TITLE 13. HOUSING

BOARD OF HOUSING AND COMMUNITY DEVELOPMENT

Fast-Track Regulation

Title of Regulation: 13VAC5-175. Rules and Regulations for the Virginia Low-Income Housing Tax Credit (repealing 13VAC5-175-10 through 13VAC5-175-40).

Statutory Authority: § 36-55.63 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: October 22, 2025.

Effective Date: November 6, 2025.

Agency Contact: Chase Sawyer, Policy and Legislative Services Manager, Department of Housing and Community Development, Main Street Centre, 600 East Main Street, Suite 300, Richmond, VA 23219, telephone (804) 310-5872, fax (804) 371-7090, TDD (804) 371-7089, or email chase.sawyer@dhcd.virginia.gov.

Basis: Section 36-55.63 of the Code of Virginia authorized the Board of Housing and Community Development to promulgate regulations for the Virginia Low Income Housing Tax Credit program; however, this section was repealed by Chapter 305 of the 2016 Acts of Assembly.

Purpose: This action benefits the public welfare by repealing a regulation for which the board no longer has statutory authority, which will reduce confusion.

Rationale for Using Fast-Track Rulemaking Process: This action is noncontroversial and therefore appropriate for the fast-track rulemaking process because the board no longer has statutory authority to promulgate the regulation.

Substance: This action repeals Rules and Regulations for the Virginia Low-Income Housing Tax Credit (13VAC5-175), for which the board no longer has statutory authority.

Issues: This action repeals a regulation that no longer serves a purpose and minimizes potential confusion to individual private citizens, businesses, and agencies of the Commonwealth, which is the primary advantage. There are no disadvantages.

Department of Planning and Budget Economic Impact Analysis:

The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The Board of Housing and Community Development proposes to repeal Rules and Regulations for the Virginia Low-Income Housing Tax Credit (13VAC5-175).

Background. The Virginia Low-Income Housing Tax Credit program, which was administered by the Department of Housing and Community Development (DHCD), has not been in effect since 2016 when its authorizing text was repealed by Chapter 305 of the 2016 Acts of Assembly.²

Estimated Benefits and Costs. Since the Virginia Low-Income Housing Tax Credit program has been defunct since the aforementioned 2016 legislation, the proposed repeal of the regulation would have no impact beyond reducing the likelihood that readers of regulations would be misled into believing the program still exists.

Businesses and Other Entities Affected. The proposed repeal affects readers of regulations. The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.³ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.⁴ Since there is no increase in net cost nor reduction in net benefit for any entity, no adverse impact is indicated.

Small Businesses⁵ Affected.⁶ The proposed repeal of the regulation does not adversely affect small businesses.

Localities⁷ Affected.⁸ The proposed repeal neither disproportionately affects particular entities, nor affects costs for local government.

Projected Impact on Employment. The proposed repeal of the regulation does not affect employment.

Effects on the Use and Value of Private Property. The proposed repeal neither affects the use and value of private property, nor affects real estate development costs.

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¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² Source: DHCD.

³ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁴ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁵ Pursuant to § 2.2-4007.04, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

⁶ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁷ "Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

⁸ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency Response to Economic Impact Analysis: The Board of Housing and Community Development concurs with the analysis and findings in the economic impact analysis prepared by the Department of Planning and Budget.

Summary:

The action repeals Rules and Regulations for the Virginia Low-Income Housing Tax Credit (13VAC5-175). Chapter 305 of the 2016 Acts of Assembly repealed Chapter 1.4 (§ 36-55.63) of Title 36 of the Code of Virginia, which authorized the Board of Housing and Community Development to administer the Virginia Low Income Housing Tax Credit program. The board is repealing the regulation because it no longer has authority to administer the program.