We have excellent news on the housing front – almost all of our bills have survived the tumultuous road to crossover. The bills that passed their respective houses and crossed over are listed below. Most have also survived their assigned committees in the opposite chamber, meaning they are headed to the floor. A couple will end up in small conference committees made up of three members from each house. If successful, they will then make it to the Governor’s desk for her signature.

Split Land Value Tax HB 282(Del. Callsen) – passed both houses!

Allows Charlottesville, Falls Church, Fredericksburg, and Newport News to join three existing jurisdictions in setting different tax rates for land and for improvements (including housing), incentivizing infill development.  A separate bill (HB10) for statewide application failed.

If a locality reduces the tax rate applied to building values while increasing the rate applied to land values, it creates an imperative to develop high-value sites while making that development more affordable. These sites tend to be urban infill sites near existing infrastructure amenities, like transit.

Faith In Housing – SB 388 (Sen. McPike) / HB 1279 (Del. Cole) – going to a conference committee, where differences between the Senate and House versions will be reconciled 

Enables faith institutions and other property tax-exempt non-profits to build income-restricted, affordable homes “by-right” on land they own. We hope to win removal of the “reenactment clause” requiring it to pass again next year.

Many congregations in Virginia would like to convert their underused land into housing for lower-income families, but have been deterred by the time and high cost of rezoning or special exception processes. By making their land available at little to no-cost, congregations can greatly increase the feasibility of building committed affordable housing.

Inclusionary zoning/affordable dwelling unit ordinances – SB 74 (Sen. McPike) / HB 867 (Del. Cousins) – going to conference committee, where differences between the Senate and House versions will be reconciled

Authorizes all localities to create affordable dwelling unit programs that offer bonus density incentives in exchange for including low- to moderately-priced housing in new developments. We hope to win removal of the “reenactment clause” requiring it to pass again next year.

Density bonuses ensure that the cost of developing affordable housing is covered by the value created through increasing the number of allowable units in a given project. Localities currently authorized to use this approach have approved numerous mixed-income developments at rates higher than many other localities where this strategy is not yet allowed. 

Expediting Affordable Housing – HB 594(Del. Simonds) – passed House and Senate Local Government committee

Allows localities to create an administrative process to approve applications for affordable housing developments in suitable locations.

Virginia currently has a shortage of 300,000 affordable homes, in part due to the costly and unpredictable nature of local discretionary development processes. This bill would speed up the approval process for increased density and decrease uncertainty surrounding the development process of much-needed affordable housing. 

Parking Reform – HB 888(Del. Tran) – passed House and Senate Local Government committee 

Reduces parking minimums for residential developments in designated areas with proximity to transit, affordable housing, and revitalization zones, as well as separate reductions for other areas.

A parking spot costs between $5K for a surface space to $50K in structured parking. Space, construction, and materials for parking are expensive, and mandating more than people need drives up rent and home prices. This bill offers parking reform targeted towards areas where it will be most beneficial. 

Small lot zoning – HB 1212(Del. Sewell)  – passed House and Senate Local Government committee

Requires any locality with a population of 20,000 or more to adopt a zoning district classification that permits duplexes and townhouses as a by-right use on lots with a minimum lot area not exceeding 3,000 square feet.

By requiring localities adopt at least one zoning district dedicated to homes on small lot sizes, this bill encourages more housing density while still allowing single-family homes in neighborhoods. 

By-Right Accessory Dwelling Units (ADUs) – SB 531(Del. Srinivasan) – Senate and the House Counties, Cities, & Towns committee

Legalizes ADUs in areas zoned for single-family residential use statewide.

Also commonly referred to as granny flats or backyard cottages, accessory dwellings can help address the housing shortage while providing a more affordable housing option – particularly for seniors, young adults, and working families. Many jurisdictions have no local ADU ordinances, which this bill would rectify. 

Right of First Refusal HB4(Del. Bennett-Parker) – passed House and is assigned to Housing subcommittee of the Senate General Laws and Technology Committee

Preserves affordable housing by enabling localities to establish a Right of First Refusal that gives them the first opportunity to purchase subsidized multifamily rentals when their committed affordable status is at risk of expiring. 

This provides localities another tool to preserve limited supplies of affordable housing, rather than being lost to the private market at unaffordable rates. It costs 25 to 40 percent more to develop a unit of subsidized rental housing through new construction than through the acquisition and rehabilitation of existing housing units.

Virginia Housing Trust Fund –  102 #2s (Sen. Ebbin) / 102 #23h (Del. Lopez)

Sought to increase the Virginia Housing Trust Fund by $112.5M per year to expand the supply of affordable homes and support housing stability for low-income households

• Senate: $50M additional in FY27, which includes the Revolving Loan Mixed Income Fund (up to 15% can be used for this)
• House: $12.5M additional in FY27; includes language to create a working group, but does not direct extra $ to Homeless Reduction Grants

The VHTF finances creation and preservation of affordable homes for Virginia’s lowest income residents, including individuals who are elderly, disabled, formerly homeless, or require permanent supportive housing. As threats to major federal programs to fund homelessness prevention mount, this fund has become more critical than ever.