Housing

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.

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.

Charter; City of Virginia Beach; certain land use approvals. Amends the charter for the City of Virginia Beach by providing that no application to rezone property to a higher density or a more intense zoning district south of the blue line, as defined in the bill, shall be approved except by a recorded affirmative vote of three-fourths of all of the members elected to the city council. The bill further provides that no extension of public water and sanitary sewer shall extend south of the blue line absent a public hearing and specific findings by the city council.

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.