                                 CODE OF VIRGINIA

AFFORDABLE HOUSING DWELLING UNIT ORDINANCES (§ 15.2-2305.1)

A. In furtherance of the purpose of providing affordable shelter for all, the
governing body of any locality, other than localities to which &#xA7; 15.2-2304
applies, may by amendment to the zoning ordinances of such locality provide for
an affordable housing dwelling unit program. Such program shall address housing
needs, promote a full range of housing choices, and encourage the construction
and continued existence of housing affordable to low-and-moderate-income
citizens by providing for increases in density to the applicant in exchange for
the applicant voluntarily electing to provide such affordable housing. Any local
ordinance providing optional increases in density for provision of
low-and-moderate-income housing adopted before December 31, 1988, shall continue
in full force and effect. Any local ordinance may authorize the governing body
to (i) establish qualifying jurisdiction-wide affordable dwelling unit sales
prices based on local market conditions, (ii) establish jurisdiction-wide
affordable housing dwelling unit qualifying income guidelines, and (iii) offer
incentives other than density increases, such as reductions or waivers of
permit, development, and infrastructure fees, as the governing body deems
appropriate to encourage the provision of affordable housing. Counties to which
&#xA7; 15.2-2304 applies shall be governed by the provisions of &#xA7; 15.2-2304
for purposes of the adoption of an affordable housing dwelling unit ordinance.

B. Any zoning ordinance establishing an affordable housing dwelling unit program
pursuant to this section may include reasonable regulations and provisions as to
any or all of the following:

   1. For application of the requirements of an affordable housing dwelling unit
   program to any site, as defined by the locality, or a portion thereof at one
   location that is the subject of an application for rezoning or special
   exception or site plan or subdivision plat which yields, as submitted by the
   applicant, at an equivalent density greater than one unit per acre and that is
   located within an approved sewer area.

   2. The waiver of any fees associated with the construction, renovation, or
   rehabilitation of a structure, including but not limited to building permit
   fees, application review fees, and water and sewer connection fees.

   3. For standards of compliance with the provisions of an affordable housing
   dwelling unit program and for the authority of the local governing body or its
   designee to enforce compliance with such standards and impose reasonable
   penalties for noncompliance, provided that a local zoning ordinance provide
   for an appeal process for any party aggrieved by a decision of the local
   governing body.

   4. For establishment of a local housing fund as part of its affordable housing
   dwelling unit program to assist in achieving the affordable housing goals of
   the locality pursuant to this section. The local housing fund may be a
   dedicated fund within the other funds of the locality, but any funds received
   pursuant to this section shall be used for achieving the affordable housing
   goals of the locality. A locality shall not condition the submission, review,
   or approval of any application for a housing development upon a contribution
   by the applicant to the locality&#8217;s housing trust fund.

   5. For reasonable regulations requiring the affordable dwelling units to be
   built and offered for sale or rental concurrently with the construction and
   certificate of occupancy of a reasonable proportion of the market rate units.

   6. For administration and regulation by a local housing authority or the local
   governing body or its designee of the sale and rental of affordable units.

   7. For a local housing authority or local governing body or its designee to
   have an exclusive right to purchase up to one-third of the for-sale affordable
   housing dwelling units within a development within 90 days of a dwelling unit
   being completed and ready for purchase, provided that the remaining two-thirds
   of such units be offered for sale exclusively for a 90-day period to persons
   who meet the income criteria established by the local housing authority or the
   local governing body or its designee.

   8. For a local housing authority or a local governing body or its designee to
   have an exclusive right to lease up to a specified percentage of the rental
   affordable dwelling units within a development within a controlled period
   determined by the housing authority or the local governing body or its
   designee, provided that the remaining for-rental affordable dwelling units
   within a development be offered to persons who meet the income criteria
   established by the local housing authority or the local governing body or its
   designee.

   9. For the establishment of jurisdiction-wide affordable housing dwelling unit
   sales prices by the local housing authority or the local governing body or its
   designee, initially and adjusted semiannually, based on a determination of all
   ordinary, necessary, and reasonable costs required to construct the affordable
   dwelling unit prototype dwellings by private industry after considering
   written comment by the public, the local housing authority, or an advisory
   body to the local governing body, and other information such as the
   area&#8217;s current general market and economic conditions, provided that
   sales prices do not include the cost of land, on-site sales commissions, and
   marketing expenses, but may include, among other costs, builder-paid permanent
   mortgage placement costs and buy-down fees and closing costs except prepaid
   expenses required at settlement.

   10. For the establishment of jurisdiction-wide affordable dwelling unit rental
   prices by a local housing authority or the local governing body or its
   designee, initially and adjusted semiannually, based on a determination of all
   ordinary, necessary, and reasonable costs required to construct and market the
   required number of affordable dwelling rental units by private industry in the
   area, after considering written comment by the public, the local housing
   authority, or an advisory body to the local governing body, and other
   information such as the area&#8217;s current general market and economic
   conditions.

   11. For a requirement that the prices for the sales and rentals of affordable
   dwelling units subsequent to the initial sale or rental transaction be
   controlled by the local housing authority or the local governing body or its
   designee for a period of not less than 15 years nor more than 50 years after
   the initial sale or rental transaction for each affordable dwelling unit,
   provided that the ordinance further provides for reasonable rules and
   regulations to implement a price control provision.

C. For any building that is four stories or taller and has an elevator, the
applicant may request, and the locality shall consider, the unique ancillary
costs associated with living in such a building in determining whether such
housing will be affordable under the definition established by the locality in
its ordinance adopted pursuant to this section. However, for localities under
this section in Planning District 8, nothing in this section shall apply to any
elevator structure four stories or taller.

D. Any ordinance adopted hereunder shall provide that the local governing body
shall have no more than 280 days in which to process site or subdivision plans
proposing the development or construction of affordable housing or affordable
dwelling units under such ordinance. The calculation of such period of review
shall include only the time that plans are in review by the local governing body
and shall not include such time as may be required for revision or modification
in order to comply with lawful requirements set forth in applicable ordinances
and local regulations.

E. Any zoning ordinance establishing an affordable housing dwelling unit program
under this section shall adopt the following regulations and provisions to
establish an affordable housing density bonus and development standards relief
program:

   1. Adopt procedures for processing an application authorized under this
   subdivision, which shall include a provision for a list of all documents and
   information required to be submitted with an application for a housing
   development. Procedures authorized by this subdivision shall require the
   zoning administrator or his designee to make an official determination in
   writing within 30 days of the application date as to each of the following, as
   applicable: (i) the amount of density bonus, calculated pursuant to
   subdivision 2, for which the applicant is eligible; (ii) if the applicant
   requests a parking ratio pursuant to subdivision 4, the parking ratio for
   which the applicant is eligible; and (iii) if the applicant requests waivers
   or reductions of development standards pursuant to subdivision 3, whether the
   applicant has provided adequate information for the locality to make a
   determination as to those waivers or reductions of development standards. An
   appeal by a party aggrieved of an official determination pursuant to this
   subdivision shall be made to the board of zoning appeals pursuant to &#xA7;
   15.2-2311.

   2. The locality shall grant a density bonus, the amount of which shall be as
   specified in the corresponding table accompanying this subdivision, when an
   applicant voluntarily seeks and agrees to construct a housing development,
   excluding any units permitted by the density bonus awarded pursuant to this
   section, that will contain at least:
   				a. Ten percent of the total units of a housing development deemed
   affordable, as defined in this section, for low-income households; or
   				b. Five percent of the total units of a housing development deemed
   affordable, as defined in this section, for very-low-income households;
   				For housing developments meeting the criteria of subdivision a, the
   density bonus shall be calculated as follows:
   				Percentage Low-Income Units
   				10
   				11
   				12
   				13
   				14
   				15
   				16
   				17
   				18
   				19
   				20
   				21
   				22
   				23
   				24
   				25
   				26
   				27
   				28
   				29
   				30
   				31
   				32
   				33
   				34
   				For housing developments meeting the criteria of subdivision b, the
   density bonus shall be calculated as follows:
   				Percentage Very Low-Income Units
   				5
   				6
   				7
   				8
   				9
   				10
   				11
   				12
   				13
   				14
   				15
   				16
   				17
   				18
   				19
   				20
   				21
   				22
   				23
   				24
   				25
   				26
   				27
   				28
   				29
   				30
   				31
   				32
   				33
   				34
   				For housing developments meeting the criteria of subdivision a or b, an
   applicant shall be awarded an increase over the otherwise maximum allowable
   gross residential density as of the date of application by the applicant to
   the locality, or, if elected by the applicant, a lesser percentage of density
   increase, including but not limited to no increase in density.

   3. An applicant for a density bonus pursuant to subdivision 2 a or b may
   request a waiver or reduction of local development standards that (i)
   physically preclude the construction of a project at the density permitted by
   this section or (ii) impact the financial feasibility of a project submitted
   pursuant to this section. The locality shall grant the waiver or reduction of
   local development standards requested by the applicant unless the locality is
   able to make a written determination that such waiver or reduction would have
   a specific, adverse impact upon health, safety, or the physical environment.
   The locality may also recommend to the applicant modifications of the initial
   request for waiver or reduction of local development standards that would
   satisfy the locality&#8217;s concerns. Nothing in this subsection shall be
   interpreted to require a locality to waive or reduce development standards
   that would have an adverse impact on any real property that is listed in the
   Virginia Landmarks Register or National Register of Historic Places or would
   be contrary to state or federal law.

   4. An applicant for a density bonus pursuant to subdivision 2 a or b may
   request a waiver or reduction in any local parking ratios or requirements. The
   locality shall grant the waiver or reduction unless the locality is able to
   make a written determination that such waiver or reduction would have a
   specific, adverse impact upon health, safety, or the physical environment of
   residents of the locality. The locality may also recommend to the applicant
   modifications of the initial request for waiver or reduction of local
   development standards that would satisfy the locality&#8217;s concerns. This
   subdivision does not preclude a locality from reducing or eliminating a
   parking requirement for development projects of any type in any location.

F. A locality establishing an affordable housing dwelling unit program in any
ordinance shall establish in its general ordinances, adopted in accordance with
the requirements of subsection B of &#xA7; 15.2-1427, reasonable regulations and
provisions as to the following:
			The sales and rental price for affordable dwelling units within a development
shall be established such that the owner or applicant, or both, shall not suffer
economic loss as a result of providing the required affordable dwelling units.
For purposes of this subsection, &#8220;economic loss&#8221; for sales units
means that result when the owner or applicant of a development fails to recoup
the cost of construction and certain allowances as may be determined by the
designee of the governing body for the affordable dwelling units, exclusive of
the cost of land acquisition and cost voluntarily incurred but not authorized by
the ordinance, upon the sale of an affordable dwelling unit.

G. Any locality establishing an affordable housing dwelling unit program
pursuant to this section shall not condition the submission, review, or approval
of any application for a housing development on the basis of an
applicant&#8217;s decision to incorporate units deemed affordable for low-income
or very-low-income households.

H. Notwithstanding any other provisions of this chapter, as used in this
section, unless the context requires a different meaning:
			&#8220;Affordable&#8221; means, as a guideline, housing that is affordable to
households with incomes at or below the area median income, provided that the
occupant pays no more than 30 percent of his gross income for gross housing
costs, including utilities.
			&#8220;Density bonus&#8221; means a density increase over the otherwise
maximum allowable gross residential density as of the date of application by the
applicant to the locality, or, if elected by the applicant, a lesser percentage
of density increase, including but not limited to no increase in density.
			&#8220;Development standard&#8221; includes any local land use, site, or
construction regulation, including but not limited to height restrictions,
setback requirements, side yard requirements, minimum area requirements, minimum
lot size requirements, floor area ratios, or onsite open-space requirements that
applies to a residential or mixed-use development pursuant to any local
ordinance, policy, resolution, or regulation.
			&#8220;Housing development&#8221; means a specific work or improvement within
the Commonwealth, whether multifamily residential housing or single-family
residential housing, undertaken primarily to provide dwelling accommodations,
including the acquisition, construction, rehabilitation, preservation, or
improvement of land, buildings, and improvements thereto, for residential
housing, and such other nonhousing facilities as may be incidental, related, or
appurtenant thereto.
			&#8220;Low-income household&#8221; means any individual or family whose
incomes do not exceed 80 percent of the area median income for the locality in
which the housing development is being proposed.
			&#8220;Maximum allowable residential density&#8221; means the density allowed
under the zoning ordinance and land use element of the comprehensive plan, or,
if a range of density is permitted, means the maximum allowable density for the
specific zoning range and land use element of the general plan applicable to the
project. If the density allowed under the zoning ordinance is inconsistent with
the density allowed under the land use element of the general plan, the general
plan density shall prevail.
			&#8220;Very-low-income household&#8221; means any individual or family whose
incomes do not exceed 50 percent of the area median income for the locality in
which the housing development is being proposed.

HISTORY: 2020, cc. 143, 833.