Housing

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.

Public funding for multifamily residential housing; Virginia Residential Landlord and Tenant Act; common household pets. Requires any multifamily residential housing development receiving an investment of public funds to allow occupants to own or otherwise maintain within the occupant's dwelling unit at least one common household pet, defined in the bill, without restrictions on breed or weight below 65 pounds. The bill additionally requires any landlord subject to the Virginia Residential Landlord and Tenant Act to provide a disclosure with any application for a rental agreement containing a written copy of any terms and conditions of the rental agreement regarding an applicant's ability to own or otherwise maintain a common household pet within the dwelling unit. If such landlord maintains a website regarding the property, such terms and conditions shall additionally be published to such website. The provisions of the bill do not become effective unless reenacted by the 2027 Session of the General Assembly.

Zoning; by-right multifamily development. Requires a locality to include provisions in its zoning ordinance allowing for the by-right development and construction of multifamily residential uses and mixed-use developments that include both residential and commercial 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. The bill provides that such provisions shall not (i) apply in underdeveloped areas that are covered by a tree canopy of at least 60 percent; (ii) impose more stringent land use requirements for such development than would otherwise be required; (iii) require that a special exception, special use, or conditional use permit be obtained for such development; (iv) require a lower height than the greater of the height of the tallest existing building within 500 feet or the height that would otherwise be allowed; (v) require more than one parking space per unit; (vi) require larger setbacks than the existing building in the locality with the smallest setbacks; or (vii) require more costly amenities or design features than would otherwise be required for multifamily or mixed-use buildings.The bill also (a) stipulates that the review and approval of such development shall be done administratively by the locality's staff; (b) requires that the zoning ordinance provisions must exempt any proposed development that converts an existing building to a multifamily residential use from any setback, height, or frontage requirements; (c) prohibits the zoning ordinance provisions to require any proposed development to dedicate some or all of its ground floor space to commercial uses; and (d) provides that any proposed residential development that dedicates a minimum of 10 percent of the total number of housing units to affordable housing may be offered application incentives by the locality. The bill also prohibits localities from approving any commercial or business use on a property adjacent to the approved multifamily residential development that is different from the use that had been established at the time the multifamily residential development was approved.

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.

County manager plan of government; affordable dwelling unit ordinance. Increases local authority over affordable housing for counties that have adopted the county manager plan of government (Arlington County) by (i) potentially increasing the cash contribution to the county's affordable housing fund by developers in lieu of providing affordable dwelling units and (ii) providing that applications for a special exception approval for a change of use of an existing building from commercial to residential may be subject to an affordable housing requirement. The bill directs the governing body of such counties to appoint an advisory board to advise the governing body regarding the appropriate provisions of an ordinance to amend the cash contribution amounts to such county's affordable housing fund. Certain provisions of the bill do not become effective unless reenacted by the 2027 Session of the General Assembly.

Virginia Residential Landlord and Tenant Act; Manufactured Home Lot Rental Act; pre-tenancy fees. Prohibits a landlord from charging or collecting any fee that is not a pre-tenancy fee as described in the bill and limits the charging or collection of such pre-tenancy fees to either prior to or upon the execution of a rental agreement. The bill requires a landlord to, prior to requesting or collecting any payment or information about a prospective tenant and prior to exhibiting the dwelling unit to a prospective tenant, notify the prospective tenant of any pre-tenancy fees in writing or by posting in a manner accessible to a prospective tenant. The bill provides that no landlord shall charge any fee to a prospective tenant prior to exhibiting the dwelling unit to the prospective tenant, unless the prospective tenant agrees to waive such requirement.The bill allows a landlord to collect a pet deposit, defined in the bill as separate from a security deposit, from a tenant if a pet is occupying the dwelling unit. The bill provides that no security deposit or pet deposit may be applied by the landlord toward (i) the cost of professional services or (ii) the cost of materials and labor performed by the landlord or an employee of the landlord, unless such costs are (a) reasonably necessary to return the premises to the same condition as the condition of the premises at the start of the rental agreement, less reasonable wear and tear, and (b) the landlord provides a receipt reflecting such costs to the tenant. The bill also reduces from two months of rent to one month of rent the maximum security deposit amount and decreases from 45 days to 30 days the amount of time after the termination date of the tenancy or the date the tenant vacates the dwelling unit, whichever occurs last, that the landlord shall provide a written notice to the tenant of the itemized charges deducted from the security deposit and applies the same provisions to pet deposits.The bill also provides that nothing shall be construed to allow an owner, manager, or operator of a residential building to charge a tenant for water, sewer, electrical, natural gas, oil, or other utilities if the utility is supplied directly to the tenant.Finally, the bill applies the provisions of law relating to the rental application process and administrative or renewal fees, as amended by this bill, to the Manufactured Home Lot Rental Act.

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.

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.

Single-Family Homebuyer Protection Act established; civil penalty. Establishes the Single-Family Homebuyer Protection Act for the purpose of prohibiting a covered entity from acquiring an interest in more than five single-family homes within the same county, city, or town in the Commonwealth on or after July 1, 2026. The bill provides that no seller of a single-family home shall enter into an agreement with a covered entity for acquisition of such home before publicly marketing such home to natural persons residing in the Commonwealth and first-time homebuyers for at least 10 calendar days. The bill allows the Department of Housing and Community Development to publish aggregated information using existing data, including (i) the number and percentage of single-family homes owned by covered entities, broken down by locality, zip code, and census tract, and (ii) identified trends in the concentration of covered entity interests in single-family homes. The bill allows the Attorney General to seek an injunction and a civil penalty to restrain any violation of its provisions.