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

portrait of professional woman

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 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 Planner

Get top-rated, practical training

Historic homes in St. Augustine, Florida.

Florida Considers Legalizing ADUs

Current state law allows — but doesn’t require — cities to permit accessory dwelling units in single-family residential neighborhoods.

March 18, 2025 - Newsweek

Bird's eye view of manufactured home park.

Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing

Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?

March 25, 2025 - Shelterforce

Aerial view of suburban housing near Las Vegas, Nevada.

HUD Announces Plan to Build Housing on Public Lands

The agency will identify federally owned parcels appropriate for housing development and streamline the regulatory process to lease or transfer land to housing authorities and nonprofit developers.

March 17, 2025 - The Wall Street Journal

Glass building with green tree behind it.

EPA Terminates $116 Million in Grants for Reducing Emissions from Construction Materials

C-MORE grants were earmarked for industry trade groups and universities.

March 27 - Inside Climate News

White BART trains passing each other on elevated track in Fruitvale, California.

BART Closes $35 Million Deficit

Cost control and revenue generation measures prevented service cuts.

March 27 - Mass Transit

Black hearse seen from behind driving on multilane road.

The New Parisian Hearse is a Bicycle

Sleek, silent, and sustainable, a green trip to the graveyard has hit the streets of the French capital.

March 27 - Momentum Magazine