{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3970.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3970.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3970.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3970.1.html"}],"law_id":56926,"edition_id":1,"section_id":56926,"structure_id":14915,"section_number":"58.1-3970.1","catch_line":"Appointment of special commissioner to execute title to certain real estate with delinquent taxes or liens to localities","history":"1999, c. 869; 2003, cc. 16, 156; 2004, c. 968; 2011, c. 688; 2012, cc. 87, 610; 2014, c. 519; 2015, c. 379; 2019, cc. 159, 541; 2020, c. 244; 2021, Sp. Sess. I, c. 408; 2022, cc. 15, 713; 2025, c. 267.","full_text":"A\n\n1. Except as provided in subsection B, in any proceedings under this article for the sale of a parcel or parcels of real estate that meet all of the following: (i) each parcel has delinquent real estate taxes or the locality has a lien against the parcel for removal, repair, or securing of a building or structure; removal of trash, garbage, refuse, or litter; or the cutting of grass, weeds, or other foreign growth; (ii) each parcel has an assessed value of $75,000 or less; and (iii) (a) such taxes and liens, together, including penalty and accumulated interest, exceed 50 percent of the assessed value of the parcel, (b) such taxes alone exceed 25 percent of the assessed value of the parcel, or (c) for parcels containing a structure that is a derelict building, as that term is defined in \u00a7 15.2-907.1, such taxes and liens, together, including penalty and accumulated interest, exceed 25 percent of the assessed value of the parcel, the locality may petition the circuit court to appoint a special commissioner to execute the necessary deed or deeds to convey the real estate, in lieu of the sale at public auction, to the locality, to the locality’s land bank entity, or to an existing nonprofit entity designated by the locality to carry out the functions of a land bank entity pursuant to \u00a7 15.2-7512. After notice as required by this article, service of process, and upon answer filed by the owner or other parties in interest to the complaint, the court shall allow the parties to present evidence and arguments, ore tenus, prior to the appointment of the special commissioner. Any surplusage accruing to a locality, land bank entity, or existing nonprofit entity as a result of the sale of the parcel or parcels after the receipt of the deed shall be payable to the beneficiaries of any liens against the property and to the former owner or his heirs, devisees, successors, or assigns in accordance with \u00a7 58.1-3967. No deficiency shall be charged against the owner after conveyance to the locality, land bank entity, or existing nonprofit entity.2\n\nA land bank entity or existing nonprofit entity receiving any parcel pursuant to this section shall either (i) sell the property to a third party in an arms-length transaction or, if the land bank entity or existing nonprofit entity develops the property before selling it, make such sale within a reasonable period of time after completing such development or (ii) if the land bank entity or existing nonprofit entity does not intend to sell the property, pay to the beneficiaries of any liens against the property and to the former owner or his heirs, devisees, successors, or assigns any amount of surplusage, if any, that would result if the property were sold and the proceeds distributed in accordance with § 58.1-3967. For purposes of this section, “existing nonprofit entity” and “land bank entity” have the same meaning as those terms are defined in § 15.2-7500.B\n\nFor a parcel or parcels of real estate in a locality with a score of 100 or higher on the fiscal stress index, as published by the Department of Housing and Community Development in July 2020, all of the provisions of subsection A shall apply except (i) that the percentage of taxes and liens, together, including penalty and accumulated interest, and the percentage of taxes alone set forth in clauses (iii) (a) and (b) of subdivision A 1 shall exceed 35 percent and 15 percent, respectively, of the assessed value of the parcel or parcels or (ii) that the percentage of taxes and liens, together, including penalty and accumulated interest, and the percentage of taxes alone set forth in clauses (iii) (a) and (b) of subdivision A 1 shall exceed 20 percent and 10 percent, respectively, of the assessed value of the parcel or parcels, and each parcel has an assessed value of $150,000 or less, provided that under this clause the property is not an occupied dwelling, and the locality enters into an agreement for sale of the parcel to a nonprofit organization to renovate or construct a single-family dwelling on the parcel for sale to a person or persons to reside in the dwelling whose income is below the area median income.C\n\nFor sales by a nonprofit organization pursuant to subsection B, such sales may include either (i) both the land and the structural improvements on a property or (ii) only the structural improvements of a property and not the land the structural improvements are located on. A sale of only the structural improvements is permissible only if (a) the structural improvements are subject to a ground lease with a community land trust, as that term is defined in § 55.1-1200; (b) the structural improvements are subject to a ground lease that has a term of at least 90 years; and (c) the community land trust retains a preemptive option to purchase such structural improvements at a price determined by a formula that is designed to ensure that the improvements remain affordable in perpetuity to low-income and moderate-income families earning less than 120 percent of the area median income, adjusted for family size.","order_by":null,"text":{"0":{"id":208512,"text":"1. Except as provided in subsection B, in any proceedings under this article for the sale of a parcel or parcels of real estate that meet all of the following: (i) each parcel has delinquent real estate taxes or the locality has a lien against the parcel for removal, repair, or securing of a building or structure; removal of trash, garbage, refuse, or litter; or the cutting of grass, weeds, or other foreign growth; (ii) each parcel has an assessed value of $75,000 or less; and (iii) (a) such taxes and liens, together, including penalty and accumulated interest, exceed 50 percent of the assessed value of the parcel, (b) such taxes alone exceed 25 percent of the assessed value of the parcel, or (c) for parcels containing a structure that is a derelict building, as that term is defined in \u00a7 15.2-907.1, such taxes and liens, together, including penalty and accumulated interest, exceed 25 percent of the assessed value of the parcel, the locality may petition the circuit court to appoint a special commissioner to execute the necessary deed or deeds to convey the real estate, in lieu of the sale at public auction, to the locality, to the locality’s land bank entity, or to an existing nonprofit entity designated by the locality to carry out the functions of a land bank entity pursuant to \u00a7 15.2-7512. After notice as required by this article, service of process, and upon answer filed by the owner or other parties in interest to the complaint, the court shall allow the parties to present evidence and arguments, ore tenus, prior to the appointment of the special commissioner. Any surplusage accruing to a locality, land bank entity, or existing nonprofit entity as a result of the sale of the parcel or parcels after the receipt of the deed shall be payable to the beneficiaries of any liens against the property and to the former owner or his heirs, devisees, successors, or assigns in accordance with \u00a7 58.1-3967. No deficiency shall be charged against the owner after conveyance to the locality, land bank entity, or existing nonprofit entity.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A2"},"1":{"id":208513,"text":"A land bank entity or existing nonprofit entity receiving any parcel pursuant to this section shall either (i) sell the property to a third party in an arms-length transaction or, if the land bank entity or existing nonprofit entity develops the property before selling it, make such sale within a reasonable period of time after completing such development or (ii) if the land bank entity or existing nonprofit entity does not intend to sell the property, pay to the beneficiaries of any liens against the property and to the former owner or his heirs, devisees, successors, or assigns any amount of surplusage, if any, that would result if the property were sold and the proceeds distributed in accordance with § 58.1-3967. For purposes of this section, “existing nonprofit entity” and “land bank entity” have the same meaning as those terms are defined in § 15.2-7500.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A","next_prefix":"B"},"2":{"id":208514,"text":"For a parcel or parcels of real estate in a locality with a score of 100 or higher on the fiscal stress index, as published by the Department of Housing and Community Development in July 2020, all of the provisions of subsection A shall apply except (i) that the percentage of taxes and liens, together, including penalty and accumulated interest, and the percentage of taxes alone set forth in clauses (iii) (a) and (b) of subdivision A 1 shall exceed 35 percent and 15 percent, respectively, of the assessed value of the parcel or parcels or (ii) that the percentage of taxes and liens, together, including penalty and accumulated interest, and the percentage of taxes alone set forth in clauses (iii) (a) and (b) of subdivision A 1 shall exceed 20 percent and 10 percent, respectively, of the assessed value of the parcel or parcels, and each parcel has an assessed value of $150,000 or less, provided that under this clause the property is not an occupied dwelling, and the locality enters into an agreement for sale of the parcel to a nonprofit organization to renovate or construct a single-family dwelling on the parcel for sale to a person or persons to reside in the dwelling whose income is below the area median income.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"3":{"id":208515,"text":"For sales by a nonprofit organization pursuant to subsection B, such sales may include either (i) both the land and the structural improvements on a property or (ii) only the structural improvements of a property and not the land the structural improvements are located on. A sale of only the structural improvements is permissible only if (a) the structural improvements are subject to a ground lease with a community land trust, as that term is defined in § 55.1-1200; (b) the structural improvements are subject to a ground lease that has a term of at least 90 years; and (c) the community land trust retains a preemptive option to purchase such structural improvements at a price determined by a formula that is designed to ensure that the improvements remain affordable in perpetuity to low-income and moderate-income families earning less than 120 percent of the area median income, adjusted for family size.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":14915,"edition_id":1,"name":"Sale of Delinquent Tax Lands","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":13043,"metadata":{},"date_created":"2026-06-26 03:50:45","date_modified":"2026-06-26 03:50:45","permalink":{"id":258937,"object_type":"structure","relational_id":14915,"identifier":"4","token":"58.1\/III\/39\/4","url":"\/58.1\/III\/39\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13043,"edition_id":1,"name":"Enforcement, Collection, Refunds, Remedies and Review of Local Taxes","identifier":"39","label":"chapter","depth":3,"order_by":1,"parent_id":12704,"metadata":{},"date_created":"2026-06-26 03:44:10","date_modified":"2026-06-26 03:44:10","permalink":{"id":258657,"object_type":"structure","relational_id":13043,"identifier":"39","token":"58.1\/III\/39","url":"\/58.1\/III\/39\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12704,"edition_id":1,"name":"Local Taxes","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":256459,"object_type":"structure","relational_id":12704,"identifier":"III","token":"58.1\/III","url":"\/58.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":70850,"structure_id":14915,"section_number":"58.1-3965","catch_line":"When land may be sold for delinquent taxes; notice of sale; owner's right of redemption","url":"\/58.1-3965\/","token":"58.1\/III\/39\/4\/58.1-3965","metadata":false},{"id":84469,"structure_id":14915,"section_number":"58.1-3965.1","catch_line":"Additional authority to sell land for delinquent taxes","url":"\/58.1-3965.1\/","token":"58.1\/III\/39\/4\/58.1-3965.1","metadata":false},{"id":73209,"structure_id":14915,"section_number":"58.1-3965.2","catch_line":"Additional authority to sell land for certain delinquent special taxes or special assessments","url":"\/58.1-3965.2\/","token":"58.1\/III\/39\/4\/58.1-3965.2","metadata":false},{"id":75933,"structure_id":14915,"section_number":"58.1-3966","catch_line":"Employment of attorney to institute proceedings; bond of attorney","url":"\/58.1-3966\/","token":"58.1\/III\/39\/4\/58.1-3966","metadata":false},{"id":62535,"structure_id":14915,"section_number":"58.1-3967","catch_line":"How proceedings instituted; parties; procedure generally; title acquired; disposition of surplus proceeds of sale","url":"\/58.1-3967\/","token":"58.1\/III\/39\/4\/58.1-3967","metadata":false},{"id":72566,"structure_id":14915,"section_number":"58.1-3968","catch_line":"When two or more parcels may be covered by one complaint","url":"\/58.1-3968\/","token":"58.1\/III\/39\/4\/58.1-3968","metadata":false},{"id":73466,"structure_id":14915,"section_number":"58.1-3969","catch_line":"Order of reference; appointment of special commissioner to make sale; costs; attorney fees","url":"\/58.1-3969\/","token":"58.1\/III\/39\/4\/58.1-3969","metadata":false},{"id":74901,"structure_id":14915,"section_number":"58.1-3970","catch_line":"County, city, etc., may be purchaser","url":"\/58.1-3970\/","token":"58.1\/III\/39\/4\/58.1-3970","metadata":false},{"id":56926,"structure_id":14915,"section_number":"58.1-3970.1","catch_line":"Appointment of special commissioner to execute title to certain real estate with delinquent taxes or liens to localities","url":"\/58.1-3970.1\/","token":"58.1\/III\/39\/4\/58.1-3970.1","metadata":false},{"id":61813,"structure_id":14915,"section_number":"58.1-3970.2","catch_line":"When delinquent taxes may be deemed paid in full","url":"\/58.1-3970.2\/","token":"58.1\/III\/39\/4\/58.1-3970.2","metadata":false},{"id":64041,"structure_id":14915,"section_number":"58.1-3971","catch_line":"Property improperly placed on delinquent land books","url":"\/58.1-3971\/","token":"58.1\/III\/39\/4\/58.1-3971","metadata":false},{"id":64260,"structure_id":14915,"section_number":"58.1-3972","catch_line":"Reserved","url":"\/58.1-3972\/","token":"58.1\/III\/39\/4\/58.1-3972","metadata":false},{"id":85203,"structure_id":14915,"section_number":"58.1-3973","catch_line":"Certain land purchased in name of Commonwealth to revert to owners, etc., subject to lien of delinquent taxes","url":"\/58.1-3973\/","token":"58.1\/III\/39\/4\/58.1-3973","metadata":false},{"id":64647,"structure_id":14915,"section_number":"58.1-3974","catch_line":"Redemption of land by owner; lien for taxes paid","url":"\/58.1-3974\/","token":"58.1\/III\/39\/4\/58.1-3974","metadata":false},{"id":76585,"structure_id":14915,"section_number":"58.1-3975","catch_line":"Nonjudicial sale of tax delinquent real properties of minimal size and value","url":"\/58.1-3975\/","token":"58.1\/III\/39\/4\/58.1-3975","metadata":false},{"id":82845,"structure_id":14915,"section_number":"58.1-3976","catch_line":"Reserved","url":"\/58.1-3976\/","token":"58.1\/III\/39\/4\/58.1-3976","metadata":false}],"previous_section":{"id":74901,"structure_id":14915,"section_number":"58.1-3970","catch_line":"County, city, etc., may be purchaser","url":"\/58.1-3970\/","token":"58.1\/III\/39\/4\/58.1-3970","metadata":false},"next_section":{"id":61813,"structure_id":14915,"section_number":"58.1-3970.2","catch_line":"When delinquent taxes may be deemed paid in full","url":"\/58.1-3970.2\/","token":"58.1\/III\/39\/4\/58.1-3970.2","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3970.1\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapter 869<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 10 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2003, chapters 16<\/a> and 156<\/a>; in 2004, chapter 968<\/a>; in 2011, chapter 688<\/a>; in 2012, chapters 87<\/a> and 610<\/a>; in 2014, chapter 519<\/a>; in 2015, chapter 379<\/a>; in 2019, chapters 159<\/a> and 541<\/a>; in 2020, chapter 244<\/a>; in 2022, chapters 15<\/a> and 713<\/a>; in 2025, chapter 267<\/a>.<\/p>","references":[{"id":57528,"section_number":"15.2-958.1","catch_line":"Sale of certain property in certain cities","order_by":null,"url":"\/15.2-958.1\/"},{"id":62535,"section_number":"58.1-3967","catch_line":"How proceedings instituted; parties; procedure generally; title acquired; disposition of surplus proceeds of sale","order_by":null,"url":"\/58.1-3967\/"}],"refers_to":[{"id":62244,"section_number":"15.2-7512","catch_line":"Designation of planning district commission or existing nonprofit entities to carry out the functions of a land bank entity","order_by":null,"url":"\/15.2-7512\/"},{"id":62717,"section_number":"15.2-907.1","catch_line":"Authority to require removal, repair, etc., of buildings that are declared to be derelict; civil penalty","order_by":null,"url":"\/15.2-907.1\/"},{"id":61413,"section_number":"55.1-1200","catch_line":"Definitions","order_by":null,"url":"\/55.1-1200\/"},{"id":62535,"section_number":"58.1-3967","catch_line":"How proceedings instituted; parties; procedure generally; title acquired; disposition of surplus proceeds of sale","order_by":null,"url":"\/58.1-3967\/"}],"permalink":{"id":258971,"object_type":"law","relational_id":56926,"identifier":"58.1-3970.1","token":"58.1\/III\/39\/4\/58.1-3970.1","url":"\/58.1-3970.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3970.1\/","token":"58.1\/III\/39\/4\/58.1-3970.1","dublin_core":{"Title":"Appointment of special commissioner to execute title to certain real estate with delinquent taxes or liens to localities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3970.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> 1. Except as provided in subsection B, in any proceedings under this article for the sale of a parcel or parcels of real estate that meet all of the following: (i) each parcel has delinquent real estate taxes or the locality has a lien<\/span> against the parcel for removal, repair, or securing of a building or structure; removal of trash, garbage, refuse, or litter; or the cutting of grass, weeds, or other foreign growth; (ii) each parcel has an assessed value of $75,000 or less; and (iii) (a) such taxes and liens<\/span>, together, including penalty<\/span> and accumulated interest, exceed 50 percent of the assessed value of the parcel, (b) such taxes alone exceed 25 percent of the assessed value of the parcel, or (c) for parcels containing a structure that is a derelict building, as that term is defined in \u00a7 15.2-907.1<\/a>, such taxes and liens<\/span>, together, including penalty<\/span> and accumulated interest, exceed 25 percent of the assessed value of the parcel, the locality may petition<\/span> the circuit<\/span> court<\/span> to appoint a special commissioner to execute the necessary deed or deeds to convey the real estate, in lieu of the sale at public auction, to the locality, to the locality’s land bank entity, or to an existing nonprofit entity designated by the locality to carry out the functions of a land bank entity pursuant to \u00a7 15.2-7512<\/a>. After notice as required by this article, service of process<\/span>, and upon answer filed by the owner or other parties in interest to the complaint, the court<\/span> shall allow the parties to present evidence<\/span> and arguments, ore tenus<\/span>, prior to the appointment of the special commissioner. Any surplusage accruing to a locality, land bank entity, or existing nonprofit entity as a result of the sale of the parcel or parcels after the receipt of the deed shall be payable to the beneficiaries of any liens<\/span> against the property and to the former owner or his heirs, devisees, successors, or assigns in accordance with \u00a7 58.1-3967<\/a>. No deficiency shall be charged against the owner after conveyance to the locality, land bank entity, or existing nonprofit entity. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A land bank entity or existing nonprofit entity receiving any parcel pursuant to this section shall either (i) sell the property to a third party<\/span> in an arms-length transaction or, if the land bank entity or existing nonprofit entity develops the property before selling it, make such sale within a reasonable period of time after completing such development or (ii) if the land bank entity or existing nonprofit entity does not intend to sell the property, pay to the beneficiaries of any liens<\/span> against the property and to the former owner or his heirs, devisees, successors, or assigns any amount of surplusage, if any, that would result if the property were sold and the proceeds distributed in accordance with § 58.1-3967<\/a>. For purposes of this section, “existing nonprofit entity” and “land bank entity” have the same meaning as those terms are defined in § 15.2-7500<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For a parcel or parcels of real estate in a locality with a score of 100 or higher on the fiscal stress index, as published by the Department<\/span> of Housing and Community Development in July 2020, all of the provisions of subsection A shall apply except (i) that the percentage of taxes and liens<\/span>, together, including penalty<\/span> and accumulated interest, and the percentage of taxes alone set forth in clauses (iii) (a) and (b) of subdivision A 1 shall exceed 35 percent and 15 percent, respectively, of the assessed value of the parcel or parcels or (ii) that the percentage of taxes and liens<\/span>, together, including penalty<\/span> and accumulated interest, and the percentage of taxes alone set forth in clauses (iii) (a) and (b) of subdivision A 1 shall exceed 20 percent and 10 percent, respectively, of the assessed value of the parcel or parcels, and each parcel has an assessed value of $150,000 or less, provided that under this clause the property is not an occupied dwelling, and the locality enters into an agreement for sale of the parcel to a nonprofit organization to renovate or construct a single-family dwelling on the parcel for sale to a person or persons to reside in the dwelling whose income is below the area median income. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> For sales by a nonprofit organization pursuant to subsection B, such sales may include either (i) both the land and the structural improvements on a property or (ii) only the structural improvements of a property and not the land the structural improvements are located on. A sale of only the structural improvements is permissible only if (a) the structural improvements are subject to a ground lease with a community land trust, as that term is defined in § 55.1-1200<\/a>; (b) the structural improvements are subject to a ground lease that has a term of at least 90 years; and (c) the community land trust retains a preemptive option to purchase such structural improvements at a price determined by a formula that is designed to ensure that the improvements remain affordable in perpetuity to low-income and moderate-income families earning less than 120 percent of the area median income, adjusted for family size. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPOINTMENT OF SPECIAL COMMISSIONER TO EXECUTE TITLE TO CERTAIN REAL ESTATE WITH\nDELINQUENT TAXES OR LIENS TO LOCALITIES (\u00a7 58.1-3970.1)\n\nA. 1. Except as provided in subsection B, in any proceedings under this article\nfor the sale of a parcel or parcels of real estate that meet all of the\nfollowing: (i) each parcel has delinquent real estate taxes or the locality has\na lien against the parcel for removal, repair, or securing of a building or\nstructure; removal of trash, garbage, refuse, or litter; or the cutting of\ngrass, weeds, or other foreign growth; (ii) each parcel has an assessed value of\n$75,000 or less; and (iii) (a) such taxes and liens, together, including penalty\nand accumulated interest, exceed 50 percent of the assessed value of the parcel,\n(b) such taxes alone exceed 25 percent of the assessed value of the parcel, or\n(c) for parcels containing a structure that is a derelict building, as that term\nis defined in \u00a7 15.2-907.1, such taxes and liens, together, including penalty\nand accumulated interest, exceed 25 percent of the assessed value of the parcel,\nthe locality may petition the circuit court to appoint a special commissioner to\nexecute the necessary deed or deeds to convey the real estate, in lieu of the\nsale at public auction, to the locality, to the locality’s land bank\nentity, or to an existing nonprofit entity designated by the locality to carry\nout the functions of a land bank entity pursuant to \u00a7 15.2-7512. After notice\nas required by this article, service of process, and upon answer filed by the\nowner or other parties in interest to the complaint, the court shall allow the\nparties to present evidence and arguments, ore tenus, prior to the appointment\nof the special commissioner. Any surplusage accruing to a locality, land bank\nentity, or existing nonprofit entity as a result of the sale of the parcel or\nparcels after the receipt of the deed shall be payable to the beneficiaries of\nany liens against the property and to the former owner or his heirs, devisees,\nsuccessors, or assigns in accordance with \u00a7 58.1-3967. No deficiency shall be\ncharged against the owner after conveyance to the locality, land bank entity, or\nexisting nonprofit entity.\n\n 2. A land bank entity or existing nonprofit entity receiving any parcel\n pursuant to this section shall either (i) sell the property to a third party\n in an arms-length transaction or, if the land bank entity or existing\n nonprofit entity develops the property before selling it, make such sale\n within a reasonable period of time after completing such development or (ii)\n if the land bank entity or existing nonprofit entity does not intend to sell\n the property, pay to the beneficiaries of any liens against the property and\n to the former owner or his heirs, devisees, successors, or assigns any amount\n of surplusage, if any, that would result if the property were sold and the\n proceeds distributed in accordance with § 58.1-3967. For purposes of this\n section, “existing nonprofit entity” and “land bank\n entity” have the same meaning as those terms are defined in §\n 15.2-7500.\n\nB. For a parcel or parcels of real estate in a locality with a score of 100 or\nhigher on the fiscal stress index, as published by the Department of Housing and\nCommunity Development in July 2020, all of the provisions of subsection A shall\napply except (i) that the percentage of taxes and liens, together, including\npenalty and accumulated interest, and the percentage of taxes alone set forth in\nclauses (iii) (a) and (b) of subdivision A 1 shall exceed 35 percent and 15\npercent, respectively, of the assessed value of the parcel or parcels or (ii)\nthat the percentage of taxes and liens, together, including penalty and\naccumulated interest, and the percentage of taxes alone set forth in clauses\n(iii) (a) and (b) of subdivision A 1 shall exceed 20 percent and 10 percent,\nrespectively, of the assessed value of the parcel or parcels, and each parcel\nhas an assessed value of $150,000 or less, provided that under this clause the\nproperty is not an occupied dwelling, and the locality enters into an agreement\nfor sale of the parcel to a nonprofit organization to renovate or construct a\nsingle-family dwelling on the parcel for sale to a person or persons to reside\nin the dwelling whose income is below the area median income.\n\nC. For sales by a nonprofit organization pursuant to subsection B, such sales\nmay include either (i) both the land and the structural improvements on a\nproperty or (ii) only the structural improvements of a property and not the land\nthe structural improvements are located on. A sale of only the structural\nimprovements is permissible only if (a) the structural improvements are subject\nto a ground lease with a community land trust, as that term is defined in §\n55.1-1200; (b) the structural improvements are subject to a ground lease that\nhas a term of at least 90 years; and (c) the community land trust retains a\npreemptive option to purchase such structural improvements at a price determined\nby a formula that is designed to ensure that the improvements remain affordable\nin perpetuity to low-income and moderate-income families earning less than 120\npercent of the area median income, adjusted for family size.\n\nHISTORY: 1999, c. 869; 2003, cc. 16, 156; 2004, c. 968; 2011, c. 688; 2012, cc.\n87, 610; 2014, c. 519; 2015, c. 379; 2019, cc. 159, 541; 2020, c. 244; 2021, Sp.\nSess. I, c. 408; 2022, cc. 15, 713; 2025, c. 267.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}