Housing

Statewide housing targets for localities. Requires localities to increase their total housing stock by at least 7.5 percent over the five-year period beginning January 1, 2028. The bill provides that in order to meet such 7.5 percent growth target, a locality shall develop a housing growth plan that best meets the needs of the locality while meeting the growth target rates. The bill provides that such plan may include any strategy deemed appropriate by the locality; however, for purposes of demonstrating a good faith effort to meet growth targets, a locality shall include modeling that demonstrates that the plan will result in the permitting of the required number of units and either (i) a zoning ordinance that includes provisions allowing for the by-right development and construction of multifamily residential uses on at least 75 percent of all land contained in commercial or business zoning district classifications, including any land contained in commercial or business zoning district classifications that allow for the by-right development and construction of single-family residential uses or (ii) at least three of the housing growth strategies enumerated in the bill. The bill further provides that after January 1, 2033, an applicant that seeks local government approval for a residential development site plan or rezoning that will have the effect of increasing the supply of housing in a locality and has that application rejected may, in addition to other remedies, appeal such decision to the board of zoning appeals.

First-time home buyer savings plan; townhouses; principal limits. Includes townhouses in the definition of single-family residence for purposes of the First-Time Home Buyer Savings Plan Act. The bill also increases (i) the aggregate amount of principal that can be contributed to a first-time home buyer savings account from $50,000 to $100,000 and (ii) the limit on the amount of principal and interest or other income on the principal that may be retained in such an account from $150,000 to $200,000. The bill defines first-time home buyer, and includes that term in the definition of qualified beneficiary.

Department of Housing and Community Development; Task Force on Property Appraisal and Valuation Equity. Creates the Task Force on Property Appraisal and Valuation Equity to study the misvaluation and undervaluation of real property owned by minority individuals to combat bias in real property appraisal and valuation. The bill requires the Task Force to meet at least annually and to report to the Governor and General Assembly by December 1 of each year regarding its activities and any recommendations. The bill has an expiration date of July 1, 2029.

Virginia Interagency Council on Homelessness established; use of state funds for housing and homelessness services; report. Establishes the Virginia Interagency Council on Homelessness with the purpose of establishing a coordinated, statewide framework to prevent and end homelessness by aligning state and local efforts around evidence-based strategies. The bill directs the Council to (i) implement a state plan to end homelessness; (ii) align state policies, programs, and funding to effectuate the purpose of the Council; (iii) identify and recommend removal of statutory, regulatory, and administrative barriers to housing stability; and (iv) coordinate state, federal, and private funding to maximize impact and improve outcomes. The bill requires the Council to submit by October 1 of each year a report on its activities and recommendations to the Governor, General Assembly, and Department of Housing and Community Development. The bill additionally prohibits the use of state funds to establish, operate, or support any congregate living arrangement, shelter or similar facility, or program that functions in a punitive or coercive manner, as such term is defined in the bill, with respect to individuals experiencing homelessness.

Housing for local employees; grants for homeownership and workforce housing alternatives. Eliminates the maximum amount a locality may provide (i) to employees of the locality, employees of the school board, and employees of constitutional officers for homeownership grants to purchase primary residences in the locality and (ii) to school division personnel for residential housing assistance grants to provide affordable workforce housing alternatives. The bill also eliminates the requirement that such grants adhere to the Virginia Housing and Development Authority regional sales price and household income limitation guidelines. Current law imposes a maximum grant amount of $25,000 for individual grants per employee, as well as a maximum lifetime cumulative amount of $25,000 per employee.