VirginiaSB3882026 Regular SessionSenateWALLET

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

Sponsored By: Jeremy S. McPike (Democratic)

Became Law

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

5 provisions identified: 4 benefits, 1 costs, 0 mixed.

Tax credit for voluntary downzoning

Beginning January 1, 2027, a locality can offer a tax credit if a landowner agrees to downzone undeveloped or underused land. The credit equals the extra real estate taxes the owner paid under the higher, former zoning. Local rules set how to calculate and use the credit and for how long. This program ends January 1, 2031.

Faster approval for nonprofit housing

Beginning January 1, 2027, localities must let qualifying religious and 501(c)(3) nonprofits build housing by right. No rezoning, special exceptions, or special-use permits can be required first. These projects are treated as consistent with the local comprehensive plan. Local rules can use administrative approvals to speed reviews. These authorities end January 1, 2031.

Nonprofit housing rules and building rights

Beginning January 1, 2027, the land must be owned by the tax‑exempt group for 5 years. At least 60% of homes must be affordable: rentals at or below 80% of AMI and for‑sale homes up to 120% of AMI. The affordability is recorded for at least 30 years. Homes are open to the public, taxed as regular property after completion, and served by public water and sewer. Minimum building rights apply: at least 45 feet tall (or the tallest within 500 feet), at least 20 homes per acre (or the most intense nearby), and 10‑foot setbacks (or the smallest nearby). At least 70% of floor area must be housing; up to 30% may be nonresidential space. No extra local rules on FAR, minimum unit size, or minimum lot size. Parking is capped at 1 space per home and 1 per 300 sq. ft. of nonresidential space. Historic districts set by January 1, 2026 still control height. These rules end January 1, 2031.

Fairer permit rules for affordable homes

Beginning January 1, 2027, permit conditions for affordable housing must support affordability. Reviewers must weigh how materials, methods, or design choices affect cost. Residential special exceptions or special-use permits must be valid for at least three years. This rule ends January 1, 2031.

Where and when the nonprofit rules apply

The law does not apply to land zoned for industry or land next to it. It also does not apply inside Air Installation Compatible Use Zones around military air bases. Applications filed before July 1, 2026 stay under the old rules. Local permits approved before January 1, 2027 are not changed. Local ordinances passed before January 1, 2027 that mostly match this law stay in effect. These limits run from January 1, 2027 through January 1, 2031.

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

Reading of amendment waived (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/10/2026

Local Government Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/3/2026

Passed by for the day Block Vote (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 2/2/2026

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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