An Act to amend and reenact § 15.2-4905 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 15.2-958.4:1, relating to local authority; affordable housing performance grant programs.
HB352 authorizes Virginia localities that have an industrial development authority or economic development authority to create an affordable housing performance grant program by ordinance. Under the bill, the local authority may award grants to qualifying property owners for the construction or improvement of property that results in affordable housing, as defined locally. The ordinance must set application procedures, eligibility criteria, permit and completion requirements, and a process for recording a restrictive covenant that keeps the property affordable for a term of up to 30 years.
The bill also limits the size of any grant to no more than the increase in assessed value attributable to the construction or improvement, as determined by the local assessor. Localities may charge an application fee of up to $250 to cover administrative costs. The measure amends the powers of industrial development and economic development authorities in § 15.2-4905 to support this new grant authority and related administration.
HB352 adds a new local-government tool in the Code of Virginia for incentivizing affordable housing development through performance-based grants. It affects localities with industrial development authorities or economic development authorities, property owners seeking to develop qualifying projects, local assessors, and circuit court clerks who would record the required restrictive covenants. The bill also expands the statutory powers of authorities under § 15.2-4905 to align with the new grant program.
The available record shows no committee transcript or recorded vote data, so there is no documented floor or committee debate to gauge sentiment directly. Based on the bill’s enactment, the measure appears to have been acceptable to the General Assembly and signed into law, suggesting overall support for local affordable housing incentives.
The main policy issues embedded in the bill are local control, the length and enforceability of affordability covenants, and the fiscal/administrative design of the grant program. The bill leaves key definitions and eligibility standards to local ordinance, which may appeal to localities seeking flexibility but could raise concerns about uneven implementation. The requirement for a recorded restrictive covenant lasting up to 30 years, and the cap tying grants to the increase in assessed value, are likely the most significant constraints on applicants and the most relevant points for any future debate.