Committee forwards $5.8M restitution ordinance amid debate over use of delinquent‑tax funds and affordable housing

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 fiscal policy constraints on using fund balances and contingency reserves and said staff considered statutory and practical constraints in making the recommendation.

The discussion that followed focused less on the restitution payment's merits and more on whether prior budgets had honored the city code provisions that dedicate certain proceeds to the Affordable Housing Trust Fund. Several council members said they were concerned the city had failed to appropriate funds required by ordinance and called for speedy code and process fixes to ensure funds statutorily dedicated for affordable housing are available for that purpose going forward.

Councilmember Levar Robertson, who opposed forwarding the ordinance, said the city should not reallocate funds that legislation had directed to the Affordable Housing Trust Fund. "If the legislation is not gonna be carried out ... we need to write new legislation with dedicated sources of revenue that can be enforced," Robertson said. He announced he would vote against the paper.

Councilmember Kathryn Gibson likewise criticized the lack of transparency and urged legal fixes to remove ambiguous language such as "shall" and "subject to appropriation" that, she said, had permitted broad administrative discretion.

Other council members, including members who support the ordinance, said the city had used an array of one‑time funding sources for affordable housing in recent years (ARPA funds, GEO bonds and other allocations cited by administration) and that the delinquent tax sale special fund's larger unaudited balance created an opportunity to meet the city's obligation without draining reserves.

During debate the committee asked the administration to return with more complete documentation, and several council members proposed immediate work on amending city code and creating reporting and implementation processes to ensure the Affordable Housing Trust Fund receives the statutorily required streams in future budgets.

Motion and vote: A motion to forward Ordinance 2025‑188 to full council with a recommendation of approval passed on a recorded vote. The committee vote as recorded in the meeting was: Mister Bridal, aye; Councilmember Kathryn Gibson, no; Councilmember Jones, no; Councilmember Levar Robertson, no; Councilmember Stephanie Lynch, aye; Councilmember Trammell, aye; Councilmember Abubakar, aye; Vice Chair Durden, aye; Council President Newbill, aye. That tally recorded six ayes and three no votes.

Next steps: The administration will work with council representatives on proposed revisions and implementation details, and the ordinance will be considered by the full council at its formal meeting. Several members said they expect prompt follow‑up on correcting code language and improved reporting on the Affordable Housing Trust Fund and related roll‑off and delinquent tax sale proceeds.