Housing (Housing Finance)

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, subject to various conditions and limitations. 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 January 1, 2027, and expires on January 1, 2031. This bill is identical to SB 388.

Department of Housing and Community Development; loans for the construction of mixed income housing; report. Directs the Department of Housing and Community Development, in collaboration with the Virginia Housing Development Authority, to create a two-year pilot program that would provide loan origination and servicing activities for mixed income housing and submit a report on its findings to the General Assembly by November 1 of each year of the pilot program. The bill provides that any funding for the pilot program, subject to the appropriation act, shall be utilized from up to 15 percent of the annual deposit made to the Virginia Housing Trust Fund. This bill is identical to HB 196 and HB 820.

Department of Housing and Community Development; loans for the construction of mixed income housing; report. Directs the Department of Housing and Community Development, in collaboration with the Virginia Housing Development Authority, to create a two-year pilot program that would provide loan origination and servicing activities for mixed income housing and submit a report on its findings to the General Assembly by November 1 of each year of the pilot program. The bill provides that any funding for the pilot program, subject to the appropriation act, shall be utilized from up to 15 percent of the annual deposit made to the Virginia Housing Trust Fund. This bill is identical to HB 196 and SB 490.

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.

Industrial development authorities; housing. Allows industrial development authorities to exercise their powers with respect to facilities used primarily for single or multi-family residences in order to promote safe and affordable housing in the Commonwealth. Under current law, such powers may be exercised only in a locality where a housing authority has not been activated. The bill also grants industrial development authorities the power to issue bonds associated with the construction of affordable housing.

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.