RHA defends use of nonprofit arm, seeks tenant-protection vouchers and promises more resident engagement on Gilpin Court redevelopment

Steve Nesmith, chief executive officer of the Richmond Redevelopment and Housing Authority, told the Land Use, Housing and Transportation Standing Committee that RHA intends to use its nonprofit redevelopment arm, the Richmond Development Corporation (RDC), to raise financing to redevelop Gilpin Court in multiple phases and to seek tenant protection vouchers for residents during relocation.

“We want to leverage RHA's 501(c)(3) nonprofit called the Richmond Redevelopment Corporation, which is the redevelopment arm of RHA,” Nesmith said, adding that the RDC “is wholly owned by RHA and thereby has accountability and oversight by RHA board of commissioners.” He defended the structure as a financing tool used by housing authorities nationally and said the phased transfers would be by ground lease so RHA would “continue to own the land.”

Nesmith characterized the redevelopment as necessary because traditional federal funding for public housing has been reduced, and he said RHA has embedded a tenant bill of rights in redevelopment agreements that guarantees current residents an opportunity to return if they wish. He described the redevelopment as phased (he said there are 10 phases) and disputed media characterizations that the RDC would privatize assets: “This is not privatization,” he said. He said the master development agreement with a private developer has been signed and that RHA will be a minority owner in the development (Nesmith said RHA would hold a 40% ownership stake).

Residents and advocates spoke during public comment before the presentation. Thomas King, representing several housing organizations, said advocates expected a rental-inspection ordinance before mid-May and asked who was “holding this up.” Omar El Gaddafi of the Legal Aid Justice Center, speaking for Gilpin residents, urged more public accountability and resident inclusion in redevelopment planning. Arthur Burton, a Jackson Ward resident and nonprofit director, urged a broader coalition of partners and faster action to improve living conditions for Gilpin residents.

Council members pressed RHA staff for operational details. Cheryl Hampton, senior vice president for real estate development at RHA, said HUD requires a relocation strategy and described typical relocation supports RHA provides, including needs assessments, assistance with applications, moving costs and options for how assistance is paid. Corey Franklin, senior vice president of affordable housing at RHA, said RHA would calculate tenant protection vouchers using a two-year look-back of occupied units and described how unused tenant protection vouchers could be converted into other voucher assistance.

Council members asked RHA to provide several documents and follow-ups: the tenant bill of rights, the relocation strategy plan, the list of RDC board members, details on phase-by-phase unit mixes (public housing, affordable and market-rate), proposed timelines and estimates of voucher counts, and confirmed dates for three community engagement meetings RHA said it would hold. Nesmith and staff agreed to supply those documents and said they expected to confirm meeting dates shortly.

No committee vote on policy or approvals for the Gilpin plan was recorded; the item was a presentation and Q&A. Council members asked RHA to return with more detailed information — several requested a fuller briefing at the committee’s July meeting.