Richmond relaunches program to seize and sell properties behind on taxes: 'Enforcement with compassion'

RICHMOND, Va. — Richmond is relaunching a program that allows the city to seize and sell properties with severely overdue tax bills.

"Getting better at revenue collection is one of the things we've got to do to keep up with the increasing costs of running a government," Richmond Mayor Danny Avula said.

WTVR

As of Aug. 31, the city estimates more than $24 million in overdue property taxes are owed.

In an effort to recover that money, the city says it will relaunch the Real Estate Tax Sales Program sometime in November.

The program, which was paused in 2023 by the Levar Stoney administration, allows for the seizure and sale of properties that meet certain criteria under a step-by-step process outlined in state law.

Among the requirements, a property must be at least two years behind on its taxes.

City officials say they are already reviewing 85 properties they believe have met that threshold, accounting for about $5.4 million in missing tax revenue.

Officials also say 21 blighted properties could qualify as well, which state law only requires to have been in arrears for one year.

Despite the program's enforcement mechanism, officials said displacement is not the goal.

"Our focus is compliance, not displacement," Odie Donald II, Chief Administrative Officer for the City of Richmond, said.

WTVR

"The simple act of enforcement, we have seen historically, moves a lot more people into payment plans and generates a lot more paid tax revenue," added Avula.

Avula said the first actual tax sale is still a long way off.

"As we restart this program in the coming weeks, we expect that the first actual tax sale won't actually take place until mid to late 2027, just because of the rigorous schedule that and process through the courts that our city attorneys will drive," Avula said.

Avula said he understands residents are facing affordability challenges and that the program relaunch will include outreach to delinquent property owners who have not yet met the seizure threshold, along with support resources and payment plan options.

"It's enforcement with compassion, right? It is always thinking about the situations that our residents are in, using payment plans where we can, and the reality is that when we've done this in the past 85% of these scenarios are resolved through payment plans," Avula said.

City officials are urging property owners not to wait for the November relaunch and to reach out now to set up a payment plan.

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