Bill > HB2245

This bill modifies how affordable rental housing properties are assessed for property tax purposes by establishing a more standardized and detailed approach to valuation. The bill directs the Department of Taxation to develop a uniform income and expense reporting form that property owners must complete prior to assessment, which will help assessors more accurately determine fair market value. When assessing these properties, assessors will primarily use the income approach, considering factors such as contract rent, rent restrictions, operating expenses, and limitations on property transfer. The bill expands the list of federal programs and laws defining affordable rental housing and specifies that properties generating income must be assessed using the income approach, based on current use, contract rent, and operating expenses from comparable affordable housing. If property owners do not provide the required financial information, assessors may use alternative valuation methods. A stakeholder group comprising representatives from affordable housing owners, advocates, local government, and commissioners of revenue will help develop the reporting form, which must be completed by September 1, 2025. The new assessment provisions will take effect for assessments beginning on or after January 1, 2026, aiming to create a more consistent and transparent process for valuing affordable rental housing properties.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB2245