VirginiaHB4742026 Regular SessionHouseWALLET

Real estate with delinquent taxes or liens; apptmt. of special commissioner, increases value.

Sponsored By: Sam Rasoul (Democratic)

Became Law

Summary

Real estate with delinquent taxes or liens; appointment of special commissioner; increases required value. Increases from $75,000 to $125,000 the maximum assessment that an individual parcel of land may be valued at to be subject to a locality's appointment of a special commissioner to convey property with delinquent taxes or liens to the locality, to the locality's land bank entity, or to an existing nonprofit entity designated by the locality to carry out the functions of a land bank entity in lieu of sale at public auction. The bill contains technical amendments.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

More tax-delinquent properties can transfer

The law lets a court appoint a special commissioner to transfer tax‑delinquent property to the locality, its land bank, or a designated nonprofit instead of auction. This applies if the parcel has delinquent real estate taxes or a local lien for building or nuisance work, is assessed at $125,000 or less, and meets one of these tests: taxes plus liens (with penalties and interest) exceed 50% of value; taxes alone exceed 25%; or, for a derelict building, taxes plus liens exceed 25%. In localities with a state fiscal‑stress score of 100 or higher (July 2020 list), lower tests apply. Option A: taxes plus liens exceed 35% and taxes alone exceed 15% of value. Option B: taxes plus liens exceed 20% and taxes alone exceed 10%, the parcel is $150,000 or less, not an occupied home, and the locality agrees to sell it to a nonprofit to create a single‑family home for a buyer below the area median income.

Land trust sales to keep homes affordable

A nonprofit that sells a transferred parcel may sell only the building while the land stays in a community land trust. The ground lease must be at least 90 years. The land trust must keep a first right to buy the home at a formula price so it stays affordable for families earning under 120% of the area median income.

Surplus paid and no deficiency after transfer

After a parcel is transferred under this process, the former owner cannot be billed for any deficiency. If the locality, land bank, or nonprofit later sells the property, any extra sale money goes first to lien holders and then to the former owner or heirs, as state law requires. A land bank or nonprofit that receives a parcel must either sell it in an arm’s‑length deal (or within a reasonable time after development) or, if it will not sell, pay out the surplus that a sale would have produced to lien holders and the former owner.

Sponsors & Cosponsors

Sponsor

  • Sam Rasoul

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 220 • No: 0

Senate vote 2/27/2026

Passed Senate Block Vote

Yes: 37 • No: 0

Senate vote 2/26/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 2/26/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/25/2026

Reported from Finance and Appropriations

Yes: 14 • No: 0

House vote 2/3/2026

Read third time and passed House

Yes: 97 • No: 0

House vote 1/28/2026

Reported from Finance with amendment(s)

Yes: 22 • No: 0

House vote 1/27/2026

Subcommittee recommends reporting with amendment(s)

Yes: 10 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0151)

    4/6/2026Governor
  2. Approved by Governor-Chapter 151 (effective 7/1/2026)

    4/6/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  5. Fiscal Impact statement From TAX (3/6/2026 11:18 am)

    3/6/2026House
  6. Bill text as passed House and Senate (HB474ER)

    3/4/2026House
  7. Enrolled

    3/4/2026House
  8. Signed by President

    3/4/2026Senate
  9. Signed by Speaker

    3/4/2026House
  10. Passed Senate Block Vote (37-Y 0-N 0-A)

    2/27/2026Senate
  11. Read third time

    2/27/2026Senate
  12. Passed by for the day Block Vote (Voice Vote)

    2/26/2026Senate
  13. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    2/26/2026Senate
  14. Rules suspended

    2/26/2026Senate
  15. Reported from Finance and Appropriations (14-Y 0-N)

    2/25/2026Senate
  16. Fiscal Impact statement From TAX (2/17/2026 3:41 pm)

    2/17/2026House
  17. Referred to Committee on Finance and Appropriations

    2/4/2026Senate
  18. Constitutional reading dispensed (on 1st reading)

    2/4/2026Senate
  19. Read third time and passed House (97-Y 0-N 0-A)

    2/3/2026House
  20. Moved from Uncontested Calendar to Regular Calendar

    2/2/2026House
  21. Engrossed by House as amended

    2/2/2026House
  22. committee amendments agreed to

    2/2/2026House
  23. Read second time

    2/2/2026House
  24. Read first time

    1/30/2026House
  25. Reported from Finance with amendment(s) (22-Y 0-N)

    1/28/2026House

Bill Text

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