Housing

Water and sewer connection fees; first-time homebuyers; affordable housing. Provides that any locality may provide for the full or partial reimbursement to a first-time homebuyer of water and sewer connection fees, capital recovery charges, and availability fees paid in connection with any new residential development conveyed to such homebuyer. The bill also permits any locality that has adopted an affordable dwelling unit ordinance pursuant to general law to provide for a waiver of such fees and charges for any development subject to the requirements of such ordinance.

Local authority; affordable housing performance grant programs. Allows any locality that has created an industrial development authority or economic development authority (the Authority) to establish, by ordinance, an affordable housing performance grant program. The bill outlines that such ordinance authorizes the Authority to award affordable housing performance grants to qualifying applicants. Such an ordinance must include: (i) a definition of affordable housing; (ii) grant application guidelines and processes, including an identification of the local officer that is designated to receive applications; (iii) criteria for determining whether the construction or improvement of property qualifies for the awarding of the grant; (iv) provisions that require an applicant seeking the award of a grant to acquire appropriate permits and complete the construction or improvement to develop affordable housing before such a grant will be awarded; (v) provisions that require an applicant seeking the award of a grant to present evidence demonstrating that he has filed and recorded a restrictive covenant to provide affordable housing on the property for a set term, as determined by the ordinance, provided that such term shall be no more than 30 years, on the subject qualifying property before such a grant will be awarded; and (vi) a timeline for the Authority to award grants to qualifying applicants, which may be either upon the completion of the construction or improvement of the property, or on January 1 of the year following the completion of the construction or improvement of the property. The bill also limits the total amount of any such grant to being no more than the amount equal to the increase in assessed value resulting from the construction or improvement of a property. Finally, the bill permits a locality that adopts such ordinance to impose a fee, not to exceed $250, to offset the costs of processing an application.

Affordable housing; local zoning ordinance authority. Authorizes any locality in the Commonwealth to provide for an affordable housing dwelling unit program by amending the zoning ordinance of such locality. Current law restricts such authorization to counties with an urban county executive form of government or county manager plan of government and certain other localities. In addition to optional increases in density, the bill provides that such program may include certain additional implementation measures including lot size reductions and accessory housing unit allowances. The bill has a delayed effective date of July 1, 2027, and is identical to SB 74.

Virginia Residential Landlord and Tenant Act; landlord remedies; noncompliance with rental agreement; mandatory waiting period. Increases the mandatory waiting period for a landlord to pursue remedies for termination of the rental agreement from five days to 14 days. The waiting period begins after a landlord serves written notice on a tenant notifying the tenant of his nonpayment of rent and of the landlord's intention to terminate the rental agreement if rent is not paid. This bill is identical to HB 15.

Affordable housing; local zoning ordinance authority. Authorizes any locality in the Commonwealth to provide for an affordable housing dwelling unit program by amending the zoning ordinance of such locality. Current law restricts such authorization to counties with an urban county executive form of government or county manager plan of government and certain other localities. In addition to optional increases in density, the bill provides that such program may include certain additional implementation measures including lot size reductions and accessory housing unit allowances. The bill has a delayed effective date of July 1, 2027, and is identical to HB 867.

Virginia Residential Landlord and Tenant Act; landlord remedies; noncompliance with rental agreement; mandatory waiting period. Increases the mandatory waiting period for a landlord to pursue remedies for termination of the rental agreement from five days to 14 days. The waiting period begins after a landlord serves written notice on a tenant notifying the tenant of his nonpayment of rent and of the landlord's intention to terminate the rental agreement if rent is not paid. This bill is identical to SB 48.

Preservation of affordable housing; definitions; civil penalty. Creates a framework for localities to preserve affordable housing by exercising a right of first refusal on publicly supported housing, defined in the bill. The bill authorizes localities to adopt an ordinance that requires an owner to accept a right of first refusal offer by the locality or qualified designee, defined in the bill, in order to preserve affordable housing for at least 15 years. The bill requires that any locality with a population greater than 3,500 adopting such an ordinance to preserve affordable housing submit an annual report to the Department of Housing and Community Development pursuant to existing law.

Housing for local employees; grants for homeownership and workforce housing alternatives. Eliminates the maximum amount a locality may provide (i) to employees of the locality, employees of the school board, and employees of constitutional officers for homeownership grants to purchase primary residences in the locality and (ii) to school division personnel for residential housing assistance grants to provide affordable workforce housing alternatives. The bill also eliminates the requirement that such grants adhere to the Virginia Housing and Development Authority regional sales price and household income limitation guidelines. Current law imposes a maximum grant amount of $25,000 for individual grants per employee, as well as a maximum lifetime cumulative amount of $25,000 per employee. This bill is identical to HB 164.

Public utilities; water and sewerage companies; discounted rates for low-income customers. Provides that a public utility engaged in the business of furnishing water or sewerage facilities may propose and the State Corporation Commission may approve rates and tariff provisions that provide discounted service to customers with an annual household income equal to or less than 200 percent of the federal poverty level. The bill permits the utility to recover the costs of providing such discounted service through its rates for commercial and industrial customers. The bill has a delayed effective date of January 1, 2027, and is identical to SB 650.

Department of Housing and Community Development; Eviction Reduction Program; report. Establishes the Eviction Reduction Program within the Department of Housing and Community Development to expand the Department's work to (i) promote housing stability, (ii) identify factors that contribute to eviction filings, and (iii) provide interventions to prevent or divert evictions. The bill requires the Department to report annually to the General Assembly regarding the Program. The bill directs the Department to develop and include in its report criteria and guidelines necessary to administer the Program in consultation with stakeholders, including Eviction Diversion Program grantees as identified by the Department. This bill is identical to SB 628.