Virginia Senate approves several measures aimed at boosting housing supply and local tools for affordability
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Summary
The Senate passed multiple housing-related bills Feb. 5, 2026, including measures to expand local authority for inclusionary ordinances, relax limits on local homeownership grants for public employees, protect manufactured housing, require by-right multifamily in commercial zones, and create transit-oriented overlay districts. Votes were often close on major zoning changes.
The Virginia Senate on Feb. 5 approved a set of bills aimed at increasing housing supply and giving local governments new tools to address affordability.
Senators passed Senate Bill 74, which allows all Virginia localities to adopt affordable housing ordinances previously limited to a handful of jurisdictions. Senior Senator from Prince William, speaking in favor, said the measure lets local governments tailor inclusionary housing programs to their communities and argued that Virginia faces “several hundred thousand units” of shortage. The bill passed, Ayes 21, Noes 19.
The chamber also approved Senate Bill 328, which removes the $25,000 cap on certain local homeownership grants intended to help public-service employees buy homes. The senior senator from Loudoun said the change gives localities flexibility to set grant limits in high-cost areas; the senator from King George questioned whether leaving amounts unlimited could create a risk of unconstitutional discrimination. Supporters responded that local ordinances and public procedures provide safeguards. SB 328 passed, Ayes 25, Noes 14.
Senate Bill 346, designed to prevent local ordinances from discriminating against qualified manufactured home projects and to clarify property classifications for newer manufactured homes, passed overwhelmingly (Ayes 38, Noes 2). Sponsor remarks emphasized manufactured housing as an affordable housing source.
Senate Bill 454 requires localities to allow multifamily residential development by right in a large share of commercial and business zoned areas (the sponsor described a 75% coverage target for specified commercial zones), with exemptions for certain environmental, military, and canopy protections. The sponsor framed the bill as a supply-side remedy to rising housing costs, saying “If we wanna make housing affordable, we need to build it.” The bill passed, Ayes 21, Noes 19.
Finally, Senate Bill 717 sets requirements for localities to establish at least one transit‑oriented housing overlay district around qualifying transit facilities to permit higher density housing (allowing up to six stories within a quarter‑mile in qualifying areas, with historic and agricultural exemptions). Supporters said the measure will increase housing near transit, reduce congestion, and stabilize transit funding. SB 717 passed, Ayes 21, Noes 19.
What’s next: These bills now move on under the Senate calendar process toward enrollment and any subsequent actions required before becoming law. Several measures drew close roll-call margins, particularly those that change zoning or permitting rules; sponsors and opponents indicated further local application and administrative rulemaking will shape outcomes in particular communities.