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HB 2245

Real property tax; assessment of affordable rental housing.

2025 Regular Session Introduced by Bonita Anthony and 15 co-sponsors

Virginia reduces property tax assessments for qualifying affordable rental housing to incentivize property owners maintaining below-market rents, effective July 1, 2025.

Acts of Assembly Chapter text (CHAP0456)
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Bill Summary · HB 2245

Legislative bill overview

HB 2245 modifies how Virginia assesses property taxes on affordable rental housing by establishing preferential tax assessment practices for qualifying properties. The bill creates a framework to reduce the tax burden on rental properties that meet specific affordability standards, incentivizing developers and property owners to maintain affordable housing stock.

Why is this important

Housing affordability is a critical challenge across Virginia, with rising rents pricing out low and moderate-income residents. By reducing property tax obligations for affordable rentals, this legislation aims to make it economically viable for property owners to keep rents below market rates, potentially preserving existing affordable units and encouraging new development in this sector.

Potential points of contention

  • Local revenue impact: Reduced property tax assessments mean decreased revenue for municipalities and school districts that depend on real estate tax collections, potentially requiring them to raise taxes elsewhere or cut services
  • Definition and verification concerns: Questions about how "affordable rental housing" is defined, who qualifies, and how compliance is monitored over time to ensure properties maintain affordability requirements
  • Market distortion: Critics may argue preferential tax treatment creates unfair competitive advantages for certain property owners and could artificially suppress market-rate rents while reducing overall housing supply incentives

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

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