Housing

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.

Virginia Residential Landlord and Tenant Act; landlord remedies; tenant's right of redemption; attorney fees. Limits attorney fees to $100 when, prior to the initial court date on an action for unlawful detainer, a tenant makes full payment of all money due for (i) rent as of the date of payment; (ii) any late fees authorized by law and the rental agreement; (iii) any damages; and (iv) court costs.

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.

First-time home buyer savings plan; townhouses; principal limits. Includes townhouses in the definition of single-family residence for purposes of the First-Time Home Buyer Savings Plan Act. The bill also increases (i) the aggregate amount of principal that can be contributed to a first-time home buyer savings account from $50,000 to $100,000 and (ii) the limit on the amount of principal and interest or other income on the principal that may be retained in such an account from $150,000 to $200,000. The bill defines first-time home buyer, and includes that term in the definition of qualified beneficiary.

Transit-oriented housing overlay districts. Requires certain localities to establish one or more transit-oriented housing overlay districts covering qualifying areas, as defined in the bill, within their boundaries. The bill provides that within such overlay districts, the locality shall permit, by right, a minimum height of six stories and a minimum average density of 30 units per acre within one-quarter of a mile of a major transit stop and allow two units per lot and four units per corner lot between one-quarter of a mile and one mile from a such a stop. The bill further provides that applications for such housing development shall be approved ministerially by the zoning administrator or other designated official and that no public hearing is required for approval. The bill allows certain areas within a locality to be excluded from its provisions and sunsets on September 1, 2030. The bill has a delayed effective date of September 1, 2027.

First-time home buyer savings plan; townhouses; principal limits. Includes townhouses in the definition of single-family residence for purposes of the First-Time Home Buyer Savings Plan Act. The bill also increases (i) the aggregate amount of principal that can be contributed to a first-time home buyer savings account from $50,000 to $100,000 and (ii) the limit on the amount of principal and interest or other income on the principal that may be retained in such an account from $150,000 to $200,000.

Individual income tax; first-time homebuyer tax credit. Creates a one-time, nonrefundable individual income tax credit in taxable years 2026 through 2030 for expenses incurred by a first-time homebuyer for the purchase of direct ownership in residential real property in an amount equal to five percent of the purchase price value of such property detailed on the purchase agreement up to $10,000. The bill requires that any credits be repaid in the event that the residential real property for which first-time homebuyer expenses were incurred and such credit was claimed is sold within three years from the purchase date of such property.