VirginiaSB3882026 Regular SessionSenateWALLET

Affordable housing; religious organizations and other nonprofit tax-exempt properties.

Sponsored By: Jeremy S. McPike (Democratic)

Signed by Governor

Summary

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 incorporates SB 367 and is identical to HB 1279.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 0 benefits, 2 costs, 4 mixed.

Landowners trade density for tax credits

From January 1, 2027, until January 1, 2031, Virginia localities can offer landowners voluntary agreements to reduce allowed development. Only undeveloped or underdeveloped property qualifies. In exchange for reducing allowed density or use intensity, landowners can receive a real estate tax credit. The credit equals excess property taxes paid because of the earlier, higher zoning classification. Local rules can set how the credit is calculated and applied, including its duration.

Nonprofits gain housing rights with affordability rules

From January 1, 2027, until January 1, 2031, qualifying tax-exempt religious groups and 501(c)(3) nonprofits can build housing without rezoning or discretionary legislative approval. They must have owned the land continuously for five years before applying. At least 60% of homes must stay affordable under recorded legal restrictions for at least 30 years. Rental income limits are 80% of area median income; homes for sale can serve households up to 120%. Affordable housing costs, including utilities, cannot exceed 30% of gross household income. Local rules must allow at least 20 homes per acre, or the higher nearby residential density. They must allow building heights of at least 45 feet, or the tallest building within 500 feet, whichever is higher, subject to historic-district rules. Setback rules must allow 10 feet or the smallest setback within 500 feet. Housing must occupy at least 70% of floor space; nonresidential uses cannot exceed 30%. Required parking cannot exceed one space per home or one per 300 square feet of nonresidential space; lower local limits apply. Completed homes are subject to local property taxes, must be open to the public, and must follow fair housing law. Land must have public water and sewer service or be in an area planned for service. Projects must follow environmental, historic, siting, and archaeological rules. Industrially zoned land, land next to industrially zoned property, and parcels in the specified military airfield compatibility zones are excluded. The pathway also excludes housing permits approved before January 1, 2027, and rezoning applications submitted before July 1, 2026. Localities can adopt implementing rules before January 1, 2027.

Localities can enforce single-family occupancy limits

From January 1, 2027, until January 1, 2031, Virginia local zoning rules can provide for enforcing existing single-family occupancy limits. These rules limit how many people can live in a single-family home. Enforcement must follow local, state, and federal fair housing laws. This provision does not set a new numeric occupancy limit.

Property applicants may need to clear liens

From January 1, 2027, until January 1, 2031, Virginia localities can require payment of delinquent property liens. Applicants can be required to show payment before starting a land-use application or receiving final approval. Covered debts include property taxes, nuisance charges, stormwater fees, and other properly assessed charges owed to the locality. The charges must be liens on the property. The local treasurer can allow the application or approval to proceed without payment.

Solar projects face local safety standards

From January 1, 2027, until January 1, 2031, Virginia local zoning rules can adopt national standards for solar projects. These must be generally accepted environmental-protection or product-safety standards for solar panels and batteries used in those projects. The standards add safety protections but can also add compliance requirements for developers.

Development faces environmental checks and cleanup

From January 1, 2027, until January 1, 2031, Virginia localities can require environmental checks for subdivision or development proposals. They can require a Phase I site assessment based on the property's planned use. A Phase II assessment can be required only when the first assessment shows it is reasonably necessary. Both must follow generally accepted national standards. Localities can charge review fees, but fees cannot exceed amounts matching the services, time, skill, and administrative costs involved. Local rules can also require contamination and other harmful environmental conditions to be reported and cleaned up before plan approval. These rules can add testing and cleanup costs while addressing environmental hazards.

Sponsors & Cosponsors

Sponsor

  • Jeremy S. McPike

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 342 • No: 216

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 62 • No: 36

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 21 • No: 18

House vote • 3/14/2026

Conference report agreed to by House

Yes: 55 • No: 40

Senate vote • 3/13/2026

Conference report agreed to by Senate

Yes: 21 • No: 17

Senate vote • 3/4/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

Senate vote • 2/27/2026

Counties, Cities and Towns Amendment rejected by Senate

Yes: 0 • No: 38

House vote • 2/25/2026

Passed House with amendments

Yes: 61 • No: 37

House vote • 2/20/2026

Reported from Counties, Cities and Towns with amendment(s)

Yes: 13 • No: 8

Senate vote • 2/11/2026

Read third time and passed Senate

Yes: 21 • No: 18

Senate vote • 2/10/2026

Local Government Substitute agreed to

Yes: 0 • No: 0

Senate vote • 2/10/2026

Reading of amendment waived (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/3/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 39 • No: 0

Senate vote • 2/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/2/2026

Reported from Local Government with substitute

Yes: 9 • No: 4 • Other: 1

Actions Timeline

  1. House concurred in Governor's recommendation (62-Y 36-N 0-A)

    4/22/2026House
  2. Senate concurred in Governor's recommendation (21-Y 18-N 0-A)

    4/22/2026Senate
  3. Acts of Assembly Chapter text (CHAP1009)

    4/22/2026Governor
  4. Reenrolled bill text (SB388ER2)

    4/22/2026Senate
  5. Approved by Governor-Chapter 1009 (Effective 1/1/2027)

    4/22/2026Governor
  6. Signed by President

    4/22/2026Senate
  7. Signed by Speaker

    4/22/2026House
  8. Governor's recommendation adopted

    4/22/2026Governor
  9. Governor's recommendation received by Senate

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

    3/31/2026Governor
  11. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026Senate
  12. Signed by Speaker

    3/31/2026House
  13. Bill text as passed Senate and House (SB388ER)

    3/30/2026Senate
  14. Enrolled

    3/30/2026Senate
  15. Signed by President

    3/30/2026Senate
  16. Conference report agreed to by House (55-Y 40-N 0-A)

    3/14/2026House
  17. Conference report agreed to by Senate (21-Y 17-N 0-A)

    3/13/2026Senate
  18. Conference Report released

    3/13/2026
  19. House Conferees: Cole, J.G., Helmer, Morefield

    3/6/2026House
  20. Conferees appointed by House

    3/6/2026House
  21. Senate acceded to request Block Vote (40-Y 0-N 0-A)

    3/4/2026Senate
  22. Senate Conferees: McPike, Aird, Reeves

    3/4/2026Senate
  23. Conferees appointed by Senate

    3/4/2026Senate
  24. House requested conference committee

    3/2/2026House
  25. House insisted on amendments

    3/2/2026House

Bill Text

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