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Committee forwards $5.8M restitution ordinance amid debate over use of delinquent‑tax funds and affordable housing
Summary
The Organizational Development standing committee voted to forward Ordinance 2025‑188 — a transfer of $5.8 million from the delinquent tax sale special fund to a restitution payments line under Virginia Code §8.01‑195.13 — to full council with a recommendation to approve after a lengthy public hearing and debate about whether delinquent‑tax proceeds were previously required to support the Affordable Housing Trust Fund.
The Organizational Development standing committee voted to forward Ordinance 2025‑188 to the full Richmond City Council with a recommendation to approve. The ordinance would transfer $5,800,000 from the delinquent tax sale special fund and create a restitution payments line in the FY26 general fund to make a payment pursuant to Virginia Code §8.01‑195.13.
The ordinance drew a public comment from resident Steve Salzberg, who contended the city had not followed existing law requiring delinquent tax sale proceeds be used for affordable housing. "The city has been breaking the law for a long time," Salzberg said during the public hearing.
Chief Administrative Officer O'Dee Donald told the committee the administration recommends using the delinquent tax sale special fund because, in the administration's view, it is the most appropriate and sustainable source that protects general‑fund reserves. Donald outlined the administration's reading of…
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