WWBT: Richmond exceeding its annual affordable housing goals

Madison McNamee, WWBT

RICHMOND, Va. (WWBT) -Mayor Levar Stoney announced that Richmond is exceeding its goals of adding affordable housing units.

He credits the affordable housing performance grants for the progress, which incentivize developers to create low-price spots for people in the city.

11 of the grants were introduced and approved last year, and seven more went before the city council on Monday. Stoney says this adds thousands of affordable homes for those in need, calling it a game changer.

“This will bring the total units created through the grant program to 3,277,” Stoney said. “3,277 new units because of this performance grant program. Now, this goes to show that the developer community has heard our plea and has taken notice and is using this tool to help alleviate our current housing crisis.”

The crisis was declared in April 2023, and then, in October, the city announced it was partnering with the Local Initiatives Support Corporation (LISC) to invest millions in creating solutions. Part of that was introducing the grant program.

First District Councilmember Andreas Addison calls it one of their best tools.

“If you have a parcel of land you’re looking to build affordable housing on,” Addison said. “We’re saying that we are going to give you a tax break, or tax incentive or not pay any taxes on the land. And so, what we’re saying is, we’ll only tax you on the building you put on that land, and we’re negotiating that tax write-off for the affordability.”

The city set the goal last year to build 1,000 units a year. Based on the basics of supply and demand, people are hopeful that an increase in availability will keep prices low. The problem now is the rate at which the units are built.

“You have to streamline the bureaucracy, and you also have to work on regulation,” Stoney said. “I’m very proud that next year, the city council and the next administration will take on the upzoning of Richmond.”

Addison says the spaces could be built in 18-24 months, and even that would be fast-tracking. Developing a better permitting system would be the next step in curing the crisis and reaching more of the city’s goals.

“Sometimes that might be taking looking at city-owned assets to be fast-tracked for attracting an investor that wants to build that affordability because then we can negotiate, as the landowner, with the developer how we want to see that happen,” Addison said. “We’re not seeing that level of engagement yet, but I think that is what we need to see moving forward.”

The new grants are being reviewed by the city council now, and they will be put to a vote later in the month.

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