Virginia local governments could cap yearly rent increases at 3%

Virginia local governments would be allowed to adopt local laws limiting rent increases. Covered housing would include manufactured homes and their lots, whether vacant or occupied. Rent would include payments owed under the rental agreement but exclude security deposits and utility charges. The limits would apply only where a local government adopts a local rent law. Homes first issued a certificate approving residential occupancy 10 or fewer years before the annual notice would be exempt. Exemptions would cover licensed facilities mainly treating illness, licensed assisted living and nursing homes, and residential programs licensed by the state behavioral health department. Owner-occupied group homes, religious facilities, and school dormitories would be exempt. Tax-exempt nonprofit shelters would be exempt if their main purpose is temporary shelter and residents were told this when they moved in. Temporary lodging would be exempt, except hotel or motel stays that legally count as tenancies. The local government would publish its annual limit by June 1. That limit would apply for 12 months beginning July 1.

Participating local governments would require advance notices and assign a board or existing local office to handle exemptions and challenges. Written notices would explain the increase, any exemptions, and how to contact the board. Parties challenging an exemption or increase could appeal the board’s decision to the local circuit court. The board would establish an exemption for increases needed to cover higher operating expenses and maintain stable income after operating costs. That exemption could not be granted for a home the landlord has failed to bring into compliance with building or housing rules. The board could also allow other exemptions it finds appropriate and necessary. Landlords claiming a listed housing exemption would have to certify eligibility. An affected renter, prospective renter, or group representing at least 10 affected renters could ask for review. The notice would be required at least 90 days before the proposed rent increase takes effect.

Participating local governments would set civil fines, and affected renters could seek enforcement through the local board or a court. These enforcement rules would apply where a local government adopts a rent law. Renters harmed by violations could bring enforcement cases. The local government could adopt other remedies. A civil fine could not exceed the amount set in the local law and would be paid to the local government. A landlord who failed to comply with the local rent rules could not obtain a court order to take back the home in an eviction case for unpaid rent.