Richmond city officials announced the relaunch of a program aimed at collecting delinquent real estate taxes by seizing and auctioning properties with unpaid tax balances. Mayor Danny Avula and Chief Administrative Officer Odie Donald II revealed the plan during a news conference at City Hall on Monday.

The program, which had been paused during the COVID-19 pandemic under the previous administration led by former mayor Levar Stoney, was reportedly suspended without public notification or full disclosure to some City Council members. At that time, the city faced tens of millions of dollars in unpaid real estate taxes. According to officials, the current outstanding amount stands at $24.2 million across nearly 17,000 accounts, down from roughly $30 million a year ago.

Richmond is authorized under state law to take ownership of properties with tax delinquencies after two years of nonpayment. For parcels classified as blighted or vacant, seizure can occur after one year. However, properties deemed bankrupt or unbuildable are exempt from this process.

City staff from the finance department and city attorney’s office are currently reviewing 85 delinquent properties with a total debt of $5.4 million for possible inclusion in the tax sale program. Additionally, 21 blighted properties may qualify. Officials emphasized efforts to work with property owners to resolve delinquent accounts before initiating seizures.

“We want to make sure we understand some of the challenges residents are facing with affordability,” Donald said, stressing the goal of preventing displacement. Initial enforcement will prioritize blighted or vacant properties, commercial real estate, and properties owned by limited liability companies, rather than owner-occupied homes.

For residents living in their own homes, officials plan to continue using traditional collection methods such as letters, phone calls, and offering support through the treasurer’s office, including payment plans. Donald noted that 85 percent of delinquent tax cases have been settled through these arrangements citywide.

Mayor Avula acknowledged the program’s suspension was likely related to economic uncertainties caused by the pandemic and the redistribution of city personnel during that period. Since taking office, Avula has aimed to restore the tax collection process while stabilizing the city’s finance operations. Efforts to rebuild the program have involved reallocating staff within the finance department and plans to hire additional legal support.

Real estate taxes comprise nearly 60 percent of Richmond’s municipal revenue. The city’s current tax rate is $1.20 per $100 of assessed value, significantly higher than neighboring jurisdictions such as Hanover, Chesterfield, and Henrico counties, which have rates ranging from $0.81 to $0.89.

Earlier this year, Avula suggested a potential one-cent reduction in the property tax rate contingent on voter approval of a sales and use tax increase in the November ballot to fund school infrastructure. Meanwhile, several City Council members have advocated for a more substantial four-cent cut.