                                 CODE OF VIRGINIA

SALE OF CERTAIN VACANT AND BLIGHTED OR DERELICT PROPERTY (§ 15.2-958.1:1)

A. Any locality where property is located that (i) has been vacant for at least
five years, (ii) has been declared a blighted property or derelict building as
defined in &#xA7; 58.1-3221.6, and (iii) is tax delinquent 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 a sale at public auction, to the
locality, to the locality&#8217;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 &#xA7; 15.2-7512. The conveyance of real estate may include
all parcels of property owned by the entity in the locality if, upon a showing
by a preponderance of the evidence, all the parcels are deemed necessary to
effectuate a proper sale of the property to an interested developer.
			After notice as required in Article 4 (&#xA7; 58.1-3965 et seq.) of Chapter
39 of Title 58.1 and service of process, and upon answer filed by the owner or
other parties in interest to the bill in equity, 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 or assigns
in accordance with &#xA7; 58.1-3967. No deficiency shall be charged against the
owner after conveyance to the locality, land bank entity, or existing nonprofit
entity.

B. If the locality sells a property acquired under subsection A, the locality
shall require any purchaser by covenants in the deed or other security
instrument to (i) begin repair or renovation of the property within six months
of purchase and (ii) complete all repairs or renovations necessary to bring the
property into compliance with the local building code within a period not to
exceed two years of the purchase. The locality may include any additional
reasonable conditions it deems appropriate in order to carry out the intent of
this section and assure that the property is repaired or renovated in accordance
with applicable codes.

C. The locality may sell the property for the nominal amount of one dollar,
assuming there are no outstanding mortgages, loans, or other liens not
associated with the locality to a qualified developer who properly responds to a
request for proposal and submits a plan for the highest and best use of the
property. The local governing body shall review the responses to the request for
proposal and choose the developer who has the financial wherewithal to develop
the property as proposed.

HISTORY: 2025, c. 449.