Virginia subcommittee backs limited local right of first refusal to preserve expiring assisted housing
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Summary
The House General Laws subcommittee reported HB4 to allow localities—after adopting an ordinance—to match bona fide third‑party offers on multifamily buildings whose affordability restrictions are expiring, aiming to preserve at‑risk LIHTC/LITECH units; reported 7–3.
Delegate Bennett Parker, the bill patron, told the Housing and Consumer Protection Subcommittee that House Bill 4 (part of the governor’s affordability agenda) would let localities adopt an ordinance to create a right of first refusal on multifamily rental buildings that received state or federal assistance when affordability restrictions expire and an owner intends to sell.
Under the measure, a locality or its qualified designee could match a signed, good‑faith third‑party purchase agreement and acquire the building at the same purchase price, keeping the units affordable. Bennett Parker said preservation saves money compared with new construction and cited an estimate that more than 17,000 assisted units are at risk of losing affordability in coming years.
Committee members questioned how a locality would detect or guard against bad‑faith third‑party offers intended to inflate the price. Sponsor and a Virginia Housing Alliance representative (Isabelle McLean) said the bill requires a signed purchase agreement made in good faith and that ordinary contract‑law remedies and penalties for fraudulent agreements would apply; they also noted local ordinances would define the locality’s qualified designee and process.
Supporters offering testimony included housing advocates and coalitions such as the Virginia Housing Alliance, Progress Virginia and the Virginia Conservation Network, which told the committee HB4 would preserve taxpayer‑subsidized housing and prevent tenant displacement. Industry representatives from apartment and property management associations registered opposition, repeating concerns raised in prior sessions about market impacts and process.
The subcommittee moved to report the bill and the clerk recorded a roll call: HB4 was reported to the full committee by a vote of 7 to 3. The committee record shows the measure was advanced without amendment; proponents were urged to keep testimony brief since the bill previously passed the House.