City Subsidizes Gentrification In Black Neighborhoods

With tax abatement for 5 to 15 years for renovated properties, the City of Richmond, Virginia, loses $14.6 million each year in real estate taxes. Meanwhile, long-time residents are pushed out by high taxes for unrenovated houses they own or rent.

2 minute read

April 12, 2007, 8:00 AM PDT

By maryereynolds


"Although gentrification is nothing new, and is often driven by unstoppable market forces, there's no denying that Richmond's generous tax-abatement program has also served as something of a gentrification subsidy. While affluent Richmonders get a reprieve on taxes, the poorer neighbors are stuck paying higher taxes as a result of the improvements." Richmond offers the most generous tax abatement program in Virginia, but it costs the City millions of dollars in taxes that owners of renovated houses do not have to pay.

University of Richmond professor of urban studies John Moeser believes that the City's tax abatement program focused on luring a residential tax base lost to the suburbs. But it comes with a price. "The city would be heartless if it's just concerned with luring wealth into the city," Moeser says, adding that the surrounding counties' refusal to help develop low-income housing is fueling the fire. "Ultimately, this is a moral issue."

As poor families move out of neighborhoods, they also lose their social support networks. "In their little social microcosm, it's devastating," says Michaela Zonta, professor of urban planning at Virginia Commonwealth University. "They don't have child-care facilities. They don't have transportation. They rely on a very limited social network. I don't think it's just to simply forget about them." She points out that when low-income public housing projects are demolished, the adjacent properties are more attractive for investment. However, poorer neighborhood residents are forced out. She asks: "Are we playing chess with these people? What's going to happen to them?"

Wednesday, April 11, 2007 in Style Weekly

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

7 hours ago - Zachary Whalen

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

A yellow, two-story building named Ferns with two American flags.

This MA town is drowning in its own sewage — and residents like it that way

Susan Murcott, a waste water expert, said if Carlisle didn't address their leaking sewage, the problem could turn “deadly.”

October 22, 2026 - Boston Globe

A rendering of the proposed facility. Trees are made slightly translucent so a large, rectangular cement building can be seen

Feds to more closely scrutinize proposed Amtrak facility’s environmental impact

The Federal Railroad Administration had initially said the facility qualified for a less extensive environmental review.

3 hours ago - Block Club Chicago

A crowd of people walking down a street in Boston

Boston is hard to build housing in: its chief of planning wants to keep it that way

Chief of Planning Kairos Shen said she would not make changes to Boston’s affordability requirements for new housing, which critics say have slowed down development.

4 hours ago - Boston Herald

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

5 hours ago - Grist

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.