Housing

Affordable housing; local zoning ordinance authority. Authorizes any locality in the Commonwealth to provide for an affordable housing dwelling unit program by amending the zoning ordinance of such locality. Current law restricts such authorization to counties with an urban county executive form of government or county manager plan of government and certain other localities. In addition to optional increases in density, the bill provides that such program may include certain additional implementation measures including lot size reductions and accessory housing unit allowances. The bill has a delayed effective date of July 1, 2027, and is identical to SB 74.

Public funding for multifamily residential housing; Virginia Residential Landlord and Tenant Act; common household pets. Requires any multifamily residential housing development receiving an investment of public funds to allow occupants to own or otherwise maintain within the occupant's dwelling unit at least one common household pet, defined in the bill, without restrictions on breed or weight below 65 pounds. The bill additionally requires any landlord subject to the Virginia Residential Landlord and Tenant Act to provide a disclosure with any application for a rental agreement containing a written copy of any terms and conditions of the rental agreement regarding an applicant's ability to own or otherwise maintain a common household pet within the dwelling unit. If such landlord maintains a website regarding the property, such terms and conditions shall additionally be published to such website. The provisions of the bill do not become effective unless reenacted by the 2027 Session of the General Assembly.

Virginia Human Rights Act; unlawful discrimination. Prohibits any state agency or political subdivision in the Commonwealth from supporting, implementing, recognizing, or utilizing any program, process, or procedure that conveys or denies a benefit, advantage, or privilege to an individual based solely on such individual's race, sex, or ethnicity.

County manager plan of government; affordable dwelling unit ordinance. Increases local authority over affordable housing for counties that have adopted the county manager plan of government (Arlington County) by (i) potentially increasing the cash contribution to the county's affordable housing fund by developers in lieu of providing affordable dwelling units and (ii) providing that applications for a special exception approval for a change of use of an existing building from commercial to residential may be subject to an affordable housing requirement.

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 Residential Landlord and Tenant Act; civil action for unlawful detainer; termination notice; energy submetering equipment. Provides that no landlord shall file or maintain an action for unlawful detainer against a residential tenant for any alleged lease violation until the landlord has provided the tenant with a proper and effective termination notice and that no notice of termination of tenancy for nonpayment of rent pursuant to the Virginia Residential Landlord and Tenant Act shall be effective unless such notice contains a written statement of charges and payments over the course of the tenancy or the past 12 months, whichever is shorter, and any late charges, attorney fees, costs, and other charges or damages as contracted for in the rental agreement that are due and owing. The bill requires such notice to also include debits and credits incurred by the tenant for energy and utility bills and any additional charges permitted as applicable. The bill also requires the owner of any residential building to maintain adequate records indicating how monthly energy and utility billing fees are calculated and including a history of billing fee payments for each tenant over the duration of the tenancy or the past 12 months, whichever is shorter. Such records shall be made available to the tenant upon request. Finally, the bill removes a provision allowing for the collection of fees when a tenant requests such records. The bill has a delayed effective date of July 1, 2027. This bill is identical to HB 1361.

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, subject to various conditions and limitations. 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 January 1, 2027, and expires on January 1, 2031. This bill incorporates SB 367 and is identical to HB 1279.

Zoning; agricultural operations; rental of accessory dwellings. Provides that no locality shall prohibit the rental for 30 days or more of existing accessory residential dwellings located on property with an agricultural operation. The bill does not apply to areas within a town.

Department of Housing and Community Development; powers and duties of director; accessory dwelling unit construction guide. Requires the director of the Department of Housing and Community Development to develop an accessory dwelling unit construction guide that provides (i) an overview of the accessory dwelling unit construction process; (ii) a review of ordinances, permits, fees, programs, and incentives related to accessory dwelling unit development by locality; and (iii) a catalog of model accessory dwelling unit designs suitable for various local restraints. Such guide shall be updated at least every five years.

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.