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.
Unlawful detainer; bifurcation of case; contested rent and damages. Provides that, at an initial hearing on an unlawful detainer, if the defendant contests the amount of rent and damages alleged to be due and owing to the plaintiff, the court shall not bifurcate the unlawful detainer case. Under current law, at the initial hearing, upon request of the plaintiff, the court is required to bifurcate the unlawful detainer case and set a continuance date no later than 120 days from the date of the initial hearing to determine final rent and damages.
Zoning; development agreements in certain localities. Allows any locality within Planning District 23 with a population between 245,000 and 350,000 that has adopted a transfer of development rights ordinance to include provisions in its zoning ordinance that allow the governing body to enter into binding development agreements with owners of real property in the locality, so long as the property to be developed contains at least 1,000 acres or is located within (i) a receiving area of a transfer of development rights program and (ii) a tax increment financing district. Current law allows only New Kent County to include such provisions allowing for development agreements in its zoning ordinance.
Zoning; nonconforming uses; manufactured homes. Provides that a land owner or home owner may place a manufactured home that meets the current HUD manufactured housing code upon any open lot in a valid nonconforming mobile or manufactured home park regardless of whether a valid nonconforming manufactured home is currently located on such lot. The bill also provides that, for the purposes of determining whether a use has been continuous, an existing mobile or manufactured home shall be considered a valid nonconforming mobile or manufactured home regardless of whether such mobile or manufactured home has been occupied during the preceding two-year period.
Expedited approval for certain affordable housing developments. Allows a locality, by ordinance, to authorize a zoning administrator to use an administrative process to approve rezoning applications for certain affordable housing developments. The bill requires that the affordable housing development comply with the Virginia Fair Housing Law, connect to a public or community water supply or sewage system, and be located within or adjacent to an area identified by the locality that could support increased density development and provide access to services. The bill also requires the locality, prior to the adoption of such ordinance, to advertise its intention to propose such ordinance within a certain period of time in a newspaper having a general circulation in the locality. The bill allows the Department of Housing and Community Development to give a locality priority for any grants or loans administered by the Department if such locality demonstrates to the Department's satisfaction that its ordinance has met the provisions of the bill. Finally, the bill requires certain localities that adopt such ordinance to include in their annual local housing policy report to the Department a summary of the ordinance.
