Virginia Provides Certain Housing Development By-Right Conditioned on Housing Property Taxation (Bill 1 of 2)

The Virginia Governor signed a law that includes providing that zoning ordinances shall allow the by-right development or construction of a mixed-use or residential project by a property tax-exempt religious organization or a federal I.R.C. §501(c)(3) property tax-exempt nonprofit organization, subject to certain conditions, including that all housing built in a mixed-use or residential project be subject to local real property taxation following completion. The law is identical to H.B. 1279. The law takes effect on July 1 with the provisions of the law effective beginning Jan. 1, 2027, and expiring on Jan. 1, 2031. [S.B. 388, enacted 04/22/26]