Council approves $5.8 million restitution to Marvin Grimm; advocates decry use of delinquent-tax proceeds

Richmond City Council on Sept. 8 approved an ordinance to amend the FY 2026 special fund and general fund budgets by transferring $5,800,000 from the delinquent tax sale special fund to create a restitution payments line item and appropriate those funds to make a restitution payment pursuant to Virginia Code Section 8.01-195.13.

The ordinance drew sustained public comment and debate before the vote. Tracy Hartney Scott, housing chair for the Virginia State Conference NAACP, said, “There is no question what happened to Mister Grimm was a travesty of justice,” but urged council to identify “an alternative funding source that does not undercut the city's affordable housing effort.” Alex Krieger of RISC (Richmond Involved to Strengthen Our Communities) asked council to follow existing ordinance language that, he said, directs some delinquent-tax proceeds to the Affordable Housing Trust Fund. “This law was passed in January 2021. That's 4 and a half years ago. 4 and a half years of our city disobeying the law,” Krieger said during the public hearing.

Council members debated the legal permissibility of the funding source and the broader effects on affordable-housing resources. Councilwoman Annise Robertson, who led the floor debate, said she had worked with the administration to identify a replacement funding path for the trust fund and that the administration had committed to forthcoming ordinances to create a dedicated revenue stream for the Affordable Housing Trust Fund. Robertson said she would support the restitution payment while pressing the administration to make the housing commitments verifiable and immediate.

Chief Administrative Officer Odie Donald described the transfer as “a funding source that is lawful and appropriate to be able to resolve this matter,” and told council the administration had “identified some additional resources that can be invested in affordable housing.” The CAO and multiple council members said they expected follow-up legislation to clarify and guarantee how delinquent-tax proceeds and similar revenue would be routed to the Affordable Housing Trust Fund going forward.

Speakers representing tenants, housing advocates and community organizations repeatedly warned that using delinquent-tax-sale proceeds would reduce resources available for deeply affordable housing programs. Ralph Hodge of RISCC said the delinquent-tax-sale money “was supposed to go into the affordable housing trust fund,” and urged the council to replace any diverted funds.

After deliberation the council voted to adopt ordinance 2025-1-88 as presented. Members voting in favor included members who said they would press the administration to make the housing commitments concrete in the coming weeks. The council also directed staff and the administration to return with specific, verifiable steps to secure a dedicated, predictable revenue stream for the Affordable Housing Trust Fund and to report back on past transfers and where housing dollars have been invested.

The council vote concluded the matter for this meeting; multiple council members said they would continue oversight and expect specific ordinance language and accounting to return for council review within weeks.