Issues

Virginia Residential Landlord and Tenant Act; enforcement by localities. Provides that if a condition exists in a dwelling unit that constitutes a material noncompliance by the landlord with the rental agreement or with any provision of law that, if not remedied within a reasonable time frame, constitutes a fire hazard or serious threat to the life, health, or safety of a tenant or occupant of the premises, a locality may institute an action on behalf of any tenant or occupant of the premises who is injured by such material noncompliance for injunction and damages to enforce the landlord’s duty to maintain the dwelling unit in a fit and habitable condition, provided that (i) the premises where the violation occurred is within the jurisdictional boundaries of the locality and (ii) the locality has notified the landlord who owns the premises, either directly or through the managing agent, of the nature of the violation and the landlord has failed to remedy the violation to the satisfaction of the locality within a reasonable time after receiving such notice.

Virginia Residential Landlord and Tenant Act; landlord remedies; noncompliance with rental agreement; mandatory waiting period. Increases the mandatory waiting period for a landlord to pursue remedies for termination of the rental agreement from five days to 14 days. The waiting period begins after a landlord serves written notice on a tenant notifying the tenant of his nonpayment of rent and of the landlord’s intention to terminate the rental agreement if rent is not paid.

Virginia Residential Landlord and Tenant Act; tenant remedies; early termination of rental agreement by military personnel. Removes the requirement that military personnel terminating a rental agreement due to identified permissible circumstances shall provide the landlord with a termination date that is no more than 60 days prior to the date of departure necessary to comply with the official orders or any supplemental instructions for interim training or duty prior to the transfer.

Requirement for appeals bond; indigent parties; appeal of unlawful detainer. Removes the requirement for an indigent defendant, as defined in the bill, to post an appeal bond in an unlawful detainer action appealed from the general district court.

Local anti-rent gouging authority; civil penalty. Provides that any locality may by ordinance adopt anti-rent gouging provisions. The bill provides for notice and a public hearing prior to the adoption of such ordinance and specifies that all landlords who are under the ordinance may be required to give at least 90 days’ written notice of a rent increase and cannot increase the rent by more than the locality’s calculated allowance, not to exceed three percent, and states that such allowance is effective for a 12-month period beginning July 1 each year. The bill requires the locality to publish such allowance on its website by June 1 of each year. Certain facilities, as outlined in the bill, are exempt from such ordinance. The bill also requires a locality adopting an anti-rent gouging ordinance to establish an anti-rent gouging board to establish rules and procedures by which landlords may apply for and be granted exemptions from the rent increase limits set by the ordinance or delegate such duties and functions to an existing local board, department, or agency. The bill also requires the anti-rent gouging board to establish a fair return on investment rent increase exemption to the annual anti-rent gouging allowance where necessary to offset increased operating expenses. Finally, the bill provides that a locality shall establish a civil penalty for failure to comply with the requirements set out in its ordinance.

Virginia Residential Landlord and Tenant Act; noncompliance as defense to action for possession for nonpayment of rent. Removes the provision requiring that a tenant in possession of a dwelling unit, prior to asserting a defense against an action for rent or possession, pay into court the amount of rent found by the court to be due and unpaid and for such amount to be held by the court pending the issuance of an order. The bill also limits the discretion of the court in actions for possession based upon nonpayment of rent and actions for rent by a landlord when the tenant is in possession of a dwelling unit.

Manufactured Home Lot Rental Act; right of first refusal; resident entities and localities. Provides for a right of first refusal, under the Manufactured Home Lot Rental Act, for resident entities, defined in the bill, and localities in which a manufactured home park is located when a manufactured home park owner enters into a contract to sell such manufactured home park.

Virginia Residential Landlord and Tenant Act; essential services. Adds air conditioning when supplied by the landlord to the list of what constitutes an essential service for purposes of the Virginia Residential Landlord and Tenant Act.

Exemptions from garnishment; minimum protected account balance; certain benefit payments; procedure for financial institutions. Requires certain financial institutions to automatically exempt from garnishment (i) a minimum protected account balance, defined in the bill as the combined total of not more than $1,000 in a judgment debtor’s account or across multiple accounts in the same financial institution, and (ii) a protected amount of certain benefit payments, defined in the bill, that have been deposited into the account via direct deposit or electronic deposit within the two months immediately preceding the day before a financial institution commences an account review. The bill describes an account review as a process of examining an account of a judgment conducted by a financial institution upon such financial institution’s receipt of a garnishment summons to determine if any eligible benefit payments have been deposited within the applicable time period and, if so, to calculate the total sum of such benefit payments and establish the total as a protected amount that shall be automatically exempt from garnishment. The bill provides that such procedure to automatically exempt such funds shall not apply if the debt arises from a child support or spousal support obligation or if an exemption is otherwise prohibited by law.

The bill further provides that a judgment debtor is not required to claim nor request a hearing for such automatic exemptions. Finally, the bill makes updates to the relevant provisions governing garnishment proceedings, notices to the garnishee and judgment debtor, and the form of a garnishment summons consistent with the provisions of the bill.

Department of Housing and Community Development; Virginia Residential Landlord and Tenant Act; tenant records. Requires a landlord, upon written request by a tenant, to within 10 business days provide such tenant a statement containing all fees, credits, and payments incurred by the tenant over the duration of the tenancy or the past 12 months, whichever is shorter, provided that the rent payment for the dwelling unit incorporates payment for one or more utility charges, including electricity, gas, water, sewer, trash, or other utilities and services. The bill specifies that such statement shall itemize separately rent and the cost of each utility and that the landlord is only obligated to provide such written statement if the landlord owns fewer than four rental dwelling units or less than a 10 percent interest in more than four rental dwelling units, whether individually or through a business entity, in the Commonwealth unless the landlord receives any state or local rental or utility assistance funds on behalf of the tenant. The bill additionally directs the Department of Housing and Community Development to develop a standardized printable template for the landlord to provide the tenant such written statement.

The bill further provides that a judgment debtor is not required to claim nor request a hearing for such automatic exemptions. Finally, the bill makes updates to the relevant provisions governing garnishment proceedings, notices to the garnishee and judgment debtor, and the form of a garnishment summons consistent with the provisions of the bill.

Virginia Residential Landlord and Tenant Act; terms and conditions of rental agreement; notice of rent increase. Requires a landlord who owns more than four rental dwelling units or more than a 10 percent interest in more than four rental dwelling units, whether individually or through a business entity, in the Commonwealth to allow a tenant no less than 30 days to inform the landlord of the tenant’s intent to renew the rental agreement or vacate the dwelling unit in cases where the landlord provides the tenant with written notice of an increase in rent for the subsequent rental agreement term.

The bill further provides that a judgment debtor is not required to claim nor request a hearing for such automatic exemptions. Finally, the bill makes updates to the relevant provisions governing garnishment proceedings, notices to the garnishee and judgment debtor, and the form of a garnishment summons consistent with the provisions of the bill.

Electric utilities; small portable solar generation devices; local regulation; Residential Landlord and Tenant Act. Permits any electric utility customer to own and operate a small portable solar generation device, defined in the bill as a nationally certified, plug-in solar photovoltaic device with a maximum power output of no more than 1,200 watts that is not designed to be interconnected with the electric grid and is intended primarily to offset part of the customer’s electricity consumption, provided that such customer has submitted notice to its incumbent investor-owned utility, municipal utility, or electric cooperative. The bill prohibits an investor-owned utility, municipal utility, or electric cooperative from imposing interconnection requirements, charging any fee related to the device, or requiring that the customer obtain the utility’s approval before installing or using the device. Under the bill, no electric utility or electric cooperative shall be liable for damage or injury caused by a small portable solar generation device.

The bill also restricts (i) localities from prohibiting the use of a small portable solar generation device on a residential structure, provided that certain requirements are met, and (ii) landlords owning more than four rental dwelling units from prohibiting a tenant from installing a small portable solar generation device on the exterior of the tenant’s premises, provided that reasonable restrictions may be established concerning size, manner, and placement.

Virginia Residential Landlord and Tenant Act; Eviction Diversion Program; eligibility. Alters eligibility requirements for a tenant to participate in the Eviction Diversion Program. The bill additionally requires any general district court of the Commonwealth that implements the Program to provide information about the Program, including eligibility criteria, with any summons for unlawful detainer. Finally the bill permits such courts to establish eligibility requirements for any tenant participating in the Program at such court.

Unlawful detainer; bifurcation of case; contested rent and damages. Provides that, at an initial hearing on an unlawful detainer, if the defendant contests the amount of rent and damages alleged to be due and owing to the plaintiff, the court shall not bifurcate the unlawful detainer case. Under current law, at the initial hearing, upon request of the plaintiff, the court is required to bifurcate the unlawful detainer case and set a continuance date no later than 120 days from the date of the initial hearing to determine final rent and damages.

Virginia Residential Landlord and Tenant Act; material noncompliance by landlord; rent escrow; relief. Removes the requirement that, prior to the granting of any relief, a tenant shall pay into escrow any amount of rent called for under the rental agreement. The bill requires the tenant, during the pendency of the action, to pay into escrow the amount of rent that becomes due within five days of the date due under the rental agreement, unless or until such amount is modified by a subsequent order of the court. The bill also provides that a failure of the tenant to make timely payments into escrow shall not be grounds for dismissal of the underlying action but may be considered by the court when issuing an order.

Income tax credit; affordable rental housing tax credit. Establishes a nonrefundable tax credit for taxable years 2026 through 2030 for eligible landlords equal to $750 per affordable dwelling unit, as certified by the Department of Housing and Community Development. The bill limits the (i) total amount of such credits available to an eligible landlord to $15,000 per taxable year and (ii) aggregate amount of such credits claimed to $5 million per taxable year.

Taxation in the Commonwealth. Levies the retail sales and use tax on the following services: admissions; charges for recreation, fitness, or sports facilities; nonmedical personal services or counseling; dry cleaning and laundry services; companion animal care; residential home repair or maintenance, landscaping, or cleaning services when paid for directly by a resident or homeowner; vehicle and engine repair; repairs or alterations to tangible personal property; storage of tangible personal property; delivery or shipping services; travel, event, and aesthetic planning services; and digital services. Digital services are defined in the bill as the following: software application services, computer-related services, website hosting and design, data storage, and digital subscription services. The services taxed under the bill include any transaction for digital services where the purchaser or consumer of the service is a business but do not include any service otherwise exempt under law.

The bill also imposes the retail sales and use tax on digital personal property, defined in the bill as a digital product delivered electronically that the purchaser owns or has the ability to continually access without having to pay an additional subscription or usage fee to the seller after paying the initial purchase price.

Revenues generated by the taxes levied on services and digital personal property shall be allocated in the same manner as other sales and use taxes; however, revenues from the state portion of the sales and use tax that would be allocated to the general fund shall instead be allocated as follows: first, (i) revenue generated by the imposition of such tax on delivery services in the Northern Virginia Transportation District shall be distributed to the Washington Metropolitan Area Transit Authority and (ii) all other revenues generated by the imposition of such tax on delivery services shall be distributed to the Commonwealth Transportation Fund. Of the remaining revenues, (a) 60 percent shall be distributed to localities on the basis of school-age population and (b) 40 percent shall be distributed to localities on the basis of the high-need student population in the locality. The bill clarifies that a high-need student population includes students who are (1) automatically certified for free school meals because of participation in social services programs, (2) participants in a program of special education, or (3) English language learners.

The bill provides certain exemptions to the sales and use tax on services, including health care services that must be performed by a person licensed or certified by the Department of Health Professions, veterinary services, professional services, internet access services, and services provided by a person who does not receive more than $2,500 per year in gross receipts for performance of such services. The bill exempts services purchased by a nonprofit organization and services purchased by a homeowners’ association or by a landlord for the benefit of his tenant. The bill also repeals the service exemptions currently provided for the sale of custom programs and modification of prewritten programs. Finally, the bill exempts food purchased for human consumption and essential personal hygiene products from all state, local, and regional sales taxes on and after July 1, 2026. Under current law, food purchased for human consumption and essential personal hygiene products are subject only to the one percent local option sales tax.

Virginia Human Rights Act; equal credit opportunities; Virginia Fair Housing Law; nondiscrimination by automated decision systems. Provides that it is an unlawful discriminatory practice for any person to deploy, use, or rely on an automated decision system to make a decision pursuant to the Virginia Human Rights Act, provisions related to equal credit opportunities, or the Virginia Fair Housing Law that results in discrimination or an unlawful disparate impact or that intentionally or knowingly uses variables or data fields that serve as close proxies for protected characteristics. The bill requires a person that deploys, uses, or relies on such a system to (i) disclose the use of such system to any individual who is the subject of such decision; (ii) annually assess such system for bias, disparate impact, and discriminatory outcomes; and (ii) maintain for no fewer than two years from the date a decision is made certain documentation relating to such system.

Virginia Residential Landlord and Tenant Act; rental payment methods; prohibited fees. Requires landlords subject to the Virginia Residential Landlord and Tenant Act to accept payment of periodic rent and any security deposit by any lawful means, including check, electronic funds transfer, debit or credit card, cash, and money order. The bill also removes the provision requiring the tenant to request a written receipt after paying in the form of cash or money order and requires the landlord to provide such written receipt as a matter of law. Finally, the bill prohibits landlords from requiring a tenant to pay any fee for the maintenance or repair of any unit subject to such rental agreement unless necessitated by the tenant’s violation of a requirement of the Act. Under current law such prohibition applies only if the landlord is a public housing authority.

Virginia Residential Landlord and Tenant Act; adverse action by landlord; tenant remedies. Prohibits a residential landlord who owns more than four rental dwelling units or more than a 10 percent interest in more than four rental dwelling units, whether individually or through a business entity, in the Commonwealth from taking adverse action against a prospective tenant due to the prospective tenant’s history of a dismissed or nonsuited unlawful detainer case or an unlawful detainer case that is eligible for expungement. The bill allows a prospective tenant to recover, as a result of any such adverse action, (i) actual damages, (ii) statutory damages of $1,000, and (iii) reasonable attorney fees.

Virginia Residential Landlord and Tenant Act; landlord remedies; tenant’s right of redemption; attorney fees. Limits attorney fees to $50 when, prior to the initial court date on an action for unlawful detainer, a tenant makes full payment of all money due for (i) rent as of the date of payment; (ii) any late fees authorized by law and the rental agreement; (iii) any damages; and (iv) court costs.

Local rent stabilization authority; civil penalty. Provides that any locality may by ordinance adopt rent stabilization provisions. The bill provides for notice and a public hearing prior to the adoption of such ordinance and specifies that all landlords who are under rent stabilization may be required to give up to a two-month written notice of a rent increase and cannot increase the rent by more than the locality’s rent stabilization allowance, described in the bill as the maximum amount a landlord can increase a tenant’s rent during any 12-month period, in effect at the time of the increase. The bill sets such allowance as equal to the annual increase in the Consumer Price Index for the region in which the locality sits, states that such allowance is effective for a 12-month period beginning July 1 each year, and requires the locality to annually by June 1 publish such allowance on its website. Certain facilities, as outlined in the bill, are exempt from any such ordinance. The bill also requires such ordinance to provide a procedure by which a landlord may apply for an exemption from the rent stabilization provisions in situations where the net operating income generated by the rental facility has not been maintained due to escalating operating expenses or for other appropriate reasons as established by the locality. Finally, the bill provides that a locality may establish a civil penalty for failure to comply with the requirements set out in the ordinance that shall not exceed $2,500 per separate violation.

Virginia Residential Landlord and Tenant Act; algorithmic pricing device use by certain landlords; civil penalties. Requires a landlord, defined in the bill as a landlord who owns more than 10 rental dwelling units or more than a 10 percent interest in more than 10 rental dwelling units, whether individually or through a business entity, in the Commonwealth, who uses an algorithmic pricing device, defined in the bill, to establish the advertised rent, renewal rent, or rent offered to a prospective tenant to disclose such use in writing to the tenant or the prospective tenant under the Virginia Residential Landlord and Tenant Act. The bill provides that, upon request, a landlord shall provide to the tenant or prospective tenant a plain-language summary of the general factors considered by the algorithmic pricing device in determining rent, and that a tenant or prospective tenant shall be entitled to a human review of any rent determination or renewal increase generated or recommended by an algorithmic pricing device.

The bill allows the Attorney General to seek an injunction and civil penalties to restrain any violations of the bill.

Localities will have the ability to enact provisions to limit rent increases that can be charged to tenants.

Localities will have the ability to enact provisions to limit rent increases that can be charged to tenants.

Requires landlords to accept rent by any lawful payment method, including credit card, and disallows any fees to be charged for collection or processing unless one method is free.

Removes the requirement for tenant to pay rent into escrow prior to the initial court date where tenant alleges noncompliance by landlord.

Virginia Residential Landlord and Tenant Act; landlord remedies; noncompliance with rental agreement; mandatory waiting period. Increases the mandatory waiting period for a landlord to pursue remedies for termination of the rental agreement from five days to 14 days. The waiting period begins after a landlord serves written notice on a tenant notifying the tenant of his nonpayment of rent and of the landlord’s intention to terminate the rental agreement if rent is not paid.

Electric utilities; small portable solar generation devices; local regulation; Residential Landlord and Tenant Act. Permits any electric utility customer to own and operate a small portable solar generation device, defined in the bill as a nationally certified, plug-in solar photovoltaic device with a maximum power output of no more than 1,200 watts that is not designed to be interconnected with the electric grid and is intended primarily to offset part of the customer’s electricity consumption. The bill prohibits an investor-owned utility, municipal utility, or electric cooperative from imposing interconnection requirements, charging any fee related to the device, or requiring that the customer obtain the utility’s approval before installing or using the device. Under the bill, no electric utility or electric cooperative shall be liable for damage or injury caused by a small portable solar generation device.

The bill also restricts (i) localities from prohibiting the use of a small portable solar generation device on a residential structure, provided that certain requirements are met, and (ii) landlords owning more than four rental dwelling units from prohibiting a tenant from installing a small portable solar generation device on the exterior of the tenant’s premises, provided that reasonable restrictions may be established concerning size, manner, and placement.

This bill is a recommendation of the Commission on Electric Utility Regulation.

Virginia Residential Landlord and Tenant Act; Eviction Diversion Program; eligibility. Permits localities to establish eligibility requirements for tenant participation in the Eviction Diversion Program at the general district court with jurisdiction in such locality. The bill additionally requires a general district court to provide information about the Program, including eligibility criteria, to any summons for unlawful detainer. Finally the bill alters eligibility requirements for a tenant to participate in the Program.

Virginia Residential Landlord and Tenant Act; tenant records; submetering, energy allocation, and ratio utility billing systems. Requires a landlord to provide a tenant with tenant records and a written statement identifying all debits and credits incurred by the tenant when serving the tenant with written notice of termination of the rental agreement due to the tenant’s material noncompliance with the terms of the agreement or certain violations materially affecting health and safety. If the rental agreement provides for use of submetering equipment, energy allocation equipment, or a ratio utility billing system, the landlord shall identify debits and credits incurred by the tenant for energy and utility bills and any permitted additional charges. The bill requires the owner of any residential building to maintain adequate records indicating how tenant monthly energy and utility billing fees are calculated and including a history of billing fee payments for each tenant over the duration of the tenancy or the past 12 months, whichever is shorter. Such records shall be made available to the tenant upon request. Finally, the bill removes a provision allowing for the collection of fees when a tenant requests such records.

Exemptions from garnishment; minimum protected account balance; certain benefit payments; procedure for financial institutions. Requires certain financial institutions to automatically exempt from garnishment (i) a minimum protected account balance, defined in the bill as the combined total of not more than $1,000 in a judgment debtor’s account or across multiple accounts in the same financial institution, and (ii) a protected amount of certain benefit payments, defined in the bill, that have been deposited into the account via direct deposit or electronic deposit within the two months immediately preceding the day before a financial institution commences an account review. The bill describes an account review as a process of examining an account of a judgment conducted by a financial institution upon such financial institution’s receipt of a garnishment summons to determine if any eligible benefit payments have been deposited within the applicable time period and, if so, to calculate the total sum of such benefit payments and establish the total as a protected amount that shall be automatically exempt from garnishment. The bill provides that such procedure to automatically exempt such funds shall not apply if the debt arises from a child support or spousal support obligation or if an exemption is otherwise prohibited by law.

Virginia Residential Landlord and Tenant Act; prohibited provisions; fees for maintenance and periodic payments. Prohibits landlords subject to the Virginia Residential Landlord and Tenant Act from requiring a tenant to pay any fee for the maintenance or repair of any dwelling unit unless the repair is necessitated by the tenant’s violation of a requirement of the Act. Under current law, only landlords who are public housing authorities are prohibited from charging a tenant any fee for the maintenance or repair of any dwelling unit unless the repair is necessitated by the tenant’s action or omission. The bill additionally prohibits all landlords subject to the Act from requiring a tenant to pay a fee to submit periodic rent payments or other amounts due, regardless of the method of payment.