Richmond City Council unanimously approves two affordable housing ordinances for small businesses

RICHMOND, Va. (WRIC) -- Richmond Mayor Danny Avula highlighted the city council's recent actions to expand affordable housing and promote small businesses after they unanimously approved two affordable housing ordinances.

Avula highlighted the Richmond City Council's recent actions to strengthen core areas and services such as affordable housing and "thoughtful neighborhood development" in a release from the city on Tuesday, Sept. 23.

The mayor's office said these steps have made meaningful progress toward a "Thriving Richmond."

Protecting core services for Richmond residents

Property taxes account for 57% of the city's revenue in Richmond. According to the mayor's office, every penny generates nearly $4.2 million in revenue, which funds schools, public safety and neighborhood services.

Along with Avula, City Council President Cynthia Newbille co-sponsored an ordinance to maintain the rate at $1.20, preventing a potential $17.2 million cut to the city's services. The council voted to continue the ordinance and will go into action next week.

"We passed a responsible budget together this past spring based on a $1.20 rate," said Chief Administrative Officer Donald Odie. "I remain committed to delivering excellence for the city. Maintaining the rate allows us to make continued progress so that Richmonders get the first-class service they deserve."

Avula added that Richmond families deserve to have stability and investment, not just disruption of core services.

"Reducing the rate would hinder our ability to provide essential services, fight crime, and invest in infrastructure," Avula said. "I’m confident we will return to the prudent path forward, and I look forward to additional work on this critical issue."

Affordable housing, small businesses and community planning

The city council unanimously approved two affordable housing ordinances at 5015 Snead Road in Richmond's Southside.

According to the release, the two ordinances (ORD. 2025-025 and ORD. 2025-173) will provide 180 multifamily units and a community clubhouse, while the other will provide student housing near the campus of Virginia Union University (VUU).

Avula shared that this is great news for Richmond.

"Affordable housing is a pillar of thriving neighborhoods," he said. "Every resident deserves a safe, affordable place to live, and I’m incredibly encouraged by these projects that will bring much-needed affordable housing to Richmond."

A resolution (RES-2025-RO040) to strengthen and support small and minority owned businesses in Richmond was passed unanimously by the city council. This news comes after the city council reaffirmed its commitment to inclusive economic growth.

According to the mayor's office, 18% of available businesses in the area are minority owned, yet they "win only" 3% of the city's contract spending.

To address this gap, the city council directed the administration to conduct a "comprehensive review and develop an action plan."

The city said that the goal of this resolution is to lay the foundation for expanding opportunity, increasing equity in city contracting and fostering entrepreneurship in the area.

Pat Foster, the director of Minority Business Development, said she is glad the city took this important step.

"This resolution strengthens the City’s commitment to fairness and equity, and creates more opportunities for small and minority-owned businesses to compete and thrive," she said. "When our entrepreneurs succeed, our neighborhoods and our whole city grow stronger."

The city council also unanimously passed a resolution to establish a new Northside planning node in the upcoming update to the city's master plan, Richmond 300, which was adopted in December 2020.

The city has been working on a new zoning plan, "Code Refresh," which aims to update its decades-old zoning code. Officials said this will determine future development, housing and business types in the city.

"As Code Refresh works to create more homes for more people, this Richmond 300 Master Plan update ensures that City departments are collaborating on infrastructure improvements, public amenities, and incentive programs that support new development and strengthen neighborhoods," said Director of Planning and Development Kevin Vonck.

The Fall Line Trail

Avula congratulated the unanimous passage of the ordinance (ORD. 2025-202), which he sponsored. This ordinance authorizes the city to continue the development of the Fall Line Trail, which, according to the Virginia Department of Transportation (VDOT), would "enhance the active transportation network in the Richmond region."

The trail would also provide opportunities for active transportation, economic development and recreation. The trail is also set to enhance connectivity to the downtown Richmond area.

The trail is expected to be completed in 2026.

Commitment to transparency and collaborative budgeting

In a 7-2 vote, the Richmond City Council voted to change the city’s budget process.

They plan to require publication of department-level requests before the budget is introduced. However, the task force recommended additional analysis first.

"I was encouraged by the Task Force’s thoughtful recommendations, and I believe they will achieve the transparency, accountability, and time for much more meaningful engagement we’re all aiming for," Avula said. "At the same time, I have concerns about introducing a dramatic change that wasn’t part of the Task Force’s recommendation. The Task Force brings a great deal of wisdom, and I’d prefer we build on that rather than move forward with one-off proposals."

Recommendations by the task force include:

• Early collaboration: The mayor and council hold a public budget kickoff to establish shared understanding of the budget process timeline.
• Restructured timeline: Move up the timeline for the mayor’s budget submission.
• Efficient work sessions: Reorganize budget work sessions around four city portfolios (Human Services; Finance and Administration; Planning and Economic Development; and Operations).
• Standard amendment procedures: Implement a standardized amendment process.
• Enhanced public engagement: Conduct additional public hearings.
• Annual review: Reconvene annually for continuous improvement.