Richmond leaders try to secure funding for affordable housing after learning previous efforts failed
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RICHMOND, Va. (WRIC) -- Richmond leaders are working to create a "straightforward dedicated revenue stream" for affordable housing efforts after discovering that previous attempts to do so were "unpredictable and never fully implemented."
In a Jan. 12 joint press release, Richmond city councilwomen Ellen Robertson and Kenya Gibson announced that they have introduced an ordinance that would allocate 2.5% of the city's annual real estate tax collections to the Affordable Housing Trust Fund (AHTF).
The two describe the AHTF as "a critical tool to mitigate the housing crisis through consistent, predictable funding for affordable housing initiatives across the city."
City Council moved to create such a predictable funding stream in both 2019 and 2021, sourced from both the sale of tax-delinquent properties and the expiration of partial real estate tax exemptions.
"While these sources were intended to provide essential resources to build more affordable housing across the City, in reality these sources were unpredictable and never fully implemented by City Administration," the release reads.
Richmond leaders discovered this disconnect when the city had to come up with $5.8 million to pay the wrongfully incarcerated Marvin Grimm and discovered that over $9 million had accumulated in the city's Delinquent Tax Sales special fund. While this reserve ended up being essential in settling the city's debt to Grimm, the idea that these funds had sat untouched for so long upset both citizens and councilmembers.
“I don’t think that any of us are speaking about the merits of restitution for Mr. Grimm … [but] the legislation has unintended consequences that we are now suffering,” councilwoman Sarah Abubaker said at the time.
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Per the release, Robertston and Gibson's ordinance, if approved, would be a "simple and reliable" way to make sure that the city is "fully funding the [AHTF,] following the law and putting working families first."
“Affordable housing is not just a policy issue — it’s a moral imperative for Richmond," Roberston said in the release. "With rents and home prices rising faster than wages, nearly half of our renters are cost-burdened. This ordinance creates a sustainable solution by dedicating 2.5% of real estate tax revenues to the Affordable Housing Trust Fund. Richmond deserves a future where everyone has access to safe, affordable homes — and this ordinance moves us closer to that goal.”
Gibson added that Richmond's unprecedented growth could not come at the cost of pushing neighbors out with "skyrocketing housing costs."
"By allocating 2.5% of real estate tax collections to the Affordable Housing Trust Fund, we are creating a reliable funding stream that will help address the affordability gap, reduce displacement and strengthen neighborhoods," she said in the release. "Affordable housing is the foundation of a community, and this measure reflects our commitment to building a Richmond where everyone can live."
This ordinance will first need to be reviewed by a city council commission, which will make a recommendation on its final approval to the full city council.
