Virginia "Faith in Housing" Law

In April 2026, the Virginia Governor signed new legislation into law. "Faith in Housing," known formally as Affordable Housing Projects on Religious Organizations and Other Nonprofit Tax-Exempt Properties, requires local governments to allow qualifying affordable housing projects by-right.

Arlington County staff are reviewing what is required for compliance to process the by-right review.

What does by-right mean?

Local and state governments have rules and regulations for what can be built and how what is built can be used. If a proposed project follows all established rules and regulations exactly, the project will be approved without public notification, special reviews, rezonings, or public hearings by the County Board. By-right development is approved with standard, administratively issued permits that ensure the building is safe and meets all codes and requirements. 

This new law becomes effective January 1, 2027, and expires January 1, 2031.

Code of Virginia Project Requirements

This new Virginia law will allow the following:

  • Religious organizations and 501(c)(3) nonprofit organizations with real estate tax exempt status and with property owned for at least five (5) years to develop a project that includes at least 60 percent affordable units for at least 30 years.  
    • Affordability as defined by this new regulation is: 
      • Rental units affordable to households earning 80 percent or less of the Area Median Income 
      • For-sale units affordable to households earning 120 percent or less of the Area Median Income   
  • The project must comply with all Virginia Fair Housing non-discrimination rules. 
  • The project must meet existing local, state, and federal environmental, historic, infrastructure, and health regulations. 
  • Once complete, the project is subject to local real property taxation.

Code of Virginia Required Minimum Standards

This new Virginia law sets forth certain minimum standards which localities shall allow: 

  • Heights of 45 feet or nearby by-right building heights, whichever is greater.  
  • Density of 20 units/acre or nearby residential density, whichever is greater.  
  • Setbacks of no greater than 10 feet. 
  • Construction of mixed-use and residential with a variety of housing types, including detached, attached, and multifamily housing units. 
  • Permits up to 30 percent non-residential uses (e.g., childcare, clinics, worship space)  
  • Parking caps:  
    • Residential: ~1 space per unit max (0.5 space per unit in certain locations near transit) 
    • Non-residential: 1 space per 300 square feet 

Visit the Virginia Legislative Information System for more information and read the Summary as Passed below.

"Affordable housing; religious organizations and other nonprofit tax-exempt properties. Allows for the administrative approval of development and construction of housing on land owned by property tax-exempt religious organizations or certain property tax-exempt nonprofit organizations and provides that zoning ordinances shall allow the by-right development and construction of housing on real property owned by such organizations, subject to various conditions and limitations. The bill provides that the review of such developments be completed pursuant to general law and states that localities shall not require a special exception, special use permit, conditional use permit, rezoning, or any discretionary review or approval process. The bill requires that at least 60 percent of the housing development's total units be for affordable housing and that the housing development remain affordable for at least 30 years. The bill also provides that all such housing is subject to local real property taxation following completion, unless explicitly exempted by the locality. The bill has a delayed effective date of January 1, 2027, and expires on January 1, 2031. This bill incorporates SB 367 and is identical to HB 1279." 

Frequently Asked Questions

Coming soon!

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