Faith and housing; affordable housing on property owned by religious or tax-exempt organizations.
Summary
SB1178 creates a new “faith and housing” framework intended to encourage affordable housing development on land owned by religious organizations and certain property tax-exempt nonprofit organizations. Beginning July 1, 2025, localities must consider these strategies during their next and all later comprehensive plan reviews, and those strategies may include higher residential density, streamlined approval processes, and dedicated local staff support for such projects.
The bill also authorizes localities to adopt a faith and housing ordinance that establishes a clear approval path for affordable housing on qualifying property. Such ordinances may create zoning overlay districts, reduce or waive fees, expedite rezoning or special exception review, and set alternative zoning standards for height, bulk, placement, parking, lot size, and density. Localities may also seek administrative help from the Department of Housing and Community Development and apply for infrastructure funding tied to these projects. The bill further directs DHCD to publish program guidelines and to include adopted faith and housing ordinances in the statewide housing needs assessment.
Impact
The bill would add new sections to the Virginia Code governing comprehensive planning, zoning, and DHCD housing assistance. It affects local land-use authority by requiring comprehensive plan consideration of faith-and-housing strategies and by expressly permitting local ordinances tailored to affordable housing development on property owned by religious and certain nonprofit entities. It also expands DHCD’s role by assigning it guideline development, technical assistance, grant administration for infrastructure upgrades, and reporting of adopted ordinances in the statewide housing needs assessment.
Sentiment
The available voting history suggests generally favorable committee sentiment, with the bill advancing 12-3 from Local Government after being rereferred there from General Laws and Technology on a unanimous 15-0 vote. The substitute version indicates continued refinement rather than rejection, which is consistent with a bill that has support but may still be undergoing policy and drafting adjustments as it moves through the process.
Contention
The main points of contention likely center on land-use and zoning policy, especially the extent to which localities should be encouraged or effectively required to accommodate denser residential development on church and nonprofit-owned land. Potential concerns include local control, neighborhood impacts, expedited review timelines, and whether special zoning treatment for religious and tax-exempt property creates unequal treatment or administrative burdens. Supporters are likely to emphasize affordable housing production and the use of underutilized land, while skeptics may focus on implementation costs, infrastructure needs, and the scope of state involvement.