n Department, the Secretary of Natural and Historic Resources, and the Chief\n Resilience Officer of the Commonwealth. The Committee shall include\n representatives from the Department of Emergency Management, the Department of\n Environmental Quality, the Department of Housing and Community Development, a\n nonprofit group engaged in resilience efforts, the agriculture industry, the\n manufacturing industry, and the business community, the Virginia Director of\n the Chesapeake Bay Commission, and others as the Director deems appropriate.\n Appointed members of the Committee shall serve without compensation.\n\nE. Localities, federally recognized tribes, and Virginia recognized tribes shall\nuse moneys from the Fund primarily for the purpose of implementing flood\nprevention and protection projects and studies in areas that are subject to\nrecurrent flooding as confirmed by a locality-certified floodplain manager.\nMoneys in the Fund may be used to mitigate future flood damage and to assist\ninland and coastal communities across the Commonwealth that are subject to\nrecurrent or repetitive flooding. No less than 25 percent of the moneys\ndisbursed from the Fund each year shall be used for projects in low-income\ngeographic areas. Priority shall be given to projects that implement\ncommunity-scale hazard mitigation activities that use nature-based solutions to\nreduce flood risk.\n\nF. Any locality, federally recognized tribe, or Virginia recognized tribe is\nauthorized to secure a loan made pursuant to this section by placing a lien up\nto the value of the loan against any property that benefits from the loan. Such\na lien shall be subordinate to each prior lien on such property, except prior\nliens for which the prior lienholder executes a written subordination agreement,\nin a form and substance acceptable to the prior lienholder in its sole and\nexclusive discretion, that is recorded in the land records where the property is\nlocated.\n\nG. Any locality, federally recognized tribe, or Virginia recognized tribe using\nmoneys in the Fund to provide a loan for a project in a low-income geographic\narea is authorized to forgive the principal of such loan. If a locality,\nfederally recognized tribe, or Virginia recognized tribe forgives the principal\nof any such loan, any obligation of the locality, federally recognized tribe, or\nVirginia recognized tribe to repay that principal to the Commonwealth shall not\nbe forgiven and such obligation shall remain in full force and effect. The total\namount of loans forgiven by all localities, federally recognized tribes, and\nVirginia recognized tribes in a fiscal year shall not exceed 30 percent of the\namount appropriated in such fiscal year to the Fund by the General Assembly.\n\nHISTORY: 2016, c. 762; 2020, cc. 1199, 1219, 1254, 1280; 2021, Sp. Sess. I, c.\n401; 2024, c. 753; 2025, cc. 527, 542.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}