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To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a First Amendment to Lease between the City of Richmond and Potomac Area Hostels, Inc. for the purpose of continuing the operation of a 50-bed, year-round emergency shelter located at 7 North 2nd Street.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That the Chief Administrative Officer, for and on behalf of the City of Richmond, be and is hereby authorized to execute a First Amendment to Lease between the City of Richmond and Potomac Area Hostels, Inc. for the purpose of continuing the operation of a 50-bed, year-round emergency shelter located at 7 North 2nd Street. Such First Amendment to Lease shall be approved as to form by the City Attorney and shall be substantially in the form of the document attached to this ordinance.
§ 2. This ordinance shall be in force and effect upon adoption.
O&R REQUEST
DATE: April 14, 2026 EDITION: 1
TO: The Honorable Members of City Council
THROUGH: The Honorable Dr. Danny Avula, Mayor
THROUGH: Odie Donald II, Chief Administrative Officer
THROUGH: Tanikia Jackon, DCAO for Finance and Administration
THROUGH: Letitia Shelton, Director of Finance
THROUGH: Meghan Brown, Director of Budget and Strategic Planning
THROUGH: Amy Popovich, Deputy Chief Administrative Officer for Human Services
FROM: Eric Mai, Policy Advisor
RE: To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a First Amendment to Lease Agreement between the City of Richmond, as tenant, and Potomac Area Hostels, Inc., as landlord.
ORD. OR RES. No. 2026-
PURPOSE: To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a First Amendment to Lease Agreement between the City of Richmond and Potomac Area Hostels, Inc., for the purpose of operating a 50-bed, year-round emergency shelter for families.
BACKGROUND: In April of 2023 Mayor Levar Stoney and City Council declared a housing crisis in the City of Richmond. Emergency shelters for persons without housing serve as a safety net of last resort for this vulnerable population. In the Strategic Plan to End Homelessness 2020-2030, the City identified a 150-bed shortage in year-round emergency shelter beds. HomeAgain agreed to help in expanding capacity by agreeing to operate a non-congregate 50 bed year-round emergency family shelter out of the “Richmond Hostel” - with prioritized and coordinated entry through the Greater Richmond Continuum of Care (GRCoC) - to serve more families experiencing homelessness.
On November 13, 2023, City Council approved ordinance 2023-298 which authorized the Chief
Administrative Officer to execute a Grant Contract between the City of Richmond and HomeAgain for the purpose of funding the operations of a non-congregate 50-bed, year-round family emergency shelter to be located at 7 North 2nd Street. The initial term of this Grant Contract began on November 14, 2023, and will expire on November 30, 2025.
Ordinance 2023-299 was approved by City Council on November 13, 2023 and authorized the Chief Administrative Officer to execute a lease agreement between the City of Richmond, as lessee, and Potomac Area Hostels, Inc., as lessor, for the property at 7 North 2nd Street. City Council approved a Sublease Agreement between the City of Richmond, as sublessor, and HomeAgain, as sublessee, on the same date as the above approved ordinances.
The initial term of the Lease Agreement ended on November 30, 2025. The City exercised its option to extend the term of the lease for one additional year, which has set the end of the lease as November 30, 2026
This 1st Amendment will extend the Lease Agreement term for one (1) guaranteed year, with up to three (3) additional one-year renewal terms upon mutual written consent of the parties.
COMMUNITY ENGAGEMENT: N/A
STRATEGIC INITATIVES AND OTHER GOVERNMENTAL: RES. 2023-R019, City of Richmond’s Strategic Plan to End Homelessness 2020-2030, Mayoral Action Plan Pillar: Thriving Neighborhoods, Mayoral Action Plan Pillar Thriving Families
FISCAL IMPACT: None
DESIRED EFFECTIVE DATE: Upon adoption.
REQUESTED INTRODUCTION DATE: July 27, 2026
CITY COUNCIL PUBLIC HEARING DATE: September 14, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Education and Human Services
AFFECTED AGENCIES: Budget and Strategic Planning, Finance, Human Services, Housing and Community Development
RELATIONSHIP TO EXISTING ORD. OR RES.: Ord. 2023-298, Ord. 2023-299, Ord. 2023-300, Ord. 2023-317, Ord. 2024-174
ATTACHMENTS: Executed Lease Agreement Contract
STAFF:
Stephen Harms - Senior Policy Advisor, Stephen.Harms@rva.gov
Eric Mai - Policy Advisor, Eric Mai@rva.gov