New Virginia Law Caps Parking Minimums Near Transit

As construction prices remain stubbornly high, parking continues to be one of the biggest challenges when underwriting a deal. A new Virginia law – Section 15.2-2209.4 – goes into effect on July 1, 2026, and caps the minimum off-street parking that localities can require for residential and mixed-use projects located near transit.

The New Parking Minimums

For parcels within a "designated area" – meaning within one-half mile of a mass transit or public transportation station – Subsection B of the new law caps parking requirements as follows:

• For multifamily or mixed-use residential development, a locality may not require more than one-half of one parking space per dwelling unit (0.5 sp/du).
• For one-family and two-family dwellings and townhouses, the cap is one parking space per dwelling unit (1.0 sp/du).

Additionally, any locality with a population greater than 20,000 must establish an administrative process allowing developers to request a reduction of at least 20 percent in minimum parking for residential or mixed-use projects even outside a designated area.

Key Definitions

The statute defines a "designated area" as any parcel located within one-half mile of the entrance to a mass transit or public transportation station or facility.

"Mass transit or public transportation" itself is defined as passenger transportation on a fixed route by rubber-tired, rail or other surface conveyance providing shared-ride service to the general public on a regular and continuing basis, including bus rapid transit or other high-capacity transit service as identified by the Virginia Department of Rail and Public Transportation. The term expressly excludes school buses, microtransit, charter or sight-seeing services, vehicular ferry service that serves as a link in the highway network, and human service agency or other client-restricted transportation. "Microtransit" is further defined as a flexible, on-demand, dynamically routed shared-ride passenger transportation service that operates similarly to traditional public transit but with greater adaptability to individual trip needs.

Enforcement

Subsection C provides that no locality shall adopt or enforce any provision of a zoning ordinance that imposes minimum off-street parking requirements for residential, multifamily or mixed-use development located within a designated area in excess of the limitations set forth in Subsection B. This is a broad prohibition: It covers both the adoption of new ordinances and the enforcement of existing ones.

Parking Reductions

Under Subsection D, a locality with a population greater than 600,000 may by ordinance impose off-street parking requirements exceeding the limits in Subsections B and C for development within one-half mile of a locality-managed fixed-route bus stop, provided that the ordinance includes an administrative process allowing an applicant to obtain a reduction of at least 25 percent in minimum parking requirements within 1,000 feet of such a bus stop. That reduction must be granted when the applicant demonstrates that 1) all dwelling units serve households at or below 70 percent of area median income using income averaging, 2) the spaces proposed to be eliminated are unnecessary or infeasible because of unique site characteristics or 3) a written shared parking agreement ensures equivalent spaces within 1,000 feet.

Under Subsection E, any locality with a population greater than 20,000 must establish an administrative review process allowing developers to request a reduction of not less than 20 percent in minimum off-street parking for residential, multifamily or mixed-use development on parcels not located within a designated area. The ordinance must include criteria to determine eligibility and prescribe procedures for the submission and review of such reductions. This means that even projects outside the one-half-mile transit radius have an administrative pathway to reduced parking requirements.

Why This Matters: Virginia Is a Dillon Rule Jurisdiction

Virginia is a Dillon Rule state: Localities possess only those powers expressly granted or necessarily implied by an express grant by the General Assembly. Under this new legislation, a locality may not adopt or enforce any zoning provision that imposes minimum off-street parking requirements in excess of the statutory caps. Localities will need to evaluate their current parking requirements to conform to this new legislation.

Holland & Knight is closely monitoring these updates to ensure you are up to date on the latest policy changes. Should you have additional questions on this new legislation, please contact the authors or another member of the D.C. and Northern Virginia Land Use Team.