eNews – March 3, 2026
Will the budget be on time? Dozens of localities still need to comply with APA reporting, Bills passed by Senate Local Government yesterday...and more!
Tuesday, March 3, 2026/Categories: eNews
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VML’s 2026 General Assembly resources can be found on our website here >.
In this issue:
Action Alerts
Budget
Senate Commerce and Labor Committee
Senate Courts of Justice Committee
Senate Finance and Appropriations Committee
Senate Local Government Committee
House Labor and Commerce Committee
VML News
Opportunities
Action Alerts
OPPOSE: Several bills would make monumental changes to land use policy and severely undermine local authority!
HB816 / SB454 and HB1279 / SB388 are on the Senate and House floors.
Contact ALL General Assembly members!
The 2026 General Assembly is close to passing HB816/SB454 and HB1279/SB388 which taken together would eliminate local land use authority in business and commercial districts and on various non-profit properties (talking points below).
OPPPOSE: HB816 / SB454
HB816 (Helmer) / SB454 (VanValkenburg) Zoning; by-right multifamily residential development in areas zoned for commercial use
What these bills do:
HB816 / SB454 allow by-right development of multi-family and mixed-use housing in 50% of all land zoned to a district that includes business and commercial uses by-right.
Reasons to OPPOSE HB816 / SB454:
- Strip local zoning authority and undermine comprehensive planning/economic development.
- “Served by water and sewer/designated in the comprehensive plan” doesn’t mean that there is capacity to these size buildings.
- Localities that have very little open land remaining (i.e., cities that are landlocked) will NOT be able to use that land for economic development. For example, if the locality has one prime corner for economic development – there is no longer certainty that this will be an option.
- VEDP business ready sites have a minimum acreage requirement that most city land will not meet.
- This affects VEDP and local economic development authorities from trying to attract large economic development projects because there is no certainty that the land will remain commercial.
- VDOT – there is nothing in this bill that allows for a traffic impact analysis that is typically required and no requirement that the development pay for a “turn out lane” or other traffic safety measures.
- Provides no mechanism to address the impacts of these developments – no proffers or ability to discuss impacts.
OPPOSE: HB1279 / SB388
HB1279 (Cole, J.G.) / SB388 (McPike) Affordable housing; religious organizations and other nonprofit tax-exempt properties.
What these bills do:
HB1279 / SB388 require the administrative approval of development and construction on certain tax-exempt properties to include religious organizations if the locality has adopted a zoning ordinance. Mixed-use or residential projects shall be permitted by-right, if there is an existing water and sewer line within 500 feet of the property. For example, a building could be as high as 45 feet high and have retail businesses operating in them despite being non-profits! In addition, only 60% of the units have to be affordable.
Reasons to OPPOSE HB1279 / SB388:
- Allow certain non-profit organizations and religious organizations to build by-right housing on their property.
- Strip local zoning authority and undermine comprehensive planning.
- Neighbors of these properties will not have the ability to provide input – only an administrative approval is needed.
- Fail to account for water and sewer capacity – only proximity.
- Very prescriptive rules about height and size with no discretion.
Action Requested:
Please contact ALL General Assembly members and ask them to OPPOSE HB816 / SB454* and HB1279 / SB388.
*When OPPOSING SB454, please be sure to contact Speaker of the House Don Scott (804-698-1088, DelDScott@house.virginia.gov) specifically.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Budget
No time to spare: Fiscal and policy differences stand in the way of an on-time budget
As the House Appropriations Committee (HAC) and Senate Finance and Appropriations Committees (SFAC) continue to navigate the flood of bills headed their way, it’s a mystery when the members will have time to bridge their budget differences.
It’s important to remember that convening the next HAC or SFAC meeting isn’t simply a matter of pulling together an agenda, it means reviewing each bill on the agenda, understanding what the bill does or doesn’t do, determining what the committee did with its counterpart, briefing the chair of the committee, and deciding what the committee should do with the bill.
It’s time-consuming and a diversion from negotiating a final budget agreement if the General Assembly wants to finish by Saturday, March 14.
Before the conferees meet formally to negotiate on the budget, the staff from each committee will need to prepare briefing documents for their members to remind them what is included in their own budget and what to expect from the other chamber’s budget. That takes time too!
With a bottom line separated by more than a billion dollars – and fiscal dollars differences aplenty – the House and Senate conferees will also need to think about what they must have in any final budget agreement.
Don’t leave your seat, the final act commences soon!
VML Contact: Joe Flores, jflores@vml.org
Senate Commerce and Labor Committee
Collective bargaining bill for public employees heads to SFAC; Lobbying bill for local governments needs a lot of work; Conveyances of property bill heads to HAC
HB1263 (Tran) Collective bargaining by public employees; individual home care providers; Virginia Home Care Authority established; Public Employee Relations Board established; exclusive bargaining representatives. Requires all local governments to recognize unions for collective bargaining. Continues the existing law that prohibits public employees from striking. The Senate Commerce & Labor Committee reported the bill today and referred it to the Senate Finance and Appropriations Committee. VML opposes the bills as they will cost local governments hundreds of millions of dollars.
SB50 (Rouse) Lobbying; registration; local governments; penalty. Expands the definition of lobbying to include influencing or attempting to influence local government. The House General Laws Committee reported a revised version. The revisions improve the bill slightly, but VML continues to oppose it because it could cause confusion and uncertainty with local government employees.
SB334 (Roem) Conveyances of interests in real property; public hearing required. This bill requires that a public hearing be held whenever a locality is planning to sell land or convey a permanent easement or right-of-way for 1. major transmission lines over 69 kilovolts, 2. data center utilities and power lines serving the center over 69 kilovolts, and 3. power lines over 69 kilovolts for any commercial or industrial facility. The bill prescribes that the advertising and hearing be done in accordance with the rules for land use actions (two ads). The House Counties, Cities and Towns Committee reported the bill and referred it to the House Appropriations Committee.
VML Contact: Mark Flynn, markkflynn@gmail.com
Senate Courts of Justice Committee
Vested rights for zoning bill reports; Law-enforcement duty to render aid bill remains
SB504 (Deeds) Vested rights; rulings or orders of the local circuit court. This bill redefines vested rights in certain situations by adding a rule that a court order concerning the rezoning of more than 25 parcels would affect the rights of a landowner, the landowner’s rights remain vested, so long as it is pursuing a project in a manner that otherwise establishes that the owner’s rights are vested. SB504 has been assigned to the House Counties, Cities and Towns Committee. HB1122, a similar vested rights bill was carried over in that committee.
HB273 (Helmer) Law-enforcement officers; duty to render aid upon danger to life or limb; civil immunity. Provides that a law-enforcement officer, while engaged in the performance of his duties, has a duty to render aid to any person that he observes suffering from a serious bodily injury or life-threatening condition as circumstances objectively permit. The bill provides immunity for such officers from civil liability for any acts or omissions that are not due to gross negligence or willful misconduct resulting from the rendering of such aid. The bill has yet to be heard by the Senate Courts of Justice Committee.
VML Contact: Mark Flynn, markkflynn@gmail.com
Senate Finance and Appropriations Committee
Two harmful bills are eliminated, but vigilance is still needed
Earlier today, the Senate Finance and Appropriations Committee (SFAC) took up and dispatched a number of bills. Two of those now-deceased bills that looked particularly harmful to local governments, HB960 and HB175, merit a post-mortem.
HB960 (Watts) Personal property taxes; valuation. Required that tangible personal property employed in a trade or business be valued by means of a percentage or percentages of original cost to the taxpayer. Current law requires such property to be valued only by means of a percentage or percentages of the original cost.
Even though the bill included a reenactment clause – meaning that the bill would need to pass in the same form this year and next year – the committee voted to continue the bill until the 2027 Session. Prior to the vote, Delegate Watts explained that she offered the reenactment clause to allow time to discuss the issue with various constituent groups during the interim to fully understand the subtle but important change included in the bill. Senators highlighted the likely drain on local revenues as a reason for not advancing the bill this session.
HB175 (Feggans) Real property tax exemption; surviving spouses of members of the Armed Forces who died in the line of duty. Would have allowed localities to provide a total exemption from real property taxes regardless of assessed value beginning in taxable year 2026 for surviving spouses of members of the Armed Forces who died in the line of duty. Under current law, total exemption is only allowed for such surviving spouses for properties valued at less than the average assessed value for property that is zoned as single family residential. Delegate Feggans explained that taxpayers in Virginia Beach, for example, would receive a $4,000 exemption instead of a $2,000 if the bill were to pass.
The committee voted to continue the bill until the 2027 Session, as they had done with the similar SB8 (McSteph) weeks ago. SFAC staff also explained that the House budget includes an amendment (Item 1 #5h) that requires the House Appropriations and Senate Finance and Appropriations Committees to create a joint subcommittee to review the cost of mandatory property tax exemptions for disabled veterans and their spouses. In an earlier meeting, staff and members noted the rising cost of this program. VML continued to provide SFAC staff with the latest figures on the cost of these unfunded mandates, and it is clearly on the minds of Senators and staff.
Bottom line: We need to encourage the conferees to include Item 1 #5h in the final budget agreement so we can understand why the cost of mandatory property tax exemptions continues to grow exponentially, affecting communities across the Commonwealth.
VML Contact: Joe Flores, jflores@vml.org
Senate Local Government Committee
Bills that passed the Senate Local Government Committee on Monday
HB164 (Thomas) Housing for local employees; grants for homeownership. Would eliminate the maximum amount a locality may provide to employees of the locality for homeownership grants to purchase primary residences.
HB177 (Anthony) Fee for passing bad checks to localities; payment order not paid by recipient. Modernizes the ability of localities to impose a fee for passing of an unauthorized fee or payment order to include a bad check and an electronic payment order.
HB256 (Simonds) Comprehensive plan; environmental justice strategy. Requires cities with populations greater than 20,000 and counties with populations greater than 100,000 to consider during the comprehensive plan review the adoption of an environmental justice strategy.
HB257 (Simonds) Comprehensive plan; social determinants of health. Encourages localities to utilize data related to social determinants of health to consider how the comprehensive plan will impact the locality’s overall public health and access to health care services.
HB277 (Seibold) Zoning; wireless facility modifications, application process. States that a Locality shall not deny an application for the modification of an existing wireless facility if certain requirements are met to include that it would not substantially change the physical dimensions of the existing facility, there is a co-location, removal or replacement of equipment and it is within a certain radius.
HB352 (Thomas) Local authority; authorized by ordinance to establish affordable housing grant programs. States that any locality that has established an industrial development authority or economic development authority pursuant to § 15.2-4903 may by ordinance establish an affordable housing program. Such ordinance shall authorize the Authority to award affordable housing performance grants to qualifying applicants.
HB594 (Simonds) Affordable housing developments, certain; expedited approval. Allows a locality to authorize a zoning administrator to use an administrative process to approve rezoning applications for affordable housing developments. The bill requires that the affordable housing development complies with the Virginia Fair Housing Law, connects to a public or community water supply or sewage system, and be located within or adjacent to an area identified by the locality that could support increased density development and provide access to services. The bill also requires the locality, prior to the adoption of such ordinance, to advertise its intention to propose such ordinance within a certain period of time in a newspaper having a general circulation in the locality.
HB655 (Maldonado) Zoning; manufactured housing. Stipulates that localities are required to permit manufactured homes in areas zoned for agriculture where site-built housing is allowed with conditions. Localities shall not treat manufactured homes differently or more restrictive than a single-family site-built dwelling allowed in the same zoning district.
HB802 (Carr) Vacant buildings; registration by registered agents, etc., annually. Allows a locality to require, by ordinance, the owner, or his registered agent, of any building that has been continuously vacant for at least three years to register such building with the locality annually. The bill also allows the registered agent of an owner of any building that has been vacant for at least 12 months and (i) that meets the definition of "derelict building" in relevant law, (ii) that meets the definition of "criminal blight" in relevant law, or (iii) in which a locality has determined a person is living without the authority of the owner to file the registration forms required to be filed by the owner under current law.
HB806 (Carr) Industrial development authorities; promoting safe and affordable housing.
Allows industrial development authorities to exercise their powers with respect to facilities used primarily for single or multi-family residences.
HB833 (McClure) Land subdivision and development; optional provisions of a subdivision ordinance; electric vehicle charging stations; Department of Energy; report. Allows a locality to require electric vehicle charging stations and the necessary infrastructure and spaces. There is also created a work group that will report back in November of 2026.
HB867 (Cousins) Affordable housing; local zoning ordinance authority. Authorizes all localities to create an affordable housing ordinance. The effective date of this legislation is July 1, 2027.
HB876 (Shin) Zoning; wireless facilities, temporary support structures. Requires a locality to allow for the use of temporary support structures that meet certain requirements. The bill defines a temporary support structure as a monopole or portable wireless communications facility used to provide wireless voice, data, or image transmission within a designated area. The bill provides that an application for a temporary support structure may request approval for up to 180 days with extensions not to exceed two years.
HB888 (Shin) Minimum off-street parking requirements in certain areas. States that if a locality has adopted a zoning ordinance they cannot as a condition of zoning approval require more minimum off-street parking for residential, multifamily or mixed-use development than is prescribed in the bill within a designated area as defined. In addition, any locality with a population of over 20,000 shall provide by ordinance for an administrative reduction of minimum off-street parking requirements of not less than 20% for residential, multifamily or mixed-use development with the designated area as defined.
HB1130 (Reid) Workforce housing for employees of a locality or school board; lease of surplus property. States that any county board of supervisors or county school board may lease surplus or underutilized property to partner with housing authorities or other entities to create dedicated workforce housing while retaining public ownership of the property. The revenues shall be directed to the county or school division for capital maintenance, educational enhancements, or workforce housing stipends for employees of the county or school division.
HB1144 (Martinez) Water and sewer connection fees; first-time homebuyers, affordable housing. Allows a locality to provide for full or partial reimbursement to a first-time homebuyer of water and sewer connection fees, capital recovery changes and availability fees paid by the homebuyer. If the locality has adopted an affordable dwelling unit ordinance it may provide for the same waivers pursuant to the affordable dwelling unit ordinance.
HB1149 (Hodges) Water distribution systems; lead status inspections for water service lines. Assists localities in meeting a federal mandate by allowing localities that own/operate a system for distributing water the right to enter private property for the purpose of inspecting the lines for lead. The entry has to be at reasonable times and under reasonable circumstances and only the exterior of the property. The bill has an expiration date of July 1, 2028.
HB1212 (Sewell) Zoning; small lot residential districts. Stipulates that localities with a population of 50,000 or more shall have at least one zoning district that permits single-family dwellings on lots with a minimum lot area not exceeding 3,000 square feet.
HB1234 (Sewell) Land development; solar canopies in surface parking areas, definitions. *The substitute has not been posted; but this legislation provides a mechanism to allow solar canopies in parking lots.
HB1463 (Thomas) Zoning; nonconforming uses, manufactured homes. States that a landowner/homeowner may place a manufactured home that meets the HUD code on any open lot in a valid nonconforming mobile/manufactured home park. For the purpose of determining whether a use has been continuous, an existing mobile/manufactured home shall be considered a valid nonconforming use regardless of whether it was occupied in the prior 2-year period.
VML Contact: Michelle Gowdy, mgowdy@vml.org
House Labor and Commerce Committee
Costly collective bargaining bill reports; Prevailing wage for public works bill no longer includes local governments
SB378 (Surovell) Collective bargaining by public employees; individual home care providers; Virginia Home Care Authority established; Public Employee Relations Board established; exclusive bargaining representatives. Repeals the existing prohibition on collective bargaining by public employees. The bill creates the Public Employee Relations Board, which shall determine appropriate bargaining units and provide for certification and decertification elections for exclusive bargaining representatives of state employees and local government employees. The bill requires public employers and employee organizations that are exclusive bargaining representatives to meet at reasonable times to negotiate in good faith with respect to wages, hours, and other terms and conditions of employment. The fiscal impact is shown to reach hundreds of millions of dollars. The bill was reported by the House Labor and Commerce Committee today. VML opposes the bill as a costly impact on many localities.
SB518 (Rouse) Prevailing wage rate for public works contracts; localities. The bill originally required that all contractors providing services to localities must pay the prevailing wage for employees if the work is supported in whole or part by state funds. HB569, (Feggans), a similar bill was amended to remove localities from the requirement. The Senate Commerce and Labor Committee accepted the HB569 approach Monday, so local governments are no longer included in the legislation.
VML Contact: Mark Flynn, markkflynn@gmail.com
VML News
More than 50 localities have yet to comply with financial reporting requirements
Please respond as soon as possible!
Two weeks ago, the Auditor of Public Accounts (APA) Staci Henshaw, sent a letter to members of the Joint Legislative Audit and Review Commission (JLARC), apprising them that 54 localities have neglected to provide mandatory financial reporting data by February 15, 2026, two months after the statutory deadline. The required information includes a locality’s detailed statement of revenues and expenditures and their annual audited financial statement.
Data provided by cities, counties, and towns, is compiled in the APA’s annual Comparative Report of Local Government Revenues and Expenditures, also referred to as the Local Comparative Report. The local financial figures provided to the APA are not only required by the Code of Virginia but provide a wealth of critical fiscal information that VML staff regularly use for analytical work and to provide context when responding to related queries.
The APA notified local governments that they have until mid-March to respond to ensure inclusion of their locality’s data in the final report that will be published in April 2026. It’s important that localities complete this assignment as soon as possible and keep the APA in the loop about any delays.
Additional details about this statutory requirement can be found in § 15.2-2510 of the Code of Virginia.
VML Contact: Joe Flores, jflores@vml.org
Small Towns Conference and “Local Workshop” coming to Chincoteague May 13-15
The Small Towns Conference provides an overview of topics related to local government management specifically geared towards small town issues. This conference invites elected officials, including council members and mayors, town managers, and leadership staff to learn, network, and share resources and ideas.
This year the Small Towns Conference will be held May 14-15 at the Chincoteague Center.
Lodging options, registration, and more information about the 2026 Small Town’s Conference is available on VML’s website here.
Pre-Conference Offering – May 13
We know that Chincoteague is a bit of a drive for many of our members, so for those arriving early there will be a special afternoon of programming on May 13 beginning at 1:00pm followed by a reception that evening. Please join us if you are able!
Local Workshop: Tools & Materials for Building Communities
What are the tools and materials used for building and revitalizing communities? How can you make informed decisions that positively affect the growth of your community? This interactive workshop will provide a better understanding of the many components of community building, such as zoning & land use, transportation, historic preservation, placemaking & open space planning, and economic development.
VML Contact: Rob Bullington, rbullington@vml.org
“If I Were Mayor” essay contest open to 7th and 8th graders
Deadline to submit entries is March 23
The Virginia Municipal League (VML) invites all eligible Virginia 7th and 8th Graders to join its “If I were Mayor” essay contest.
Regional winners selected from around the state will each receive a $150 gift card and a plaque. One statewide winner chosen from the regional winners will receive a $250 gift card and a plaque. The runner-up from the region that receives the statewide award will become that region’s winner.
Winning essays will be featured in the May/June issue of VML’s magazine Virginia Town & City.
Learn more about the contest and how to submit entries here >.
VML Contact: Manuel Timbreza, mtimbreza@vml.org
Opportunities
NeighborWorks Ground-Up Emerging Developers Training in Richmond: March 30 - April 3
Virginia Housing is proud to partner with NeighborWorks America to host the NeighborWorks Ground-Up Emerging Developers Training in Richmond from Monday, March 30 - Friday, April 3.
This multi-day professional development experience is designed to support aspiring affordable housing developers across the Commonwealth. The training will feature industry experts who will give emerging developers the tools, strategies and technical knowledge needed to deliver successful, sustainable affordable housing projects.
Topics include strategic thinking, building a development team and progressing from initial concept to final blueprint.
Registration is required to attend, and capacity is limited!
Register and View Trainings here >.
Virginia Housing Contact: Housingeducation@virginiahousing.com
Registration now open: Salute to Service honors Virginia Veterans at Virginia War Memorial, March 21
When: Saturday, March 21, 2026 10:00 a.m. to 6:00 p.m.
Where: Virginia War Memorial (621 South Belvidere Street | Richmond, VA 23220)
Registration is now open for all Virginia Veterans and those who support them for the inaugural “Salute to Service Reunion Celebration” a day-long program of remembrance, honor, and reconnection.
Highlights of the event include the premiere of Decisive Victory: Operation Desert Storm, a new documentary produced in partnership with Blue Ridge PBS, a wreath-laying ceremony honoring the seven Virginians killed in action in this conflict, unit rally points, musical performances by the West Point Alumni Glee Club, and a panel discussion offering firsthand perspectives on the Operation Desert Storm conflict and its lasting legacy.
Panelists include:
- James Henry Binford “Binnie” Peay III, General, USA (Ret.)
- John P. Jumper, General, USAF (Ret).
- Barry R. McCaffrey, General, USA (Ret.)
- Robert B. Flowers, Lieutenant General, USA (Ret.)
- Michelle Rose, Major General, USA (Ret.)
- Moderated by Michael S. Bell, Colonel, USA (Ret.), Executive Director of the Institute for the Study of War and Democracy at the National WWII Museum.
The 2026 gathering marks the first veteran reunion of its kind hosted at the Virginia War Memorial and launches the Salute to Service Reunion series, a multi-year program with future reunions planned for Vietnam War veterans in 2027, Global War on Terrorism veterans in 2028, and Cold War–Fall of the Berlin Wall veterans in 2029.
The event is free to attend for Operations Desert Shield and Desert Storm Veterans and a guest. Additional guests and supporters are $25 to attend. Advance registration is required as space is limited.
MORE INFO AND REGISTRATION HERE >
All program fees support the Salute to Service Reunion Celebration.
Contact: info@vawarmemorial.org