Housing (Affordable Housing)

Water and sewer connection fees; first-time homebuyers; affordable housing. Provides that any locality may provide for the full or partial reimbursement to a first-time homebuyer of water and sewer connection fees, capital recovery charges, and availability fees paid in connection with any new residential development conveyed to such homebuyer. The bill also permits any locality that has adopted an affordable dwelling unit ordinance pursuant to general law to provide for a waiver of such fees and charges for any development subject to the requirements of such ordinance.

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. The bill directs the governing body of such counties to appoint an advisory board to advise the governing body regarding the appropriate provisions of an ordinance to amend the cash contribution amounts to such county's affordable housing fund. Certain provisions of the bill do not become effective unless reenacted by the 2027 Session of the General Assembly.

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.

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.

Private activity bonds; allocation of state ceiling. Increases the housing allocation of the Virginia state ceiling on private activity bonds from 57 to 67 percent by (i) increasing the allocation to the Virginia Housing Development Authority from the current 43 percent to 50 percent and (ii) increasing the allocation to local housing authorities from the current 14 percent to 17 percent. The bill also maintains the current 18 percent for the Governor's state allocation portion and reduces the industrial development bonds for manufacturing and exempt facilities portion of the ceiling from 25 to 15 percent. This bill is identical to SB 729.

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 is identical to SB 388.

Workforce housing for employees of a county or county school board; lease of surplus property. Allows any county board of supervisors or county school board to lease as lessor surplus or underutilized property. The bill provides that such leases shall be conditioned on the development of workforce housing serving employees of the county or school division with up to 80 percent of area median household income. The bill also prohibits establishment of a minimum lot size exceeding 5,000 square feet for such workforce housing and provides that the placement of manufactured houses that are on a permanent foundation and on individual lots shall be permitted subject to development standards that are equivalent to those applicable to site-built single-family dwellings.

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 HB 820.

Virginia Workforce Housing Assistance Program; report. Establishes the Virginia Workforce Housing Assistance Program to provide grants to eligible employers, defined in the bill, that set up housing down payment assistance programs for employees in amounts equal to the lesser of 15 percent of housing down payment assistance expenses incurred by an eligible employer during the fiscal year or $25,000. The bill specifies that an eligible employer may only receive grants in the aggregate of up to $150,000 across all fiscal years or $250,000 for housing down payment assistance expenses incurred for employees in certain fiscally stressed localities. The bill requires weighting grants according to the household income of participating employees, as measured against the area median income (AMI) for the locality in which the dwelling is located. Any participating employee shall have an annual household income at or below 120 percent of the AMI for the locality in which the employee's dwelling is located and have never owned or purchased under contract for deed, either individually or jointly, a single-family residence in the Commonwealth or outside of the Commonwealth. The bill has an expiration date of July 1, 2028.

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.