Richmond leaders launch new affordable housing plan, add $2 million to fund

RICHMOND, Va. (WRIC) -- Richmond is making an additional $2 million investment in affordable housing -- but this move is only the first step in a new plan to address the city's ongoing housing crisis.

On Monday, Sept. 8, Mayor Danny Avula announced that $2 million is being added to the city's Affordable Housing Trust Fund. These dollars are being pulled from the "'Delinquent Sales Tax' special fund," which holds proceeds from the sale of blighted or condemned properties that have racked up two years or more of unpaid real estate taxes.

With this investment, the total amount allocated by the city to the Affordable Housing Trust Fund during fiscal year 2026 will hit $15 million, according to leaders.

“Everywhere I go, Richmonders tell me how urgently we need more affordable housing," Avula said in a press release. "I support that wholeheartedly, because this incredible city should be a place where people at every income level can access safe, quality homes in neighborhoods with strong public amenities."

This announcement comes after the search for $5.8 million to pay the wrongfully convicted Marvin Grimm unearthed an apparent hole in legislation previously passed by the city council.

In 2019, councilmembers passed an ordinance stating that "up to $1 million" was to be moved from this special fund to the Affordable Housing Trust Fund annually. After the special fund was chosen as a possible source for that $5.8 million, it came out that these transfers never took place.

During a Sept. 2 meeting of a city council committee on the Grimm decision, Richmond's chief administrative officer Odie Donald, II explained that the language of the 2019 ordinance -- specifically, the choice to use the words "up to" -- did not require money to be allocated. Instead, it only allowed for it to be.

Per Donald's review of past budgets, it appeared that the choice to allocate it to the Affordable Housing Trust Fund was not made each year.

He added that context was important. At the time, Richmond was dealing with a pandemic that required city councilmembers to spend money on a variety of vital, unexpected needs. Further, Donald said he admired how the city council met those needs while still making significant investments in affordable housing.

No matter the explanation, city councilmembers and residents alike were not happy that the Affordable Housing Trust Fund did not have the dedicated funding stream that many thought it did.

To that effect, Donald further elaborated on the city's plan to secure that steady funding in a letter he sent to councilwoman Ellen Robertson on Sept. 6.

Robertson was among those who were against using these funds to pay Grimm during the Sept. 2 meeting -- not because she opposed awarding Grimm, but because she wanted to guarantee that affordable housing initiatives would be funded.

Per the letter, which is included below, Roberston met with Donald and other city leaders to discuss her concerns. They dedicated to drafting and passing legislation that would create a "strong, binding solution to our city's affordable housing needs" -- which, in large part, means legislating a secure funding stream for the Affordable Housing Trust Fund.

"It is no secret that the Mayor is laser-focused on ensuring that a long-term, sustainable and dedicated revenue [source] is identified and administered to support Richmond’s affordable housing needs," Donald wrote in the letter. "The Administration is committed to codifying in legislation mechanisms that create a clear, unambiguous and substantial obligation for the City to fund affordable housing year over year."

During a Monday meeting of the city council, Roberston said she had faith that the Avula administration would deliver on these promises.

"I’m going to give this administration an opportunity to know that we are trusting them to do exactly what they have promised to do — and [they’ve] promised that all of this will be taken care of within 30 days,” Roberston said during the meeting.

She added that she hoped residents would be her and the city's "worst enemy" to make sure these commitments were honored.

“I appreciate the leadership of Councilwoman Ellen Robertson over many years in fighting for greater investments in affordable housing,” Avula said in the release. “I look forward to continued partnership with Ms. Robertson and all of City Council as we work to move forward this shared priority.”