ADU Pass
Castlewood
Russell County portion
Also in: Wise County
ADU Pass helps homeowners in Castlewood, Russell County, Virginia navigate the permit paperwork for building an accessory dwelling unit. This area covers 1 ZIP code.
Map
ADU details
ADU legality: allowed-with-restrictions
Castlewood ADUs route entirely through Russell County's Building Inspector / Planning Office. The binding constraints are VDH septic capacity (karst / shallow-bedrock soils), mine-subsidence risk on coalfield parcels, and Clinch River Floodplain Overlay along the river corridor. SB 531 preempts effective July 1, 2027 with a $500 fee cap.
Cost scenarios
| Scenario | Sq ft | Permit | Build | Total |
|---|---|---|---|---|
| minimum | 200 | $1,320 | $47,000 | $48,320 |
| 600 | 600 | $1,320 | $141,000 | $142,320 |
| midpoint | 800 | $1,320 | $188,000 | $189,320 |
| 1000 | 1,000 | $1,320 | $235,000 | $236,320 |
| maximum | 1,400 | $1,320 | $329,000 | $330,320 |
Fee breakdown (as of 2026-05)
Permitting process
Viability (permitted uses)
- Long-term rental: yes Long-term rental governed by Virginia Residential Landlord and Tenant Act. Rental yields are below state average reflecting coalfield depopulation.
- Short-term rental: with-restrictions Castlewood STR demand is modest, targeting Clinch River paddlers and Heart of Appalachia tourism trail visitors. Russell County transient-occupancy tax under Va. Code § 58.1-3819 applies.
- Office rental: with-restrictions Detached office rental requires Home Occupation permit where zoning applies.
- Home office: yes Home occupation is permitted.
- Studio / workshop: yes Personal studio is a permitted accessory use.
- Agriculture: yes Castlewood's outer rural acreage permits farm structures, livestock, and accessory agricultural uses. Appalachian cattle and tobacco-historic farmland.
- Relative support: yes Family / multi-generational accessory dwelling is permitted and is the dominant Castlewood ADU use case. Aging-in-place is a common driver.
Incentives
Contacts
Utilities
- Water: Castlewood Water and Sewage Authority (CWSA, public water service to the immediate Castlewood corridor) or private well on outer acreage · 45d connect · $3,800
- Sewer: Castlewood Water and Sewage Authority (limited service to the immediate community) or private septic permitted by VDH Lenowisco / Cumberland Plateau Health District on outer parcels · 75d connect · $13,500
- Electric: Appalachian Power Company (AEP) — Castlewood is in AEP service territory · 28d connect · $2,200
- Gas: Bottled propane (no natural gas distribution to Castlewood); some parcels use coal or wood heat · 14d connect · $1,750
Property values & taxes
Construction timeline
Realistic total: best 7mo · typical 11mo · worst 18mo
Modular pathway inspectors are experienced with modular
Financing
State ADU loans:
Insurance impact
HOA prevalence & preemption
Virginia has no HOA-ADU preemption. Castlewood's rural and small-village parcels are essentially covenant-free; HOAs are rare.
Regulatory overlays (2)
- flood-zone
Castlewood parcels along the Clinch River and Big Cedar Creek lie in mapped Zone AE. ADU finished-floor elevation must clear Base Flood Elevation plus Virginia freeboard. (map) - other
Russell County is on the historic Appalachian coalfields. Castlewood parcels overlying former room-and-pillar coal mining have measurable subsidence risk. Virginia Department of Energy mine-mapping records are the primary pre-construction inquiry; mine-subsidence insurance through the Virginia Coal Surface Mining Reclamation Fund or private carriers is routine for affected parcels. (map)
Technical envelope (climate & building code)
Climate & energy code
Building code
Amendments:
- Amendment
- Amendment
- Amendment
- Amendment
Contractor market (aggregate)
Legal history (timeline)
Current ordinance: Russell County Zoning and Subdivision Ordinance (governs Castlewood), adopted 1980-01-01, last amended 2022-01-01
- 1882-06-15 — Norfolk and Western Railway extension reaches Castlewood (Clinch Valley line) (transportation-event)
The Norfolk and Western Railway Clinch Valley line reached Castlewood in 1882, establishing the community as a rail-served coal-and-timber shipment point. The Castlewood depot (c. 1880) is a contributing feature of the Castlewood community identity.
Effect: Established the residential pattern of older Castlewood housing concentrated within walking distance of the depot and US 58A, a pattern that still defines the community's older housing stock and informs ADU siting on small in-town lots. - 1977-08-04 — Federal Surface Mining Control and Reclamation Act of 1977 (SMCRA) (federal-statute)
SMCRA established federal regulation of surface coal mining and the Virginia Coal Surface Mining Reclamation Fund. For Castlewood parcels overlying historic underground coal workings, SMCRA created the framework for mine-subsidence insurance, abandoned-mine-land reclamation, and pre-construction mine-mapping inquiry.
Effect: Castlewood ADUs on parcels overlying former room-and-pillar coal mining must address mine-subsidence risk. Virginia Department of Energy mine-mapping records and mine-subsidence insurance (Virginia Coal Surface Mining Reclamation Fund or private carriers) are routine pre-construction touchpoints. - 2026-04-14 — Virginia SB 531 signed into law (statewide ADU preemption) (state-statute)
SB 531 (2026 General Assembly Regular Session) requires every Virginia locality, effective July 1, 2027, to permit at least one ADU by right on any parcel with an existing single-family dwelling, caps total local permit and zoning fees at $500, and preempts owner-occupancy mandates. Ordinances adopted before January 1, 2026 grandfathered.
Effect: Russell County's existing light-touch posture is already at-or-above SB 531's by-right floor in unzoned areas. SB 531's $500 fee cap will reduce the county building-permit bundle materially. Floodplain Development Permit and mine-subsidence acknowledgment are not preempted.
Known issues (3)
- fee-schedule-pending — Approximately $820 in permit-fee savings on each by-right ADU after July 1, 2027.
- other — Add $200-400 annual mine-subsidence insurance premium; structural foundation designs occasionally need adjustment for subsidence risk. Geotechnical study cost $1,500-3,500 where indicated.
- other — Engage a private sanitarian or VDH Lenowisco / Cumberland Plateau Health District early. AOSS approval adds 30-90 days; some parcels fail VDH evaluation entirely.
Russell County — county ADU rules and overlays
County ADU ordinance
Russell County does NOT maintain a standalone accessory-dwelling-unit ordinance. The county's posture toward residential land use in unincorporated areas is light-touch — many parcels are minimally zoned or unzoned, and the principal regulatory touchpoints for a second dwelling are (a) the Building Permit issued under the Virginia Uniform Statewide Building Code (USBC), (b) the Virginia Department of Health (VDH) Lenowisco / Cumberland Plateau Health District onsite-sewage permit, (c) any subdivision-ordinance compliance for the underlying lot, (d) any applicable mining-subsidence overlay (Russell County is in the historic coalfields and underground-mine subsidence is a real geotechnical constraint on portions of the county), and (e) any applicable floodplain-overlay review for parcels along the Clinch River, Big Cedar Creek, the Maiden Spring Fork, or other mapped waters. A second dwelling on a sufficiently large rural parcel is typically achievable as either a manufactured / mobile home, a modular home, or a stick-built structure subject to USBC review; the regulatory burden is materially lower than in Tidewater Virginia counties under the CBPA. Applicants should confirm current ordinance text and zoning status of the specific parcel with the Russell County Building Inspector / Planning Office before committing to a project pro forma.
County regulatory overlays
Russell County's overlay regime reflects its Appalachian coalfield geography. The relevant overlays / hazard layers are: (1) a Floodplain Overlay tied to FEMA Special Flood Hazard Areas along the Clinch River, Big Cedar Creek, Maiden Spring Fork, and other mapped tributaries — the Clinch River is a major Tennessee River headwater system and floods materially in spring; (2) a mine-subsidence hazard layer tied to historic underground coal workings, administered jointly by the Virginia Department of Energy (formerly DMME) Division of Mined Land Repurposing — meaningful portions of the Clinch Valley and Maiden Spring Fork drainages overlie former room-and-pillar coal mining and have measurable subsidence risk; (3) karst-terrain hazard zones in portions of the county with limestone bedrock, where sinkhole susceptibility affects foundation design and septic-system siting; (4) any local historic-overlay designations in the Town of Lebanon and other incorporated towns. The Chesapeake Bay Preservation Act DOES NOT apply (Russell County is far outside the Tidewater designation). There is NO California-style coastal commission, NO CalFire-equivalent WUI overlay, NO seismic-retrofit overlay, and NO airport-noise overlay in Russell County.
County permitting (unincorporated parcels)
Russell County's Building Inspector / Planning Office handles building permits, inspections under the USBC, subdivision review, and zoning intake where zoning applies. A typical second-dwelling permit bundle includes: (1) a Building Permit with stamped residential plans, (2) Electrical, Plumbing, and Mechanical trade permits, (3) a VDH Lenowisco / Cumberland Plateau Health District construction permit for well and/or septic on parcels not served by public water or sewer (which is a substantial fraction of unincorporated parcels — public sewer service is concentrated around the Town of Lebanon, the Town of Honaker, the Castlewood community, and a few smaller corridors), (4) any applicable subdivision-ordinance compliance, (5) any applicable Floodplain Development Permit if the parcel intersects the mapped 100-year SFHA along the Clinch River or its tributaries, (6) any applicable zoning compliance certification where the parcel is in a zoned area, and (7) any applicable mine-subsidence acknowledgment for parcels overlying historic underground coal workings (this is a meaningful constraint on portions of the county, particularly around former active mine areas in the Clinch Valley and Maiden Spring Fork drainages). The Chesapeake Bay Preservation Act does NOT apply in Russell County — the CBPA reaches only Tidewater localities, and Russell County is far west of that designation.
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.
ZIP Code
- 24224
Post Office
- 19366 US Highway 58, 24224