Immediate investment proposed for significant increase in Philadelphia's housing stock: Parker's plan aims historic allocation.
Philadelphia Mayor Cherelle Parker unveils ambitious housing plan, proposing a significant investment of $800 million in bonds to support the city's Housing Opportunities Made Easy, or H.O.M.E, initiative. This multi-faceted housing strategy aims to expand Philadelphia's supply of both market-rate and affordable housing.
During her second budget address before City Council on Thursday, Parker underscored her commitment to housing by highlighting the plan as the largest-ever investment in housing in the city's history. Under the proposed $6.7 billion spending plan, the administration intends to borrow the funds in two installments of $400 million each, with the first portion likely to be issued this fall.
The H.O.M.E initiative is expected to create approximately 13,500 new units and preserve 16,500 existing homes by 2026, assuming a near-even split between rental properties and owner-occupied homes. The remaining funds will be utilized for housing preservation, repairs, and new development efforts, complemented by approximately $1 billion in city-owned land and $200 million from federal, city housing trust funds, and other sources.
Additionally, the plan includes measures such as administrative process improvements and legislative changes, including zoning reform and tax policy adjustments, to incentivize both market-rate and affordable housing development. The strategy encompasses programs supporting affordable housing preservation, Turn the Key program, Basic Systems Repair Program, financing gaps for Low-Income Housing Tax Credit projects, assistance for paying delinquent back rent, and new mortgage products.
Parker's housing plan, referred to as "Mission 30,000," will be detailed during a special session of City Council scheduled for March 24, also known as "D-Day for housing." The mayor has previously expressed her hope to make it easier for real estate developers to build housing and incentivize housing revitalization projects while preventing housing instability and improving access to mortgage rates.
While some housing advocates have praised Parker's proposal amidst an ongoing affordable housing crisis, others have questioned its feasibility given the city's potential federal funding cuts. Shawmar Pitts, co-managing director of Philly Thrive, criticized the plan for inadequately addressing what he described as the city's "housing safety crisis." In their call for the city's next budget, Philly Thrive, One PA, and Renters United are requesting $20 million for proactive inspections for rentals and $20 million to improve housing conditions for low-income homeowners.
Parker formally launched the H.O.M.E initiative less than a month ago, having previously shared broad strokes of the plan during a news conference last month. In addition to private real estate developers taking care of market-rate housing, the administration is expected to focus on supporting residents making between 30% and 60% of area median income. The Philadelphia Housing Authority (PHA) is poised to play a significant role in both the city's housing goals and the H.O.M.E initiative, with a commitment to preserve more than 20,000 units across the city and provide $4.8 billion over the next eight years.
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- The Philadelphia Mayor's ambitious housing plan, termed "Mission 30,000," involves a significant financial investment of $800 million in real-estate, primarily targeted towards the Housing Opportunities Made Easy (H.O.M.E) initiative.
- The housing plan includes policy-and-legislation changes, such as zoning reform and tax policy adjustments, aimed at incentivizing both market-rate and affordable housing investment.
- Amidst the backing of the Philadelphia Housing Authority (PHA), the housing plan is focused on supporting residents making between 30% and 60% of the area median income, with the goal of creating and preserving approximately 30,000 residential units by 2026.
