Now that the 2025 Virginia General Assembly session has come to a close, we reflect on the key legislative decisions that will impact housing, renewable energy, and small business development in the Commonwealth. This year’s session saw a strong push from advocates and community organizations striving for policies that create more affordable housing opportunities, expand clean energy access, and bolster economic growth for small businesses. While some measures gained traction, others highlight the work still needed to address ongoing challenges. With the session now concluded, we look at the major legislative outcomes and shift our focus to the federal landscape, where additional opportunities for progress remain.
Affordable Housing Legislation
- Right of First Refusal for Aging Multifamily Properties (HB1973): This bill authorizes localities to enact ordinances granting them the right of first refusal when owners of publicly supported multifamily rental properties decide to sell. The goal is to maintain affordability for at least 15 years by allowing local governments or their designated entities to match purchase offers from private buyers. The bill has progressed through the House and is currently under consideration in the Senate. Advocacy groups, such as the Virginia Housing Alliance, support this measure as a tool to combat the loss of affordable housing units, emphasizing the importance of local authority in preserving housing affordability. However, similar legislation has faced challenges in the past, highlighting the complexities and debates surrounding property rights and affordable housing preservation.
- Faith and Housing Initiative (SB1178): Aimed at facilitating affordable housing development by religious and tax-exempt organizations, this legislation proposes expedited zoning and approval processes. It encourages localities to incorporate strategies supporting such developments into their comprehensive plans, potentially increasing residential density on qualifying properties.
Renewable Energy Initiatives
- Community Access to Renewable Energy (CARE) Act: The CARE Act requires utilities to develop programs that aggregate distributed energy resources—such as electric vehicles, residential and commercial solar installations, and battery storage—to assist in meeting peak energy demand. Participants will receive bill credits for their contributions.
- Clean Energy Apprenticeship Act: This legislation mandates that 15% of the workforce on new clean energy projects be qualified apprentices and requires developers to pay prevailing wages, fostering workforce development in the renewable energy sector. By ensuring a pipeline of skilled workers, this act aims to support the long-term growth of the clean energy industry, create high-quality jobs, and provide economic opportunities for workers entering the sector. It also seeks to address labor shortages in the renewable energy field, ensuring that as Virginia continues to expand its green energy initiatives, there is a well-trained workforce ready to meet the demand.
Economic Development Initiatives
- Virginia Business Ready Sites Program (SB1275): This legislation enhances the existing program by providing grants for the development of business-ready sites across the Commonwealth. By improving site readiness, Virginia aims to attract new businesses and industries, thereby stimulating economic growth and job creation.
- Virginia Growth and Opportunity Act Amendment (HB2724): This amendment expands eligibility for regional councils to receive grants from the Virginia Growth and Opportunity Fund. The change allows councils to apply for and utilize grant funds for regional economic development initiatives, fostering collaboration among localities to drive economic progress.
Looking Ahead
While the outcomes of the General Assembly will bring important changes at the state level, attention is now turning to federal policy. Housing advocates and clean energy stakeholders are looking ahead to the next round of federal budget negotiations and potential policy shifts that could impact affordable housing programs, green energy investments, and economic development funding nationwide. Organizations like Locus continue to support coalitions and partnerships advocating for sustained federal investment in community development. Federal programs such as the Low-Income Housing Tax Credit (LIHTC), Community Development Financial Institutions (CDFI) Fund, and Inflation Reduction Act (IRA) incentives for clean energy projects remain critical to the work being done at the state level.