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To amend City Code §§ 16-27, concerning eligibility and selection of eligible households to purchase or rent affordable dwelling units, and 16-28, concerning occupancy of affordable dwelling units, for the purpose of eliminating duplicative annual affidavit requirements for renters occupying affordable units administered under the Affordable Dwelling Unit Program.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That sections 16-27 and 16-28 of the Code of the City of Richmond (2026) be and are hereby amended as follows:
Sec. 16-27. Eligibility and selection of eligible households to purchase or rent affordable dwelling units.
(a) Determination of eligibility. Eligible households proposing to purchase or rent affordable dwelling units shall make application to the designee for determination of eligibility. In making such determination, the designee shall adhere to the rules and standards established by the Director. The owner of a development containing affordable dwelling units or any other person involved in the sale, rental or re-rental of affordable dwelling units in a development may refer households to the designee for determination of eligibility.
(b) Certificate of qualification. [A]
(1) For affordable dwelling units not subject to compliance monitoring by the State Housing Finance Agency or the Internal Revenue Service, a household determined to be eligible to purchase or rent an affordable dwelling unit shall obtain a certificate of qualification from the designee, a copy of which shall be provided by the designee to the program administrator. Before issuing a certificate of qualification, the designee shall verify that all applicable eligibility rules and standards are met. It shall be a violation of this article for any person to sell or rent an affordable dwelling unit to a household that has not been issued a current certificate of qualification by the designee.
(2) For affordable dwelling units subject to compliance monitoring by the State Housing Finance Agency or the Internal Revenue Service, the certifications and compliance monitoring performed by such agency at move-in and annually thereafter shall satisfy the eligibility verification requirements of this section. The certificate of qualification requirement in subsection (b)(1) shall not apply to such units.
(c) Selection of eligible households. [Upon]
(1) For affordable dwelling units not subject to compliance monitoring by the State Housing Finance Agency or the Internal Revenue Service, upon receiving a notice of availability for sales or rental from the program administrator, the designee shall select the eligible household or households for purchase or rental of the unit or units involved in accordance with the criteria contained in the approved affordable dwelling unit plan for the site and consistent with the method of selecting eligible households established by the Director. The names of selected eligible households shall be reported to the program administrator.
(2) For affordable dwelling units subject to compliance monitoring by the State Housing Finance Agency or the Internal Revenue Service, the owner shall select eligible households in accordance with the tenant selection criteria required by such agency. Upon request by the program administrator, the owner, its successors, and assigns shall provide to the program administrator the names of households occupying affordable dwelling units and evidence of compliance with applicable selection criteria.
(d) Underwriting criteria. The designee shall use standard underwriting criteria in determining that eligible households are qualified to purchase or rent affordable dwelling units.
(1) In the case of purchase, the underwriting criteria shall include an expectation that the purchase will be financed with a conventional 30-year mortgage at prevailing interest rates for borrowers with good credit, that a maximum down payment of five percent will be made by the purchaser, and that condominium and homeowners' association fees will be included in determining mortgage affordability.
(2) In the case of rental, qualification shall be determined based on a review of credit worthiness and the assumption that monthly rental payments should not exceed 35 percent of a household's gross income.
Sec. 16-28. Occupancy of affordable dwelling units.
(a) Affidavit of domicile by purchasers of units. Eligible household purchasers of individual affordable dwelling units shall occupy such units as their domicile, and shall provide an executed affidavit in a form prescribed and provided by the designee certifying their continuing occupancy of such units. Purchasers shall submit such affidavit to the designee on or before July 1 of each year that they own and occupy the unit. The designee shall provide a copy of the affidavit to the program administrator.
(b) Notice of re-sale by purchasers of units. When an affordable dwelling unit may be offered for re-sale, the owner shall provide the program administrator with written notification that the affordable dwelling unit is being offered for sale, and no contract for sale shall be entered into until such notification is provided. The seller shall provide the program administrator with written notification upon the closing of the re-sale of such unit.
(c) [Affidavit of domicile by renters of units. Every lease for an affordable dwelling unit shall contain a provision that renters of affordable dwelling units shall occupy such units as their domicile, and shall provide an executed affidavit in a form prescribed and provided by the designee certifying their continuing occupancy of such units. Renters of affordable dwelling units shall submit such affidavit to the owner of the property on an annual basis at least 90 days prior to expiration of the lease. Copies of the affidavit shall be provided by the owner to the program administrator and the designee.] Reporting requirements.
(1) [Such affidavit shall include a statement of the renter's annual household income as of the date of the affidavit, together with such other information as may be requested by the owner for the purpose of verifying that the renter continues to meet applicable income eligibility criteria.] For affordable dwelling units subject to compliance monitoring by the State Housing Finance Agency or the Internal Revenue Service, every lease shall contain provisions that restrict occupancy in accordance with standards promulgated by such agency. The compliance monitoring performed and approvals granted by the State Housing Finance Agency or the Internal Revenue Service, as applicable, shall be deemed evidence of compliance with this section. Upon request by the program administrator, the owner, its successors, and assigns shall provide to the program administrator evidence of such compliance monitoring and approvals.
(2) For affordable dwelling units not subject to compliance monitoring described in subsection (c)(1), every lease shall contain a provision that renters of affordable dwelling units shall occupy such units as their domicile, and shall provide an executed affidavit in a form prescribed and provided by the designee certifying their continuing occupancy of such units. Renters of affordable dwelling units shall submit such affidavit to the owner of the property on an annual basis at least 90 days prior to expiration of the lease. Copies of the affidavit shall be provided by the owner to the program administrator and the designee.
i Such affidavit shall include a statement of the renter’s annual household income as of the date of the affidavit, together with such other information as may be requested by the owner for the purpose of verifying that the renter continues to meet applicable income eligibility criteria.
ii Every lease of an affordable dwelling unit subject to this subsection (c)(2) shall contain a provision that if the renter of an affordable dwelling unit fails to provide such affidavit to the owner within 30 days after the required date, or if the renter’s income makes them ineligible for the program, then it is a material breach of the lease and notice shall be served on the tenant as provided in Code of Virginia, § 55.1-1245 advising that the rental agreement shall terminate for noncompliance. With prior approval by the program administrator, the owner may provide for substitution of an affordable dwelling unit by designating an additional comparable unit of the same dwelling unit type on the site as an affordable dwelling unit to be rented under the provision and requirements of this article, in which case such renter may continue to occupy the unit at the market rent under a new lease.
(d) Failure of renter to occupy a rental unit. Every lease of an affordable dwelling unit shall contain a provision that the tenant must give notice to the owner of an anticipated extended absence in excess of 60 consecutive days. Unless such absence is approved in writing by the designee, the owner may proceed in conformance with Code of Virginia, § 55.1-1249.
(e) Re-rental of affordable dwelling units in case of vacancy. The owner shall notify the designee of any vacancy of a rental affordable dwelling unit. The designee shall select an eligible household for re-rental of the unit in accordance with the provisions of Section 16-26 and shall notify the owner [and the program administrator] of such selection.
(f) Renting to non-eligible household constitutes violation. Except as provided in Subsection (c)(2) of this section, it shall be a violation of this article for any person to knowingly rent or continue to rent an affordable dwelling unit to a household that does not meet or does not continue to meet applicable income eligibility criteria.
(g) Required lease provisions for rental units. Rental affordable dwelling units shall be leased for a period of not less than six months and not more than one year. In addition to any other requirements developed by the program administrator and the requirements specifically set forth in this article, lease agreements for such units shall also include a prohibition against the tenant subleasing the unit.
§ 2. This ordinance shall be in force and effect upon adoption.
DATE: September 14, 2026
TO: The Honorable Members of City Council
THROUGH: RJ Warren, Council Chief of Staff
THROUGH: Will Perkins, Senior Legislative Services Manager
Sophie McGinley, Council Policy Analyst
FROM: The Honorable Ellen Robertson, Councilmember 6th District
RE: To amend ch. 16, art. II, of the City Code by amending a Sec. 16-28 for the purpose of eliminating duplicative annual affidavit requirement for renters occupying affordable units being administered under the Affordable Dwelling Unit Program for the City of Richmond in addition to corresponding changes to Sec. 16-27.
CNL-2026-0078
PURPOSE: To amend the City’s Affordable Dwelling Unit (AfDU) Program requirements to eliminate duplicative tenant eligibility, certification, and annual reporting requirements for affordable dwelling units that are already subject to compliance monitoring by Virginia Housing or the Internal Revenue Service. The ordinance preserves existing City compliance requirements for affordable dwelling units that are not otherwise subject to an equivalent monitoring framework.
BACKGROUND: The City’s AfDU Program currently requires owners of affordable rental units to obtain City-administered tenant qualification, collect annual affidavits verifying renter income and occupancy, and submit related documentation throughout the affordability period. For developments financed through the federal Low-Income Housing Tax Credit (LIHTC) program, substantially similar tenant income, occupancy, and eligibility information is already certified and monitored through Virginia Housing and the Internal Revenue Service. Requiring both processes creates parallel compliance systems for property owners and residents and requires City staff to administer information that has already been independently verified. The City’s Affordable Housing Performance Grant framework already recognizes LIHTC compliance as an alternative means of demonstrating continued affordability compliance in applicable projects. This ordinance would establish a similar approach for the AfDU Program while retaining the City’s existing qualification and annual affidavit requirements for affordable units that do not have an alternative compliance mechanism.
COMMUNITY ENGAGEMENT: This request was brought to the Councilmember by an individual directly subject to the AfDU Program’s reporting requirements, who identified the duplicative administrative burden created when a development is required to complete both City AfDU compliance and LIHTC monitoring for the same affordable units.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: This ordinance advances the Mayoral Action Plan’s goals of a “City Hall that gets things done” and “Neighborhoods that meet our housing needs” by streamlining administration of an existing affordable housing program without reducing affordability protections, and is consistent with the Mayor’s Housing Affordability Plan emphasis on improving administration of existing housing programs and streamlining City processes. It also supports Richmond’s broader affordable housing objectives by reducing unnecessary administrative costs associated with operating regulated affordable housing.
FISCAL IMPACT: N/A
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: September 14, 2026
CITY COUNCIL PUBLIC HEARING DATE: September 28, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Land Use, Housing, and Transportation
AFFECTED AGENCIES: Office of Chief Administrative Officer
Planning and Development Review
Housing and Community Development
RELATIONSHIP TO EXISTING ORD. OR RES.: None
ATTACHMENTS: N/A
STAFF: Sophie McGinley, Council Policy Analyst (804-646-5826)