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To express the City Council’s support for the General Assembly’s removal of the statutory maximum applicable to local employee homeownership grants; to encourage the Administration to reevaluate the City’s Employee First-Time Homebuyer’s Assistance Program, including the maximum amount of assistance available; and to express the Council’s interest in establishing a sustainable, long-term employee homeownership assistance program.
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WHEREAS, by Ordinance No. 2023-257, adopted October 10, 2023, the City established the Employee First-Time Homebuyer’s Assistance Program to provide down payment and closing cost assistance to eligible employees purchasing a primary residence within the city of Richmond; and
WHEREAS, the program currently provides eligible employees with up to $25,000 in financial assistance and has been identified as a tool to support employee recruitment, retention, homeownership, and economic mobility; and
WHEREAS, the program was initially supported with approximately $1.3 million in American Rescue Plan Act funds, which are available through December 31, 2026; and
WHEREAS, as of August 2026, approximately $983,368 of the original allocation remained unspent, and the City has undertaken efforts to increase participation in the program, including expanding eligibility to employees of the School Board of the City of Richmond through Ordinance No. 2026-055, adopted March 23, 2026; and
WHEREAS, section 15.2-958.2 of the Code of Virginia (1950), as amended, previously limited individual and lifetime cumulative grants under local employee homeownership programs to $25,000; and
WHEREAS, the General Assembly amended section 15.2-958.2 of the Code of Virginia (1950), as amended, to remove such limitation, thereby providing localities greater flexibility in determining the amount of employee homeownership assistance provided; and
WHEREAS, the Council believes that the change in state law and the approaching expiration of the program’s current funding provide an appropriate opportunity to reevaluate the program and consider the long-term role of employee homeownership assistance as a workforce and economic mobility strategy;
NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF RICHMOND:
That the Council hereby expresses its support for the General Assembly’s removal of the statutory maximum applicable to local employee homeownership grants.
BE IT FURTHER RESOLVED:
That the Council encourages the Administration to reevaluate the City’s Employee First-Time Homebuyer’s Assistance Program, including the maximum amount of assistance available, eligibility requirements, program utilization, and barriers to participation.
BE IT FURTHER RESOLVED:
That the Council expresses its interest in establishing a sustainable, long-term employee homeownership assistance program and encourages the Administration to evaluate options for continuing such assistance beyond the expiration of the funding currently supporting the program.
DATE: July 23, 2026
TO: The Honorable Members of City Council
THROUGH: The Honorable Ellen Robertson, Councilmember 6th District
THROUGH: RJ Warren, Council Chief of Staff
THROUGH: Will Perkins, Senior Legislative Services Manager
FROM: Whitney Brown, Policy Analyst
RE: To express the City Council’s support for the General Assembly’s removal of the statutory maximum applicable to local employee homeownership grants; to encourage the Administration to reevaluate the City’s Employee First-Time Homebuyer’s Assistance Program, including the maximum amount of assistance available; and to express the Council’s interest in establishing a sustainable, long-term employee homeownership assistance program.
CNL-2026-0079
PURPOSE: To express the City Council’s support for the General Assembly’s removal of the statutory maximum applicable to local employee homeownership grants; to encourage the Administration to reevaluate the City’s Employee First-Time Homebuyer’s Assistance Program, including the maximum amount of assistance available; and to express the Council’s interest in establishing a sustainable, long-term employee homeownership assistance program.
BACKGROUND: The City established the Employee First-Time Homebuyer’s Assistance Program through Ordinance No. 2023-257, adopted October 10, 2023, using approximately $1.3 million in American Rescue Plan Act funds to provide down payment and closing cost assistance to eligible City employees purchasing a home within Richmond. The program currently provides up to $25,000 in assistance and was expanded in 2026 to include employees of the Richmond School Board.
During the 2026 General Assembly Session, House Bill 164 amended Va. Code § 15.2-958.2 to remove the statutory $25,000 maximum applicable to individual and lifetime cumulative grants provided through local employee homeownership programs and to eliminate the requirement that such grants adhere to the Virginia Housing and Development Authority regional sales price and household income limitation guidelines. HB 164 was approved by the Governor on April 6, 2026, and became effective July 1, 2026, providing localities greater flexibility in determining the amount of homeownership assistance available to eligible employees and establishing program eligibility requirements.
The proposed resolution would express Council’s support for the change in state law, encourage the Administration to reevaluate the City’s current program and maximum award amount, and express Council’s interest in establishing a sustainable, long-term employee homeownership assistance program beyond the current temporary funding source.
COMMUNITY ENGAGEMENT: N/A
STRATEGIC INITATIVES AND OTHER GOVERNMENTAL: Mayoral Action Plan - Thriving Neighborhoods; One Richmond: An Equitable Affordable Housing Plan; Richmond 300 Master Plan - Inclusive Housing
FISCAL IMPACT: N/A
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: October 13, 2026
CITY COUNCIL PUBLIC HEARING DATE: November 9, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance and Economic Development Subcommittee
AFFECTED AGENCIES: The Department of Human Resources, the Department of Budget and Strategic Planning, the Department of Finance
RELATIONSHIP TO EXISTING ORD. OR RES.: None
ATTACHMENTS: ARPA Status Report_Accomplishments_August 2026, ARPA Obligation and Expenditure Dashboard
STAFF: Whitney Brown, Policy Analyst, (804-646-3765)