Virginia is a national leader in its efforts to provide functionally universal broadband coverage to unserved homes, businesses, and community anchor institutions across the Commonwealth. However, while the Commonwealth has made great strides to expand broadband coverage to existing developments, a new gap may emerge if new residential and commercial development takes place without consideration of expanding broadband networks to those locations.

In 2022, the General Assembly passed Chapter 592, which directs the Department of Housing and Community Development ("The Department") to convene a group of stakeholders to identify recommendations to address this issue of deploying broadband internet into new residential and commercial development. The General Assembly further required the Department provide its own findings and recommendations to the Broadband Advisory Council on September 30th, 2022.

As directed by the legislation, the Department convened a Stakeholder Advisory Group (“Advisory Group") composed of representatives from the commercial and residential land development and construction industry, local government, high-speed broadband providers, and other stakeholders as determined necessary by the Department.

Chapter 592 required that Advisory Group identify any consensus recommendations of the advisory group related to expanding broadband into new development. Furthermore, it also required that the Department report its findings and recommendations on the same subject. Both the Advisory Group and the Department were to present their findings and recommendations to the Broadband Advisory Council by September 30th, 2022.

This report contains the recommendations for the General Assembly to consider for future expansion of broadband into new development. The Department’s findings and recommendations are as follows:

Department Findings and Recommendations:

Findings:

1: Members of the Advisory Group varied greatly in their perceived urgency of the problem and the necessity of addressing it.

2: The authority of local governments to act independently with regards to broadband expansion and promotion is unclear.

3: Many member’s primary concern was how to address potential funding gaps for broadband expansion into new development.

Recommendations:

1: The General Assembly should consider clarifying in the Code of Virginia giving localities the express authority to expend local revenues on broadband deployment.

2: If the General Assembly considers granting localities additional authority to adopt an ordinance about deploying broadband funds for a new development, they should also consider potential cost sharing mechanisms, among all stakeholders, with the developer.

The report will further elaborate on the actions of the Advisory Group and the Department. This report will first provide a brief overview of Virginia's efforts to reach universal coverage. It will then present the work of the stakeholder group, including its research and discussions on facilitation network deployment to new developments. Finally, the report concludes by presenting the findings and recommendations of the Department.