FWD #258 • 390 words

Virginia’s 2026 General Assembly Housing Updates

Guest writers: Isabel McLain and Charles Miller, Virginia Housing Alliance

Virginia’s legislative session closed in March with a notable collection of housing wins. The General Assembly passed more than a dozen housing-related bills targeting everything from zoning reform to tenant protections. Governor Spanberger signed several of the session’s most-watched bills this week — here’s what they mean.

She signed SB531, requiring all localities to allow accessory dwelling units in single-family residential zones statewide. A modest but meaningful nudge toward more housing in more places. That one kicks in July 2027.

HB4 gives localities a Right of First Refusal on subsidized rental properties at risk of losing affordability — a tool to keep affordable homes affordable, not just build new ones.

HB15/SB48 extends the mandatory waiting period before a landlord can terminate a lease for nonpayment from 5 to 14 days, giving tenants more time to catch up before facing eviction.

SB373 — allowing evidence of uninhabitable living conditions as a defense in eviction cases — was signed, with HB281 amended to match by removing its delayed enactment. And HB837/SB273, which improves access to the Eviction Diversion Program by expanding eligibility and reducing burdensome requirements, was signed as well.

The Faith in Housing Act (SB388/HB1279) is still in play. The Governor returned it with amendments rather than a veto, so it heads back to the legislature at the April 22 reconvened session. If the amendments are accepted, by-right development of affordable housing on land owned by religious organizations and eligible nonprofits becomes law — effective January 1, 2027.

More Tools for Local Governments

The session quietly expanded what localities can do. They can now fast-track rezoning for qualifying affordable housing developments (HB594), establish stronger inclusionary zoning programs (HB867/SB74), and offer property tax exemptions for nonprofit-controlled affordable housing (HB854). More levers — whether localities pull them is another question.

The Budget Is Still Up in the Air

The General Assembly adjourned without a finalized FY27-28 budget. Legislators reconvene April 23 to send a final proposal to the Governor. The initial House and Senate bills together included roughly $70.4 million in housing-related investments for FY27 — covering the Virginia Housing Trust Fund, rapid rehousing services, and more. Watch this space.

What Didn’t Make It

Only one of VHA’s top priorities didn’t cross the finish line. The Right to Rest bill (HB1394), which would have protected unhoused Virginians from penalties for life-sustaining activities in public spaces, was continued to 2027 with a letter to the Housing Commission.

Real progress this session. But for a lot of Virginians, the hardest challenges aren’t resolved yet.