Housing

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.

Transit-oriented housing overlay districts. Requires certain localities to establish one or more transit-oriented housing overlay districts covering qualifying areas, as defined in the bill, within their boundaries. The bill provides that within such overlay districts, the locality shall permit, by right, a minimum height of six stories and a minimum average density of 30 units per acre within one-quarter of a mile of a major transit stop and allow two units per lot and four units per corner lot between one-quarter of a mile and one mile from a such a stop. The bill further provides that applications for such housing development shall be approved ministerially by the zoning administrator or other designated official and that no public hearing is required for approval. The bill allows certain areas within a locality to be excluded from its provisions and sunsets on September 1, 2030. The bill has a delayed effective date of September 1, 2027.

First-time home buyer savings plan; townhouses; principal limits. Includes townhouses in the definition of single-family residence for purposes of the First-Time Home Buyer Savings Plan Act. The bill also increases (i) the aggregate amount of principal that can be contributed to a first-time home buyer savings account from $50,000 to $100,000 and (ii) the limit on the amount of principal and interest or other income on the principal that may be retained in such an account from $150,000 to $200,000.

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.

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.

Manufactured Home Lot Rental Act; right of first refusal; resident entities and localities. Provides for a right of first refusal, under the Manufactured Home Lot Rental Act, for resident entities, defined in the bill, and localities in which a manufactured home park is located when a manufactured home park owner enters into a contract to sell such manufactured home park.

Zoning; manufactured housing. Amends existing provisions that require localities to permit manufactured housing in areas zoned for agriculture by expanding such requirement to all zoning districts where site-built housing is allowed. The bill provides that manufactured housing shall be subject to development standards that are equivalent to those applicable to site-built single-family dwellings but that such standards shall not have the effect of excluding manufactured housing. The bill also removes the authority of localities without a zoning ordinance to designate the areas within the locality in which manufactured housing may be located. This bill was incorporated into HB 655.

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.

Timely local decision on certain land use permits; incentives and penalties. Requires that the average time period required for a locality to take final action to approve, approve with conditions, or deny all by-right permit applications from the date of submission of such applications to the locality shall not exceed 12 months. The bill requires the Department of Housing and Community Development to conduct semiannual compliance reviews of each locality and to publish and transmit to the Governor and the General Assembly a report identifying each locality as compliant or noncompliant for the applicable review period. The bill provides that any locality determined by the Department to be compliant for the preceding 12-month period shall be eligible to receive a state grant sufficient to fund one full-time equivalent position within the locality's planning department. The bill further provides that if the Department determines that a locality is noncompliant during a review period, the Commonwealth Transportation Board shall reduce program fund allocations from the Commonwealth Transportation Fund to any project within the boundaries of such noncompliant locality by two percent for the following fiscal year.