2026 SESSION

INTRODUCED

26104992D

HOUSE BILL NO. 708

Offered January 14, 2026

Prefiled January 13, 2026

A BILL to amend the Code of Virginia by adding a section numbered 15.2-2209.1:3, relating to timely local decision on certain land use permits.

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Patron—Thomas

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Referred to Committee on Counties, Cities and Towns

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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 15.2-2209.1:3 as follows:

§ 15.2-2209.1:3. Timely local decision on by-right permitting; compliance review; incentives and penalties.

A. Notwithstanding any other provision of law, general or special, and in addition to time limits imposed in §§ 15.2-2259 and 15.2-2260, the average time period required for a locality to take final action to approve, approve with conditions, or deny all by-right permit applications from the date of submission of such applications to the locality shall not exceed 12 months. For the purposes of this section, "submission" means the date on which an applicant delivers the application materials to the locality for review. The quality, completeness, or sufficiency of such submission shall have no effect on the commencement of the 12-month period, and no locality shall adopt, enforce, or issue any ordinance, policy, rule, or guidance that alters, delays, or otherwise affects the start of such period.

B. The Department of Housing and Community Development (the Department) shall conduct semiannual compliance reviews of each locality to determine whether the locality has met the requirements of subsection A during the preceding 12-month period.

The Department shall conduct the first such review during the first two quarters of each fiscal year and the second review during the third and fourth quarters of each fiscal year. The Department shall publish and transmit to the Governor and the General Assembly a report identifying each locality as compliant or noncompliant for the applicable review period.

C. Any locality determined by the Department to be compliant for the preceding 12-month period shall be eligible to receive a state grant sufficient to fund one full-time equivalent (FTE) position within the locality's planning department. Such position shall perform planning or permitting duties at the discretion of the locality. The Department shall administer such grants subject to appropriation by the General Assembly. For each successive review period in which a locality remains compliant, an additional FTE position for a planner shall be awarded, with no cap on the number of periods for which awards may be earned.

D. If the Department determines that a locality has failed to comply with the requirements of subsection A during a review period, the Commonwealth Transportation Board shall reduce program fund allocations from the Commonwealth Transportation Fund to any project within the boundaries of such noncompliant locality by two percent for the following fiscal year. For each successive review period in which a locality remains noncompliant, an additional reduction of two percent shall be applied, with no cap on the number of periods for which reductions may be imposed.

Any funding withheld pursuant to this subsection shall revert to and remain in the Commonwealth Transportation Fund.

E. Nothing in this section shall be construed to alter or impair any locality's authority to deny a permit application on lawful grounds, nor to modify any procedural or substantive requirement applicable to such permits under other provisions of this title, except as expressly provided by this section.