VA HB854

Allows Virginia localities to grant property tax exemptions for affordable housing properties owned by entities where nonprofits hold a controlling interest in the managing member or general partner, even when for-profit investors hold partial ownership

Specifies that rental income from property portions used for charitable or benevolent purposes (such as affordable housing under the new provision) will not be considered taxable "revenue or profit"

Requires local governing bodies to hold public hearings before granting exemptions by classification, with newspaper notice published at least five days prior

Clarifies that exemption continuation depends on the property's ongoing use for its designated charitable purpose, with suspension or termination terms to be specified in local ordinances

Declares the legislation confirms existing law regarding localities' authority to exempt properties used for charitable purposes like affordable housing financed through federal Low-Income Housing Tax Credits (Section 42 of the Internal Revenue Code)