Mayor's Office
900 E. Broad St., Suite 201
Richmond, VA
23219 USA
Phone: 804-646-7970
Fax: 804-646-7987
Email: RVAMayor@rva.gov
Get to know: The Affordable Housing Trust Fund
Access to safe, stable, affordable housing is one of the most pressing challenges facing our city. Expanding the number of affordable housing units is a top priority of the current administration and a foundational pillar of the Mayoral Action Plan. The Affordable Housing Trust Fund (AHTF) is a critical tool in this effort. It provides community oversight of funding for the construction and preservation of affordable housing that complements other housing-related investments. The AHTF also offers gap financing to move challenging projects forward.
Keep reading to learn more about the AHTF, or you can explore the Mayor Avula's full plan for housing affordability.
At the February 23rd City Council meeting, Council unanimously passed a new AHTF Ordinance, introduced at the February 9th City Council meeting by Councilmember Ellen Robertson (6th District) and Mayor Danny Avula. This new ordinance delivers a funding mechanism that is consistent, predictable, transparent, and fiscally responsible — supporting the City’s commitment to make meaningful progress on affordable housing for years to come.
Previous Legislation (pre-February 23, 2026)
Richmond’s Affordable Housing Trust Fund was established in 2004. Legislation enacted in 2019 and 2021 established two dedicated funding streams for the Fund:
2021: The “Rebate Roll-Off”
Prior to 2021, certain real estate properties benefited from partial tax exemptions. When those exemptions expired, the City began collecting the full tax amount. The difference between the previously exempt amount and the full tax collected — known as the “rebate roll-off” — was designated to fund the AHTF.
2019: Tax Delinquent Property Sales
Up to $1,000,000 per year from the proceeds of tax-delinquent property sales was to be credited to the Affordable Housing Trust Fund.
Why Change Was Needed
Despite the City’s commitment to affordable housing, these funding mechanisms proved difficult to administer in practice. A recent audit by the City’s auditor confirmed that the ordinances were “unpredictable and never fully implemented,” and that without a clear calculation methodology, a definitive annual funding amount could not be established.
New Legislation
To address these challenges, Council adopted the new AHTF Ordinance at the February 23rd meeting.
The new ordinance replaces the previous, difficult-to-administer funding formulas with a clear, consistent approach. Beginning July 1, 2026, an amount equal to 2.5% of all real estate tax revenues collected by the City (the “Dedicated Amount”) will be dedicated to the Affordable Housing Trust Fund each year.
Because the ordinance uses real estate tax collections from the last completed fiscal year — not projections — the dedicated funding amount is known at the time the budget is introduced. For example, the FY27 budget introduced in March 2026 will be based on actual FY25 collections, eliminating uncertainty.
During the first two years of implementation, a range of funding sources may be used to meet the Dedicated Amount. After that transition period, the requirement shifts to funding the AHTF exclusively with real estate tax proceeds.
Key Features of the New Ordinance
This new ordinance delivers a funding mechanism that is consistent, predictable, transparent, and fiscally responsible — supporting the City’s commitment to make meaningful progress on affordable housing for years to come
- A simple, consistent funding formula: 2.5% of annual real estate tax revenues dedicated to the AHTF.
- Known funding amounts at budget introduction — no projections or guesswork.
- Robust transparency and accountability through new reporting requirements.
- A four-year reauthorization requirement, ensuring City Council regularly evaluates and affirms the appropriateness of the AHTF structure and investment amount.
- A phased implementation approach to support a responsible, fiscally sound rollout.
