Housing

Zoning; manufactured housing. Amends existing provisions that require localities to permit manufactured homes in areas zoned for agriculture by expanding such requirement to all zoning districts where site-built housing is allowed, with certain conditions. The bill provides that localities shall not adopt or enforce any zoning, land-use, or development regulation that treats manufactured homes differently or more restrictively than a single-family site-built dwelling allowed in the same zoning district. The bill also removes the authority of localities without a zoning ordinance to designate the areas within the locality in which manufactured homes may be located. This bill incorporates HB 418 and HB 801 and is identical to SB 346.

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.

Virginia Residential Landlord and Tenant Act; adverse action by landlord; tenant remedies. Prohibits a residential landlord who owns more than four rental dwelling units or more than a 10 percent interest in more than four rental dwelling units, whether individually or through a business entity, in the Commonwealth from taking adverse action against a prospective tenant due to the prospective tenant's history of a dismissed or nonsuited unlawful detainer case. The bill allows a prospective tenant to recover, as a result of any such adverse action, (i) actual damages, (ii) statutory damages of $250, and (iii) reasonable attorney fees.

Zoning; by-right multifamily development. Requires local zoning ordinances to permit, on any parcel with an existing tree canopy coverage of at less than 60 percent, located within a city or town having a population of more than 20,000 or within a designated metropolitan planning area, multifamily and mixed-use residential development as a by-right use on at least 75 percent of all land contained in commercial or business zoning district classifications, including any land contained in commercial or business zoning district classifications that allow for the by-right development and construction of single-family residential uses. The bill stipulates that any application for a proposed development authorized pursuant to the bill shall be reviewed and acted upon administratively by a locality. The bill prohibits a locality from (i) requiring that a special exception, special use, or conditional use permit be obtained for such development or (ii) imposing more stringent land use requirements, enumerated in the bill, for such development than would otherwise be required. The bill has a delayed effective date of January 1, 2027.

Statewide housing targets for localities. Requires localities to increase their total housing stock by at least 7.5 percent over the five-year period beginning January 1, 2028. The bill provides that in order to meet such 7.5 percent growth target, a locality shall develop a housing growth plan that best meets the needs of the locality while meeting the growth target rates. The bill provides that such plan may include any strategy deemed appropriate by the locality; however, for purposes of demonstrating a good faith effort to meet growth targets, a locality shall include modeling that demonstrates that the plan will result in the permitting of the required number of units and either (i) a zoning ordinance that includes provisions allowing for the by-right development and construction of multifamily residential uses on at least 75 percent of all land contained in commercial or business zoning district classifications, including any land contained in commercial or business zoning district classifications that allow for the by-right development and construction of single-family residential uses or (ii) at least three of the housing growth strategies enumerated in the bill. The bill further provides that after January 1, 2033, an applicant that seeks local government approval for a residential development site plan or rezoning that will have the effect of increasing the supply of housing in a locality and has that application rejected may, in addition to other remedies, appeal such decision to the board of zoning appeals.

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. 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 September 1, 2026. This bill was incorporated into SB 388.

Zoning; adequate public facilities. Allows a locality to determine the timing of development by considering the adequacy of public facilities when making zoning decisions. The bill provides that a locality that makes a determination of inadequate facilities may reject or defer a rezoning application based solely on that determination.

Local anti-rent gouging authority; civil penalty. Provides that any locality may by ordinance adopt anti-rent gouging provisions. The bill provides for notice and a public hearing prior to the adoption of such ordinance and specifies that all landlords who are under the ordinance may be required to give at least 90 days' written notice of a rent increase and cannot increase the rent by more than the locality's calculated allowance, not to exceed three percent, and states that such allowance is effective for a 12-month period beginning July 1 each year. The bill requires the locality to publish such allowance on its website by June 1 of each year. Certain facilities, as outlined in the bill, are exempt from such ordinance. The bill also requires a locality adopting an anti-rent gouging ordinance to establish an anti-rent gouging board to establish rules and procedures by which landlords may apply for and be granted exemptions from the rent increase limits set by the ordinance or delegate such duties and functions to an existing local board, department, or agency. The bill also requires the anti-rent gouging board to establish a fair return on investment rent increase exemption to the annual anti-rent gouging allowance where necessary to offset increased operating expenses. Finally, the bill provides that a locality shall establish a civil penalty for failure to comply with the requirements set out in its ordinance.