SB 388 Virginia Senate · 2026 Regular Session

Affordable housing; religious organizations and other nonprofit tax-exempt properties.

Summary
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 incorporates SB 367 and is identical to HB 1279.
Bill status vetoed 4 of 5 stages cleared
Introduction
Jan 2026
Committee Review
Mar 2026
Senate Passage
Mar 2026
House of Delegates Passage
Mar 2026
Vetoed
Apr 2026
Introduced Jan 13, 2026 Vetoed Apr 13, 2026
Maddy AI version diff · 3 comparisons

What changed between versions

Local Government Substitute Engrossed · 8 edits · Mar 30, 2026
MODERATE
This bill amends Virginia's zoning laws to allow tax-exempt religious and nonprofit organizations to build affordable housing by right without needing special permits, provided the projects meet specific affordability and ownership criteria. The amendment also updates penalty structures for zoning violations and adds new provisions regarding environmental assessments and solar energy standards. Additionally, it introduces a new exemption for properties located near military air installations.
Scope change
The bill expands the scope of 'by-right' development to include mixed-use and residential projects on land owned by 501(c)(3) nonprofits and religious organizations, previously requiring discretionary approval.
ELIGIBILITY

Added a new section allowing tax-exempt religious and nonprofit organizations to develop affordable housing by right, provided the property has been owned for five years and at least 60% of units are affordable.

REQUIREMENT

Modified the requirements for affordable housing projects to mandate that 60% of units be affordable to households at 80% or less of the area median income, with affordability preserved for 30 years.

Added new provisions requiring Phase I and Phase II environmental site assessments and incorporating national standards for solar panel and battery technologies.

DEFINITION

Updated the definition of 'Subdivision' to clarify exceptions for boundary line agreements and partition suits, and added definitions for 'Mixed use development' and 'Working waterfront development area'.

ENFORCEMENT

Added specific penalties for violations related to the number of unrelated persons in single-family dwellings and clarified that fines do not accrue during legal actions to eliminate overcrowding.

EXEMPTIONS

Added a new exemption preventing the affordable housing provisions from applying to parcels located within Air Installation Compatible Use Zones near military air installations.

TIMELINE

Set the effective date of the act to September 1, 2026, and included a grandfather clause for permits approved prior to that date.

TECHNICAL

Corrected formatting inconsistencies in section headers and citation numbers throughout the bill text.

Floor votes · Senate Feb 3, 2026 · House of Delegates Feb 25, 2026

How they voted

380
Passed · 1 other
Total votes 39
Feb 3, 2026
D Democratic20
20 Yea
100% Yea
R Republican19
18 Yea 1
94% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
50
Key actions
20
Committee
10
Amendments
7
Apr 13, 2026
Vetoed
Governor's recommendation received by Senate
executive
Mar 31, 2026
Lower · Passed
Signed by Speaker
lower
Mar 30, 2026
Upper · Passed
Signed by President
upper
Mar 30, 2026
Upper · Passed
Bill text as passed Senate and House (SB388ER)
upper
Mar 14, 2026
Lower · Passed
Conference report agreed to by House (55-Y 40-N 0-A)
lower
Mar 13, 2026
Upper · Passed
Conference report agreed to by Senate (21-Y 17-N 0-A)
upper
Mar 13, 2026
Legislature · Passed
Conference Report released
legislature
Mar 2, 2026
Committee
House requested conference committee
lower
Mar 2, 2026
Introduced
House insisted on amendments
lower
Feb 27, 2026
Amended
Counties, Cities and Towns Amendment rejected by Senate
upper
Feb 25, 2026
Lower · Passed
Passed House with amendments (61-Y 37-N 0-A)
lower
Feb 25, 2026
Introduced
Engrossed by House as amended
lower
Feb 25, 2026
Lower · Passed
committee amendments agreed to
lower
Feb 20, 2026
Lower · Passed
Reported from Counties, Cities and Towns with amendment(s) (13-Y 8-N)
lower
Feb 20, 2026
Lower · Passed
House committee offered
lower
Feb 17, 2026
Committee
Referred to Committee on Counties, Cities and Towns
lower
Feb 11, 2026
Upper · Passed
Read third time and passed Senate (21-Y 18-N 0-A)
upper
Feb 10, 2026
Upper · Passed
Amendments by Senator agreed to
upper
Feb 10, 2026
Introduced
Reading of amendment waived (Voice Vote)
upper
Feb 10, 2026
Introduced
Floor offered Senator McPike Amendments
upper
Feb 9, 2026
Upper · Passed
Passed by for the day
upper
Feb 6, 2026
Upper · Passed
Passed by for the day
upper
Feb 5, 2026
Upper · Passed
Passed by for the day
upper
Feb 4, 2026
Upper · Passed
Passed by for the day
upper
Feb 3, 2026
Upper · Passed
Passed by for the day
upper
Feb 3, 2026
Upper · Passed
Passed by for the day (Voice Vote)
upper
Feb 2, 2026
Upper · Passed
Reported from Local Government with substitute (9-Y 4-N 1-A)
upper
Feb 2, 2026
Upper · Passed
Senate committee offered
upper
Jan 13, 2026
Committee
Referred to Committee on Local Government
upper
1 primary · 4 co-sponsors

Sponsors