RICHMOND, Va. β The city of Richmond owes $5.8 million to Marvin Grimm, a man who spent four decades behind bars for a murder he did not commit, but where the city will find the money is raising questions about priorities, transparency and the future of affordable housing.
A new state law that took effect July 1 requires Virginia cities to match the money the state pays in restitution in cases where official misconduct is involved. Governor Glenn Youngkin sent Richmond a letter in July making it clear the city must pay Grimm or risk losing state funding.
Richmond City Council met Monday to discuss where to find the money and is considering following the city administration's recommendation of using money from a special reserve fund made up of proceeds from the sale of tax delinquent properties.
The city shared that fund has accrued $9.1 million since 2020.
However, a 2021 city council ordinance allowed up to $1 million a year to be pulled from that fund to go toward Richmond's Affordable Housing Trust Fund, which is supposed to help meet financial needs of individuals and families who live or work in Richmond.
That money was never allocated to the affordable housing trust fund.
Richmond City Councilperson Ellen Robertson said she's been trying to get details on how much was in the fund and why it hadn't been allocated yearly for this use.
"We've got some business to do we have cleaning up to do," Robertson said. "We have not spent this money on affordable housing because it wasn't appropriated to the account it needed to as the rollout has not been. So the affordable housing we would have used these revenues for is tremendous."
The ordinance is written so that city council has to pass an ordinance from the city to move the money. Robertson said she did not know council had to pass the ordinance to move the money and said the city should have requested it had they needed it.
The 2021 ordinance also requires the city assessor to give yearly estimates of how much money the city would gain from ending partial tax exemptions. However, it's unclear if that happened under the Levar Stoney administration.
CBS 6 has asked new Mayor Danny Avula's administration about this and is still waiting on an answer.
However, a city spokesperson did confirm that no money has gone to affordable housing yet because no ordinance has been passed to allow it.
They say the law allows it to happen but doesn't require it.
The city says two projects have used money from the fund since 2020:
- $2 million for the Enslaved African Heritage Campus Project
- $300,000 for the National Slavery Museum Foundation Project
Richmond's new Chief Administrative Officer Odie Donald is recommending the city use this specific fund to pay Grimm's restitution because he believes it's the best option.
He alternatively warned council in a memo against using the city's emergency rainy day fund because he believes it could hurt Richmond's credit rating.
Robertson said these revelations about the fund show the city needs more transparency and follow through.
"Council staff has been charged with the responsibility of us looking at at least a frequency of reporting on legislation, the status of it," Robertson said. "We have a new administration and we have work to do."
The city says its lobbyists never made them aware of the new statewide restitution law when it passed earlier this year. A city spokesperson says those lobbyists are no longer with the city and officials are making changes to better track state legislation going forward.
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