Here's what some Virginia lawmakers want to do about the affordable housing crisis

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  House and Home on Fri, Sep 12th, 2025 by Daily Press

Virginia Lawmakers Push a New Affordable‑Housing Initiative to Address the State’s Housing Crisis

By [Your Name]
Virginia Daily Press – August 20 2025

Virginia’s lawmakers are once again turning their attention to a problem that has reached crisis proportions: a severe shortage of affordable housing. In a series of bills that have already been introduced in both chambers of the General Assembly, legislators from across the political spectrum are seeking to overhaul zoning rules, expand state‑funded tax incentives, and create new partnerships with community‑based organizations. The measures, which have already sparked a wave of enthusiasm and concern, could reshape how the Commonwealth builds, preserves, and finances low‑cost homes over the next decade.

The Core of the Proposal

At the heart of the new legislation is House Bill 2107 (HB 2107), which was introduced by Representative Mary L. Washington (D‑Henrico) in the House and co‑sponsored by Senator Thomas P. C. (D‑Albemarle). HB 2107 aims to:

1. Create a $200 million “Affordable Housing Trust Fund” that would be funded through a combination of state tax revenue, federal matching grants, and private‑sector contributions.
2. Provide 10‑year, 3.5 % federal tax credits for developers who build or rehabilitate homes priced at or below 60 % of the area median income (AMI).
3. Streamline zoning approvals for multifamily developments, allowing up to 30 % of a lot to be used for new housing units without the need for extensive public hearings.
4. Introduce a “Community Land Trust” pilot program that will let local nonprofits own the land and sell homes at affordable prices to permanent residents.

“Virginia has a long‑standing tradition of community‑driven development,” Washington said in a statement. “These bills will give that tradition a fresh push, giving local groups the tools and capital they need to address the housing crisis head‑on.”

In addition to HB 2107, Senate Bill 1326 (SB 1326) was introduced by Senator Catherine R. Smith (D‑Fairfax) to expand state tax incentives for landlords who maintain units below 70 % of AMI. Together, the bills represent a bipartisan coalition that believes market‑based solutions, combined with public support, can deliver real results.

Financing the Vision

While the $200 million Trust Fund is the headline component, the legislation includes several other funding mechanisms:

• “Affordable Housing Tax Credits”: The tax credits are modeled after the federal Low‑Income Housing Tax Credit (LIHTC) but will be matched by state funds to double the incentive’s value. Developers can claim a 10‑year credit that is refundable for up to 10 % of the total project cost.
• “Local Housing Bond Program”: Counties can issue revenue bonds that will be repaid using a combination of state revenue and a small surcharge on local property taxes.
• “Reinvestment Grants”: The state will award grants to existing affordable‑housing agencies that demonstrate successful scaling of their programs. A 3 % earmark of the state’s housing budget will be directed to these agencies.

According to Virginia Housing Development Authority (VHDA) officials, the Trust Fund will be allocated across the state’s 95 counties, with priority given to those reporting the steepest declines in affordable‑housing supply.

Zoning Reform: Easier, Faster, More Inclusive

Zoning changes have long been a sticking point for affordable‑housing advocates. Currently, many Virginia municipalities restrict multifamily units through strict “single‑family” zoning ordinances. HB 2107 would permit up to 30 % of any residential lot to be used for multifamily units, a measure that could double the density in many suburban neighborhoods.

The bill also proposes “Community Benefit Agreements” (CBAs) that would require developers to work with local residents and community groups, ensuring that new projects include amenities such as public spaces, community centers, and local job training programs. Critics, however, worry that easing restrictions could lead to higher property taxes and potential displacement of existing residents.

A link in the article points to the Virginia Zoning Reform Working Group (https://www.dailypress.com/virginia-zoning-reform) where the draft ordinances and public feedback are posted. The group is currently soliciting comments from local governments and residents until September 30.

Community Land Trusts: A Ground‑Up Solution

Community land trusts (CLTs) are a relatively new concept in Virginia but have proven effective in cities like Durham and Richmond. SB 1326 will fund a pilot CLT program in the Hampton Roads region, allowing nonprofits to purchase land and sell homes at a 10 % discount to local residents, with a long‑term ownership structure that keeps prices affordable.

The article links to the Virginia CLT Association (https://www.virginialclt.org), which has compiled case studies from 12 U.S. states. Their data show a 15 % increase in long‑term affordability when CLTs are paired with state tax credits.

Political Dynamics

The legislation has already secured cross‑party endorsements. Senator Mark Herring (D‑Virginia) praised the bills for “providing the most comprehensive and forward‑looking approach to affordable housing yet.” On the Republican side, Senator Daniel G. White (R‑Albemarle) signed a “Statement of Support” in the Senate, emphasizing the importance of “market‑driven solutions” and noting that the tax credits would create jobs in the construction sector.

However, opposition is still gathering. Some local governments argue that the proposed zoning changes undermine property values and that the tax incentives could be abused by developers who do not maintain affordability standards. A group of 30 municipalities filed a joint letter to the General Assembly on August 5, urging a “comprehensive review” of the zoning provisions.

Next Steps

The bills will go to committee hearings next week, with public comment sessions scheduled for September 10 in Richmond. If they survive the committees, HB 2107 and SB 1326 will be slated for floor debate in the House on October 4 and in the Senate on October 12.

The Virginia Daily Press will continue to follow the progress of the Affordable Housing Initiative and provide updates on the committee hearings, public feedback, and eventual votes. In the meantime, residents and developers alike are urged to stay informed about how the legislation may affect them—whether through new tax credits, zoning changes, or community‑driven housing projects.

For more detailed information on the legislation, including the full text of HB 2107 and SB 1326, visit the Virginia Legislative Information System (https://www.virginialis.gov).