Mayor Parker outlines $2B plan to overhaul housing in Philadelphia
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Mayor Cherelle Parker is setting the stage to reshape Philadelphia's housing landscape under her watch.
Why it matters: Philly's dearth of affordable housing is at crisis levels as home prices have spiked and interest rates have ticked up post-pandemic.
Driving the news: Parker unveiled a sweeping $2 billion plan Monday that calls for launching housing programs and expanding popular ones; offering tax breaks to spur development; and more quickly converting city-owned properties into housing.
- The mayor's Housing Opportunities Made Easy initiative aims to build 13,500 homes and preserve 16,500 existing structures.
What she's saying: Though the exact timeline is unclear, Philadelphia "should be able to do big things in a short period of time," Parker said during her more than hourlong address.
- She said that voters had handed her a mandate to make housing a priority.
How it works: Parker said the the initiative would be funded by borrowing $800 million in bonds, with another $200 million coming from local, state and federal funding.
- An additional $1 billion would be kicked in from the city's existing land and property assets.
- To help pay for the proposal, Parker has called for hiking the city's realty transfer tax to 3.578% from 3.278%.
The big picture: It's all part of Parker's new budget proposal, which seeks to boost spending despite uncertainties about federal funding and recession fears.
- It still needs City Council approval.
The intrigue: District legislators could ultimately sink Parker's plan.
- Those 10 elected officials hold significant sway over land deals and projects in their districts via an unwritten rule known as "councilmanic prerogative."
Yes, but: Parker proposed a new framework to sidestep the current need for City Council to pass legislation for all land transfers.
- She wants to work with legislators to expedite the sale and transfer of certain city-owned properties to preapproved developers for the construction of affordable housing.
- The new framework would apply to "smaller parcels of land," she said, like single-family homes and triplexes.
Zoom in: The mayor's other housing proposals include:
- Establishing a city-approved list of qualified contractors, home centers and retail stores to help residents avoid scammers.
- Offering tax breaks for projects in certain neighborhoods.
- Converting the city's former police headquarters, known as the Roundhouse, and the defunct Holmesburg Prison site into housing.
- Reworking burdensome zoning codes that slow down developments.
Context: Philly's affordable housing crunch is the result of a slew of issues, including:
- An old housing stock with a median age of 100.
- 40,000 vacant lots throughout the city.
- Declining homeownership rates, which slipped to 53% in 2021 from 59% in 2000.
What's next: Parker called on City Council to sign off on her plan, bond an initial $400 million, and pass accompanying legislation alongside Philly's budget, which has a July 1 deadline.