Virginia Gov. Abigail Spanberger’s first-year housing agenda brought new money and new tools to keep affordable housing affordable, but it didn’t succeed on the package’s biggest supply-side proposal: a statewide push to allow multifamily housing in many areas zoned for sale.
A pair of bills would have required local zoning codes to allow multi-family residential and mixed-use development within a wide area of land zoned for commercial use. Proponents say the approach could turn disused malls, parking lots and office corridors into thousands of apartments without redesigning each case.
Both measures advanced through the House and Senate before stalling amid opposition from local governments and some city lawmakers, who said the proposal would erode local control over land use decisions and infrastructure planning.
The failure of the right-of-way proposal leaves Virginia’s affordable housing strategy weighing on funding and maintenance, even as the state’s affordable housing shortage is estimated at at least 300,000 homes.
Conservation measures and subsidies are moving forward
Even without the rezoning, lawmakers approved several parts of Spanberger’s housing package.
The General Assembly passed the first draft of the first right of refusal for subsidized affordable housing. The policy gives areas an opportunity to step in when properties are in danger of being sold, allowing cities and counties to preserve existing affordable units rather than see them converted to market-rate housing.
Lawmakers also authorized a revolving loan fund intended to support mixed-income developments.
They expanded Virginia’s Eviction Reduction Program, directing more funding to keep tenants occupied.
Along with legislation enabling affordable housing programs, the measures provide local governments with additional funding sources and administrative tools to support affordable housing efforts within existing zoning laws.
Local control affects local rewriting
Virginia – especially Northern Virginia across the Potomac River from Washington, DC – has faced housing cost pressures.
“As rent increases continue to outpace income growth, one in three households in Virginia has housing costs,” the Virginia Housing Alliance said in its 2025 report.
Proponents of the rights bill argue that Virginia’s strict separation of commercial and residential areas reduces housing production in job-rich areas.
Opponents argued that a statewide mandate would impose a “one-size-fits-all” approach and block local decisions about roads, schools and utilities. Some city legislators also cited concerns about overcrowding and overcrowding in schools.
Local officials in Arlington County and Alexandria also raised concerns. Both areas have enacted zoning laws to allow “off-center” housing, and both have faced resident disputes and lawsuits.
In early March, the Senate effectively killed the House bill. As the session drew to a close, there was no clear way to renew the measure this year.
“Housing near jobs would have been the most impactful bill we could have passed on housing,” said Sen. Schuyler VanValkenburg told a local radio station.
The Senate version was not taken up for a final vote in the House and was sent back to committee, leaving open the possibility for lawmakers to revisit the issue in the future.
