HB 721 “aims to protect Virginians against rent gouging practices,” said Delegate Nadarius Clark, who introduced the bill.
If passed, HB 721 will give localities the ability to adopt anti-rent gouging provisions and an anti-rent gouging board. Notice would have to be provided and a public hearing held before a locality adopted its measures.
The bill also requires landlords to provide at least two months written notice of a rent increase.
Additionally, a rent increase couldn’t exceed the locality calculated allowance. And the allowance would be set at equal to the annual increase in the Consumer Price Index or 7%, whichever is less. An allowance would remain in place for a 12-month period.
“Changing economies, inflation, and gentrified neighborhoods have provided the environment for price-gouging on rent,” Clark told the members of the Counties, Cities, and Towns Subcommittee.
He noted that purchasing a home is out of reach for many Virginians, and as renters, people are facing increases from 20% to over 40%, in some cases.