15.2-958 - Local funding for repair or production of low and moderate income rental property or repair of residential property; other housing experiments. - Virginia Statutes

§ 15.2-958. Local funding for repair or production of low and moderate incomerental property or repair of residential property; other housing experiments.

It is hereby declared that the preservation of existing housing in safe andsanitary condition and the production of new housing for persons of low andmoderate income are public purposes and uses for which public money may bespent, and that such preservation and production are governmental functionsof concern to the Commonwealth. Therefore, the governing body of any localitymay provide by ordinance that such locality may make grants or loans toowners of residential rental property occupied, or to be occupied, followingrehabilitation or after construction if new, by persons of low and moderateincome, for the purpose of rehabilitating or producing such property. Ownersassisted in this manner must provide a minimum of 20 percent of the units forlow and moderate income persons as defined by the locality for a minimum of10 years. Participation by an owner under this section is voluntary.

Any locality in the ordinance herein authorized may:

1. Provide for the installation, construction, or reconstruction of streets,utilities, parks, parking facilities, playgrounds, and other siteimprovements essential to the development, preservation or rehabilitationplanned;

2. Provide encouragement or financial assistance to the owners or occupantsfor developing or preserving and upgrading apartment buildings and forimproving health and safety, conserving energy, preventing erosion, enhancingthe neighborhood, and reducing the displacement of low and moderate incomeresidents of the property;

3. Require that the owner agree to maintain a portion of the property inresidential rental use for a period longer than ten years and that a portionof the dwelling units in the property be offered at rents affordable topersons or families of low and moderate income;

4. Provide that the value of assistance given by the locality undersubdivisions 1 and 2 above be proportionate to the value of considerationsrendered by the owner in maintaining a portion of the dwelling units atreduced rents for persons or families of low and moderate income; and

5. Make loans or grants of local funds to individuals for the purpose ofrehabilitating owner-occupied residences or assisting in the purchase of anowner-occupied residence in designated conservation or rehabilitationdistricts. The locality shall publish annually a report listing the propertypurchased or rehabilitated pursuant to this provision and the amounts of anygrants or loans made for such purpose. Such ordinance shall require that anysuch loans or grants be applied using the income guidelines issued by theVirginia Housing Development Authority for use in its single family mortgageloan program financed with bonds on which the interest is exempt from federalincome taxation. The locality shall offer financial institutions as definedin § 6.1-125.1 the opportunity to participate in local loan programsestablished pursuant to this subsection.

(1988, c. 862, § 15.1-37.3:9; 1993, c. 791; 1995, c. 393; 1997, c. 587; 2008,c. 580.)