Poster October 7, 2024

RVA Stay would provide targeted tax relief to homeowners and renters  

One-time four-cent rebate is equivalent to cutting current tax rate to $1.16 for all city property owners 

Richmond, VA – Today, Mayor Stoney announced several tax relief proposals that would provide targeted relief to renters and homeowners who need it the most, while also proposing a four-cent tax rebate for all real property owners within city limits.

According to the 2023 American Community Survey, over a quarter of Richmond renters, or approximately 43,000 renters, are spending more than half their income on housing. Nearly twice that are spending 30% or more of their income on rent. Furthermore, the average residential assessment in 2023 was about $340,000.

“The proposals announced today 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. It is a both/and approach without cutting the City’s main source of revenue to provide critical city services for our residents,” said Mayor Levar Stoney. “I am proud of my administration for being innovative in how we help both homeowners and renters in a meaningful way.”

“It is concerning that so many of our residents are burdened by their housing costs – both renters and homeowners alike. That is why I am grateful for the collaboration with the Administration to find a proposal that works for all,” said Council President Kristen Nye. “With the addition of the RVA Stay Program, we have more social safety net programs in our toolbelt than we ever have before.”

The RVA Stay Program consists of two components:

• Gap Grant Pilot Program
• Richmond Freeze Program

The Gap Grant Pilot Program will provide up to $200 a month for six months to low-income Richmond residents who spend more than 30% of their yearly household income on housing. Both renters and homeowners are eligible for a Gap Grant.

For example, if you are a homeowner who owns a home assessed at $180,000 and your tax bill for the year is currently $2,160, with this income-based relief program, you could get up to $1,200 over six months towards your housing costs, verses an across-the-board tax rate cut where you would only save $72 on your annual real estate taxes.

Alternatively, if you are a renter living alone with an annual income of $50,000 and your rent is $1,400 a month, you pay almost $17,000 on rent annually, which is 34% of your income. However, you could also qualify for the $1,200 gap grant, which would reduce your monthly rent cost by up to $200 for six months.

To qualify for a Gap Grant, you must submit an application and meet all of the eligibility requirements (including enrollment in workforce development programming).

The Richmond Freeze Program will allow for homeowners who are 65 years or older, or permanently disabled, to be exempt from real estate tax increases. Your tax bill will essentially be frozen based on your home’s prior year assessment.

For example, if you apply and qualify in 2025 and your 2024 taxes were $2,000 and in 2025 they go up to $2,200, you will only have to pay $2,000 – you save on that $200 increase.

To be eligible you must occupy the residence in question, hold the title to the residence, and have an annual household income under $125,000 and net worth under $750,000. Eligible Richmond residents must apply by December 31, 2025.

Applications for both programs will be available starting in January 2025. The RVA Stay Program will cost approximately $4 million and be paid for by using incremental tax revenues in Fiscal Year 2025.

In addition to the RVA Stay Program, Mayor Stoney also announced a one-time four-cent tax rebate. All Richmond property owners are eligible for the four-cent rebate, which is equivalent to cutting the current real estate tax rate of $1.20 to $1.16. Rebate checks will be mailed to residents starting in 2025.

The four-cent rebate will cost approximately $16 million and be paid for using Fiscal Year 2024 surplus.

See rva.gov/finance/rva-stay for additional information on the City’s financial support programs.