Richmond City Council approves $5.8 million restitution payment to wrongfully convicted man; council debates using delinquent-tax funds

The Richmond City Council voted to adopt an ordinance authorizing a $5,800,000 restitution payment to Marvin Grimm and to amend the FY 2026 budgets to transfer those funds from the delinquent tax sale special fund into a newly created restitution line item.

The administration said the payment is authorized under Virginia Code Section 8.01-195.13 and identified proceeds from delinquent tax sales as a lawful source to complete the payment. CAO Odie Donald told council the administration had identified a lawful funding source and additional resources to invest in affordable housing priorities while resolving the matter.

Why it matters: The payment closes a long-running wrongful-conviction claim, but several affordable-housing advocates and residents said the chosen funding source undermines an already underfunded Affordable Housing Trust Fund and asked the council to identify a different source.

Advocates urged alternative funding. Tracy Hartney Scott, housing chair for the Virginia State Conference NAACP, said the city should ensure Grimm receives restitution but “identify an alternative funding source that does not undercut the city's affordable housing effort.” Ralph Hodge and Alex Krieger, speaking with members of the coalition RISC, said the delinquent-tax-sale proceeds were intended by ordinance to support affordable housing and that diverting them would harm families at the lowest income levels.

Council response and commitments. Councilwoman Kimberly Robertson, who led negotiations on the item, said she supported the payment but pressed the administration for binding follow-up: she said staff had promised an ordinance and administrative steps that would guarantee a dedicated, enforceable stream of revenue into the Affordable Housing Trust Fund and additional transfers to make the public whole. Robertson said she would vote for the payment while giving the administration 30 days to return with concrete, verifiable steps to preserve or restore housing revenue streams.

Other council members raised process and policy concerns. Councilmember Kenya Gibson said she planned to vote no as a signal that the council must follow and enforce the city's existing ordinances about dedicated housing funds; Gibson also requested more regular, clearer reporting on how housing dollars are spent. Councilmember Rena Trammell and others pressed for public reporting showing how previously committed housing dollars have been spent.

Vote and outcome. The ordinance passed. The clerk recorded aye and nay votes during the roll call; the chamber recorded a majority in favor and one recorded no vote by a member of the council. (See Actions section for the motion and available vote record.)

What the ordinance does. The ordinance amends the FY '26 special fund budget by transferring $5.8 million from the delinquent tax sale special fund and amends the general fund budget by creating a restitution payments line item and appropriating the transferred funds to that line. The ordinance cites Virginia Code Section 8.01-195.13 as the legal authority to provide restitution payments.

Next steps. Councilmembers asked the administration to return with an ordinance revision and financial accounting that would lock future tax-abatement and delinquent-tax proceeds into the Affordable Housing Trust Fund or another legally dedicated housing source. Robertson said the administration committed to specific follow-up within 30 days; the council indicated it will require verifiable documentation before allowing similar diversions again.

Votes at a glance Ordinance 20-25-188 (amend FY '26 special fund and general fund budgets to provide $5,800,000 restitution payment pursuant to Va. Code 8.01-195.13): Adopted. Motion text: Approve ordinance as presented and amend FY '26 budgets to create restitution payments line and transfer funds from delinquent tax sale special fund. Outcome: adopted.

Speakers quoted in this story are from the public hearing and the administration and include Tracy Hartney Scott (Virginia State Conference NAACP housing chair), Alex Krieger (Presbyterian pastor and RISC), Ralph Hodge (RISC), CAO Odie Donald, and Councilwoman Kimberly Robertson.

Ending: Council members said they would continue work on a revised ordinance and financial report to ensure the Affordable Housing Trust Fund receives the revenues intended for it and to reduce the risk the city must again reallocate housing-dedicated revenues to satisfy restitution obligations.