Housing

SB 659 prevents West Virginia municipalities from banning or overly restricting accessory dwelling units (ADUs) - secondary living spaces like converted garages or backyard cottages - on single-family residential properties. The bill bans local governments from requiring public hearings, imposing excessive fees ($250 max application fee), mandating matching exterior designs, or setting stricter size/height rules for ADUs than for primary homes. It also prohibits municipalities from requiring additional parking, restrictive covenants, or separate water/sewer systems for ADUs, though they may still regulate short-term rentals separately. This directly affects homeowners seeking to build or rent out ADUs without local bureaucratic hurdles.

This bill updates West Virginia's mortgage lending laws to strengthen consumer protections and improve transparency for borrowers. It requires lenders and brokers to provide detailed closing statements that clearly show late payment penalty maximums and must include the borrower's signature, ensuring they understand the loan terms before finalizing the agreement. The bill also mandates that loan records be kept for 36 months and allows borrowers to request account statements and payoff information within specific timeframes without fees, except for third-party delivery costs. Additionally, it clarifies that a separate state-specific closing disclosure is not needed if the federal closing disclosure already contains all required information, reducing paperwork while maintaining compliance with state and federal standards.

HB 5074 changes how revenue from West Virginia's medical cannabis program is allocated. For fiscal year 2026, it directs $3 million to the Supreme Court for a child protection pilot, $10 million each to West Virginia University and Marshall University for ibogaine research, and $5 million to homelessness services, with remaining funds reverting to general revenue. Starting July 1, 2026, annual allocations will be: 15% to the Medical Cannabis Bureau for administration, 15% to the Department of Agriculture for cannabis testing, and 45% split among the Fight Substance Abuse Fund (20%), university research (10% each to Marshall and WVU), a Child Protection Commission (10%), and law enforcement training programs (40%). These changes apply to ongoing revenue from medical cannabis taxes, not new taxes or fees.

HB 4730 requires West Virginia's Department of Human Services to create a coordinated system of support for youth aging out of foster care or preparing to exit foster care, directly affecting these young adults statewide. The bill mandates a three-phase housing model (on-site living, scattered-site arrangements, and supportive independent living) plus services to build daily living, social-emotional, and education/career skills. It establishes specific funding rules including per diem rates for providers, annual cost-of-living adjustments, and direct monthly stipends to youth for housing costs, while maximizing federal Title IV-E funding. The department must implement annual data collection and reporting to the legislature on outcomes like housing stability and employment, starting in 2027.

SB 389 creates a 25% state income tax credit for property owners who rehabilitate certified historic buildings in West Virginia. The credit applies to both residential and non-residential buildings listed on the National Register of Historic Places or located in designated historic districts, as certified by the West Virginia Department of Tourism and the National Park Service. To qualify, rehabilitation work must meet "Secretary of the Interior's Standards" and cost at least 20% of the property's assessed value. Property owners can claim this credit against income taxes imposed under specific sections of the state tax code.

This bill modifies how West Virginia distributes funds from its Flood Resiliency Trust Fund to improve flood prevention and safety. It requires that at least 50% of all disbursements go to low-income areas and households, while another 50% must be used for nature-based solutions like floodplain restoration and property acquisition. The legislation also sets specific conditions for funding political subdivisions, requiring them to adopt updated road and bridge standards, flood hazard bylaws, local hazard mitigation plans, emergency operations plans, and meet FEMA community rating system requirements within 24 months. Ultimately, the State Resiliency Officer retains discretion over fund allocation but must follow these new prioritization rules and approval processes.