Housing

High load facilities; impact assessments. Prohibits a governing body or board of zoning appeals from issuing final approval for any special exception, special use permit, variance, rezoning application, or other land disturbing permit, including building permits and erosion and sediment control permits, for a high load facility, defined in the bill, until the applicant submits a finding of no impact or minimal impact issued by the State Corporation Commission. The bill provides that upon request by the owner or operator of a high load facility, the Commission will assess whether the high load facility will have a material adverse impact upon the incumbent electric utility's ability to (i) to maintain electric grid reliability, (ii) avoid exceeding available generation or transmission capacity constraints, or (iii) meet certain statutory requirements.

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.

Single-Family Homebuyer Protection Act established; civil penalty. Establishes the Single-Family Homebuyer Protection Act for the purpose of prohibiting a covered entity from acquiring an interest in more than five single-family homes within the same county, city, or town in the Commonwealth on or after July 1, 2026. The bill provides that no seller of a single-family home shall enter into an agreement with a covered entity for acquisition of such home before publicly marketing such home to natural persons residing in the Commonwealth and first-time homebuyers for at least 10 calendar days. The bill allows the Department of Housing and Community Development to publish aggregated information using existing data, including (i) the number and percentage of single-family homes owned by covered entities, broken down by locality, zip code, and census tract, and (ii) identified trends in the concentration of covered entity interests in single-family homes. The bill allows the Attorney General to seek an injunction and a civil penalty to restrain any violation of its provisions.

Virginia Fair Housing Law; Virginia Residential Property Disclosure Act; Virginia Residential Landlord and Tenant Act; personalized algorithmic pricing disclosures; prohibitions; civil penalties; civil actions. Prohibits, for purposes of the Virginia Fair Housing Law and the Virginia Residential Landlord and Tenant Act (VRLTA), certain discriminatory uses of protected class data, defined in the bill, in the sale or rental of a dwelling. The bill requires, when applicable, disclosure of the use of personalized algorithmic pricing, defined in the bill, for purposes of the Virginia Residential Property Disclosure Act and the VRLTA. Under the VRLTA, the bill prohibits a landlord from facilitating an agreement between or among two or more landlords to not compete with respect to any dwelling unit, including by operating or licensing software, a data analytics service, or an algorithmic device that performs a coordinating function, defined in the bill, on behalf of or between and among such landlords. The bill also prohibits a landlord and a multiple listing service, defined in the bill, from setting or adjusting rent prices, rental agreement terms, occupancy levels, or other rental agreement terms and conditions in one or more of his dwelling units based on recommendations from software, a data analytics service, or an algorithmic device performing a coordinating function. The bill allows the Attorney General to seek an injunction and civil penalties to restrain certain violations of the bill and allows any injured individual to bring a civil action to recover the greater of actual or statutory damages and reasonable attorney fees.

Affordable housing; religious organizations and other nonprofit tax-exempt properties. Allows for the administrative approval of development and construction of housing on land owned by property tax-exempt religious organizations or certain property tax-exempt nonprofit organizations and provides that zoning ordinances shall allow the by-right development and construction of housing on real property owned by such organizations. The bill provides that the review of such developments be completed pursuant to general law and states that localities shall not require a special exception, special use permit, conditional use permit, rezoning, or any discretionary review or approval process. The bill requires that at least 60 percent of the housing development's total units be for affordable housing and that the housing development remain affordable for at least 30 years. The bill also provides that all such housing is subject to local real property taxation following completion, unless explicitly exempted by the locality. The bill has a delayed effective date of September 1, 2026. This bill was incorporated into SB 388.

Charter; City of Virginia Beach; certain land use approvals. Amends the charter for the City of Virginia Beach by providing that no application to rezone property to a higher density or a more intense zoning district south of the blue line, as defined in the bill, shall be approved except by a recorded affirmative vote of three-fourths of all of the members elected to the city council. The bill further provides that no extension of public water and sanitary sewer shall extend south of the blue line absent a public hearing and specific findings by the city council.

Zoning; adequate public facilities. Allows a locality to determine the timing of development by considering the adequacy of public facilities when making zoning decisions. The bill provides that a locality that makes a determination of inadequate facilities may reject or defer a rezoning application based solely on that determination.

Local anti-rent gouging authority; civil penalty. Provides that any locality may by ordinance adopt anti-rent gouging provisions. The bill provides for notice and a public hearing prior to the adoption of such ordinance and specifies that all landlords who are under the ordinance may be required to give at least 90 days' written notice of a rent increase and cannot increase the rent by more than the locality's calculated allowance, not to exceed three percent, and states that such allowance is effective for a 12-month period beginning July 1 each year. The bill requires the locality to publish such allowance on its website by June 1 of each year. Certain facilities, as outlined in the bill, are exempt from such ordinance. The bill also requires a locality adopting an anti-rent gouging ordinance to establish an anti-rent gouging board to establish rules and procedures by which landlords may apply for and be granted exemptions from the rent increase limits set by the ordinance or delegate such duties and functions to an existing local board, department, or agency. The bill also requires the anti-rent gouging board to establish a fair return on investment rent increase exemption to the annual anti-rent gouging allowance where necessary to offset increased operating expenses. Finally, the bill provides that a locality shall establish a civil penalty for failure to comply with the requirements set out in its ordinance.

Individual income tax; first-time homebuyer tax credit. Creates a one-time, nonrefundable individual income tax credit in taxable years 2026 through 2030 for expenses incurred by a first-time homebuyer for the purchase of direct ownership in residential real property in an amount equal to five percent of the purchase price value of such property detailed on the purchase agreement up to $10,000. The bill requires that any credits be repaid in the event that the residential real property for which first-time homebuyer expenses were incurred and such credit was claimed is sold within three years from the purchase date of such property.

Individual income tax; first-time homebuyer tax credit. Creates a one-time, nonrefundable individual income tax credit in taxable years 2026 through 2030 for the purchase of a principal residence by a first-time homebuyer, as such terms are defined in the bill, in an amount equal to $5,000. The bill requires that any credits be repaid if the principal residence is sold or no longer serves as the first-time homebuyer's principal residence within three years from the purchase date of such property.