This story was reported and written by our media partner the Virginia Mercury.
Hampton Roads Ventures backed a $12 million investment in a grocery store in rural Marion, $10 million for a farm equipment distribution center in Martinsville and $3 million for a supermarket in Louisiana in the past year.
And once again, none of its projects were in Norfolk.
More than four years ago, Norfolk’s City Council passed a resolution requiring the for-profit subsidiary of the Norfolk Redevelopment and Housing Authority to seek projects in the city. Year after year, the annual report required by that resolution shows no progress supporting a project in the city.
This year’s report, filed on Sept. 30, does not outline any efforts to invest in Norfolk or the region.
City council members said they were disappointed but not surprised. Two members who co-chair the city’s commission on housing, said they will push for HRV, which usually earns more than $1 million in profits annually, to help back an affordable housing program being set up by the city.
Jennifer Donohue, HRV’s chief executive officer, did not respond to an email seeking comment.
The HRV investments follow a pattern similar to that of recent years, backing the kinds of projects needed in Norfolk, but in other localities.
In Marion, Food City opened a 56,700-square-foot store in September, replacing the grocer’s existing location and creating 50 new area jobs.
Rural King,a national brand specializing in farm equipment, home goods, and outdoor needs, is investing $42 million, including the HRV tax credits, in a distribution facility in Martinsville projected to create 150 new jobs.
And Rouses is building a 47,694 square-foot facility in Chalmette, La., that the company says will transform a dormant commercial corridor when it opens in 2027.
Over the last 18 years, HRV has invested everywhere but Norfolk, contrary to the practice of other community development entities that focus locally.
Community development entities like HRV, which was created in 2003 with the approval of the city council, may be offshoots of banks, nonprofits, public agencies or other financial institutions.
They apply for New Markets Tax Credits from the U.S. Treasury Department and, if they prevail in the highly competitive process, they match projects with investors who earn a 39% tax break over seven years.
The Treasury Department says itspurs $8 in private investment for every dollar invested.
Norfolk is a prime market for that investment, with 16 severely distressed census tracts given the highest priority for new markets tax allocations. The poverty rate in those ranges from 31% to as high as 80%, and the unemployment rate tops out at 40%.
The city council resolution, passed more than four years ago, pushed for the subsidiary to invest in Norfolk projects and sought more oversight. It followed a Virginia Mercury investigation revealing that HRV had allocated only a fraction of its $360 million in tax credits to Norfolk’s distressed areas.
Since those stories were published, the tax credits allocations to HRV have grown to $470 million. It has not done a project in Norfolk since 2008.
The for-profit subsidiary of NRHA has backed investments in 17 states and the District of Columbia, according to Treasury Department data. Those projects include grocery stores, foodbanks, health centers and agricultural companies.
The most recent Treasury Department report on community development entities shows HRV does not have any tax credits available to invest. It last won allocations in 2023. The next round of allocations will be awarded in late 2027. HRV appears to be the only local development entity in the country created by a locality that has not focused on local projects.
Profit transfers to NRHA and others
From January through September of this year, HRV had a net income of $1.77 million, according to the report. Its largest expenses for those nine months were $406,000 for payroll, $216,000 for accounting and $152,000 for consulting. HRV has three staff members.
HRV transferred $850,000 of its profits to NRHA for youth workforce development, capital investment to improve broadband access in NRHA communities, including Young Terrace, Diggs Town and Grandy Village, and intergenerational programming to bring together youths and seniors.
In the nearly five years since the Mercury series was published, HRV has transferred more than $5.2 million to NRHA. In the 18 preceding years, it had transferred $1.3 million.
In previously unreported donations, HRV gave Norfolk State University a total of $300,000 in 2025 to support the athletic department in the wake of the school hiring former National Football League star Michael Vick as head coach.
City Attorney Adam Melita, who took office in recent months, said he did not feel comfortable offering an opinion about whether the requirements of the resolution were met by the report because he was not in place when it passed.
After reviewing the 2022 resolution, Carlos Clanton, a city council member, said he wanted to know more about the distributions.
“I believe there is a legitimate question about the scope of the reporting requirements and whether the information currently provided gives the City Council a comprehensive understanding of HRV’s financial activities,” he added.
“Transparency and accountability are particularly important given HRV’s relationship with NRHA and its origins in serving communities facing significant economic challenges.”
The donation was not mentioned in that year’s report to the city. Nor were other donations to other organizations in years past. That does not comply with the resolution, which requires NRHA to provide ”an accounting of the use of earnings distributed for its past and current fiscal year.”
HRV’s lawyer has said its investment decisions are led by an advisory board scattered across the country. But it’s not clear when or whether the board meets.
HRV has denied public records requests despite the company being a subsidiary of NRHA, a public body subject to records requests. Similar entities, like the nonprofit Chicago Development Fund (CDF), hold public meetingsof their governing and advisory boards.
Norfolk’s city council has no control over HRV, although it appoints NRHA commissioners, some of whom serve on the HRV board. HRV is wholly owned by the NRHA.
The Community Development Financial Institutions Fund, the federal agency that oversees the tax credits program, wanted public officials to have oversight of the for-profit Hampton Roads Ventures. Norfolk City Council’s2003 resolution authorizing HRV, a requirement of state law, noted it would be “managed by the commissioners of the Authority.”
Council members suggest profits benefit affordable housing
Mayor Kenneth Alexander did not respond to emails seeking comment. However, four council members expressed disappointment that HRV once again failed to invest in Norfolk or even explain how it had marketed itself locally.
Clanton and Jeremy McGee, city council members who co-chair the mayor’s Housing Commission, said separately that they are looking for HRV to potentially help with the city’s affordable housing crisis.
While community development entities have backed for-sale affordable home projects in dozens of other cities, HRV has not. Nor has it contacted a St. Louis firm, suggested by a former council member, that specializes in making the projects happen nationwide and assumes any risk.
Creating owner-occupied housing is a key to building generational wealth and helping people out of poverty. The interim report the commission issued earlier this year said the city needed to create more pathways to homeownership.
”Other communities have successfully utilized this financing mechanism to help nonprofit and mission-driven developers create homeownership opportunities, rehabilitate vacant properties, and support mixed-use development,” Clanton said. “These are approaches worth evaluating for Norfolk.”
In the absence of HRV backing a Norfolk project, McGee suggested using the annual revenues for housing.
”I think that there’s an opportunity to redirect those (HRV) profits to address the housing crisis that is staring us in the face, and to really put those dollars to work to create housing opportunities that are definitely needed in Norfolk,” he said.
Council member John “JP” Paige said he supported the payment to Norfolk State because Vick’’s hiring brought attention to Norfolk. But he also lamented the lack of Norfolk projects.
”We need to do more. We need grocery stores here now,” he added. ”We’re in a housing crisis.”
Council member Courtney Doyle was succinct: “I continue to be disappointed that year after year they do not invest in Norfolk and they don’t demonstrate any interest in doing so.”