HB1042 — Zoning for Housing Production Pilot Program; created, affordable dwelling unit policy incentives.

Summary

Zoning for Housing Production Pilot Program; created, affordable dwelling unit policy incentives.

Bill Text

Compared against the Code of Virginia as published AI-generated reading aid — verify against the official bill.

This bill amends 4 section(s) of the Code of Virginia: 36-176, 36-177, 36-178, 36-179.

• 36-176

  As used in this chapter, unless the context requires a different meaning:

  Inserts “As used in this chapter, unless the context requires a different meaning:”.

• 36-176

  "Accessory dwelling unit" means a self-contained residential dwelling unit located on the same lot as a stand-alone or detached single-family home.

  Inserts “"Accessory dwelling unit" means a self-contained residential dwelling unit located on the same lot as a stand-alone or detached single-family home.”.

• 36-176

  "Affordable housing" means a dwelling for which the rent is no greater than 30 percent of the total household income of a household earning 80 percent of the area median income and that is held available for persons or families that have a household income no greater than 80 percent of the area median income.

  Inserts “"Affordable housing" means a dwelling for which the rent is no greater than 30 percent of the total household income of a household earning 80 percent of the area median income and that is held available for persons or families that have a household income no greater than 80 percent of the area median income.”.

• 36-176

  "By-right development" means land that may be developed without applying for a zoning special exception or special use permit.

  Inserts “"By-right development" means land that may be developed without applying for a zoning special exception or special use permit.”.

• 36-176

  "Department" means the Department of Housing and Community Development.

  Inserts “"Department" means the Department of Housing and Community Development.”.

• 36-176

  "Eligible locality" means the Cities of Hampton, Manassas, Manassas Park, Newport News, and Richmond and Chesterfield, Hanover, Henrico, Prince William, Spotsylvania, and Stafford

  Inserts “"Eligible locality" means the Cities of Hampton, Manassas, Manassas Park, Newport News, and Richmond and Chesterfield, Hanover, Henrico, Prince William, Spotsylvania, and Stafford”.

• 36-176

  Counties.

  Inserts “Counties.”.

• 36-176

  "Mixed-income community" means a development that includes residential dwelling units that are affordable to persons and families with a range of income levels.

  Inserts “"Mixed-income community" means a development that includes residential dwelling units that are affordable to persons and families with a range of income levels.”.

• 36-176

  "Moderately priced housing" means housing for which the rent is no more than 30 percent of the income of a tenant whose income is no greater than the area median income.

  Inserts “"Moderately priced housing" means housing for which the rent is no more than 30 percent of the income of a tenant whose income is no greater than the area median income.”.

• 36-176

  "Multifamily housing" means residential buildings consisting of more than one self-contained dwelling unit, including duplexes, triplexes, and quadriplexes.

  Inserts “"Multifamily housing" means residential buildings consisting of more than one self-contained dwelling unit, including duplexes, triplexes, and quadriplexes.”.

• 36-176

  "Program" means the Zoning for Housing Production Pilot Program created pursuant to § 36-178.

  Inserts “"Program" means the Zoning for Housing Production Pilot Program created pursuant to § 36-178.”.

• 36-176

  "Single-family housing" means a dwelling consisting of only one self-contained residential unit.

  Inserts “"Single-family housing" means a dwelling consisting of only one self-contained residential unit.”.

• 36-177

  A. The Department shall administer this chapter and shall have the following powers and duties:

  Inserts “A. The Department shall administer this chapter and shall have the following powers and duties:”.

• 36-177

  1. Create an application form and develop an application scoring matrix that assigns each application for a grant from the Program points based on the extent to which the application addresses the grant criteria described in § 36-179 to determine the distribution, duration, and termination of awards from the Program;

  Inserts “1. Create an application form and develop an application scoring matrix that assigns each application for a grant from the Program points based on the extent to which the application addresses the grant criteria described in § 36-179 to determine the distribution, duration, and termination of awards from the Program;”.

• 36-177

  2. Determine a minimum and a maximum grant award amount to be awarded to successful applicants prior to accepting applications;

  Inserts “2. Determine a minimum and a maximum grant award amount to be awarded to successful applicants prior to accepting applications;”.

• 36-177

  3. Establish a time period of no less than 30 days during which applications for grants from the Program will be accepted on an annual basis;

  Inserts “3. Establish a time period of no less than 30 days during which applications for grants from the Program will be accepted on an annual basis;”.

• 36-177

  4. Review each application received and request any additional information that it deems necessary to evaluate the application within 90 days of the last date designated for localities to submit an application;

  Inserts “4. Review each application received and request any additional information that it deems necessary to evaluate the application within 90 days of the last date designated for localities to submit an application;”.

• 36-177

  5. Grant awards to eligible localities from the Program based on the points assigned to each application according to the scoring matrix;

  Inserts “5. Grant awards to eligible localities from the Program based on the points assigned to each application according to the scoring matrix;”.

• 36-177

  6. Collect and keep record of the actual number of affordable housing units developed in localities that receive a grant from the Program and projections made by such locality during the application process;

  Inserts “6. Collect and keep record of the actual number of affordable housing units developed in localities that receive a grant from the Program and projections made by such locality during the application process;”.

• 36-177

  7. Seek independent analytical assistance from outside consultants, as necessary, including post-grant assessments and reviews to evaluate the results and outcomes of grants awarded pursuant to this chapter; and

  Inserts “7. Seek independent analytical assistance from outside consultants, as necessary, including post-grant assessments and reviews to evaluate the results and outcomes of grants awarded pursuant to this chapter; and”.

• 36-177

  8. Submit an annual report to the Governor and the General Assembly no later than November 1 of each year with the information described in subsection B as a report document as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents and reports that shall be posted on the General Assembly's website.

  Inserts “8. Submit an annual report to the Governor and the General Assembly no later than November 1 of each year with the information described in subsection B as a report document as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents and reports that shall be posted on the General Assembly's website.”.

• 36-177

  B. The annual report submitted by the Department to the Governor and the General Assembly pursuant to subsection A shall include the following information:

  Inserts “B. The annual report submitted by the Department to the Governor and the General Assembly pursuant to subsection A shall include the following information:”.

• 36-177

  1. The number of applicants for a grant from the Program;

  Inserts “1. The number of applicants for a grant from the Program;”.

• 36-177

  2. The number and dollar amounts of grants awarded;

  Inserts “2. The number and dollar amounts of grants awarded;”.

• 36-177

  3. The projected number of housing units to be created in each locality awarded a grant from the Program and the actual number of housing units developed in each locality from the use of such grant;

  Inserts “3. The projected number of housing units to be created in each locality awarded a grant from the Program and the actual number of housing units developed in each locality from the use of such grant;”.

• 36-177

  4. Any legislative recommendations relevant to the provisions of this chapter;

  Inserts “4. Any legislative recommendations relevant to the provisions of this chapter;”.

• 36-177

  5. An assessment of which additional localities could be added to the list of eligible localities to further the goals of the Program and the estimated cost of adding such localities;

  Inserts “5. An assessment of which additional localities could be added to the list of eligible localities to further the goals of the Program and the estimated cost of adding such localities;”.

• 36-177

  6. The estimated cost of expanding the Program to all localities of the Commonwealth; and

  Inserts “6. The estimated cost of expanding the Program to all localities of the Commonwealth; and”.

• 36-177

  7. Any other information deemed by the Department to be relevant and useful to the Governor and General Assembly in assessing such report.

  Inserts “7. Any other information deemed by the Department to be relevant and useful to the Governor and General Assembly in assessing such report.”.

• 36-178

  A. There is hereby created the Zoning for Housing Production Pilot Program. All funds as may be appropriated by the General Assembly and from any other sources, public or private, shall be paid into the state treasury and credited to the Program.

  Inserts “A. There is hereby created the Zoning for Housing Production Pilot Program. All funds as may be appropriated by the General Assembly and from any other sources, public or private, shall be paid into the state treasury and credited to the Program.”.

• 36-178

  B. The Program shall encourage localities to adopt flexible zoning policies that promote a full range of housing choices, create mixed-income neighborhoods, and encourage the construction and continued existence of affordable housing and moderately priced housing in the Commonwealth. Specifically, the Program shall be used to incentivize, using grant awards, eligible localities to adopt changes to their existing zoning policies to allow for by-right development that is expected to further the goals listed in this subsection. No locality other than an eligible locality shall receive funding from the Program.

  Inserts “B. The Program shall encourage localities to adopt flexible zoning policies that promote a full range of housing choices, create mixed-income neighborhoods, and encourage the construction and continued existence of affordable housing and moderately priced housing in the Commonwealth. Specifically, the Program shall be used to incentivize, using grant awards, eligible localities to adopt changes to their existing zoning policies to allow for by-right development that is expected to further the goals listed in this subsection. No locality other than an eligible locality shall receive funding from the Program.”.

• 36-179

  A. To qualify for receipt of a grant from the Program, a locality shall make at least one of the following changes to its zoning ordinances:

  Inserts “A. To qualify for receipt of a grant from the Program, a locality shall make at least one of the following changes to its zoning ordinances:”.

• 36-179

  1. Allow by-right development of multifamily housing in zones designated for single-family residential use

  Inserts “1. Allow by-right development of multifamily housing in zones designated for single-family residential use”.

• 36-179

  that are within urban development areas

  Inserts “that are within urban development areas”.

• 36-179

  ;

  Inserts “;”.

• 36-179

  2. Reduce lot size requirements or allow for the division of existing lots;

  Inserts “2. Reduce lot size requirements or allow for the division of existing lots;”.

• 36-179

  3. Allow for the construction of accessory dwelling units in single-family zones that can be legally inhabited by individuals who are not relatives of the primary homeowner;

  Inserts “3. Allow for the construction of accessory dwelling units in single-family zones that can be legally inhabited by individuals who are not relatives of the primary homeowner;”.

• 36-179

  4. Implement or expand affordable dwelling unit policies under § 15.2-2304 or 15.2-2305;

  Inserts “4. Implement or expand affordable dwelling unit policies under § 15.2-2304 or 15.2-2305;”.

• 36-179

  5. Allow lower-cost home construction alternatives, such as modular, 3-D printed, pre-fabricated, manufactured, and duplex-manufactured housing

  Inserts “5. Allow lower-cost home construction alternatives, such as modular, 3-D printed, pre-fabricated, manufactured, and duplex-manufactured housing”.

• 36-179

  ; or

  Inserts “; or”.

Action History

1. February 18, 2026

   H Left in Committee Appropriations

2. February 11, 2026

   H Placed on Appropriations Agenda

3. February 10, 2026

   H Assigned HAPP sub: Commerce Agriculture & Natural Resources

4. February 10, 2026

   H Referred to Committee on Appropriations

5. February 10, 2026

   H Reported from General Laws with amendment(s) and referred to Appropriations (21-Y 0-N)

6. February 07, 2026

   H Placed on General Laws Agenda

7. February 05, 2026

   H Subcommittee recommends reporting with amendment(s) and referring to Appropriations (10-Y 0-N)

8. February 05, 2026

   H House subcommittee offered

9. February 04, 2026

   H Placed on General Laws Agenda

10. January 27, 2026

    H Fiscal Impact Statement from Department of Planning and Budget (HB1042)

11. January 26, 2026

    H Assigned HGL sub: Housing/Consumer Protection

12. January 14, 2026

    H Referred to Committee on General Laws

13. January 14, 2026

    H Prefiled and ordered printed; Offered 01-14-2026 26102267D

Sponsors

• Betsy B. Carr · Primary

Votes

Subjects