Bill > HB4

This bill establishes a comprehensive framework for preserving affordable housing by giving localities the ability to exercise a right of first refusal when publicly supported housing is at risk of losing its affordability status. The bill defines "publicly supported housing" as residential properties with 10 or more rental units that receive benefits from specific federal and state housing programs and have affordability restrictions. Localities can adopt an ordinance requiring owners of such housing to provide 24-month written notice before terminating affordability restrictions, and can appoint a qualified designee (such as a nonprofit or housing authority) to potentially purchase the property. If a third-party buyer makes an offer to purchase the property, the locality or its qualified designee has 30 days to match the offer and commit to maintaining affordability for at least 15 years. The bill includes several exemptions to the right of first refusal, such as transfers between family members or transfers where the buyer agrees to extend affordability for a specified period. Localities can establish fines up to $5,000 for non-compliance, and any locality with a population over 3,500 implementing these provisions must submit an annual report to the Department of Housing and Community Development. The bill aims to protect affordable housing stock by giving local governments a mechanism to prevent the loss of low- and moderate-income housing options.

Business and Industry, Housing and Urban Affairs, Justice

https://lis.virginia.gov/bill-details/20261/HB4