Landlords, participating; increases tax credit that may be issued.
Impact
The bill significantly increases the maximum amount of tax credits that may be issued per fiscal year, from $250,000 to $1 million starting July 1, 2023. This adjustment is aimed at promoting participation among landlords in the housing choice voucher program, thereby facilitating greater access to affordable housing options for low-income residents in Virginia. As such, the bill addresses issues related to housing affordability and seeks to enhance the financial viability of rental properties in eligible census tracts.
Summary
House Bill 1771 proposes amendments to the Code of Virginia concerning tax credits available to landlords who participate in a housing choice voucher program. Specifically, it enables participating landlords renting qualified housing units to claim a tax credit of 10% of the fair market value of the rent paid by tenants covered under the program. This credit applies to the portion of the taxable year during which the unit is rented and is set to be in effect for taxable years beginning on or after January 1, 2010, until January 1, 2025.
Contention
Points of contention around HB 1771 could arise from concerns about the long-term implications of increased tax credits for landlords. Critics may argue that while the bill promotes greater housing availability, it could also lead to a potential decrease in rental income for landlords, particularly if demand for housing does not keep pace with increased rental capacity facilitated by tax incentives. Additionally, scrutiny may center on whether the parameters for what constitutes an 'eligible census tract' are stringent enough to ensure that the benefits genuinely reach low-income families.
A BILL to amend the Code of Virginia by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13, relating to income tax credit; affordable rental housing tax credit.
Landlord Accountability Act of 2025This bill prohibits housing discrimination based on income, provides protections to tenants of certain federally assisted housing, and establishes a low-income housing maintenance tax credit for eligible landlords.Specifically, the bill prohibits discrimination in rental housing and residential real estate transactions based on an individual's source of income and provides for penalties. Protected income sources includehousing vouchers and rental assistance,rental and homeownership subsidies,Social Security and disability income assistance, andspousal and child support.Additionally, landlords are prohibited from taking or failing to take certain actions with the intent to make a unit ineligible to receive Department of Housing and Urban Development (HUD) assistance. Landlords that violate this prohibition are subject to penalties and may be sued by harmed tenants. The bill further prohibits property owners of certain multifamily housing projects from intentionally leaving a unit vacant for more than 60 days. Property owners that violate this prohibition are subject to penalties.The bill also provides protections to tenants of multifamily housing projects, which includes requiring HUD to increase the staffing level for the Multifamily Housing Complaint Line and create a Multifamily Housing Complaint Resolution Program.In addition, HUD may provide grants to develop, expand, and assist tenant harassment prevention programs.Finally, the bill establishes a tax credit for qualifying landlords that is equal to the landlord's annual low-income housing maintenance expenses. To qualify, a landlord must have addressed within 30 days any relevant complaints filed under the complaint resolution program.
A bill for an act relating to assistance animals in residential rental housing, including damage reimbursement, refundable income tax credits, and a landlord insurance risk pool, and providing penalties and effective date provisions.