Housing

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.

Housing for local employees; grants for homeownership and workforce housing alternatives. Eliminates the maximum amount a locality may provide (i) to employees of the locality, employees of the school board, and employees of constitutional officers for homeownership grants to purchase primary residences in the locality and (ii) to school division personnel for residential housing assistance grants to provide affordable workforce housing alternatives. The bill also eliminates the requirement that such grants adhere to the Virginia Housing and Development Authority regional sales price and household income limitation guidelines. Current law imposes a maximum grant amount of $25,000 for individual grants per employee, as well as a maximum lifetime cumulative amount of $25,000 per employee. This bill is identical to HB 164.

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.

Real estate appraisers; educational requirements for licensure; fair housing and appraisal bias course. Requires, in addition to successfully completing an examination, applicants for licensure as a certified residential real estate appraiser or a certified general real estate appraiser to also successfully complete a fair housing and appraisal bias education course administered or approved by the Real Estate Appraiser Board prior to licensure, the specifics of which are provided in the bill.

Virginia Residential Landlord and Tenant Act; landlord remedies; tenant's right of redemption; attorney fees. Limits attorney fees to $100 when, prior to the initial court date on an action for unlawful detainer, a tenant makes full payment of all money due for (i) rent as of the date of payment; (ii) any late fees authorized by law and the rental agreement; (iii) any damages; and (iv) court costs.

Small lot residential zoning districts. Requires any locality with a population of 50,000 or more to adopt, maintain, and apply to land within its boundaries at least one zoning district classification that permits a single-family dwelling on a lot with a minimum lot area not exceeding 3,000 square feet. The bill provides that such zoning district classifications shall not impose minimum lot widths exceeding 30 feet or setback, lot coverage, or density requirements that would preclude construction of eligible dwellings on conforming lots. The bill's provisions do not apply to areas within a historic district.

Urban Public-Private Partnership Redevelopment Fund; funding requirements; report. Revises the Urban Public-Private Partnership Redevelopment Fund by expanding the qualifying private entities available for partnership with a local government for the redevelopment of local sites, removing the existing $500,000 grant cap for such local government, and eliminating the requirement that each grant be conditioned upon a 100 percent match of funds by the local government. The bill requires the Department of Housing and Community Development (the Department), on or before December 1 of each year, to submit a report to the Secretary of Commerce and Trade, the Governor, and the Chairs of the House Committee on Appropriations and the Senate Committee on Finance and Appropriations, including the number of projects funded and the costs of the Fund. In addition, the bill directs the Department to convene a work group to develop appropriate criteria and guidelines for the administration of the grant program established by the Fund, including for (i) how to prioritize awards for (a) localities experiencing an above average and high level of fiscal stress as designated by the Commission on Local Government and (b) localities experiencing a significant decrease in commercial real estate assessments and (ii) the amount and type of local match, including both requirements that consider monetary contributions and non-monetary contributions. The bill requires the work group to include representatives of the Department, the Virginia Association of Counties, the Virginia First Cities Coalition, the Virginia Municipal League, and the Virginia Economic Developers Association and to report its findings and recommendations to the General Assembly by November 1, 2026. Under current law, the Board of Housing and Community Development is directed to develop guidelines for administration of the Fund. Finally, the bill repeals the Housing Revitalization Zone Act.

Virginia Fair Housing Law; unlawful conduct. Directs the Fair Housing Board to promulgate regulations defining "quid pro quo harassment," "hostile environment harassment," and other terms related to unlawful conduct under the Virginia Fair Housing Law. The bill directs the Fair Housing Board to adopt emergency regulations to implement the provisions of the bill.

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.

Department of Housing and Community Development; Virginia Rural Housing Infrastructure Fund and Program. Establishes the Virginia Rural Housing Infrastructure Fund and Program, to be administered by the Department of Housing and Community Development, for the purpose of financing infrastructure projects in rural communities associated with increased housing development within such communities. The bill directs the Department to develop criteria and guidelines for awarding grants under the Program.