Title
Ordinance to Amend and Re-Enact the Zoning Ordinance of the City of Hampton, Virginia by Creating Section 1-38, “Nonprofit Affordable Housing Developments,” and Amending Section 2-2, “Definitions,” to Establish Standards and Definitions Applicable to Nonprofit Affordable Housing Developments
Purpose
Background Statement:
The purpose of these amendments is to establish regulations for nonprofit affordable housing developments in accordance with House Bill 1279 and Senate Bill 388, adopted by the 2026 Virginia General Assembly. The legislation establishes a by-right approval process for qualifying affordable residential and mixed-use developments on property owned by qualifying tax-exempt religious and nonprofit organizations. Eligibility requirements include continuous ownership for at least five (5) years, at least 60 percent affordable dwelling units, and preservation of affordability for at least thirty (30) years. Affordable rental units must serve residents earning no more than 80 percent of area median income, and affordable for-sale units must serve purchasers earning no more than 120 percent of area median income. The state provisions take effect January 1, 2027, and expire January 1, 2031.
Currently, Hampton’s Zoning Ordinance regulates residential and mixed-use development through the use permissions, development standards, parking requirements, and approval procedures applicable to each zoning district. It does not contain definitions or a dedicated set of standards for nonprofit affordable housing developments. Section 1-38 is currently reserved.
The proposed amendments add definitions for nonprofit affordable housing developments and qualifying tax-exempt organizations to Section 2-2 and establish eligibility, affordability, and development standards in Section 1-38. The standards address permitted housing types, height, setbacks, density, parking, and accessory nonresidential uses, and remove floor-area-ratio, minimum-unit-size, and minimum-lot-size requirements for qualifying developments. Affordability must be preserved through a restrictive covenant or other legally binding instrument running with the land. The Zoning Administrator, in consultation with the City Attorney, must establish administrative affordability policies for applications that do not include the specified financing documentation. Qualifying developments are prohibited on property within or abutting M-1, M-2, or M-3 districts and within the Air Installation Compatible Use Zone Overlay District (O-AICUZ). Applicable Chesapeake Bay Preservation, floodplain, environmental, historic, archaeological, and infrastructure requirements remain in effect.
Recommendations:
Rec
Staff Recommendation:
Approve
Body
Ordinance To Amend And Re-Enact The Zoning Ordinance Of The City Of Hampton, Virginia By Creating New Section 1-38, Entitled “Nonprofit Affordable Housing Developments,” To Establish Standards Applicable to Nonprofit Affordable Housing Developments.
WHEREAS, the public necessity, convenience, general welfare and good zoning practice so require;
BE IT ORDAINED by the City Council of the City of Hampton, Virginia that Section 1-38 of the Zoning Ordinance of the City of Hampton, Virginia be amended to read as follows:
CHAPTER 1 - GENERAL PROVISIONS
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ARTICLE II. - REGULATIONS APPLICABLE TO MANY OR ALL ZONING DISTRICTS.
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Sec. 1-38. - Nonprofit affordable housing developments. A nonprofit affordable housing development may be permitted on any parcel of land in any district except as otherwise provided in this section, and irrespective of the use restrictions or development standards generally applicable to the district in which the parcel lies, so long as the nonprofit affordable housing development meets each of the following requirements:
(a) Ownership. No application for a nonprofit affordable housing development may be approved unless submitted by a 501(c)(3) property tax-exempt nonprofit organization or property tax-exempt religious organization which continuously owned the property on which the development is proposed for the five years preceding the application.
(b) Affordability. At least 60 percent of the dwelling units in the nonprofit affordable housing development must either be rental units affordable to residents earning no more than 80 percent of the area median income (“AMI”), or for-sale units affordable to purchasers earning no more than 120 percent AMI, or a combination thereof.
(i) Determining affordability. The Zoning Administrator (or their designee) shall determine the applicable AMI using those income limits and other materials promulgated by the U.S. Department of Housing and Urban Development (“HUD”) for that purpose. The Zoning Administrator shall determine whether a rental unit’s rent is affordable to a resident at a specified percentage of AMI using those rent schedules and other materials promulgated by HUD for that purpose. The Zoning Administrator, in consultation with the City Attorney (or their designee), will determine whether the method proposed by the developer to establish purchase prices for for-sale units will result in a purchaser at the identified percentage of AMI spending no more than 30 percent of their monthly income on the housing.
(c) Preserving affordability. The 501(c)(3) property tax-exempt nonprofit or property tax-exempt religious organization must preserve the affordability of the affordable dwelling units for no less than 30 years by restrictive covenant or other legally binding instrument running with the land. The Zoning Administrator shall accept any of the following as evidence of the organization’s compliance with this requirement:
(i) A written binding commitment from the Virginia Housing Development Authority, or other agency duly authorized to issue federal low-income housing tax credits (“LIHTCs”), reserving to the organization LIHTCs for the development of a housing project that meets or exceeds the affordability requirements of this subsection.
(ii) A resolution of the city council pursuant to a public hearing approving the issuance of tax-exempt private activity bonds by the Hampton Redevelopment and Housing Authority (or other agency authorized to issue such bonds in the city of Hampton) for development of a housing project meeting the definition of “qualified residential rental project” provided in Section 142 of the Internal Revenue Code (as amended), so long as the project also meets or exceeds the affordability requirements of this subsection.
(iii) An executed agreement between the developer and the Virginia Department of Housing and Community Development (“DHCD”) in which DHCD commits to lend or grant to the developer funds from its National Housing Trust Fund, HOME Investment Partnership, or Virginia Housing Trust Fund allocations for development of a housing project, so long as the project also meets or exceeds the affordability requirements of this subsection.
(d) Zoning Administrator to promulgate administrative policy. The Zoning Administrator shall, in consultation with the City Attorney, promulgate such administrative policies necessary to determine whether a proposed nonprofit affordable housing development effectively establishes and preserves unit affordability in accordance with this section when the application does not contain the documents described in subsections (c)(i) through (iii) above.
(e) Mixed-use projects. Nonprofit affordable housing developments may contain non-residential accessory uses, provided that no more than 30 percent of the gross floor area of the development is put to any non-residential use; and further provided that any non-residential use must be ancillary to the nonprofit mission or operation of the 501(c)(3) property tax-exempt organization or property tax-exempt religious organization.
(f) Development standards. Notwithstanding any provision of this zoning ordinance to the contrary, the following standards shall apply to all nonprofit affordable housing developments, wherever situated:
(i) Form. A nonprofit affordable housing development may contain single-family detached dwellings, duplex dwellings, townhouse dwellings, multifamily dwellings, or any combination thereof.
(ii) Height. No portion of the nonprofit affordable housing development may exceed 45 feet in height or the height of the tallest building within 500 feet of the development, whichever is greater.
(iii) Setbacks. Setbacks from any property line may be no less than 10 feet, or the smallest setback allowed for any existing property within 500 feet of the development, whichever is smaller.
(iv) Density. Density of residential units may not exceed 20 units per acre or the highest density allowed for any existing residential development within 500 feet of the development, whichever is greater.
(v) Parking. A nonprofit affordable housing development may provide no fewer than one parking space per residential unit or the fewest parking spaces otherwise permitted in the applicable zoning district for by-right development of the same form or forms contained in the residential portion of the nonprofit affordable housing development, whichever is lesser. For non-residential uses, a nonprofit affordable housing development shall contain no fewer than one parking space per each 300 square feet of non-residential floor area, or the fewest number of parking spaces permitted for that use in the applicable zoning district, whichever is lesser.
(vi) Certain standards not applicable. No standard or requirement contained in this zoning ordinance regarding floor area ratio, minimum unit size, or minimum lot size shall apply to a nonprofit affordable housing development.
(g) Proximity to industrial districts. No nonprofit affordable housing development may be developed on any parcel which lies within or abuts a parcel zoned M-1, M-2, or M-3.
(h) AICUZ. No nonprofit affordable housing development may be developed in the Air Installation Compatible Use Zone Overlay District (O-AICUZ).
(i) Certain requirements not waived. Nothing in this section may be construed to limit the applicability of any requirements imposed on development in the Chesapeake Bay Preservation Overlay (O-CBP) or the Flood Zone Overlay (O-FZ), or of any environmental, historic, or archaeological standards imposed on such development by any local, state, or federal entity, including (without limitation) regulations related to wetland protection, stormwater management, erosion and sediment control, water and wastewater, or highway access and secondary streets.
Ordinance To Amend And Re-Enact The Zoning Ordinance Of The City Of Hampton, Virginia By Amending Section 2-2 Entitled, “Definitions” To Add Definitions For Nonprofit Housing Developments And Qualifying Tax-Exempt Organizations.
WHEREAS, the public necessity, convenience, general welfare and good zoning practice so require;
BE IT ORDAINED by the City Council of the City of Hampton, Virginia that Section 2-2 of the Zoning Ordinance of the City of Hampton, Virginia be amended to read as follows:
CHAPTER 2 - DEFINITIONS
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Section 2-2. - Definitions.
501(c)(3) property tax-exempt nonprofit organization means an organization which is duly exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, and which owns real property in the City of Hampton that is exempt from taxation pursuant to Section 58.1-3609 of the Code of Virginia, as amended.
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Nonprofit affordable housing development means a residential or residential mixed-use project developed on tax-exempt real property by a 501(c)(3) property tax-exempt nonprofit organization or a property tax-exempt religious organization.
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Property tax-exempt religious organization means any church, religious association, or religious denomination which is operated exclusively on a nonprofit basis for charitable, religious, or educational purposes, and which owns real property in the City of Hampton that is exempt from taxation pursuant to Sections 58.1-3609 and 58.1-3617 of the Code of Virginia, as amended.