Richmond Redevelopment and Housing Authority defends federal ‘troubled’ rating

The Richmond Redevelopment and Housing Authority (RRHA) leadership addressed a recent federal assessment that rated the agency as 'troubled,' a designation that may lead to federal intervention, WWBT reported.

RRHA CEO Steven Nesmith held a press conference to clarify the 2024 assessment by the U.S. Department of Housing and Urban Development (HUD), which gave RRHA a score of 58 out of 100, marking a drop from its previous standard performer rating. Nesmith declined to take questions but emphasized that corrective measures have been taken since the assessment.

The lowest category in the HUD report was management, with RRHA scoring 7 out of 25. Nesmith attributed the low scores to issues with residents not paying rent and low unit occupancy. He explained that rent collection problems affect the agency's ability to hire sufficient staff and contractors to prepare units for occupancy.

According to a recent RRHA meeting, the rent collection problem worsened after the COVID-19 pandemic, with some residents owing more than $10,000. The agency considered appealing the HUD score but decided against it, as the potential increase would not have significantly changed the rating.

RRHA estimates its score for the next fiscal year will improve to between 60 and 62. Local officials have expressed concern that the troubled designation could complicate securing federal approvals and financing necessary for public housing redevelopment, which remains a priority for the Richmond administration.