Appeals Court Strikes Down Original EHO Ruling

Three judges from the appeals court unanimously struck down the ruling from last fall that had halted implementation of Expanded Housing Options (EHO) in Arlington County. Today, the County Board released the following statement:

On June 24, 2025, the Virginia Court of Appeals reversed and remanded the Circuit Court’s ruling in the Expanded Housing Options trial, effectively reinstating the County's EHO ordinance as adopted by the Arlington County Board in 2023. The County is considering its next steps, including how this impacts previous applicants for EHO permits, new applications, and housing options in Arlington County going forward. Additional information will be shared as it becomes available.

This decision stems from a challenge submitted by Wilson’s Ventures, one of the original EHO developers who had attempted to intervene in the case in October 2024. At that time, Judge Schell denied their request to join the case as an interested party. The appeals court disagreed, stating that the original plaintiffs “failed to name an indispensable party to those proceedings.” As a result, they reversed the original judgment, which had declared the EHO amendment void ab initio.

The appeals court remanded the cases to the circuit court so that “necessary parties” can be added, assuming the plaintiffs choose to do so. Notably, the order also says in a final footnote: “We make no comment on whether the holders of the EHO permits are the only necessary parties” that weren’t involved in the case originally. Given that many parties were negatively impacted by the ruling, this opens the door to others like lenders, other property owners, and maybe even residents who would have benefitted from the EHO amendment.

As with prior decisions, the parties have a limited window of time (30 days) to appeal the case to the next higher level, which at this point is the Virginia Supreme Court. Even if there is another appeal, the Supreme Court is not obligated to take the case.

Here are some direct links to news coverage:

County Board Statement Regarding the Recent EHO Trial Appeal Decision – Arlington County Virginia
https://www.arlingtonva.us/About-Arlington/Newsroom/Articles/2025/County-Board-Statement-regarding-the-Recent-EHO-Trial-Appeal-Decision

Va. Appeals Court Says Arlington Can Eliminate Single-Family-Only Zoning - The Washington Post
https://www.washingtonpost.com/dc-md-va/2025/06/25/arlington-missing-middle-housing-appeals-court-ruling/

Appeals Court Puts Missing Middle Back on the Books in Arlington — ArlNOW
https://www.arlnow.com/2025/06/25/breaking-appeals-court-puts-missing-middle-back-on-the-books-in-arlington/