Virginia HB 143: Surplus real property; prioritization of disposition for affordable and middle-income housing.

Bill Text

2027 SESSION

INTRODUCED

26103674D

HOUSE BILL NO. 143

Offered January 14, 2026

A BILL to amend and reenact § 2.2-1156 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 15.2-1800.5, relating to surplus real property; prioritization of disposition for affordable and middle-income housing.

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Patrons—Gardner, Anderson, Carnegie, Clark, Cole, J.G., Cole, N.T., Guzman, Hope, Keys-Gamarra, LeVere Bolling, Schmidt and Willett

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Referred to Committee on General Laws

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Be it enacted by the General Assembly of Virginia:

1. That § 2.2-1156 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding a section numbered 15.2-1800.5 as follows:

§ 2.2-1156. Sale or lease of surplus property and excess building space.

A. The Department shall identify real property assets that are surplus to the current and reasonably anticipated future needs of the Commonwealth and may dispose of surplus assets as provided in this section, except when a department, agency, or institution notifies the Department of a need for property that has been declared surplus, and the Department finds that stated need to be valid and best satisfied by the use of the property.

B. After it determines the property to be surplus to the needs of the Commonwealth and that such property should be sold, the Department shall request the written opinion of the Secretary of Natural and Historic Resources as to whether the property is a significant component of the Commonwealth's natural or historic resources, and if so how those resources should be protected in the sale of the property. The Secretary of Natural and Historic Resources shall provide this review within 15 business days of receipt of full information from the Department.

C. 1. For purposes of this subsection:

"Affordable and middle-income housing" means housing made available to a household with a gross household income that is at or below 120 percent of the area's median income or 150 percent of the area's median income in rural areas, as determined in accordance with the guidelines established by the Authority.

"Authority" means the Virginia Housing Development Authority.

"Eligible organization" means any individual, joint venture, partnership, limited liability partnership, limited liability company, local housing authority, nonprofit community or neighborhood-based organization, or regional or statewide nonprofit housing assistance organization, or other legal entity, or any combination thereof, certified by the Authority as qualified to either develop, construct, acquire, or rehabilitate an affordable and middle-income housing development, pursuant to guidelines established by the Authority. Eligible organizations shall also include the general manager or managing member of any for-profit or nonprofit entity that has previously been awarded federal low-income housing tax credits or Virginia housing opportunity tax credits for projects located within the Commonwealth.

2. Upon receipt of the Secretary's review under subsection B and prior to offering the surplus property for sale to the public, the Department shall notify the chief administrative officer of the locality within which the property is located as well as, any economic development entity for such locality, and the Authority of the pending disposition of such property. 

3. The chief administrative officer or local economic development entity shall have up to 180 days from the date of such notification to submit a proposal to the Department for the use by the locality or the local economic development entity of such property in conjunction with a bona fide economic development activity. The Department shall review such proposal, and if the Department determines that such proposal is viable and could benefit the Commonwealth, the Department may negotiate with the chief administrative officer or the local economic development entity for the sale of such property to the locality or economic development entity. If no agreement is reached between the Department and the chief administrative officer or the local economic development entity for the sale of the property, or if no proposal for the use of the property is submitted to the Department by the chief administrative officer or the local economic development entity within 180 days of notification of the pending disposition of the property, the Department, with the prior, written approval of the Governor, may proceed to dispose of the property as provided in this section.

4. The Authority shall have up to 180 days from the date of such notification to (i) assess the feasibility of developing or redeveloping the property for affordable and middle-income housing and (ii) solicit statements of interest from eligible organizations pursuant to guidelines established by the Authority.

If, within the 180-day period, the Authority determines that an affordable and middle-income housing proj