Advocacy and Policy

2026 VAHCDO Legislative Recap

 
The 2026 General Assembly brought several important changes for Virginia's housing and community development community, including new tools to support affordable housing development and changes to landlord-tenant law. Below are highlights from the session, resources for reviewing legislation tracked by VAHCDO, and issues we will continue to follow heading into 2027.

2026 VAHCDO Legislative Summary (download)

VAHCDO's Legislative Summary provides a concise reference to legislation tracked during the 2026 General Assembly Session. Bills are grouped by similar subject matter and, for enacted legislation, organized by effective date. The summary also identifies legislation continued to 2027 and proposals that did not advance during the 2026 session.

2026 VAHCDO Bill Tracker (download)

The 2026 Bill Tracker provides a broader record of legislation monitored by VAHCDO during the legislative session, organized numerically by bill number.

SB 181: Partial Real Property Tax Exemption for Qualifying Residential Conversions

One of the most significant new housing tools enacted in 2026 was SB 181, which creates new incentives for converting older retail, commercial, and religious buildings to residential use.

Sen. Angelia Williams Graves championed SB 181 as a new tool for communities like Norfolk, where limited developable land makes reuse of existing buildings especially important to expanding housing supply. VAHCDO worked closely on the legislation as it moved through the General Assembly, including with Del. Vivian Watts on safeguards that became part of the final law.

The legislation allows localities to provide a partial real property tax exemption for qualifying residential conversions. Eligible buildings generally must have been in service for at least 15 years and meet statutory affordability and investment requirements. Localities may determine the percentage and duration of the exemption, up to 15 years, within certain parameters.

SB 181 also gives localities additional options to encourage qualifying conversions, including reduced permit fees, streamlined permit review, and certain reductions in gross receipts taxes.

VAHCDO has developed an SB 181 Implementation Guide and Model Ordinance (download) to help members and their localities put the new authority into practice. The guide identifies the major local policy decisions required for implementation, while the model ordinance provides a framework that can be adapted to an individual locality's code.

SB 729/HB 1227: Increasing Bond Authority for Housing

SB 729/HB 1227 increased the share of Virginia’s private activity bond state ceiling dedicated to housing from 57% to 67%. The legislation increased Virginia Housing’s allocation from 43% to 50% and the allocation for local housing authorities from 14% to 17%.

VAHCDO supported the legislation as an important step toward expanding the financing available for affordable housing development.

HB 806: Industrial Development Authorities and Affordable Housing

HB 806, introduced by Del. Betsy Carr, expands the authority of industrial development authorities (IDAs) to support affordable housing, including by issuing bonds associated with affordable housing construction. Previously, IDAs could exercise these housing powers only in localities where a redevelopment and housing authority had not been activated.

As the bill reached the Governor, VAHCDO requested an amendment requiring coordination and consent from the local housing authority before an IDA could issue affordable housing bonds. The goal was to preserve the housing authority’s existing role in local affordable housing finance and avoid having multiple local entities compete for the same limited allocation of private activity bonds.

HB 806 ultimately became law without the requested coordination requirement. VAHCDO will continue to monitor its implementation and the interaction between IDAs and redevelopment and housing authorities.

HB 1415: Common Household Pets

HB 1415 was the latest version of an issue VAHCDO has followed for several years.

Earlier legislation, including HB 1614/SB 1384 in 2023, would have required housing authorities to permit tenants to own or maintain common household pets without limits on the number of pets or their size. The 2026 proposal took a different approach, applying to multifamily residential housing receiving an investment of public funds.

The House-passed version of HB 1415 would have required covered developments to allow at least one common household pet and prohibited restrictions on breed or weight below 65 pounds. It also included pet-policy disclosure requirements for landlords subject to the Virginia Residential Landlord and Tenant Act. The bill passed the House 60-34 but was defeated in the Senate General Laws and Technology Committee, which passed it by indefinitely on a 14-1 vote.

VAHCDO will continue to monitor this issue heading into 2027.

Landlord-Tenant and Eviction Changes

The 2026 General Assembly enacted several significant changes to Virginia landlord-tenant law and the unlawful detainer process.

HB 15/SB 48 increased the mandatory notice period for nonpayment of rent from five days to 14 days before a landlord may terminate the rental agreement for nonpayment.

HB 221 made a separate and significant change to unlawful detainer appeals. The legislation removes the requirement that an indigent defendant post an appeal bond when appealing an unlawful detainer judgment from general district court to circuit court.

The appeal bond has served to secure amounts owed under the judgment while an eviction case moves to circuit court. Under HB 221, a qualifying indigent defendant may appeal an unlawful detainer judgment without first posting a bond securing those outstanding amounts.

The law continues to require payment of ongoing contractual monthly rent during the appeal, and a landlord has a mechanism to seek possession if those payments are not made. Nevertheless, eliminating the initial bond requirement can extend the period during which a housing provider is unable to recover possession while previously accrued rent remains unpaid.

For affordable housing providers, the consequences can extend beyond an individual case. Housing authorities and other providers operate within constrained budgets and regulatory requirements, while the costs, delays, and risks associated with nonpayment cases can also influence private landlords' decisions about participating in programs such as the Housing Choice Voucher Program. These changes therefore warrant attention for their potential impact on housing operations and participation in affordable housing programs.

The 14-day notice requirement and appeal-bond change also do not operate in isolation. They are part of a broader series of recent changes to the VRLTA and eviction process that can lengthen the timeline and change the procedures for resolving nonpayment cases.

VAHCDO will continue to monitor the cumulative impact of these changes on housing authorities, affordable housing providers, and participation in housing programs. Landlord-tenant and eviction policy also remains an active area of study before the Virginia Housing Commission, and VAHCDO will continue following that work and evaluating proposals that may emerge for the 2027 General Assembly.

2026 Advocacy and Policy Updates

VAHCDO's advocacy work continues between General Assembly sessions. We monitor legislative studies and other policymaking bodies throughout the year, identify issues important to members, and provide updates as proposals develop.

Virginia Housing Commission

The Virginia Housing Commission studies housing, real property, community development, and land-use issues and develops recommendations for consideration by the General Assembly. VAHCDO is following several Commission studies with implications for housing and community development professionals.

Local Rent Regulation. The Commission is studying proposals to authorize local rent regulation, including their potential effects on housing providers, construction, preservation, and affordable housing. VAHCDO is particularly focused on how any proposal could interact with affordable housing developments, existing financing structures, and efforts to increase housing supply.

Rental Fees and Security Deposits. A Commission workgroup continues to consider legislation related to fees in residential rental agreements, including application fees and deposits, security deposits, and other rental charges. VAHCDO is monitoring the workgroup as recommendations are developed for the full Commission.

Landlord-Tenant and Eviction Policy. The Commission is reviewing legislation related to the Virginia Residential Landlord and Tenant Act and analyzing eviction data. VAHCDO is monitoring the cumulative impact of recent changes to the nonpayment and eviction process and any additional proposals that may emerge for 2027.

Virginia Housing Commission meetings, materials, videos and summaries.

https://vhc.virginia.gov/meetings.asp

Recodification of Title 36: Housing

The Virginia Code Commission has discussed Title 36: Housing as a potential future recodification project.

A title recodification generally does not make substantive changes to the law. Instead, the Code Commission reviews existing provisions that may need to be reorganized, updated, or removed as obsolete. Any substantive changes are identified in the recodification report and drafting notes. The process is led by the Division of Legislative Services and includes opportunities for participation by interested parties.

Because Title 36 contains many of the statutes governing housing and community development programs in Virginia, VAHCDO will monitor any future recodification and keep members informed of opportunities for review and participation.

Virginia Code Commission: Title Recodification FAQs.

https://codecommission.dls.virginia.gov/faq_title_recodifications.shtml

Advocacy Archive

2025 VAHCDO Bill Tracker (download)

2024 VAHCDO Legislative Recap (download)

2024 VAHCDO Bill Tracker (download)

2023 VAHCDO Legislative Recap (download)

Questions or Policy Issues?

Have a legislative or policy question, or an issue VAHCDO should be following? Contact Luke Priddy, VAHCDO's registered lobbyist, for questions, feedback, or issues that may warrant VAHCDO's attention.

Luke Priddy, (540) 798-6531, lpriddy@LSGteam.com