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Bill

Bill

SB 388

Affordable housing; religious organizations and other nonprofit tax-exempt properties.

2026 Regular Session Introduced by Jennifer Carroll Foy and 4 co-sponsors

SB 388 exempts nonprofit and religious organizations from standard zoning requirements to build affordable housing on tax-exempt properties, streamlining development but potentially bypassing local oversight.

Governor's recommendation received by Senate
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Bill Summary · SB 388

Legislative bill overview

SB 388 allows religious organizations and other nonprofit tax-exempt entities to develop affordable housing on their properties with modified zoning and regulatory requirements. The bill streamlines approval processes for these groups to construct or convert buildings into affordable residential units, potentially bypassing some standard local land-use restrictions.

Why is this important

This addresses Virginia's affordable housing shortage by leveraging nonprofit and religious organizations' tax-exempt land holdings and their mission-driven focus. It could rapidly increase affordable housing supply in areas where land is scarce or expensive, while potentially providing nonprofits with revenue streams or mission fulfillment opportunities.

Potential points of contention

  • Zoning authority conflicts: The bill may override local government zoning decisions, raising concerns about municipal control and community input in land-use planning
  • Accountability and affordability standards: Questions about enforcement mechanisms to ensure units remain affordable long-term and that organizations maintain adequate housing quality and tenant protections
  • Inequitable tax benefits: Critics may argue the bill gives preferential treatment to tax-exempt organizations while private developers face full regulatory burdens, potentially disadvantaging market-rate housing development

Compiled from official sources — confirm details with the bill’s official record.

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