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Committee reports bill setting 7.5% five‑year housing growth target and creates Housing Approval Board

2152967 · January 24, 2025
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Summary

House Bill 2641 would require localities to increase housing stock by 7.5% over five years and creates a Housing Approval Board with authority to overturn certain local denials; the committee reported the bill 11–9 and referred it to Appropriations after a fiscal impact statement was released.

House Bill 2641, patroned in committee as introduced by Delegate Helmer, would establish a statewide housing‑growth target requiring each locality to increase its total housing stock by at least 7.5% over the five‑year period beginning Jan. 1, 2026. The bill directs localities to develop housing growth plans and lists a menu of strategies localities may use to meet the target.

The bill also creates a Housing Approval Board within the Department of Housing and Community Development (as described in the draft). Under the committee’s version, an applicant whose housing application is denied by a locality and that would increase housing supply may appeal to the Housing Approval Board. The board would have the authority, under certain circumstances, to overturn local decisions and approve applications; it must give extra weight to increases in affordable housing and to rehabilitation of underutilized housing stock.

The bill includes a safeguard: if the Housing Approval Board determines a locality has implemented at least three listed housing growth strategies in good faith and has not rejected more than 25% of new housing proposals in the previous five years, the board must allow the local decision to stand.

Committee members noted a fiscal impact statement released since the subcommittee’s review. Because of the fiscal implications, the committee voted 11–9 to report HB 2641 and refer it to the Appropriations Committee for further review.

Next steps: HB 2641 moves to Appropriations for fiscal review. The transcript records that the subcommittee recommended reporting 5–3; the full committee recorded an 11–9 report and referral to Appropriations.