Back to Virginia

HB867 • 2026

Affordable housing; local zoning ordinance authority.

An Act to amend and reenact § 15.2-2304 of the Code of Virginia, relating to affordable housing; local zoning ordinance authority.

Housing Land
Enacted

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

Sponsor
Cousins
Last action
2026-04-08
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The bill does not explicitly state that projects following the new rules do not need to contribute extra money to a county or city housing fund, but it implies this by stating such programs shall not be subject to additional requirements outside of the program for contributions.

Making It Easier for Localities to Create Affordable Housing Programs

This law allows any city or county in Virginia to change their zoning rules to support building more affordable homes.

What This Bill Does

  • Allows cities and counties to amend local zoning ordinances to provide for an affordable housing dwelling unit program.
  • Permits lot size reductions, accessory housing unit allowances, and other measures to make it easier to build affordable homes.
  • Requires localities to form advisory committees before creating new affordable housing programs after July 1, 2027.

Who It Names or Affects

  • Local governments in Virginia
  • Home builders and developers
  • People looking for affordable homes

Terms To Know

Zoning ordinance
Rules set by local government that control how land can be used, like where houses or businesses can be built.
Accessory housing unit
A small living space added to a main house, such as an apartment in the basement or a converted garage.

Limits and Unknowns

  • The law only applies to localities that adopt new affordable housing programs after July 1, 2027.
  • It does not change existing laws made before January 1, 2026.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB867AHC1

2026-01-29

Counties, Cities and Towns Amendment

Plain English: The amendment changes a part of the bill to add new incentives related to housing density.

  • Adds 'Additional density bonuses for' instead of 'Encouragement of', which suggests providing extra benefits or allowances for increasing housing density.
  • The exact nature and extent of these additional density bonuses are not specified in the provided amendment text, so their full impact is unclear.
HB867AHC2

2026-01-29 • Committee

Subcommittee #3 Subcommittee Amendment

Plain English: The amendment modifies a bill about affordable housing by adding new rules for density bonuses and changing dates in the legislation.

  • Adds 'Additional density bonuses for' after line 32, replacing 'Encouragement of'.
  • Changes '2026' to '2027' at the beginning of line 54.
  • Changes '2027' to '2028' on line 55.
  • Adds a new provision after line 55 that requires reenactment by the 2027 Session for the act to take effect.
  • The exact impact of adding density bonuses is not detailed in the amendment text, so it's unclear how this will affect local zoning ordinances.
HB867AH1

2026-01-30 • Committee

Counties, Cities and Towns Amendment

Plain English: The amendment modifies a bill to add new incentives for affordable housing and changes certain dates in the legislation.

  • Adds 'Additional density bonuses for' after line 32, replacing 'Encouragement of'.
  • Changes '2026' at the beginning of line 54 to '2027'.
  • Replaces '2027' with '2028' in line 55.
  • Adds a new provision after line 55 that requires reenactment by the 2027 Session for the act to take effect.
  • The exact nature of the density bonuses and their impact on affordable housing is not detailed in this amendment text.

Bill History

  1. 2026-04-08 Governor

    Approved by Governor-Chapter435 (Effective 7/1/2027)

  2. 2026-04-08 Governor

    Acts of Assembly Chapter text (CHAP0435)

  3. 2026-03-14 House

    Enrolled Bill communicated to Governor on March 14, 2026

  4. 2026-03-14 Governor

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

  5. 2026-03-13 House

    Signed by Speaker

  6. 2026-03-13 Senate

    Signed by President

  7. 2026-03-13 House

    Enrolled

  8. 2026-03-13 House

    Bill text as passed House and Senate (HB867ER)

  9. 2026-03-06 House

    Senate substitute agreed to by House (65-Y 32-N 0-A)

  10. 2026-03-04 Senate

    Read third time

  11. 2026-03-04 Senate

    Read third time

  12. 2026-03-04 Senate

    Engrossed by Senate - committee substitute

  13. 2026-03-04 Local Government

    Local Government Substitute agreed to

  14. 2026-03-04 Senate

    Passed Senate with substitute (21-Y 19-N 0-A)

  15. 2026-03-03 Senate

    Rules suspended

  16. 2026-03-03 Senate

    Passed by for the day

  17. 2026-03-03 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

  18. 2026-03-03 Senate

    Passed by for the day Block Vote (Voice Vote)

  19. 2026-03-02 Local Government

    Reported from Local Government with substitute (8-Y 7-N)

  20. 2026-03-02 Local Government

    Committee substitute printed 26109001D-S1

  21. 2026-02-06 Senate

    Constitutional reading dispensed (on 1st reading)

  22. 2026-02-06 Local Government

    Referred to Committee on Local Government

  23. 2026-02-05 House

    Read third time and passed House (68-Y 30-N 0-A)

  24. 2026-02-04 House

    Read second time

  25. 2026-02-04 House

    committee amendments agreed to

  26. 2026-02-04 House

    Engrossed by House as amended

  27. 2026-02-03 House

    Read first time

  28. 2026-01-30 Counties, Cities and Towns

    Reported from Counties, Cities and Towns with amendment(s) (17-Y 3-N)

  29. 2026-01-29 Subcommittee #3

    Subcommittee recommends reporting with amendment(s) (6-Y 0-N)

  30. 2026-01-29 Subcommittee #3

    House subcommittee offered

  31. 2026-01-28 Subcommittee #3

    Assigned HCCT sub: Subcommittee #3

  32. 2026-01-13 House

    Prefiled and ordered printed; Offered 01-14-2026 26103146D

  33. 2026-01-13 Counties, Cities and Towns

    Referred to Committee on Counties, Cities and Towns

Official Summary Text

Affordable housing; local zoning ordinance authority.
Authorizes any locality in the Commonwealth to provide for an affordable housing dwelling unit program by amending the zoning ordinance of such locality. Current law restricts such authorization to counties with an urban county executive form of government or county manager plan of government and certain other localities. In addition to optional increases in density, the bill provides that such program may include certain additional implementation measures including lot size reductions and accessory housing unit allowances. The bill has a delayed effective date of July 1, 2027, and is identical to SB 74.

Current Bill Text

Read the full stored bill text
An Act to amend and reenact §
15.2-2304
of the Code of Virginia, relating to affordable housing; local zoning ordinance authority.
Be it enacted by the General Assembly of Virginia:
1. That §
15.2-2304
of the Code of Virginia is amended and reenacted as follows:
§
15.2-2304
. Affordable dwelling unit ordinances in certain localities.
In furtherance of the purpose of providing affordable shelter for all residents of the Commonwealth, the governing body of any
county where the urban county executive form of government or the county manager plan of government is in effect, the Counties of Albemarle and Loudoun, and the Cities of Alexandria, Charlottesville, Fairfax, and Falls Church
locality in the Commonwealth
may by amendment to the zoning ordinances of such locality provide for an affordable housing dwelling unit program. The program shall address housing needs, promote a full range of housing choices,
help ensure that the housing needs for older residents to live independently are accommodated,
and encourage the construction and continued existence of moderately priced housing by providing for optional increases in density in order to reduce land costs for such moderately priced housing.
In addition to optional increases in density, the program may also include any combination of the following implementation measures and tools:
1. Lot size reductions, dimensional and form modifications, or floor area ratio increases for the production of affordable housing units, or any combination thereof;
2. Contribution to a local housing trust fund in lieu of construction of affordable housing units;
3. Accessory housing unit allowances;
4. Housing inspection programs designed to ensure the quality and safety of affordable housing constructed in accordance with the locality's comprehensive plan;
5. Allowance of duplexes, triplexes, and quadruplexes in areas with primarily single-family detached homes for the purpose of providing affordable housing and creating mixed-income homeownership options;
6. Allowance of conversion of office, light industrial, and commercial space to multifamily use;
7. Encouragement of transit-oriented development;
8. Provision of financial incentives or removal of financial disincentives to promote development of new affordable housing where such development would not otherwise occur under existing conditions;
9. Allowance of lower-cost home construction alternatives, including manufactured or modular homes and duplex manufactured or modular homes; and
10. Other policies, measures, or tools that have a positive impact on the production and maintenance of affordable housing units.
Any project that is subject to an affordable housing dwelling unit program adopted pursuant to this section shall not be subject to an additional requirement outside of such program to contribute to a county or city housing fund.
Any local ordinance of any other locality providing optional increases in density for provision of low and moderate income housing adopted before December 31, 1988, shall continue in full force and effect.
Localities adopting such ordinances on or after July 1, 2027, shall, in developing and prior to adopting such housing programs, create an advisory committee and actively seek input from residents, developers of residential and mixed-use property, real estate professionals, historic preservation professionals, redevelopment and housing professionals and advocates, planners, urban design professionals, representatives of low-income and moderate-income households, and finance professionals. The advisory committee shall assess the effectiveness and feasibility of any incentives or other measures necessary for economic viability and the development of maximum affordable units. In conducting this assessment, a locality may consult with a planning district commission of which it is a member, pursuant to subsection B of §
15.2-4207
.
2. That the provisions of this act shall not apply to any local ordinance adopted prior to January 1, 2026.
3. That the provisions of this act shall become effective on July 1, 2027.