Richmond seeks state approval for LOOP program to help homeowners priced out by rising property values

RICHMOND, Va. — Richmond officials say their top legislative priority is getting permission from the state to create programs that help residents who are being priced out of their homes by rising property values that outpace their ability to pay.

Councilmember Ellen Robertson, a 6th District representative on Richmond City Council, says the city wants to implement what's known as a Longterm Owner Occupancy Program, or LOOP, which would give Richmond the ability to provide relief to qualifying homeowners.

"We need to get some provisions to move that forward because we are drastically losing residents in the City of Richmond and we can't help them because of the state restriction," Robertson said.

City leaders say they need to make that ask because Virginia is what's known as a Dillon Rule state, where localities can only enact laws or programs that the state gives them the power to pursue. For LOOP, there is an added wrinkle: it would require a constitutional amendment — a multiple-year process that requires approval by voters in a referendum.

Richmond Delegate Betsy Carr has introduced legislation for LOOP in the past, but says the focus for state lawmakers was on the three constitutional amendments Virginians are voting on in the current midterms.

"I don't know what it's going to be like going forward. I do know that there are other localities that are interested in LOOP," Carr said.

Meanwhile, State Sen. Lamont Bagby did not go into specifics but says he has been working to address the issue with the Gov. Spanberger administration through a grant program.

"Making sure those individuals that have invested in our community and invested in their homes over a period of time are able to stay in those homes and pass that generational wealth on to their family," Bagby said.

Among the other legislative priorities mentioned by city officials were more tools to go after blighted or vacant properties and short-term rental properties, along with more protections for renters.

City officials also have several requests for state funding — the top two being money to continue upgrades to the city's Combined Sewer Overflow and the Water Treatment Plant. The failure of the plant led to a multi-day water outage in 2025 that disrupted, among other things, the start of that year's General Assembly.

"We also remain committed to a partnership with the Commonwealth to advance our infrastructure needs and you guys have been amazing champions in the Commonwealth's budget," Mayor Danny Avula said.

Both state and city officials say they want to get on the same page well before the session starts to help get as much across the finish line as they can.
"These are things that we are already having a conversation with the administration on, the House and Senate Finance Committees and so a lot of this is possible," Bagby said.

Richmond City Council also agreed to revamp how it establishes this yearly wish list going forward, saying it wants a more transparent process that allows for more public input. In years past, the priority list has been introduced and approved in the same council meeting.

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