Virginia legislation · 2026 Regular Session
Virginia SB388: An Act to amend and reenact §§ 15.2-2201 and 15.2-2286 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 15.2-2288.9, relating to affordable housing; religious organizations and other nonprofit tax-exempt properties.
Status: Chaptered, April 22, 2026
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.
What the bill says
An Act to amend and reenact §§ 15.2-2201 and 15.2-2286 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 15.2-2288.9, relating to affordable housing; religious organizations and other nonprofit tax-exempt properties. [S 388] Approved April 22, 2026 1. That §§ 15.2-2201 and 15.2-2286 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding a section numbered 15.2-2288.9 as follows: § 15.2-2201. Definitions. As used in this chapter, unless the context requires a different meaning: "501(c)(3) property tax-exempt nonp.
From the enrolled text, April 22, 2026:
An Act to amend and reenact §§ 15.2-2201 and 15.2-2286 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 15.2-2288.9, relating to affordable housing; religious organizations and other nonprofit tax-exempt properties. [S 388] Approved April 22, 2026 1. That §§ 15.2-2201 and 15.2-2286 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding a section numbered 15.2-2288.9 as follows: § 15.2-2201. Definitions. As used in this chapter, unless the context requires a different meaning: "501(c)(3) property tax-exempt nonprofit organization" means any organization exempt from taxation pursuant to § 501(c)(3) of the Internal Revenue Code of 1954 and whose real property taxes are exempt pursuant to § 58.1-3609. "Affordable housing" means, as a guideline, housing that is affordable to households with incomes at or below the area median income, provided that the occupant pays no more than thirty percent of his gross income for gross housing costs, including utilities. For the purpose of administering affordable dwelling unit ordinances authorized by this chapter, local governments may establish individual definitions of affordable housing and affordable dwelling units including determination of the appropriate percent of area median income and percent of gross income. "Conditional zoning" means, as part of classifying land within a locality into areas and …