Affordable Homes for a Growing Philly
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 Moving Through 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.
The bill was amended on December 5th when it passed out of City Council’s Committee on Rules, and now would require that new developments in five key zoning districts (see this map which outlines the applicable districts) of 10 or more residential units set aside 10% of those units for income restricted tenants at 50% or 60% Area Median Income, or buyers at 70% or 80% of Area Median Income, or pay a fee to the Philadelphia Housing Trust Fund. The units would remain affordable for 50-years, and would provide developers with density bonuses as a way to offset the cost of providing the affordable units. Show your support by endorsing the campaign below!
Check out this Op-Ed on the legislation from PACDC’s Beth McConnell, and Rasheedah Phillips of Community Legal Services, which ran in the Philadelphia Inquirer on November 17, 2018.
In October, PACDC issued a response to a Philadelphia Building Industry Association (BIA) analysis that is critical of the Mixed Income Housing proposal. PACDC strongly disagrees with the argument made in BIA’s report that Philadelphia does not have a housing affordability problem. We also believe the assumptions in BIA’s hypothetical development models deserve scrutiny, as do the case studies profiled in the report. Minor modifications to BIA’s data and assumptions could result in dramatically different findings.
Endorse the campaign!
Endorse our Affordable Homes for a Growing Philly campaign. Then share it with your friends! City Council and Mayor Kenney will only adopt Mixed Income Housing policies if they hear from you!