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To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a Grant Agreement between the City of Richmond, ECG Rady, LP, and the Economic Development Authority of the City of Richmond for the purpose of facilitating the construction of an affordable residential development located at 2811 Rady Street, and to repeal Ord. No. 2025-008, adopted Jan. 27, 2025.
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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 Grant Agreement between the City of Richmond, ECG Rady, LP, and the Economic Development Authority of the City of Richmond for the purpose of facilitating the construction of an affordable residential development located at 2811 Rady Street. The Grant Agreement 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. That Ordinance No. 2025-008, adopted January 27, 2025, be and is hereby repealed.
§ 3. This ordinance shall be in force and effect upon adoption.
DATE: April 1, 2026 EDITION: 1
TO: The Honorable Members of City Council
THROUGH: The Honorable Dr. Danny Avula, Mayor
THROUGH: Odie Donald, Chief Administrative Officer
THROUGH: Tanikia Jackson, DCAO - Finance & Administration
THROUGH: Letitia Shelton, Director of Finance
THROUGH: Meghan Brown, Director of Budget and Strategic Planning
THROUGH: Sharon Ebert, DCAO - Planning & Economic Development Portfolio
THROUGH: Angie Rodgers, Director of Economic Development
FROM: Merrick Malone, Director of Housing and Community Development
RE: Approval of a Performance Grant for an Affordable Housing Development Project
ORD. OR RES. No.
PURPOSE: To authorize the Chief Administrative Officer (“CAO”) to execute for and on behalf of the City of Richmond (“City”), the Grant Agreements attached hereto by and between the City, the Economic Development Authority (“EDA”), and ECG Rady, LP to undertake the project for the purpose of facilitating the construction of an affordable housing development.
The development is located in the 6th District and will be comprised of no less than 288 affordable housing units with 288 units at an average of 60% AMI of the Richmond, VA Metro Fair Market Area, as defined by the US Department of Housing and Urban Development. The developer for the project is Elmington Capital Group, LLC.
BACKGROUND: In 2022, the Virginia General Assembly approved HB1194, which amended Ch. 49, Title 15.2 of the Code of Virginia for the purpose of authorizing industrial/economic development authorities “to make grants associated with the construction of affordable housing in order to promote safe and affordable housing in the Commonwealth.”
These Grant Agreements will induce the Recipients to construct and operate development projects (the “Project”) that will result in significant investment and economic development on the sites located at the identified addresses in Attachment A and will promote safe and affordable housing in the City, and result in substantial benefits to the welfare of the City and its inhabitants, as well as is in the public interest, and serves governmental interests:
Grant payments will be solely limited to incremental real estate tax revenues generated by the Project and received by the City and such payments will be conditioned upon the Recipients’ completion of Project construction and continued maintenance thereafter. To qualify for grant payments, the Projects each must include at least the number of residential units that restrict occupancy and rents to identified AMIs, according to standards promulgated by the State Housing Finance Agency (i.e., Virginia Housing), for a minimum of thirty (30) years. See Attachment A.
COMMUNITY ENGAGEMENT: Land Use Administration staff notified area residents and property owners of the SUP application and did not receive any letters of support, nor opposition, from nearby residents as of February 18, 2025.
STRATEGIC INITATIVES AND OTHER GOVERNMENTAL: This legislation helps to advance the MAP Pillar Two: Thriving Neighborhoods Goal (A) by creating new housing units and Goal (B) KPI 2-B-2: by creating new affordable housing. The development also complies with the Equitable Affordable Housing Plan. The SUP for this development was approved on February 24, 2025.
FISCAL IMPACT: The one-year fiscal impact is estimated based on the projected construction costs as a proxy for the assessed value of the property at the time of the commencement of the Grant Period. The current assessed value, prior to the commencement of the Grant Period, does not account for the development of new real estate and thus undervalues the true assessed value of the property at the time of commencement of the Grant Period. The true baseline for incremental tax revenues will be determined at the time of commencement of the Grant Period.
The real estate tax revenue today, based on 2026 assessed value, would be $9,180.00 and the estimated real estate tax revenue at the time of commencement of the Grant Period would be $882,131.04. As such the increase from the Effective Date to the first year of the Grant Period, based on the percentage of performance grant awarded, would be $872,951.04. This is not the incremental increase that is to be paid to the grant Recipient for each year of the Grant Period. The Incremental Real Estate Tax Revenue upon commencement of the Grant Period can only be accurately determined from the true assessment value of the property at the time of the commencement of the Grant Period. Based on recent trends, it is assumed that property value assessments in the City of Richmond will continue to increase in the coming years. However, the future rate of increase is unknown at this time. This estimate was calculated at the real estate tax rate of $1.20 per $100 of assessed value and does not account for Special Assessment District rates.
DESIRED EFFECTIVE DATE: Upon adoption.
REQUESTED INTRODUCTION DATE: July 6, 2026
CITY COUNCIL PUBLIC HEARING DATE: July 27, 2028
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance & Economic Development
AFFECTED AGENCIES: Housing & Community Development, Economic Development, Finance, Budget, City Attorney’s Office
RELATIONSHIP TO EXISTING ORD. OR RES.: Ord. No. 2025-008, Ord. No. 2025-024
ATTACHMENTS: ECG Rady LP_2026 Grant Agreement_AATF
STAFF: Rachel Hightman, Policy and Special Projects Manager
Merrick Malone, Director of Housing and Community Development