Affordable Homes for a Growing Philly
What's the issue?
Philadelphia is experiencing a building boom. But new development is leading to rising rents and home prices that are out of reach for many low- and moderate-income Philadelphians. Some of our neighbors can no longer afford to stay in their neighborhoods, others are paying an unsustainably high percentage of their income on housing, and others can’t afford to choose to live in neighborhoods close to jobs, transportation, good schools, or other opportunities.
PACDC believes that everyone should benefit from a growing city, and that Philadelphia must become a model for equity and inclusion. That’s why we support Mixed Income Housing, which would create more affordable home choices for low- and moderate- income Philadelphians.
How Mixed Income Housing Works
Mixed Income Housing requires that developers set aside a percentage of housing units in new buildings for tenants or buyers who are low- or moderate-income, or make a payment to the Philadelphia Housing Trust Fund. In return, developers can access off-sets like density bonuses to build more units than otherwise would be allowed.
Developers in Philadelphia already get another valuable off-set, the 10-Year Property Tax Abatement, which can be worth thousands of dollars for developers of a single condo, or tens of millions of dollars for large apartment buildings. Mixed Income Housing is one way developers can begin to offer a return on investment to Philadelphians who’ve been footing the bill for that subsidy program for more than 17 years.
By providing the homes on site at the development, low- and moderate- income Philadelphians can secure quality homes they can afford in higher-income neighborhoods. By making a payment to the Housing Trust Fund, non-profits can use those funds to improve our lower-income neighborhoods by creating more affordable homes or preserving or repairing existing affordable homes, and helping our neighbors who are facing homelessness.
More than 500 similar programs exist across the U.S., from big cities, to small towns, urban, rural and suburban. It’s time for Mixed Income Housing in Philadelphia!
Mixed Income Housing Bill Introduced in City Council!
On June 22, 2017, Bill No. 170678 to create a Mixed Income Housing Program in Philadelphia was introduced into City Council by Councilwoman Quinones-Sanchez, Council President Clarke, Councilmembers Blackwell and Johnson. PACDC is working to build support for the bill among members of Council, the Kenney Administration, and other stakeholders.
Bill No 170678 would require that new developments of 10 or more residential units set aside 10% of those units for income restricted tenants or buyers at 30%, 50% and 80% of Area Median Income (depending on the location of the units, and whether they are for rent or to buy), or pay a fee to the Philadelphia Housing Trust Fund. The units would remain affordable for 99-years, guaranteeing that they would be available for generations of Philadelphians! The bill would provide developers with density bonuses as a way to offset the cost of providing the affordable units. Check out this fact sheet produced by Councilwoman Sanchez on the proposed bill, and read this press release. Show your support by endorsing the campaign below!
Endorse the campaign!
Endorse our Affordable Homes for a Growing Philly campaign by clicking this link. Then share it with your friends! City Council and Mayor Kenney will only adopt Mixed Income Housing policies if they hear from you!