Effort to sell Philly affordable housing complex on hold — for now

Philadelphia scored a minor victory this week in its fight to preserve affordable housing units in a West Philadelphia complex that's at risk of being put up for sale.

Driving the news: A federal judge on Tuesday rejected a request from the complex's owner, IBID Associates Limited Partnership, to issue a temporary restraining order to prohibit the city from enforcing a demolition moratorium and affordable housing requirements.

• The decision essentially halts efforts to sell University City Townhomes, a 2.6-acre property in University City.

Why it matters: The potential loss of the complex has caused a stir in the community, where gentrification continues to push westward.

• The complex was built to provide affordable housing in the once historically Black neighborhood, known as the Black Bottom.
• Some worry that its potential sale will displace residents and limit affordable housing options at a time when rents and housing prices are skyrocketing, and home construction is failing to keep up with demand.

Catch up fast: Last year, IBID chose not to renew its 40-year federal affordable housing contract, which will end in July, in favor of selling the 70-unit complex at 3900 Market St.

• City Council passed legislation this month that places a demolition moratorium and affordable housing requirements at the site.
• IBID responded by filing a lawsuit against the city and City Councilmember Jamie Gauthier, who proposed the measures.

Between the lines: IBID's lawsuit accuses Gauthier of abusing her "position and power to coerce a private entity to forgo its constitutional property rights while footing the bill for her unreasonable demands."

• IBID also alleges in its lawsuit that the legislation was intended to torpedo the sale of the complex by effectively destroying the commercial value of the property.

Of note: IBID intends to sell the property to make way for a research, development and life-sciences complex or a luxury housing center, all of which are consistent with the existing zoning, according to court documents.

What they're saying: The sale is "on hold because of the legislation,” David Pittinsky, an attorney for IBID, tells Axios.

• Pittinsky declined to comment about whether IBID is still aiming to end its federal affordable housing contract in July.

The other side: Gauthier tells Axios in a statement, "We remain optimistic as we continue the process of defending the city’s right to encourage the development of affordable housing in amenity-rich areas."

What’s next: The next court hearing is scheduled for May, when the federal judge will consider IBID's request to place an injunction on the enforcement of the bill.