The city of Richmond wants to give residents money to help pay for housing costs
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Mayor Stoney on Monday proposed targeted relief to help Richmonders afford the rising cost of housing and stay in their homes.
Why it matters: Between Stoney's proposals and City Councilor Reva Trammell's recent one for a permanent, four-cent reduction in the city's real estate tax rate, it looks like some form of real estate tax relief will be coming soon to Richmond.
The big picture: Dubbed RVA Stay, Stoney unveiled three relief programs that come amid years of rising rent and property values that some say are pushing locals out of the city. The programs are:
- A grant pilot to give up to $200 a month to low-income renters and owners for six months.
- Exempting homeowners 65 and older or disabled from future property tax increases.
- A one-time real estate tax rebate for all property owners.
Between the lines: The proposals are also in response Trammell's recent proposal to drop the city's real estate tax rate from $1.20 to $1.16 per $100 of assessed property value. That plan could reduce the average residential tax bill by $150 per year, the Richmonder reports.
- In a statement, Stoney said his proposals would offer greater financial relief to more Richmonders than an across-the-board reduction, plus allow the city to have enough money in the coffers to keep other services running.
Zoom in: First up, Stoney proposed a one-time, four-cent tax rebate for all city property owners.
- If approved, those checks would go out in January.
Second, the Gap Grant Pilot Program would give up to $200 a month through a $1,200 gap grant to qualifying low-income renters and homeowners for six months.
- Income limits are 80% of the area's median income, so $61,800 or less for a single-person household, $70,600 for a two-person household, etc.
- Participants would need to demonstrate they spend 30% or more of their income on rent.
- Applicants would also need to enroll in workforce development and financial planning sessions.
- Public housing residents would not be eligible to participate.
Finally, the Richmond Freeze Program would freeze the real estate tax assessment of homeowners 65 years or older or disabled with a household income under $125,000 (and net worth under $750,000).
- That income cap is a significant jump from the current $70,000 household income and $450,000 net worth caps for a similar program.
What they're saying: "The proposals ... are how we provide fiscally responsible, targeted relief to those who need it the most, and an across-the-board rebate for all Richmond property owners," Stoney said in a statement.
Worth noting: Applications for the new programs, as well as tax rebate checks, won't happen until January. Stoney's last day in office is Dec. 31.
What's next: City council would need to approve all of Stoney's proposals as it continues discussions on Trammell's permanent tax reduction.
- Council members will begin discussing Stoney's plan at committee meetings this week, council president Kristen Nye tells Axios.