                                 CODE OF VIRGINIA

AFFORDABLE DWELLING UNIT ORDINANCES (§ 15.2-2305)

A. In furtherance of the purpose of providing affordable shelter for all
residents of the Commonwealth, 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, determined in accordance
with the locality&#8217;s definition of affordable housing, by providing for
increases in density to the applicant in exchange for the applicant providing
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 dwelling unit qualifying income
guidelines, and (iii) offer incentives other than density increases, such as
reductions or waiver 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
dwelling unit ordinance.

B. Any zoning ordinance establishing an affordable housing dwelling unit program
may include, among other things, reasonable regulations and provisions as to any
or all of the following:

   1. A definition of affordable housing and affordable dwelling units.

   2. 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 which is the subject of an application for rezoning or special
   exception or, at the discretion of the local governing body, site plan or
   subdivision plat which yields, as submitted by the applicant, at an equivalent
   density greater than one unit per acre and which is located within an approved
   sewer area.

   3. For an increase of up to 30 percent in the developable density of each site
   subject to the ordinance and for a provision requiring up to 17 percent of the
   total units approved, including the optional density increase, to be
   affordable dwelling units, as defined in the ordinance. In the event a 30
   percent increase is not achieved, the percentage of affordable dwelling units
   required shall maintain the same ratio of 30 percent to 17 percent.

   4. For increases by up to 30 percent of the density or of the lower and upper
   end of the density range set forth in the comprehensive plan of such locality
   applicable to rezoning and special exception applications that request
   approval of single family detached dwelling units or single family attached
   dwelling units, when such applications are approved after the effective date
   of a local affordable housing zoning ordinance amendment.

   5. For a requirement that not less than 17 percent of the total number of
   dwelling units approved pursuant to a zoning ordinance amendment enacted
   pursuant to subdivision B 4 of this section shall be affordable dwelling
   units, as defined by the local zoning ordinance unless reduced by the 30 to 17
   percent ratio pursuant to subdivision B 3 of this section.

   6. 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.

   7. 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.

   8. 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.

C. For any building which is four stories or above 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 Eight, nothing in this section shall apply to
any elevator structure four stories or above.

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 regulations.

E. 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 § 15.2-1427, reasonable regulations and
provisions as to any or all of the following:

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

   2. 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 ninety 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 ninety-day
   period to persons who meet the income criteria established by the local
   housing authority or local governing body or the latter&#8217;s designee.

   3. For a local housing authority or 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 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 local governing body or its designee.

   4. For the establishment of jurisdiction-wide affordable dwelling unit sales
   prices by the local housing authority or local governing body or the
   latter&#8217;s 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, local housing authority or
   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 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.

   5. For the establishment of jurisdiction-wide affordable dwelling unit rental
   prices by a local housing authority or 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, local housing authority, or
   advisory body to the local governing body, and other information such as the
   area&#8217;s current general market and economic conditions.

   6. For a requirement that the prices for resales and rerentals be controlled
   by the local housing authority or local governing body or 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 provide for reasonable rules and regulations to implement a
   price control provision.

   7. For establishment of an affordable dwelling unit advisory board which
   shall, among other things, advise the jurisdiction on sales and rental prices
   of affordable dwelling units; advise the housing authority or local governing
   body or its designees on requests for modifications of the requirements of an
   affordable dwelling unit program; adopt regulations concerning its
   recommendations of sales and rental prices of affordable dwelling units; and
   adopt procedures concerning requests for modifications of an affordable
   housing dwelling unit program. Members of the board, to be ten in number and
   to be appointed by the governing body, shall be qualified as follows: two
   members shall be either civil engineers or architects, each of whom shall be
   registered or certified with the relevant agency of the Commonwealth, or
   planners, all of whom shall have extensive experience in practice in the
   locality; one member shall be a real estate salesperson or broker, licensed in
   accordance with Chapter 21 (&#xA7; 54.1-2100 et seq.) of Title 54.1; one
   member shall be a representative of a lending institution which finances
   residential development in the locality; four members shall consist of a
   representative from a local housing authority or local governing body or its
   designee, a residential builder with extensive experience in producing
   single-family detached and attached dwelling units, a residential builder with
   extensive experience in producing multiple-family dwelling units, and a
   representative from either the public works or planning department of the
   locality; one member may be a representative of a nonprofit housing
   organization which provides services in the locality; and one citizen of the
   locality. At least four members of the advisory board shall be employed in the
   locality.

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/applicant shall not suffer economic
loss as a result of providing the required affordable dwelling units.
&#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.

HISTORY: 1990, c. 834, § 15.1-491.9; 1991, c. 599; 1992, c. 244; 1993, c. 437;
1994, cc. 88, 679; 1996, cc. 233, 426; 1997, cc. 587, 607; 2007, cc. 695, 713;
2008, c. 790.