Localities; statewide housing targets.

A BILL to amend and reenact §§
15.2-2309
and
36-139
of the Code of Virginia and to amend the Code of Virginia by adding in Article 1 of Chapter 22 of Title 15.2 a section numbered
15.2-2209.4
, relating to statewide housing targets for localities.

Be it enacted by the General Assembly of Virginia:

1. That §§
15.2-2309
and
36-139
of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding in Article 1 of Chapter 22 of Title 15.2 a section numbered
15.2-2209.4
as follows:

§
15.2-2209.4
.
Statewide housing targets
for localities
.

A. The provisions of this section shall apply to
e
very locality that has adopted a zoning ordinance pursuant to
Article 7 (§
15.2-2280
et seq.)
,
but shall not apply to any locality that has had at least 7.5 percent growth in its total housing stock from January 1, 2020, to January 1, 2025, for so long as such locality does not drop below one percent annual growth in subsequent years. The calculation of such subsequent growth shall include the extra weight for increases in affordable housing and housing rehabilitation pursuant to subdivision 33 of §
36-139
.

B.
For a five
-
year period b
eginning January 1, 202
8
, each locality is required to increase
its total housing stock by
an average
of
1.5 percent
growth per year for five consecutive years
in order to m
e
et the total 7.5 percent
growth target
.

Each

l
ocality shall
develop a housing growth plan
by Jul
y
1, 2027
,
that best
meets the needs of the locality
while meeting the target
growth rates
.
When completed, e
ach locality shall submit such housing growth plan to the Department of Housing and Community Development and make
the
plan publicly accessible.
Such plan may include
any
strategy
deemed appropriate
by the locality; however, for purposes of
d
e
monstrati
ng
a good faith effort to meet growth targets pursuant to subsectio
n C,
a locality shall
include
modeling
that demonstrates that the plan will result in the permitting of the required number of units

and

either (i) a zoning ordinance that includes provisions allowing for the by-right development and construction of multifamily residential uses on at least 75 percent of all land contained in commercial or business zoning district classifications, including any land contained in commercial or business zoning district classifications that allow for the by-right development and construction of single-family residential uses or
(
ii)

at least three of the following housing growth strategies
,

submitted to and
made available to the public
by the Department of Housing and Community Development
:

1.

E
liminate minimum lot siz
e
requirements for new housing developments on commercial,
industrial, or
undeveloped residential parcels
.

2. Eliminate off-street parking requirements for new housing developments on commercial, industrial, or undeveloped residential parcels.

3
. Increase building height limits for multifamily housing
in one or more
districts zoned for multifamily housing
.

4
.
Reduce the
median
time to receive final approval for site plans and rezonings
combined

for new single-family and multifamily housing developments to 180 days and for new affordable housing developments to 120 days.

5
. Modify zoning ordinances to allow for
accessory dwelling units and
high-density housing, including multifamily units such
as

apartments and condominiums, on
land
previously zoned
for
single-family
use
, including
all land use changes necessary to make for feasible construction of accessory dwelling units
.

6
. Rezone
all commercial and undeveloped residential parcels

to allow for residential development
near transit stations, places of employment, higher education facilities, and other appropriate population centers.

7
.
Rezone office parks and strip malls to permit high-density single-family and multifamily housing developments.

8
.
Create
and fund
an affordable housing trust fund to provide grant subsidies to for-profit and nonprofit developers for the purpose of building single-family and multifamily ho
using
priced at rates
affordable to households
earning
below
80
percent of the area median income.

C.

1. After
July 1, 2027,
a developer or an organization whose mission is to advocate for increased residential development
may
appeal to
the board of zoning appeals if the petitioner believes that
a locality's housing gr
owth plan
does not meet the requirements of this section
.
A
ppeals
file
d
pursuant to this subdivision

may be filed any time prior to January 1, 2033
,
in accordance with general law
. If the board of zoning appeals determines that such housing growth p
lan does
n
ot meet the requirements of this section, the
board of zoning appeals can declare the locality to be noncompliant and force the locality to take corrective action.
Decisions of the board of zoning appeals may be appealed to the circuit court in accordance with general law.

2.
A
fter January 1, 203
3
,
(i) an applicant
that
seeks local government approval for a residential development site plan or rezoning that will increase the number of dwelling units in a locality and has that application rejected,
either by a vote of the governing body or otherwise
;

or
(ii) a potential resident of such residential development or an organization whose mission is to advocate for such residential developments, may, in addition to other remedies, appeal such decision to the
board of zoning appeals
.
Such appeals shall be file
d
within
30 days in accordance with general law
; however,
appeals
file
d
pursuant to this sub
division
may
be filed
after January 1, 2033
,
for a plan or rezoning that
was rejected between 2028 and 2033
.
The
board of zoning appeals
shall have authority to
require localities that have not already implemented
provisions allowing for the by-right development and construction of multifamily residential uses on at least 75 percent of all land contained in commercial or business zoning district classifications
to implement s
uch
requirement if it finds that

(a) the locality has failed to meet
the
required growth target as established
in subsectio
n B
,
(b)
the locality
chose to implement three of the
growth
strategies
listed in
clause
(ii) of
subsection B
rather than the by-right
multifamily
residential measure
described in
clause
(i) of subsection B
, and (c) the required implementation of the by-right multifamily residential
measure
will
not pose a sign
i
ficant health or safety concern
.
The
b
oard
of zoning appeals
shall have the authority to overturn the local decision and approve such application for localities that chose to implement the by-right multifamily development requirement if it finds that
(1)
the locality

has failed to meet the required growth target as established in subsection B, (
2
)

the locality
did not in good faith implement the by-right
multifamily development
ordinance
,
(
3
)
the loc
ality
rejected
or
delayed more than 25
percent
of proposed projects
, and

(4)
approval
of the application will not pose a significant health or safety concern.

However, if the
board of zoning appeals
determines that a locality has failed to meet a required growth target but has in good faith implemented
either the by-right multifamily residential ordinance as
described
in
clause
(i)
of subs
ection B, o
r

at least three of the housing growth strategies in
clause
(ii) of
subsection B
,
and has not rejected
or delayed beyond a reasonable time period
, not to exceed 12 months from the time
an initial application is filed,

more than 25 percent of the proposals for new housing development that have come before the local governing body in the previous five years, the
board of zoning appeals
shall not overturn the local decision.

No provision of this section shall be construed as granting any board
of zoning appeals
the power to base
its
decisions on the merits of the purpose and intent of local ordinances duly adopted by the governing body

or to take any action regarding the
zon
ing classification of
property
beyond what is specifically authorized by this section
.

Decisions
of the board of zoning appeals may be appealed to the circ
uit court in accordance with general
law
.

3. The Department of Housing and Community Development
, no later than July

1, 2027, shall develop
and publish

standards to guide
a
board of zoning appeals
in
its
decision
-
making process
for appeals filed pursuant to this subsection.

D.

Any locality that has had at least 7.5 percent growth in its total housing stock from January 1, 2020, to January 1, 2025, or that
increases its total housing stock by an average of 1.5 percent growth per year for five consecutive years
beginning on January 1, 2028,
in order to meet the total 7.5 percent growth target
, may impose enhanced civil penalties
for failure to register a vacant building
pursuant
to
§
15.2-1127
. Such enhanced civil
penalties
shall not exceed twice the amount that would other
wise be permitted.

§
15.2-2309
. Powers and duties of boards of zoning appeals.

Boards of zoning appeals shall have the following powers and duties:

1. To hear and decide appeals from any order, requirement, decision, or determination made by an administrative officer in the administration or enforcement of this article or of any ordinance adopted pursuant thereto. The decision on such appeal shall be based on the board's judgment of whether the administrative officer was correct. The determination of the administrative officer shall be presumed to be correct. At a hearing on an appeal, the administrative officer shall explain the basis for his determination after which the appellant has the burden of proof to rebut such presumption of correctness by a preponderance of the evidence. Altering the order of evidence is a reversible error only if the appellant lodges an objection citing this section and the board subsequently refuses to reorder the hearing. The board shall consider any applicable ordinances, laws, and regulations in making its decision. For purposes of this section, determination means any order, requirement, decision, or determination made by an administrative officer. Any appeal of a determination to the board shall be in compliance with this section, notwithstanding any other provision of law, general or special.

2. Notwithstanding any other provision of law, general or special, to grant upon appeal or original application in specific cases a variance as defined in §
15.2-2201
, provided that the burden of proof shall be on the applicant for a variance to prove by a preponderance of the evidence that his application meets the standard for a variance as defined in §
15.2-2201
and the criteria set out in this section.

Notwithstanding any other provision of law, general or special, a variance shall be granted if the evidence shows that the strict application of the terms of the ordinance would unreasonably restrict the utilization of the property or that the granting of the variance would alleviate a hardship due to a physical condition relating to the property or improvements thereon at the time of the effective date of the ordinance, or alleviate a hardship by granting a reasonable modification to a property or improvements thereon requested by, or on behalf of, a person with a disability, and (i) the property interest for which the variance is being requested was acquired in good faith and any hardship was not created by the applicant for the variance; (ii) the granting of the variance will not be of substantial detriment to adjacent property and nearby properties in the proximity of that geographical area; (iii) the condition or situation of the property concerned is not of so general or recurring a nature as to make reasonably practicable the formulation of a general regulation to be adopted as an amendment to the ordinance; (iv) the granting of the variance does not result in a use that is not otherwise permitted on such property or a change in the zoning classification of the property; and (v) the relief or remedy sought by the variance application is not available through a special exception process that is authorized in the ordinance pursuant to subdivision 6 of §
15.2-2309
or the process for modification of a zoning ordinance pursuant to subdivision A 4 of §
15.2-2286
at the time of the filing of the variance application. Any variance granted to provide a reasonable modification to a property or improvements thereon requested by, or on behalf of, a person with a disability may expire when the person benefited by it is no longer in need of the modification to such property or improvements provided by the variance, subject to the provisions of state and federal fair housing laws, or the Americans with Disabilities Act of 1990 (42 U.S.C. § 12131 et seq.), as applicable. If a request for a reasonable modification is made to a locality and is appropriate under the provisions of state and federal fair housing laws, or the Americans with Disabilities Act of 1990 (42 U.S.C. § 12131 et seq.), as applicable, such request shall be granted by the locality unless a variance from the board of zoning appeals under this section is required in order for such request to be granted.

No variance shall be considered except after notice and hearing as required by §
15.2-2204
. However, when giving any required notice to the owners, their agents or the occupants of abutting property and property immediately across the street or road from the property affected, the board may give such notice by first-class mail rather than by registered or certified mail.

In granting a variance, the board may impose such conditions regarding the location, character, and other features of the proposed structure or use as it may deem necessary in the public interest and may require a guarantee or bond to ensure that the conditions imposed are being and will continue to be complied with. Notwithstanding any other provision of law, general or special, the property upon which a property owner has been granted a variance shall be treated as conforming for all purposes under state law and local ordinance; however, the structure permitted by the variance may not be expanded unless the expansion is within an area of the site or part of the structure for which no variance is required under the ordinance. Where the expansion is proposed within an area of the site or part of the structure for which a variance is required, the approval of an additional variance shall be required.

3. To hear and decide appeals from the decision of the zoning administrator after notice and hearing as provided by §
15.2-2204
. However, when giving any required notice to the owners, their agents or the occupants of abutting property and property immediately across the street or road from the property affected, the board may give such notice by first-class mail rather than by registered or certified mail.

4. To hear and decide applications for interpretation of the district map where there is any uncertainty as to the location of a district boundary. After notice to the owners of the property affected by the question, and after public hearing with notice as required by §
15.2-2204
, the board may interpret the map in such way as to carry out the intent and purpose of the ordinance for the particular section or district in question. However, when giving any required notice to the owners, their agents or the occupants of abutting property and property immediately across the street or road from the property affected, the board may give such notice by first-class mail rather than by registered or certified mail. The board shall not have the power to change substantially the locations of district boundaries as established by ordinance.

5. No provision of this section shall be construed as granting any board the power to rezone property or to base board decisions on the merits of the purpose and intent of local ordinances duly adopted by the governing body.

6. To hear and decide applications for special exceptions as may be authorized in the ordinance. The board may impose such conditions relating to the use for which a permit is granted as it may deem necessary in the public interest, including limiting the duration of a permit, and may require a guarantee or bond to ensure that the conditions imposed are being and will continue to be complied with.

No special exception may be granted except after notice and hearing as provided by §
15.2-2204
. However, when giving any required notice to the owners, their agents or the occupants of abutting property and property immediately across the street or road from the property affected, the board may give such notice by first-class mail rather than by registered or certified mail.

7. To revoke a special exception previously granted by the board of zoning appeals if the board determines that there has not been compliance with the terms or conditions of the permit. No special exception may be revoked except after notice and hearing as provided by §
15.2-2204
. However, when giving any required notice to the owners, their agents or the occupants of abutting property and property immediately across the street or road from the property affected, the board may give such notice by first-class mail rather than by registered or certified mail. If a governing body reserves unto itself the right to issue special exceptions pursuant to §
15.2-2286
, and, if the governing body determines that there has not been compliance with the terms and conditions of the permit, then it may also revoke special exceptions in the manner provided by this subdivision.

8.

Notwithstanding any other provision of law, general or special, t
o hear and
decide
appeals
filed
pursuant
to subsection C of § 1
5.2-2209.4
rela
ted to housing targets.
The de
cision of the board of zoning appeals shall be based on the criteria set out in §
15.2-2209.4
and shall conform to any criteria
or regulations established by the Department of Housing and Community Development pursuant to
subdivision 33 of §
36-139
.

9.
The board by resolution may fix a schedule of regular meetings, and may also fix the day or days to which any meeting shall be continued if the chairman, or vice-chairman if the chairman is unable to act, finds and declares that weather or other conditions are such that it is hazardous for members to attend the meeting. Such finding shall be communicated to the members and the press as promptly as possible. All hearings and other matters previously advertised for such meeting in accordance with §
15.2-2312
shall be conducted at the continued meeting and no further advertisement is required.

§
36-139
. Powers and duties of Director.

The Director of the Department of Housing and Community Development shall have the following responsibilities:

1. Collecting from the governmental subdivisions of the Commonwealth information relevant to their planning and development activities, boundary changes, changes of forms and status of government, intergovernmental agreements and arrangements, and such other information as he may deem necessary.

2. Making information available to communities, planning district commissions, service districts and governmental subdivisions of the Commonwealth.

3. Providing professional and technical assistance to, and cooperating with, any planning agency, planning district commission, service district, and governmental subdivision engaged in the preparation of development plans and programs, service district plans, or consolidation agreements.

4. Assisting the Governor in the providing of such state financial aid as may be appropriated by the General Assembly in accordance with §
15.2-4216
.

5. Administering federal grant assistance programs, including funds from the Appalachian Regional Commission, the Economic Development Administration and other such federal agencies, directed at promoting the development of the Commonwealth's communities and regions.

6. Developing state community development policies, goals, plans and programs for the consideration and adoption of the Board with the ultimate authority for adoption to rest with the Governor and the General Assembly.

7. Developing a Consolidated Plan to guide the development and implementation of housing programs and community development in the Commonwealth for the purpose of meeting the housing and community development needs of the Commonwealth and, in particular, those of low-income and moderate-income persons, families and communities.

8. Determining present and future housing requirements of the Commonwealth on an annual basis and revising the Consolidated Plan, as necessary to coordinate the elements of housing production to ensure the availability of housing where and when needed.

9. Assuming administrative coordination of the various state housing programs and cooperating with the various state agencies in their programs as they relate to housing.

10. Establishing public information and educational programs relating to housing; devising and administering programs to inform all citizens about housing and housing-related programs that are available on all levels of government; designing and administering educational programs to prepare families for home ownership and counseling them during their first years as homeowners; and promoting educational programs to assist sponsors in the development of low and moderate income housing as well as programs to lessen the problems of rental housing management.

11. Administering the provisions of the Industrialized Building Safety Law (§
36-70
et seq.).

12. Administering the provisions of the Uniform Statewide Building Code (§
36-97
et seq.).

13. Establishing and operating a Building Code Academy for the training of persons in the content, application, and intent of specified subject areas of the building and fire prevention regulations promulgated by the Board of Housing and Community Development.

14. Administering, in conjunction with the federal government, and promulgating any necessary regulations regarding energy standards for existing buildings as may be required pursuant to federal law.

15. Identifying and disseminating information to local governments about the availability and utilization of federal and state resources.

16. Administering, with the cooperation of the Department of Health, state assistance programs for public water supply systems.

17. Advising the Board on matters relating to policies and programs of the Virginia Housing Trust Fund.

18. Designing and establishing program guidelines to meet the purposes of the Virginia Housing Trust Fund and to carry out the policies and procedures established by the Board.

19. Preparing agreements and documents for loans and grants to be made from the Virginia Housing Trust Fund; soliciting, receiving, reviewing and selecting the applications for which loans and grants are to be made from such fund; directing the Virginia Housing Development Authority and the Department as to the closing and disbursing of such loans and grants and as to the servicing and collection of such loans; directing the Department as to the regulation and monitoring of the ownership, occupancy and operation of the housing developments and residential housing financed or assisted by such loans and grants; and providing direction and guidance to the Virginia Housing Development Authority as to the investment of moneys in such fund.

20. Establishing and administering program guidelines for a statewide homeless intervention program.

21. Administering 15 percent of the Low Income Home Energy Assistance Program (LIHEAP) Block Grant and any contingency funds awarded and carry over funds, furnishing home weatherization and associated services to low-income households within the Commonwealth in accordance with applicable federal law and regulations.

22. Developing a strategy concerning the expansion of affordable, accessible housing for older Virginians and Virginians with disabilities, including supportive services.

23. Serving as the Executive Director of the Commission on Local Government as prescribed in §
15.2-2901
and perform all other duties of that position as prescribed by law.

24. Developing a strategy, in consultation with the Virginia Housing Development Authority, for the creation and implementation of housing programs and community development for the purpose of meeting the housing needs of persons who have been released from federal, state, and local correctional facilities into communities.

25. Administering the Private Activity Bonds program in Chapter 50 (§
15.2-5000
et seq.) of Title 15.2 jointly with the Virginia Small Business Financing Authority and the Virginia Housing Development Authority.

26. Developing a statement of tenant rights and responsibilities explaining in plain language the rights and responsibilities of tenants under the Virginia Residential Landlord and Tenant Act (§
55.1-1200
et seq.) and maintaining such statement on the Department's website. The Director shall also develop and maintain on the Department's website a printable form to be signed by the parties to a written rental agreement acknowledging that the tenant has received from the landlord the statement of tenant rights and responsibilities as required by §
55.1-1204
. The Director may at any time amend the statement of tenant rights and responsibilities and such printable form as the Director deems necessary and appropriate. The statement of tenant rights and responsibilities shall contain a plain language explanation of the rights and responsibilities of tenants in at least 14-point type. The statement shall provide the telephone number and website address for the statewide legal aid organization and direct tenants with questions about their rights and responsibilities to contact such organization.

27. Developing a statement of tenant rights and responsibilities explaining in plain language the rights and responsibilities of tenants under the Virginia Manufactured Home Lot Rental Act (§
55.1-1300
et seq.) and maintaining such statement on the Department's website. The Director shall also develop and maintain on the Department's website a printable form to be signed by the parties to a written rental agreement acknowledging that the tenant has received from the landlord the statement of tenant rights and responsibilities as required by §
55.1-1303
. The Director may at any time amend the statement of tenant rights and responsibilities and such printable form as the Director deems necessary and appropriate. The statement of tenant rights and responsibilities shall contain a plain language explanation of the rights and responsibilities in at least 14-point type. The statement shall provide the telephone number and website address for the statewide legal aid organization and direct tenants with questions about their rights and responsibilities to contact such organization.

28. Developing a sample termination notice that includes language referencing acceptance of rent with reservation by a landlord following a breach of a lease by a tenant in accordance with §
55.1-1250
. The sample termination notice shall be in at least 14-point type and shall be maintained on the Department's website.

29. Developing and operating a Virginia Residential Sites and Structures Locator database to assist localities in marketing any structures and parcels determined by the locality to be suitable for future residential or mixed-use development or redevelopment and that are under (i) public ownership, (ii) public and private ownership, or (iii) private ownership if the owner or owners have authorized the locality to market the structure or parcel for future residential or mixed-use development or redevelopment purposes.

30. Conducting a comprehensive statewide housing needs assessment at least every five years, which shall include (i) a review of housing cost burden and instability, supply and demand for affordable rental housing, and supply and demand for affordable for-sale housing and (ii) regional or local profiles that focus on specific housing needs of particular regions or localities.

31. Developing a statewide housing plan that reflects the findings of the statewide housing needs assessment conducted pursuant to subdivision 30, which plan shall include measurable goals and be updated at least every five years to reflect changes in the Commonwealth's housing goals, and providing an annual report to the General Assembly on progress toward meeting the goals identified in such plan and the availability of housing that is accessible to people with disabilities.

32. Collecting reports submitted by localities pursuant to §
36-139.9
in any manner prescribed by the Department, including any forms developed by the Department to collect the information required to be reported by the localities pursuant to such section and publishing such reports on its website.

33.
E
stablish
ing
criteria to guide
a board of zoning appeals
in its decision-making process
for an appeal file
d
pursuant to
subsection C of
§
15.2-2209.4
and promulgate all necessary regulations. Such criteria or regulations shall ensure that localities meet required growth targets and shall also establish a method for giving extra weight, not to exceed 20 percent of the required target, to a locality's calculation of such targets
if they dedicate
at least
1
0
percent
of the new housing supply to
affordable housing
units
and for the rehabilitation of current, underutilized housing stock.
The Department shall also promulgate regulations that require localities to gather data specifying the number of new housing units proposed by submitted applications, the number of such units approved, and the number of housing units constructed over a specified time frame, as well as the number of existing housing units in the locality. Such data shall be submitted to the
Department
for purposes of transparency and to ensure compliance with the required growth targets.

34.
Carrying out such other duties as may be necessary and convenient to the exercise of powers granted to the Department.