Henry County
ADU Pass helps homeowners in Henry County, Virginia navigate the permit paperwork for building an accessory dwelling unit. We cover 8 cities and 10 ZIP codes in this county.
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County ADU details
County ADU ordinance
Henry County regulates accessory dwelling units through its county Zoning Ordinance, administered by the Henry County Department of Planning, Zoning, and Inspection under the authority of the Henry County Board of Supervisors. Virginia is a Dillon Rule state and the General Assembly has not enacted any statewide ADU preemption; Henry County's authority to regulate or prohibit ADUs derives solely from the general zoning enabling statute at Va. Code § 15.2-2280 and the ordinance-content provisions of § 15.2-2286. Henry County is a Southside Virginia county of approximately 382 square miles and population approximately 50,000, located on the North Carolina border and notable for two geographic features that shape its ADU-relevant regulatory picture: (a) Henry County surrounds the independent City of Martinsville on all sides (Martinsville is a Virginia-unique independent city governed entirely separately, not a municipal subdivision of the county — see Va. Const. Art. VII § 1 and Va. Code § 15.2-3200 et seq.), and (b) Philpott Lake, a U.S. Army Corps of Engineers flood-control and hydropower reservoir on the Smith River, occupies a significant portion of the county's northwestern edge and imposes a federal shoreline regime on adjacent parcels. The county seat's government offices are at the Henry County Administration Building in the Collinsville area, an unincorporated Census Designated Place — unusual for a Virginia county, reflecting the pre-1928 reality that Martinsville served as the county seat before Martinsville's status was elevated from incorporated town to second-class city (1928) and then to independent first-class city (1942). The only incorporated town inside the county is the Town of Ridgeway in the south. Henry County's economy historically rested on textile manufacturing (Fieldcrest Mills, Tultex) and furniture manufacturing (American of Martinsville, Stanley Furniture, and immediately adjacent in Bassett/Henry County, Bassett Furniture), industries that contracted sharply in the late 1990s and 2000s; the county is in active economic transition with focuses on the Commonwealth Crossing Business Centre (a rail-served industrial park in the southeast), advanced manufacturing, and motorsports (Martinsville Speedway sits inside the independent city but draws heavily into the county). The county's zoning ordinance establishes conventional Virginia use districts (Agricultural, Suburban Residential, Residential, Business, Industrial, and applicable overlays including a floodplain overlay and a manufactured-housing overlay) and specifies permitted, accessory, and special-use lists for each district. A second dwelling on a single residential parcel is not universally a by-right permitted use in standard residential districts; ADU-style projects in the unincorporated county typically proceed through (a) the county's family-member dwelling / family-subdivision provisions (limited to immediate-family occupancy), (b) a discretionary Special Use Permit approved by the Board of Supervisors following Planning Commission recommendation under Va. Code §§ 15.2-2285, 15.2-2286, or (c) a minor subdivision placing the second dwelling on its own lot. Henry County has not adopted a standalone ministerial ADU ordinance of the California / Oregon / Washington type; the practical effect is that a homeowner cannot rely on an ADU-by-right framework for non-family rental occupancy, and each such project is subject to district-specific analysis and generally a discretionary Special Use Permit process.
Code citations:
- Henry County Code — Zoning Ordinance (Chapter 21 of the county code)
- Henry County Department of Planning, Zoning, and Inspection
- Henry County Board of Supervisors — adopting body for zoning ordinance amendments and Special Use Permits
- Henry County Planning Commission
- Virginia Code Title 15.2 Chapter 22 (Planning, Subdivision of Land and Zoning)
- Virginia Code § 15.2-3200 et seq. and Va. Const. Art. VII § 1 (Independent Cities)
State-floor overlay: Virginia has not enacted any statewide ADU preemption statute. Virginia is a Dillon Rule state (see Commonwealth v. County Bd. of Arlington County, 217 Va. 558 (1977)); localities have only those powers expressly granted by the General Assembly. The general zoning enabling statute at Va. Code § 15.2-2280 grants counties, cities, and towns broad authority to regulate land use, and § 15.2-2286 enumerates the specific ordinance provisions that may be included. Neither statute, nor any section of Title 15.2 Chapter 22 Article 7, mandates that a locality permit ADUs, requires ministerial review of ADU applications, caps parking requirements, caps fees, or voids owner-occupancy requirements. Henry County is therefore free to permit, restrict, or prohibit second dwellings under its zoning ordinance within the ordinary constitutional limits on land-use regulation. ADU preemption bills have been introduced in the Virginia General Assembly in multiple recent sessions (2022-2025) without enactment; the statewide regulatory picture at the county level is unchanged as of 2026-04-21.
Adopting body: Henry County Board of Supervisors
County permitting (unincorporated parcels)
The Henry County Department of Planning, Zoning, and Inspection is the sole permitting authority for building permits, zoning permits, and Special Use Permits on parcels within the unincorporated county (i.e., parcels outside the corporate limits of the City of Martinsville — a fully independent city, not a subdivision of the county — and outside the Town of Ridgeway). Henry County comprises approximately 382 square miles of predominantly rural Southside Virginia territory, bounded to the south by the North Carolina state line (Rockingham and Stokes counties in NC), to the east by Pittsylvania County, to the north by Franklin County, and to the west by Patrick County; the independent City of Martinsville sits as a donut hole in the south-central portion of the county. Major population concentrations outside Martinsville are in the Collinsville area (the CDP where the county administration building sits, immediately north of Martinsville), the Bassett area (northwest of Martinsville, a furniture-industry community straddling the Henry/Patrick county line), the Fieldale area (south/west of Collinsville, a former mill village), and the Ridgeway area (south of Martinsville, including the incorporated Town of Ridgeway). The vast remainder of the county is rural agricultural, timber, and scattered residential parcels administered by the county. For an ADU-style project in the unincorporated county, the typical sequence is: (a) zoning determination by the zoning administrator (permitted by right under a narrow family/kinship reading, permitted via Special Use Permit, or prohibited); (b) if SUP required, application to the Planning Commission and Board of Supervisors under Va. Code §§ 15.2-2204, 15.2-2285, 15.2-2286; (c) building permit application to the county building official; (d) Virginia Department of Health West Piedmont Health District approval for well/septic where parcels are not served by public utilities; (e) VDOT entrance permit if a new or altered driveway enters a state-maintained road; (f) inspections through construction; (g) certificate of occupancy. Applicants should expect a substantially longer timeline than a first-dwelling build when an SUP is required, because the SUP process is a public-hearing process with statutory notice requirements (two successive weeks' advertisement and five-day final-notice under Va. Code § 15.2-2204).
Process overview: Henry County's ADU-style permitting process varies by project pathway: (1) Family-member dwelling / family subdivision — if the second dwelling is for an immediate family member of the primary-dwelling owner and qualifies under the county's family-dwelling or family-subdivision provisions, the zoning administrator may issue an administrative zoning approval followed by a standard building permit; this is the fastest path when eligible, typically 4-8 weeks end-to-end assuming no building-code or well/septic complications. (2) Special Use Permit for a rental or non-family second dwelling — the applicant submits a completed SUP application with site plan, statement of use, and the required filing fee to the Planning, Zoning, and Inspection Department. Staff conducts a zoning analysis and prepares a staff report. The Planning Commission holds a public hearing (advertised per Va. Code § 15.2-2204: once a week for two successive weeks, with final notice not less than five days before the hearing) and makes a recommendation. The Board of Supervisors then holds its own public hearing and votes. The entire SUP process typically takes 60-120 days from complete submission to Board decision; complex applications or those requiring ordinance interpretation can take longer. (3) Minor subdivision — if the applicant prefers to create a separate buildable lot and construct a fully separate dwelling, the subdivision ordinance (separate chapter of the county code) applies. Subdivision review runs through the subdivision agent and the Planning Commission; timelines vary from approximately 30 days (simple minor subdivision) to 6+ months (major subdivision requiring road approval, stormwater management, and VDOT entrance approval). Building permits for a second dwelling require compliance with the Virginia Uniform Statewide Building Code (USBC), the single statewide building code for Virginia localities; localities cannot adopt more stringent building-code amendments (Va. Code § 36-98). Well and septic approval (for unincorporated parcels not served by public utilities) is administered by the Virginia Department of Health West Piedmont Health District and is required before a building permit can be issued for a dwelling not connected to public water/sewer. Entrance-permit approval by the Virginia Department of Transportation (VDOT) Salem District Residency (covering Henry County) may be required where the new dwelling uses a new or altered driveway onto a state-maintained secondary road.
Impact fees: Virginia localities generally do not levy impact fees of the type used in California or Florida; Virginia Code does not broadly authorize impact fees for counties outside certain narrowly enumerated categories (road impact fees under Va. Code § 15.2-2317 through § 15.2-2327 are available only to counties meeting specific growth-rate and density criteria, which Henry — a population-declining, economically-transitioning Southside county — does not meet). Henry County does not appear on the list of counties that have adopted a road-impact-fee ordinance under that authority as of 2026-04-21. Cash proffers tied to rezoning applications were formerly common in fast-growth Virginia jurisdictions but are now constrained by Va. Code § 15.2-2303.4 (2016), which limits residential proffers. For an ADU built on an existing parcel without rezoning, the applicant pays building-permit fees (set by the county by ordinance and keyed to project valuation), any SUP application fee if applicable, connection or tap fees for water/sewer (if served by a public utility — applicable in parts of the Collinsville, Bassett, Fieldale, and Ridgeway service areas through the Henry County Public Service Authority; generally not applicable in the deep rural county), and state and local permit surcharges. Applicants should request a current fee schedule from the Planning, Zoning, and Inspection Department at application time. (schedule)
County assessor
Henry County real property is assessed by the Henry County Commissioner of the Revenue's Real Estate division (and, during reassessment cycles, by contracted mass-appraisal vendors working under the direction of the Commissioner and the Board of Supervisors); tax bills are collected by the Henry County Treasurer. Virginia law requires general reassessment of real property at least once every four years for most counties (Va. Code § 58.1-3252), with more frequent cycles permitted; Henry County historically conducts a general reassessment on a multi-year cycle set by the Board of Supervisors and has generally contracted with a mass-appraisal vendor for cycle execution. Unlike California's Proposition 13 acquisition-value system, Virginia uses a fair-market-value assessment system: a parcel is assessed at 100% of fair market value as of the effective date of the reassessment, and that value stands until the next general reassessment (subject to supplemental assessment for new construction). When an ADU / accessory dwelling is added to an existing parcel, the new structure is added to the assessment roll at its contributory fair market value; the primary dwelling's assessed value is not automatically re-triggered by the ADU construction itself, but the parcel's overall assessed value rises by the ADU's contributory value. At the next general reassessment, both structures are re-valued at current fair market value together. The property-tax bill equals assessed value times the Board of Supervisors' adopted real-estate tax rate (set annually in the county budget process); Henry County's real-estate tax rate has historically sat in the mid-range among Virginia counties, reflecting the county's balance of moderate assessed-value base and the fiscal pressures of a county in long-term population and industrial decline. Henry County participates in Virginia's use-value taxation program under Va. Code § 58.1-3230 et seq. for qualifying agricultural, horticultural, and forestal land — a meaningful benefit for rural and timbered acreage in the county. Note that real property inside the City of Martinsville is assessed by the City of Martinsville's own assessor, NOT by the Henry County Commissioner of the Revenue, because Martinsville is an independent city; applicants holding property inside Martinsville corporate limits deal with the city, not the county.
Assessment policy: Virginia is a fair-market-value assessment state; a new ADU is added to the assessment roll at its contributory fair market value as a supplemental assessment effective from completion (building permit final inspection or certificate of occupancy) through the balance of the tax year. The primary dwelling's prior assessed value is not automatically reset by the addition of the ADU, but the parcel's total assessed value increases by the ADU's contributory value. At the next general reassessment (Henry County operates on a multi-year reassessment cycle set by the Board of Supervisors), both the primary dwelling and the ADU are re-valued at current fair market value. Owners electing to convert existing interior space (e.g., a basement apartment or detached-garage conversion) to a permitted ADU should expect the contributory value to reflect the creation of a second kitchen and second entry and the resulting increase in market-rent potential of the parcel; an owner adding a detached ADU typically sees a larger incremental assessment increase than one converting existing interior space. Property-tax rates are set annually by the Henry County Board of Supervisors in the county budget process; owners should confirm the current year's rate from the county's adopted budget because rates change annually.
County overlays (6)
Henry County administers or is subject to several overlay regimes that affect ADU siting on unincorporated parcels: (1) FEMA Special Flood Hazard Areas along the Smith River (the county's dominant waterway, flowing from Philpott Dam in the northwest through Bassett, past Martinsville, and south toward the North Carolina state line where it joins the Dan River), the lower reaches of Smith River tributaries (Leatherwood Creek, Mayo River tributaries, Marrowbone Creek), and scattered smaller-stream SFHAs across the county — administered through the county's floodplain overlay ordinance satisfying NFIP minimums; (2) Philpott Lake and Philpott Dam are a U.S. Army Corps of Engineers flood-control and hydropower project on the Smith River, with the reservoir straddling Henry, Franklin, and Patrick Counties; the project's taking line establishes a federal shoreline boundary that affects the county's northwestern parcels adjacent to the lake, and a USACE shoreline-use permit is required for any structure, dock, or shoreline alteration that crosses or occupies federal land; (3) Agricultural and Forestal Districts established under Va. Code § 15.2-4300 et seq. may be present in portions of the county with substantial agricultural or timbered holdings, providing participating landowners use-value taxation and subdivision-deferral protections in exchange for a commitment to keep land in agricultural or forestal use; (4) the Chesapeake Bay Preservation Act does NOT apply — Henry County is not in the Tidewater area covered by Va. Code § 62.1-44.15:67 et seq., so Resource Protection Areas (RPAs) and Resource Management Areas (RMAs) do not apply (Henry drains to the Albemarle Sound via the Smith/Dan/Roanoke river system, outside the Chesapeake Bay watershed per the Act's Tidewater definition); (5) wildfire risk is tracked by the Virginia Department of Forestry, but Virginia does not have a California-style Very High Fire Hazard Severity Zone regulatory overlay mandating ignition-resistant construction — the Virginia Uniform Statewide Building Code does not statewide-adopt the International Wildland-Urban Interface Code, and Henry County has not imposed a local WUI construction overlay; (6) Martinsville Speedway adjacency — the NASCAR-sanctioned short track at Martinsville Speedway sits inside the independent city of Martinsville on the southeastern edge of the city (and the city/county boundary), and race-weekend traffic, noise, and parking impacts spill well into adjacent Henry County neighborhoods; this is a practical consideration for ADU siting on nearby county parcels even though the track itself is not a county-administered overlay; (7) industrial-legacy environmental contamination — the county's long textile and furniture manufacturing history has left a number of former-industrial parcels with varying levels of environmental impairment (some remediated, some still under DEQ voluntary-remediation-program oversight), which does not impose a county-administered overlay but can affect financing and title for parcels at or near former plant sites. Henry County does not have a county-wide historic-district overlay of the California type; individual properties may be listed on the Virginia Landmarks Register or National Register (including the Patrick Henry Birthplace site across the border in Patrick County, and various mill-village resources in the Bassett and Fieldale areas) but registration does not itself impose regulatory constraints absent a separate local ordinance or federal-tax-credit election.
- FEMA National Flood Insurance Program — Special Flood Hazard Areas — Henry County participates in the National Flood Insurance Program and administers a county floodplain overlay ordinance meeting NFIP minimums. The principal Special Flood Hazard Area (SFHA) extents in the county are along the Smith River (the dominant waterway, flowing from Philpott Dam in the northwest through Bassett, past Martinsville, and south toward the North Carolina state line where it joins the Dan River), the lower reaches of Smith River tributaries including Leatherwood Creek and Marrowbone Creek, and scattered SFHAs along smaller streams across the county. An ADU sited in an SFHA must comply with NFIP elevation requirements (lowest finished floor at or above Base Flood Elevation plus any county freeboard), flood vent requirements on enclosed areas below BFE, anchoring requirements, and post-construction Elevation Certificate filing. Owners should confirm current-effective FIRM panel at the FEMA Map Service Center before design; FEMA has periodically updated Virginia county panels. Note that the Smith River below Philpott Dam is a tailwater fishery with regulated releases from the dam; the reach is nonetheless mapped as SFHA in places and owners should check the panels rather than assuming dam regulation eliminates flood hazard.
- Philpott Lake and Philpott Dam — USACE Wilmington District shoreline management — Philpott Lake is a USACE flood-control and hydropower reservoir on the Smith River, authorized under the Flood Control Act of 1944, with the dam completed in 1953. The reservoir straddles Henry County (southeast quadrant of the lake), Franklin County (east and northeast), and Patrick County (west); approximately 100 miles of shoreline wind along the three-county footprint. The USACE taking line around the lake establishes the federal project boundary; private parcels adjacent to the taking line are subject to USACE shoreline-use policies for any structure, dock, shoreline alteration, or access feature that crosses or occupies federal land. ADU-style projects on or near the taking line should coordinate with the USACE Philpott Lake project office in addition to Henry County Planning, Zoning, and Inspection before design. Philpott is operated as a flood-control and hydropower project; the Philpott powerhouse generates on release schedules set by USACE that drive the downstream Smith River trout fishery. The Philpott Lake shoreline permit regime is distinct from the FERC-licensed private-utility shoreline frameworks at Smith Mountain / Leesville lakes (on the neighboring Roanoke River in Franklin/Bedford/Pittsylvania counties) and the John H. Kerr Reservoir (USACE Wilmington District on the Roanoke/Staunton further east).
- Virginia Agricultural and Forestal Districts (local option under state law) — Henry County has substantial agricultural and forested acreage, particularly in the north-central and western portions of the county outside the Collinsville/Bassett/Fieldale urbanized corridor. Where AFD enrollment exists, enrollment is voluntary; participating landowners commit to keeping land in agricultural or forestal use for a period (typically 4-10 years) in exchange for use-value assessment (Va. Code § 58.1-3230 et seq.) and limited protection from certain governmental actions that would disrupt agricultural use. An ADU on an AFD-enrolled parcel is generally permitted if it is an accessory use to continued agricultural operation (e.g., a farm-labor dwelling or family dwelling), but non-agricultural commercial-rental ADUs may conflict with AFD purposes and trigger AFD committee review and potentially withdrawal from the district (with rollback-tax consequences on the withdrawn acreage). Owners should consult the Henry County AFD Advisory Committee (if one is constituted for the applicable district) and the zoning administrator before assuming ADU compatibility.
- Virginia Uniform Statewide Building Code and VDOF wildfire risk (no WUI regulatory overlay) — Henry County includes significant wooded terrain (approximately two-thirds of the county is forested, much of it mixed hardwood-pine) with moderate wildfire exposure tracked by the Virginia Department of Forestry, but Virginia does not have a statewide Very High Fire Hazard Severity Zone regulatory overlay that mandates WUI-rated construction materials on a per-parcel basis. Under Va. Code § 36-98 the Virginia Uniform Statewide Building Code is the single statewide building code; localities cannot impose more stringent local building-code amendments. Virginia has not statewide-adopted the International Wildland-Urban Interface Code. Owners in wildfire-exposed locations (particularly the county's timbered tracts in the Philpott Lake shoreline area and along the Smith River gorge) should follow defensible-space best practices and coordinate with VDOF outreach, but face no locality-imposed WUI construction overlay analogous to California Chapter 7A or Oregon WUI code.
- Martinsville Speedway adjacency (race-weekend traffic/noise impacts) — Martinsville Speedway is the NASCAR-sanctioned 0.526-mile short track that has operated since 1947, sitting inside the City of Martinsville's corporate limits on the southeastern edge of the city. The track is NOT inside Henry County jurisdiction for zoning or permitting purposes, but race-weekend traffic, noise, and parking impacts spill substantially into adjacent Henry County neighborhoods (Ridgeway Magisterial District, particularly along US 220 / Virginia Avenue corridors and VA 108). This is a practical ADU-siting consideration for nearby county parcels — short-term-rental ADU projects in particular may see strong race-weekend demand but should assess neighborhood covenants and any informal or codified event-parking arrangements before relying on that demand in a proforma. The track does not itself impose a regulatory overlay on the county.
- Industrial-legacy environmental impairment (former textile and furniture plant sites) — Henry County's history as a textile-and-furniture manufacturing center (Fieldcrest/Tultex in Martinsville and surrounding plants, American of Martinsville, Stanley Furniture, and the immediately-adjacent Bassett Furniture complex straddling the Henry/Patrick county line) has left a patchwork of former-industrial parcels with varying levels of environmental impairment. Some former sites have been remediated and redeveloped (notably several furniture and textile mill parcels repurposed for the Commonwealth Crossing Business Centre and other industrial-park redevelopment); others remain in various stages of voluntary cleanup or are privately held with Phase I/II ESA documentation. Henry County does not administer a county-level brownfields overlay; regulatory oversight is through the Virginia DEQ Voluntary Remediation Program and, for some sites, the Brownfields Restoration and Land Renewal Program. Owners considering an ADU on or near a former industrial parcel should obtain a Phase I Environmental Site Assessment and, if indicated, a Phase II before design — lenders will often require this independently, and environmental impairment can materially affect title insurability and construction financing.
Known county issues (7)
- policy-review — Homeowners cannot rely on a ministerial ADU-by-right approval path; most rental-ADU projects will require a discretionary Special Use Permit (60-120 day public-hearing process) or a minor subdivision. This adds materially to project timeline, uncertainty, and soft costs relative to states with statewide ADU preemption.
- other — Applicants must first verify whether their parcel is inside Martinsville (city ordinance and city permitting govern) or in the surrounding unincorporated county (county ordinance and county permitting govern). The 'donut' geography makes this an unusually frequent source of confusion — many Martinsville-addressed parcels (using Martinsville ZIP codes 24112, 24114, 24115) are actually outside Martinsville's corporate limits and in Henry County. A mistaken assumption can route applicants to the wrong permit counter, with weeks of rework and potentially incorrect ordinance analysis.
- other — Applicants near Ridgeway must verify whether their parcel is inside town corporate limits (town ordinance governs) or outside (county ordinance governs). Because Ridgeway is a small town with limited publicly-posted zoning documentation, pre-application contact with both Ridgeway town officials and the Henry County zoning administrator is advisable for any borderline parcel.
- other — Unincorporated-parcel ADU projects outside the Henry County PSA service area must budget for Virginia Department of Health well/septic evaluation and, frequently, for drainfield expansion or a dedicated secondary system — commonly adding $10,000-$30,000+ to project cost and potentially ruling out small or constrained lots where soil/slope fail percolation or reserve-drainfield requirements. The mountainous western portion of the county (approaching the Blue Ridge foothills in the Philpott Lake area) has particularly variable septic feasibility due to soil depth and slope.
- other — ADU projects that would require a new driveway entrance onto a state-maintained secondary road must obtain a VDOT entrance permit before the building permit issues; sight-distance and entrance-spacing requirements can drive ADU site selection and occasionally make a project infeasible at the originally-preferred location. Shared driveways using the existing entrance typically avoid this requirement.
- other — ADU projects on parcels adjacent to the Philpott Lake taking line or inside federal easement corridors must coordinate with the USACE Wilmington District Philpott Lake project office in addition to county permitting. The federal shoreline overlay can restrict structure setbacks, shoreline access features, and tree-cutting on the taking-line side of the parcel. Downstream Smith River corridor parcels face FEMA SFHA construction requirements (elevation, flood vents, anchoring, Elevation Certificate filing) even though releases are regulated by Philpott powerhouse scheduling.
- other — Owners considering an ADU on or near a former industrial parcel — common in Collinsville, Fieldale, Bassett, and the immediate perimeter of Martinsville city limits — should obtain a Phase I Environmental Site Assessment and, if indicated, a Phase II before design. Lenders typically require this independently, and environmental impairment can materially affect title insurability, construction financing, and end-user insurability of any ADU built on an affected lot.
Virginia state — ADU law and programs
State ADU law
Virginia has NOT enacted a statewide ADU preemption law. Virginia is a Dillon Rule state — localities possess only those powers expressly granted by the General Assembly — and the statutes granting zoning authority (Va. Code § 15.2-2280 et seq.) leave ADU regulation to local ordinances. ADU permission, setbacks, parking, size, and owner-occupancy rules therefore vary by county, independent city, and town. Virginia is unique in that it has 38 independent cities that function as counties (neither in nor subordinate to the surrounding county), meaning 'the county' for any given Virginia property may be an independent city rather than a true county. Several ADU preemption bills have been introduced in recent General Assembly sessions (2022 through 2025) without enactment; none have advanced past committee as of the Assembly's 2026 regular session adjournment.
State financing programs
Virginia does not operate an ADU-specific statewide loan, grant, or forgivable-loan program. Virginia Housing (formerly the Virginia Housing Development Authority, VHDA — rebranded 2020) administers general first-time-homebuyer, down-payment-assistance (DPA), mortgage-credit-certificate, and rehabilitation products that can be applied to ADU-adjacent purchases or improvements when eligibility criteria are met, but none target ADU construction as a distinct product. The Virginia Department of Housing and Community Development (DHCD) administers federal HOME and CDBG pass-through funds that local jurisdictions can direct toward ADU-adjacent rehab, but there is no state-level ADU-dedicated line item. Federally available products (FHA 203(k), Fannie Mae HomeReady and HomeStyle Renovation, Freddie Mac CHOICERenovation) remain the primary ADU financing path for Virginia homeowners.
State housing programs
Virginia does not run a state-level pre-approved-ADU-plan catalog, statewide impact-fee-waiver statute for ADUs, or streamlined-review mandate. State-level programs that touch ADU-adjacent policy are coordinated primarily through the Department of Housing and Community Development (DHCD) and Virginia Housing, and act by funding or assisting local jurisdictions rather than by preemption. Local ADU activity — Arlington County's Accessory Dwellings program (detached ADUs permitted since 2008, liberalized 2020), Alexandria's accessory-dwelling ordinance, Fairfax County's accessory-living-unit program, and Charlottesville's 2021 zoning-code changes — is authorized under the localities' Va. Code § 15.2-2280 zoning authority, not by state mandate.
- DHCD Community Development Block Grant (CDBG) Program — Federal CDBG funds administered by DHCD to eligible non-entitlement Virginia localities for community-revitalization, housing-rehab, and infrastructure projects. Not ADU-specific. Participating localities can direct CDBG funds toward housing-rehab projects where local policy supports ADUs.
- DHCD HOME Investment Partnerships Program — Federal HOME funds administered by DHCD to Virginia participating jurisdictions and non-profits for affordable-housing acquisition, rehab, and new construction. Not ADU-specific; can be directed to ADU-adjacent rehab at local discretion.
- Virginia Housing Commission — Permanent advisory commission of the General Assembly that studies housing-policy questions and recommends legislation. Has periodically studied ADU preemption and missing-middle housing without recommending statewide enactment as of 2026-04-21.
- Local ADU ordinances under Va. Code § 15.2-2280 authority — Not a state program — listed here because Virginia ADU policy is executed entirely at the locality level under the § 15.2-2280 zoning grant. A homeowner seeking to build an ADU consults the zoning ordinance of the specific county, city, or town where the parcel is located.
Federal (United States) — ADU-relevant rules and programs
Federal ADU law
The United States has no federal statute that directly regulates accessory dwelling unit entitlement or design. Land-use authority over ADUs resides with states and local governments under the traditional police power. Federal engagement is limited to financing (Fannie/Freddie/FHA/VA/USDA), flood insurance (FEMA/NFIP), and discretionary housing programs (HUD), which are recorded in sibling sections of this file.
Federal financing programs
Federal housing-finance agencies and GSEs set nationwide underwriting rules that govern whether an ADU can be financed, appraised, and counted toward mortgage qualifying income. The relevant actors are Fannie Mae, Freddie Mac, FHA (HUD), VA, and USDA Rural Development.
Federal tax credits
There is no ADU-specific federal tax credit. ADUs may incidentally qualify for existing federal energy-efficiency and clean-energy tax credits when the ADU construction includes qualifying measures.
Federal housing programs
HUD administers several discretionary programs that can fund ADU-related activity at the grantee's election, but none is an ADU-specific program.