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Virginia’s 2025 General Assembly session brought a mixed bag of progress and setbacks for housing policy. With housing affordability and production still front and center, lawmakers introduced a series of bills aimed at unlocking new development, streamlining outdated processes, and empowering local innovation. Some passed with strong support; others stalled in committee. Together, they paint a picture of a state grappling with how to meet the moment.
In this final installment of Policy Puzzle, we explore four key bills and a high-profile debate around corporate housing ownership that defined the state’s housing agenda this year.
Affordable Housing on Nonprofit-Owned Land
Originally titled the Faith in Housing for the Commonwealth Act, HB 2153 began as a proposal to help religious institutions develop affordable housing on land they already own. By the time it passed, it had broadened to include all tax-exempt nonprofit organizations, a major expansion. The new law gives localities the ability to waive certain zoning restrictions and streamline site plan approvals for nonprofit-led affordable housing developments. These homes must remain affordable for at least 40 years. Localities can adopt strategies such as:- Relaxed density requirements
- Reduced parking minimums
- Expedited permitting processes
Planning for Tiny Homes and ADUs
While Maryland passed a law mandating localities allow ADUs, Virginia has taken a more permissive approach. HB 2533, signed into law this spring, allows but does not require local governments to include tiny homes and accessory dwelling units (ADUs) in their comprehensive plans.- Tiny Homes: Defined as small, independent dwellings within residential developments.
- ADUs: Secondary housing units located on single-family lots.
HB 2660 – Streamlining the Development Process
Passed and signed into law, HB 2660 aims to streamline the subdivision approval process by reducing the time local governments have to review and approve plats and site plans. Specifically, the bill mandates that local planning commissions or their designated agents act on proposed plats within 40 days of submission, down from the previous 60-day timeframe. The legislation also establishes a work group through the Virginia Code Commission to develop recommendations for improving the clarity, consistency, and efficiency of subdivision and site plan review procedures. The group is charged with:- Organizing procedural steps in a logical sequence
- Clarifying requirements and timelines
- Standardizing terminology across jurisdictions
- Identifying and removing redundancies in the current Code
HB 2149 – Zoning for Housing Production Pilot Program (Stalled)
Although it passed the House, HB 2149 ultimately stalled in the Senate Finance and Appropriations Committee. The bill proposed the creation of the Zoning for Housing Production Pilot Program, intended to incentivize select Virginia localities to adopt more flexible zoning ordinances that promote affordable and mixed-income housing development. Had it moved forward, localities could have experimented with:- Upzoning near transit and employment hubs
- Reduced parking mandates
- More flexible use of commercial land for mixed-income housing
- Reducing minimum lot sizes
- Supporting alternative housing construction techniques