The Virginia General Assembly has adopted legislation that creates a new by right development process for qualifying affordable housing projects on property owned by certain property tax-exempt religious organizations or 501(c)(3) property tax-exempt nonprofit organizations.
The legislation is intended to expand opportunities for affordable housing by allowing eligible developments to proceed without requiring local legislative approval, if the requirements established in state law are met.
The law becomes effective January 1, 2027, and is scheduled to expire January 1, 2031.
WHAT IT MEANS
Under Virginia law, qualifying affordable housing developments on eligible tax-exempt religious or nonprofit-owned property may be approved by right. This means localities may not require discretionary zoning approvals such as:
- Special exception approvals
- Special use permits
- Rezonings
To qualify, a development must demonstrate how it meets the requirements established in the legislation, including:
- Five years of continuous property ownership by the tax-exempt organization.
- The property must be currently served by or within an area planned for public water and sewer.
- At least 60% of the total dwelling units must be affordable.
- Affordable units must remain affordable for at least 30 years.
- The property is not industrially zoned or adjacent to industrially zoned land.
- Following completion of the development, the housing is subject to real estate taxation.
If a development can meet the requirements of the legislation then specified standards regarding height, density, lot size, use, setback, and parking regulations may apply.
REVIEW REQUIREMENTS
Although qualifying developments are not subject to legislative approval, they must still comply with all applicable local administrative review processes and development regulations.
Depending on the project, these may include:
- Site plan review
- Applicable design standards
- Building permits
- Stormwater management requirements
- Public facilities review
- Transportation agency reviews, when applicable
- Other required state and local permits and approvals
Applicants should be prepared to demonstrate how their project meets the statutory requirements in connection with its first administrative review. Applicants should also be prepared to satisfy all applicable development regulations outside of the zoning entitlement process.
PROCESS IMPLEMENTATION
Land Development Services (LDS) is developing policies, procedures, and application guidance to implement the requirements of this legislation.
Additional information, application procedures, and guidance documents will be posted before the law takes effect on January 1, 2027.
