Income tax; credit for affordable housing projects. Provides, for taxable years 2026 through 2030, a nonrefundable income tax credit for qualifying taxpayers, defined in the bill as taxpayers that, during the taxable year, own a direct or indirect interest through one or more pass-through entities, in an affordable housing project, also defined in the bill. The credit amount shall be equal to the product of (i) the portion of such taxpayer's ownership in such affordable housing project and (ii) the sum of 50 percent of the difference between the fair market value of each unit rented to a qualifying tenant and the rent actually charged to such tenant for the unit, computed for that portion of the taxable year in which the unit was rented to such tenant. The bill defines a qualifying tenant as a tenant with a Virginia adjusted gross income less than 120 percent of the area median income, adjusted for family size. The aggregate amount of credits allowable under the provisions of the bill shall not exceed $5 million per taxable year.
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 820 and SB 490.
Department of Housing and Community Development; Task Force on Property Appraisal and Valuation Equity. Creates the Task Force on Property Appraisal and Valuation Equity to study the misvaluation and undervaluation of real property owned by minority individuals to combat bias in real property appraisal and valuation. The bill requires the Task Force to meet at least annually and to report to the Governor and General Assembly by December 1 of each year regarding its activities and any recommendations. The bill has an expiration date of July 1, 2029.
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 HB 1227.
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.
Income tax credit; affordable rental housing tax credit. Establishes a nonrefundable tax credit for taxable years 2026 through 2030 for eligible landlords equal to $750 per affordable dwelling unit, as certified by the Department of Housing and Community Development. The bill limits the (i) total amount of such credits available to an eligible landlord to $15,000 per taxable year and (ii) aggregate amount of such credits claimed to $5 million per taxable year.
Surplus real property; prioritization of disposition for affordable and middle-income housing. Requires the Department of General Services to determine whether, following an offer of surplus property to the chief administrative officer of the locality within which the surplus property is located, as well as to any economic development entity for such locality, such surplus property is suitable for the development of affordable housing, as defined by the bill. If the Department so determines, the bill provides that such property shall be offered for at least 90 days exclusively to eligible organizations, as defined by the bill, for the purpose of developing affordable housing, provided that the terms of the disposition include a recorded covenant to provide affordable housing for at least 30 years. The bill also requires the chief administrative officer of each locality to prepare and maintain an inventory of all real property within its jurisdiction to which the locality holds fee simple title and that the locality has determined to be feasible for the development of affordable and middle-income housing. If the governing body of a locality chooses to dispose of such a property, such property shall be offered for at least 90 days exclusively to public or private entities, for the purpose of developing affordable and middle-income housing, through purchase, lease, exchange, or donation in return for a recorded covenant to provide affordable housing for at least 30 years.
Industrial development authorities in certain localities; housing. Allows industrial development authorities in the Counties of Halifax, Henry, and Pittsylvania and the Cities of Danville and Martinsville to exercise their powers with respect to facilities used primarily for single or multifamily residences in order to promote safe and affordable housing in the Commonwealth. Under current law, such powers may be exercised only in a locality where a housing authority has not been activated. The bill also grants industrial development authorities in such localities the power to issue bonds associated with the construction of affordable 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.
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.
