2006 Code of Virginia § 15.2-2305 - Affordable dwelling unit ordinances

15.2-2305. Affordable dwelling unit ordinances.

A. In furtherance of the purpose of providing affordable shelter for allresidents of the Commonwealth, the governing body of any county, other thancounties to which 15.2-2304 applies, city or town may by amendment to thezoning ordinances of such locality provide for an affordable housing dwellingunit program. Such program shall address housing needs, promote a full rangeof housing choices, and encourage the construction and continued existence ofmoderately priced housing by providing for optional increases in density inorder to reduce land costs for such moderately priced housing. Any localordinance of any locality providing optional increases in density forprovision of low and moderate income housing adopted before December 31,1988, shall continue in full force and effect. Any local ordinance mayauthorize the governing body to (i) establish qualifying jurisdiction-wideaffordable dwelling unit sales prices based on local market conditions, (ii)establish jurisdiction-wide affordable dwelling unit qualifying incomeguidelines, and (iii) offer incentives other than density increases, such asreductions or waiver of permit, development, and infrastructure fees, as thegoverning body deems appropriate to encourage the provision of affordablehousing. Counties to which 15.2-2304 applies shall be governed by theprovisions of 15.2-2304 for purposes of the adoption of an affordabledwelling unit ordinance.

B. A zoning ordinance establishing an affordable housing dwelling unitprogram may include, among other things, reasonable regulations andprovisions as to any or all of the following:

1. For a definition of affordable housing and affordable dwelling units.

2. For application of the requirements of an affordable housing dwelling unitprogram to any site, as defined by the locality, or a portion thereof at onelocation which is the subject of an application for rezoning or specialexception or, at the discretion of the local governing body, site plan orsubdivision plat which yields, as submitted by the applicant, fifty or moredwelling units at an equivalent density greater than one unit per acre andwhich is located within an approved sewer area.

3. For an increase of up to twenty percent in the developable density of eachsite subject to the ordinance and for a provision requiring up to twelve andone-half percent of the total units approved, including the optional densityincrease, to be affordable dwelling units, as defined in the ordinance. Inthe event a twenty percent increase is not achieved, the percentage ofaffordable dwelling units required shall maintain the same ratio of twentypercent to twelve and one-half percent.

4. For increases by up to twenty percent of the density or of the lower andupper end of the density range set forth in the comprehensive plan of suchlocality applicable to rezoning and special exception applications thatrequest approval of single family detached dwelling units or single familyattached dwelling units, when such applications are approved after theeffective date of a local affordable housing zoning ordinance amendment.

5. For a requirement that not less than twelve and one-half percent of thetotal number of dwelling units approved pursuant to a zoning ordinanceamendment enacted pursuant to subdivision B 4 of this section shall beaffordable dwelling units, as defined by the local zoning ordinance unlessreduced by the twenty to twelve and one-half percent ratio pursuant tosubdivision B 3 of this section.

6. For increases by up to ten percent of the density or of the lower andupper end of the density range, whichever is appropriate, set forth in thecomprehensive plan of such locality applicable to rezoning and specialexception or, at the discretion of the local governing body, site plan andsubdivision plat applications that request approval of nonelevator multiplefamily dwelling unit structures four stories or less in height when suchapplications are approved after the effective date of a local affordablehousing zoning ordinance. However, at the option of the applicant, theprovision pursuant to subdivision B 4 shall apply.

7. For a requirement that not less than six and one-quarter percent of thetotal number of dwelling units approved pursuant to a zoning ordinanceamendment enacted pursuant to subdivision B 6 of this section shall beaffordable dwelling units, as defined in the local zoning ordinance. In theevent a ten percent increase is not achieved, the percentage of affordabledwelling units required shall maintain the same ratio of ten percent to sixand one-quarter percent.

8. For reasonable regulations requiring the affordable dwelling units to bebuilt and offered for sale or rental concurrently with the construction andcertificate of occupancy of a reasonable proportion of the market rate units.

9. For standards of compliance with the provisions of an affordable housingdwelling unit program and for the authority of the local governing body orits designee to enforce compliance with such standards and impose reasonablepenalties for noncompliance, provided that a local zoning ordinance providefor an appeal process for any party aggrieved by a decision of the localgoverning body.

C. Nothing contained in this section shall apply to any elevator structurefour stories or above.

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

E. A locality establishing an affordable housing dwelling unit program in itszoning ordinance shall establish in its general ordinances, adopted inaccordance with the requirements of 15.2-1427 B, reasonable regulations andprovisions as to any or all of the following:

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

2. For a local housing authority or local governing body or its designee tohave an exclusive right to purchase up to one-third of the for-saleaffordable housing dwelling units within a development within ninety days ofa dwelling unit being completed and ready for purchase, provided that theremaining two-thirds of such units be offered for sale exclusively for aninety-day period to persons who meet the income criteria established by thelocal housing authority or local governing body or the latter's designee.

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

4. For the establishment of jurisdiction-wide affordable dwelling unit salesprices by the local housing authority or local governing body or the latter'sdesignee, initially and adjusted semiannually, based on a determination ofall ordinary, necessary and reasonable costs required to construct theaffordable dwelling unit prototype dwellings by private industry afterconsidering written comment by the public, local housing authority oradvisory body to the local governing body, and other information such as thearea's current general market and economic conditions, provided that salesprices not include the cost of land, on-site sales commissions and marketingexpenses, but may include, among other costs, builder-paid permanent mortgageplacement costs and buy-down fees and closing costs except prepaid expensesrequired at settlement.

5. For the establishment of jurisdiction-wide affordable dwelling unit rentalprices by a local housing authority or local governing body or its designee,initially and adjusted semiannually, based on a determination of allordinary, necessary and reasonable costs required to construct and market therequired number of affordable dwelling rental units by private industry inthe area, after considering written comment by the public, local housingauthority, or advisory body to the local governing body, and otherinformation such as the area's current general market and economic conditions.

6. For a requirement that the prices for resales and rerentals be controlledby the local housing authority or local governing body or designee for aperiod of fifty years after the initial sale or rental transaction for eachaffordable dwelling unit, provided that the ordinance further provide forreasonable rules and regulations to implement a price control provision.

7. For establishment of an affordable dwelling unit advisory board whichshall, among other things, advise the jurisdiction on sales and rental pricesof affordable dwelling units; advise the housing authority or local governingbody or its designees on requests for modifications of the requirements of anaffordable dwelling unit program; adopt regulations concerning itsrecommendations of sales and rental prices of affordable dwelling units; andadopt procedures concerning requests for modifications of an affordablehousing dwelling unit program. Members of the board, to be ten in number andto be appointed by the governing body, shall be qualified as follows: twomembers shall be either civil engineers or architects, each of whom shall beregistered or certified with the relevant agency of the Commonwealth, orplanners, all of whom shall have extensive experience in practice in thelocality; one member shall be a real estate salesperson or broker, licensedin accordance with Chapter 21 ( 54.1-2100 et seq.) of Title 54.1; one membershall be a representative of a lending institution which finances residentialdevelopment in the locality; four members shall consist of a representativefrom a local housing authority or local governing body or its designee, aresidential builder with extensive experience in producing single-familydetached and attached dwelling units, a residential builder with extensiveexperience in producing multiple-family dwelling units, and a representativefrom either the public works or planning department of the locality; onemember may be a representative of a nonprofit housing organization whichprovides services in the locality; and one citizen of the locality. At leastfour members of the advisory board shall be employed in the locality.

8. The sales and rental price for affordable dwelling units within adevelopment shall be established such that the owner/applicant shall notsuffer economic loss as a result of providing the required affordabledwelling units. "Economic loss" for sales units means that result when theowner or applicant of a development fails to recoup the cost of constructionand certain allowances as may be determined by the designee of the governingbody for the affordable dwelling units, exclusive of the cost of landacquisition and cost voluntarily incurred but not authorized by theordinance, upon the sale of an affordable dwelling unit.

(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.)