HB1177 • 2026

Local rent stabilization authority; civil penalty.

<p class=ldtitle>A BILL to amend the Code of Virginia by adding a section numbered 15.2-959.1, relating to local rent stabilization authority; civil penalty.</p>

Healthcare Housing

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Cole, N.T.
Last action: 2026-01-29
Official status: Failed
Effective date: Not listed

Plain English Breakdown

The bill does not specify which localities will actually implement these rules.

Local Rent Stabilization Authority; Civil Penalty

This bill allows localities to create rent stabilization rules and sets penalties for landlords who do not follow them.

What This Bill Does

Allows cities or towns to make rules about how much rent can go up each year.
Requires landlords to give tenants at least two months' notice before raising the rent.
Sets a limit on how much rent can increase based on local costs, specifically the annual percentage increase in the Consumer Price Index for the region.
Exempts certain types of housing from these rules, like hospitals and religious buildings.
Gives landlords a way to ask for an exception if their expenses are too high.
Creates fines up to $2,500 for not following the new rules.

Who It Names or Affects

Landlords who rent out homes or apartments in cities that make these rules.
Tenants living in rental units covered by local rent stabilization laws.
Local governments creating and enforcing rent control ordinances.

Terms To Know

Rent Stabilization: Rules set by a city or town to limit how much rent can go up each year.
Civil Penalty: A fine given by the government for breaking a law or rule.

Limits and Unknowns

The bill does not specify which localities will actually make these rules.
It is unclear how many landlords and tenants will be affected in practice.
The exact process for applying for an exemption from rent stabilization is left to each locality.

Bill History

2026-01-29 General Laws
Stricken from docket by General Laws (21-Y 0-N)
2026-01-14 House
Prefiled and ordered printed; Offered 01-14-2026 26103952D
2026-01-14 General Laws
Referred to Committee on General Laws

Official Summary Text

Local rent stabilization authority; civil penalty.
Provides that any locality may by ordinance adopt rent stabilization provisions. The bill provides for notice and a public hearing prior to the adoption of such ordinance and specifies that all landlords who are under rent stabilization may be required to give up to a two-month written notice of a rent increase and cannot increase the rent by more than the locality's rent stabilization allowance, described in the bill as the maximum amount a landlord can increase a tenant's rent during any 12-month period, in effect at the time of the increase. The bill sets such allowance as equal to the annual increase in the Consumer Price Index for the region in which the locality sits, states that such allowance is effective for a 12-month period beginning July 1 each year, and requires the locality to annually by June 1 publish such allowance on its website. Certain facilities, as outlined in the bill, are exempt from any such ordinance. The bill also requires such ordinance to provide a procedure by which a landlord may apply for an exemption from the rent stabilization provisions in situations where the net operating income generated by the rental facility has not been maintained due to escalating operating expenses or for other appropriate reasons as established by the locality. Finally, the bill provides that a locality may establish a civil penalty for failure to comply with the requirements set out in the ordinance that shall not exceed $2,500 per separate violation.

Current Bill Text

Read the full stored bill text

A BILL to amend the Code of Virginia by adding a section numbered
15.2-959.1
, relating to local rent stabilization authority; civil penalty.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered
15.2-959.1
as follows:

§
15.2-959.1
. Local rent stabilization authority
; civil penalty
.

A.
Notwithstanding the provisions of the
Virginia Residential Landlord and Tenant Act (§

55.1-1200
et seq.)
or
any other provision of law, general or special,
any locality may by ordinance adopt
rent stabilization provisions in accordance with this section. No such ordinance shall be adopted until the proposed ordinance has been
posted on the locality's website
and
advertised
in a newspaper of general circulation
in the locality at least two weeks prior to a public hearing on such ordinance.

B.
An ordinance adopted pursuant to this section may require any landlord subject to the ordinance to provide
up to a two-month written notice of a rent increase and
shall prohibit any
increase
in
the rent
by
such landlord of

more than the
locality's
rent stabilization allowance in effect at the time of the increase.

C.
A locality that adopts an ordinance pursuant to this section
:

S
hall
calculate
an
annual rent stabilization allowance
equal to the percentage increase in the Consumer Price Index
,
for the region in which the locality sits
,
from
March
in the preceding year to
March in the current year.
Notice of such allowance shall be published on the locality's website by June 1 of each year. Such allowance
shall remain in effect for a 12-month period beginning July 1
.

2
.
May
allow rent increases
for rent-stabilized rental units by an
amount not to exceed the
annual
rent stabilization allowance in effect at the time of the rent increase
.
Only one rent
stabilization
increase
pursuant to this section shall be permitted within a 12-month period.

D
. No such ordinance shall apply to the following:

1. Any unit in a licensed facility, the primary purpose of which is the diagnosis, cure, mitigation
,
and treatment of illnesses;

2. Any unit in a facility owned or leased by an organization exempt from
f
ederal income taxes pursuant to
§
501(c)(3) of the Internal Revenue Code, the primary purpose of which is to provide temporary sanctuary or shelter for qualified
residents
,
provided that the organization has notified the clients residing in the facility of the temporary nature of their housing at the inception of their residence;

3. Any owner-occupied group house;

4. Religious facilities
,
such as churches, synagogues, parsonages, rectories, convents
,
and parish homes;

5. Transient facilities
,
such as motels, tourist homes, and bed and breakfast facilities
, except for long-term stays in hotels and motels that qualify as tenancies under §
55.1-1201
;

6. School dormitories;

7. Licensed assisted living facilities and nursing homes;

8.
Any rental dwelling unit owned by a person owning four
or fewer
rental dwelling units in the Commonwealth; or

9. Any newly constructed residential rental unit constructed
15

or fewer
years ago.
For purposes of this section, a
"
newly constructed
residential
rental unit
"

means
any residential
dwelling
unit that has been granted a certificate of occupancy as required by the locality in which it is situated.

E. Such ordinance shall provide a procedure by which a
landlord
may apply for an exemption from the rent stabilization
provisions
if
the net operating income generated by the rental facility has not been maintained due to escalating operating expenses or for other appropriate reasons as established by the locality.

F. The locality may establish a
civil
penalty for failure to comply with the requirements set out in the
ordinance
.

S
uch civil penalty shall not exceed
$2,500 per separate violation.