Bill > HB408

This bill establishes the Enterprise Zone Housing Availability Grant Program to encourage the development of affordable housing within designated enterprise zones. To qualify for a grant, a developer must rent or sell residential properties, for which they incurred eligible costs (expenses for construction, expansion, or rehabilitation), to households earning between 80% and 120% of the local area median income (AMI). AMI refers to the median income for a specific geographic area, used to determine income eligibility for housing programs. For rental properties, rent is capped at 24% of the monthly AMI, with restrictions on rent increases for 10 years. For sold properties, resale price is limited to the original purchase price adjusted for AMI changes, and future buyers must also meet the income requirements, with these restrictions lasting for 10 years. Grant amounts are calculated as a percentage of eligible costs exceeding certain thresholds, with different rates and limits for regular developers and "major qualified zone developers" (those with over $20 million in eligible costs). The Board of Housing and Community Development will set guidelines for grant allocation, including processes for verifying household income and monitoring compliance with the affordability restrictions. Developers must apply for grants in the year following the sale or lease of the property.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB408