VA SB388

Requires localities to allow by-right development of mixed-use or residential housing projects by religious organizations and 501(c)(3) nonprofits without requiring rezoning or special use permits

At least 60% of units must be affordable housing (at or below 80% area median income for rentals, 120% for for-sale units), with affordability preserved for a minimum of 30 years through deed restrictions

Sets minimum development standards including building heights of 45 feet or the tallest building within 500 feet, density of 20 units per acre, 10-foot setbacks, and parking limited to one space per unit

Property must have been owned by the religious or nonprofit organization for at least five years, be located within 500 feet of public water and sewer, and comply with fair housing and environmental laws

Exempts properties adjacent to active industrial zones and parcels within Air Installation Compatible Use Zones near military air installations; becomes effective September 1, 2026