General Assembly Update:
Approaching "Crossover"
Today marks the 24th day of the 45-day 2019 General Assembly Session - next week is "Crossover" which is when the House of Delegates and the Senate conclude their work on legislation that was introduced in their respective chambers - bills that successfully pass the House will be sent over to the Senate and bills that successfully pass the Senate will be sent over to the House of Delegates. HBAV is tracking over 150 pieces of legislation that have a direct or indirect impact on the Commonwealth's residential land development and construction industry. Below is a recap of some of the major legislation that was debated and voted on last week.
Input Needed: Cluster Zoning; Density Calculation Legislation Advanced by House Committee:

HB 2549 was introduced by Delegate Chris Jones and would prohibit localities from including areas designated as Resource Protection Areas, pursuant to criteria developed by the State Water Control Board, in a clustering zoning density calculation and provides that nothing in the statute shall require a locality to allow a greater overall density for a clustered development than would be required on a non-clustered development. By excluding RPA's from inclusion in cluster development density calculations, we believe that there will be less incentive for industry to pursue cluster developments, which have been an important tool for localities and the housing industry to reduce infrastructure costs and preserve environmentally sensitive areas and open space.

HB 2549 was heard on Wednesday in Subcommittee 2 of House Counties, Cities, and Towns. HBAV spoke against the legislation but the Subcommittee advanced the legislation. The bill will now be sent to the floor of the House of Delegates and ultimately head to the Senate Local Government Committee for debate.

If you have any information on the potential impact of this legislation on local infrastructure, land planning, and economic development, please let us know so that we can include your comments in our discussions with members of the Senate Local Government Committee. Please contact Andrew Clark at [email protected] with any comments.


HB 2361 (Stormwater Grandfathering) Amended and Passed by Committee:

This year, legislation ( HB 2361 ) was introduced with language which provided that, beginning July 1, 2019, all land-disturbing activities that are regulated pursuant to the Stormwater Management Act shall meet the technical criteria for stormwater management that were adopted by the State Water Control Board during 2011 and became effective July 1, 2014. Under the current regs, there are two “exemptions” that allow projects to continue under the older technical criteria – 1) Grandfathered projects that are given until July 1, 2019 to begin construction under the old criteria and 2)Time Limited Projects, which have until July, 2024 to begin construction under the old criteria. Delegate Jones’ bill would eliminate both exemptions and require any construction that occurs after July 1, 2019 to adhere to the newer, more stringent technical criteria.  

Working with the Virginia Association for Commercial Real Estate, HBAV met with the patron of the legislation to discuss the significant impact that this legislation would have on economic development in the Commonwealth. In an effort to find a balance between Del. Jones’ concerns with these exemptions and the concerns of the industry, we drafted an amendment to mitigate the impact of the introduced legislation – that amendment can be found below in yellow. Earlier this week, Del. Jones indicated his willingness to work with the commercial and residential industry on a compromise.

In short, the proposed compromise amendment establishes that a developer who currently has until June 30, 2024 to start a project using the old easier rules, could only do so if he builds the project himself. If the Department receives notice that the stormwater discharge permit for the project will be transferred to another developer on or after January 1, 2021, and the developer has not started land disturbing activities before that notice, that new developer would have to comply with the new tougher rules. There are exceptions to these new transfer restrictions for government projects funded before July 1, 2012, for transfers to family or related entities and for land that would be served by stormwater facilities that are already constructed under the old criteria.
 
On Wednesday, the Agriculture Chesapeake and Natural Resources Committee approved HB 2361, including our proposed amendment. The bill will now head to the full House of Delegates. Given the potential impact of this legislation on our industry, this was a difficult compromise to put forward - but we felt that it was a necessary compromise to take in light of the potential passage of the initial proposal.

Below is the text of the amendment that HBAV and VACRE worked with Del. Jones to have included in HB 2361:

Notwithstanding any provision of law or regulation to the contrary, the statewide technical criteria for stormwater management that were adopted by the Board during 2011 and became effective July 1, 2014 shall be applicable to those land-disturbing activities that are subject to a VSMP permit initially issued prior to July 1, 2014, where notice of transfer of such VSMP to another party is provided to the Department on or after January 1, 2021 but land-disturbing activities have not commenced before providing such notice. However, this subdivision shall not apply where governmental bonding or public debt financing has been issued for project prior to July 1, 2012 or to land disturbing activities served by existing on-site, off-site or regional stormwater management facilities designed and implemented as required at the time of their construction. For purposes of this subdivision, “another party” shall not include (i) a subsidiary, parent company, sister company, or other affiliate of the existing permittee so long as both parties are subject to common majority control and ownership, (ii) one or more of the existing permittee’s immediate family members, grandchildren or great grandchildren, or parents, (iii) a corporation, limited liability company or other legal entity controlled by the existing permittee or one or more of the existing permittee’s immediate family members, grandchildren or great grandchildren, or parents, (iv) a trust for which the existing permittee or one or more of the existing permittee’s immediate family members, grandchildren or great grandchildren, or parents are the beneficiaries, or (v) a devisee or heir of the existing permittee.

UPDATE: Building Permit Issuance and Fee Legislation Passes Full Committee:

Delegate David Yancey introduced HB 1966 this year to help strengthen the existing code sections related to the issuance of building permits. HBAV worked with Delegate Yancey and other stakeholders to include language in the bill that clarifies that local building permit fees must be retained in the local building department. We have heard from countless members that local building departments are struggling to stay fully staffed, implement much-need technology and system upgrades, and streamline the review and inspections process. HB 1966 will ensure that the revenue from the local building department are reinvested back into the department and not used for other purposes.

This week, HB 1966 was unanimously passed by the full House General Laws Committee and will head to the floor of the House of Delegates!

UPDATE - HBAV Affordable Housing Legislation Passes House of Delegates:

Delegate Lamont Bagby sponsored legislation on behalf of HBAV to expand the authority for local governments to waive building permits fees and other local fees of private sector entities involved in the construction of affordable housing. The Code of Virginia currently only allows localities to waive building permit fees and other local fees associated with the construction, renovation, or rehabilitation of housing for 501(c)(3) organizations who are pursuing affordable housing developments. With demand for affordable housing continuing to rise, local governments and the housing industry must continue to find ways to remove local impediments to the production of housing at all price-points.

We are pleased to report that HB 2229 passed the House Counties, Cities and Towns Committee unanimously (21-0) and was passed unanimously by the full House of Delegates yesterday!


HBAV Proffer Legislation Passes in House and Senate:

As you know, HBAV has spent much of 2018 working with local governments and other stakeholders from around the Commonwealth on a series of amendments to Virginia's proffer statutes. HB 2342 (Thomas) and SB 1373 (Favola) were introduced after extensive negotiations that last into the first few days on the 2019 Session. These bills make several substantive amendments to Virginia’s proffer law to open the lines of communication between local governments and applicants and allow applicants and localities greater flexibility to discuss and agree upon voluntary proffers that mitigate the concerns raised by local governments and the community during the development review process.

We are pleased to report that both HB 2342 and SB 1373 have passed their respective bodies with bipartisan support and strong margins! HB 2342 passed the House of Delegates this week by a vote of 91 to 6 and will now be sent over to the Senate for a hearing. The other week, SB 1373 passed the Senate by a vote of 29-10, with 1 abstention - this bill will now head to the House of Delegates.

Restrictive Tree Ordinance Legislation Defeated in House Subcommittee:

HB 2146 and HB 2333 were heard in the House Counties, Cities, and Towns Subcommittee 2 this week - these bills would have the expanded authority for local governments to enact restrictive tree canopy ordinances. Both of these bills were defeated this week.