Housing

Affordable dwelling unit program; City of Roanoke. Adds the City of Roanoke to the list of localities with authority to provide for an affordable dwelling unit program. The bill provides that such change shall not become effective unless reenacted by the 2027 Session of the General Assembly. The bill also requires the Virginia Housing Development Authority to analyze the potential efficacy of the provisions of the bill for the provision of affordable housing in the City of Roanoke and to report the results of such analysis no later than November 1, 2026.

Virginia Residential Landlord and Tenant Act; enforcement by localities. Provides that if a condition exists in a dwelling unit that constitutes a material noncompliance by the landlord with the rental agreement or with any provision of law that, if not remedied within a reasonable time frame, constitutes a fire hazard or serious threat to the life, health, or safety of a tenant or occupant of the premises, a locality may institute an action on behalf of any tenant or occupant of the premises who is injured by such material noncompliance for injunction and damages to enforce the landlord's duty to maintain the dwelling unit in a fit and habitable condition, provided that (i) the premises where the violation occurred is within the jurisdictional boundaries of the locality and (ii) the locality has notified the landlord who owns the premises, either directly or through the managing agent, of the nature of the violation and the landlord has failed to remedy the violation to the satisfaction of the locality within a reasonable time after receiving such notice. This bill is identical to SB 290.

Department of Housing and Community Development; Income-Qualified Energy Efficiency and Weatherization Task Force established; report. Directs the Department of Housing and Community Development to establish, in collaboration with the Department of Energy, and with assistance from the Department of Social Services, the Income-Qualified Energy Efficiency and Weatherization Task Force to determine barriers to access and enrollment in the current energy efficiency programs for income-qualified energy customers and to evaluate and develop a plan to address any necessary improvements regarding coordination among state and federal government agencies for utility services and resources to more effectively deliver energy-efficient housing, weatherization resources, and energy efficiency upgrades for income-qualified individuals and households in the Commonwealth. The bill requires the Task Force to meet at least six times between July 1, 2026, and September 30, 2027, and to submit a report of its findings and recommendations no later than September 30, 2027. The bill specifies that such report shall include policy recommendations and a plan to ensure that weatherization-ready repairs and whole-home energy efficiency retrofits are provided to all eligible income-qualified individuals and households in the Commonwealth residing in multifamily buildings, single-family dwellings, and manufactured homes by December 31, 2034. This bill is identical to SB 5.

Department of Housing and Community Development; Income-Qualified Energy Efficiency and Weatherization Task Force established; report. Directs the Department of Housing and Community Development to establish, in collaboration with the Department of Energy, and with assistance from the Department of Social Services, the Income-Qualified Energy Efficiency and Weatherization Task Force to determine barriers to access and enrollment in the current energy efficiency programs for income-qualified energy customers and to evaluate and develop a plan to address any necessary improvements regarding coordination among state and federal government agencies for utility services and resources to more effectively deliver energy-efficient housing, weatherization resources, and energy efficiency upgrades for income-qualified individuals and households in the Commonwealth. The bill requires the Task Force to meet at least six times between July 1, 2026, and September 30, 2027, and to submit a report of its findings and recommendations no later than September 30, 2027. The bill specifies that such report shall include policy recommendations and a plan to ensure that weatherization-ready repairs and whole-home energy efficiency retrofits are provided to all eligible income-qualified individuals and households in the Commonwealth residing in multifamily buildings, single-family dwellings, and manufactured homes by December 31, 2034. This bill is identical to HB 3.

Real property tax; partial exemption for repurposing underutilized structures for residential use; local incentives. Permits localities to provide partial real estate taxation exemptions for converted real property where such conversion establishes a residential structure that has set aside at least 30 percent of the structure for households with a per capita income at or below 80 percent of the locality's median income or where the building owner is subject to an agreement with the Commonwealth or the locality regarding the provision of affordable housing. Localities have discretion to determine (i) whether a converted building qualifies for the partial exemption, (ii) any additional restrictions and conditions, (iii) whether the exemption is the amount equal to the increase in assessed value or a percentage of such increase resulting from the repurposing of the structure, and (iv) the length of time the exemption will run with the land, not to exceed 15 years. The bill provides that, at any time a building for which its owner claims a partial exemption no longer meets the requirements to receive such exemption, the locality may recapture all or a portion of the exemption granted in the immediately preceding year. Further, if a building owner that claims an exemption as described by the bill sells the building for which he is claiming the exemption and, after the sale, the property no longer meets the requirements described by the bill, the purchaser shall be subject to a penalty. The building owner shall provide written notification of the partial exemption to the purchaser. The bill also permits localities to grant tax incentives or provide regulatory flexibility to qualifying converted real property.

Department of Housing and Community Development; loans for the construction of mixed income housing; report. Directs the Department of Housing and Community Development, in collaboration with the Virginia Housing Development Authority, to create a two-year pilot program that would provide loan origination and servicing activities for mixed income housing and submit a report on its findings to the General Assembly by November 1 of each year of the pilot program. The bill provides that any funding for the pilot program, subject to the appropriation act, shall be utilized from up to 15 percent of the annual deposit made to the Virginia Housing Trust Fund. This bill is identical to HB 820 and SB 490.

Department of Housing and Community Development; loans for the construction of mixed income housing; report. Directs the Department of Housing and Community Development, in collaboration with the Virginia Housing Development Authority, to create a two-year pilot program that would provide loan origination and servicing activities for mixed income housing and submit a report on its findings to the General Assembly by November 1 of each year of the pilot program. The bill provides that any funding for the pilot program, subject to the appropriation act, shall be utilized from up to 15 percent of the annual deposit made to the Virginia Housing Trust Fund. This bill is identical to HB 196 and SB 490.

Virginia Residential Landlord and Tenant Act; terms and conditions of rental agreement; notice of rent increase. Requires a landlord who owns more than four rental dwelling units or more than a 10 percent interest in more than four rental dwelling units, whether individually or through a business entity, in the Commonwealth to provide a tenant with written notice of any increase in rent for the subsequent rental agreement term at least 90 days prior to the end of such term and to include in such notice a deadline, which shall be no sooner than 30 days after such notice is delivered, by which the tenant shall advise the landlord of whether the tenant will renew the rental agreement. The bill has a delayed effective date of January 1, 2027.

Virginia Residential Landlord and Tenant Act; material noncompliance by landlord; rent escrow; relief. Removes the requirement that, prior to the granting of any relief, a tenant shall pay into escrow any amount of rent called for under the rental agreement. The bill requires the tenant, during the pendency of the action, to pay into escrow the amount of rent that becomes due within five days of the date due under the rental agreement, unless or until such amount is modified by a subsequent order of the court. The bill also provides that a failure of the tenant to make timely payments into escrow shall not be grounds for dismissal of the underlying action but may be considered by the court when issuing an order. The bill has a delayed effective date of  January 1, 2027.

Department of Housing and Community Development; administration of Urban Public-Private Partnership Redevelopment grant program; report. Directs the Department of Housing and Community Development to review and develop criteria and guidelines for the administration of the Urban Public-Private Partnership Redevelopment grant program in consultation with the Virginia Association of Counties, the Virginia First Cities Coalition, the Virginia Municipal League, and the Virginia Economic Developers Association. The bill requires such criteria to include (i) award prioritization for (a) localities experiencing an above average and high level of fiscal stress as designated by the Commission on Local Government in its most recent Report on Comparative Revenue Capacity, Revenue Effort, and Fiscal Stress of Virginia's Cities and Counties and (b) localities experiencing a significant decrease in commercial real estate assessments and (ii) the amount and type of local matches with consideration of both monetary and non-monetary contribution requirements. The bill requires the Director of the Department to report the Department's findings to the Chairs of the Senate Committee on Finance and Appropriations, the Senate Committee on General Laws and Technology, the House Committee on Appropriations, and the House Committee on General Laws no later than November 1, 2026.