Legislative package seeks to increase affordable housing development in Philly

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City Councilmember Jamie Gauthier has introduced a legislative package designed to increase Philadelphia’s supply of affordable housing by “cutting red tape” in the development process for the private market.

The bills, submitted Thursday, are aimed at speeding up and streamlining zoning and permitting requests, while keeping the latter economical for real estate developers building affordable units.

Gauthier, one of City Council’s most vocal housing advocates, also hopes to add new layers of accountability, make it easier to create accessory dwelling units and expand city definitions for affordable housing projects.

“We have to build many, many more units and preserve many more units in order to meet the affordable housing need in our city. And that means cutting red tape,” Gauthier said.

The package, largely supported by developers, is the next phase of a broader campaign to protect and expand affordable housing in Philadelphia. The effort, dubbed “Defying Displacement,” comes as the city continues to experience an affordable housing crisis compounded by historically high rents and mortgage rates, a reality Gauthier fears will make Philadelphia unaffordable for its most vulnerable residents, if left unchecked.

Gauthier’s push, primarily aimed at aiding Black and Latino residents with low incomes, coincides with Mayor Cherelle Parker’s push to preserve or build 30,000 units of housing during her first term in office. With this legislative package, Gauthier hopes to ensure that many of those units are affordable at a time when the city could lose hundreds of affordable units.

If the legislation is passed, the approval process for affordable housing projects could take less time to clear. The package comes as developers continue to face other hurdles, including an ongoing spike in the cost of building materials and higher rates for construction loans.

Under one bill, the Department of Licenses and Inspections would be required to expedite the review process for zoning permit applications for these developments. The request is currently offered “to the extent capacity permits” and takes 10 days if approved. The legislation would remove the contingency and cut the turnaround time in half.

Another provision would require applicants to provide proof to L&I that their project meets the city’s definition of an “affordable housing project,” which Gauthier hopes to expand to include projects that “receive government financing or land or are protected via deed restricted or regulatory agreement,” according to a fact sheet on the legislative package.

Other parts of the package seek to make operational changes to the Zoning Board of Adjustment, an independent board empowered to make legally binding decisions about what proposed developments get built.

Gauthier wants affordable housing projects, which routinely need variances, to get hearing dates sooner — without an increase to the application price. It can currently take nine months for a developer to receive approval from the ZBA, which grants permission to deviate from the city’s zoning code.

The bill would also make it mandatory for developers to make an official commitment to the ZBA, as well as the relevant registered community organization, to build the affordable housing they’ve proposed. Under the measure, the board could not grant a variance without this proviso.

“This is the city doing what is in our control to make the development of affordable housing even easier for established developers but also for people who have too much house, maybe,” Gauthier said.

A spokesperson for the ZBA said the board is “still reviewing the legislation.”

L&I did not immediately respond to a request for comment. But the department is likely to take issue with these measures, in part because it has a history of being understaffed.

In an effort to expand access to generational wealth, Gauthier is also pushing to make accessory dwelling units by-right projects in most cases. Under her bill, creating these so-called bonus units, often built to generate rental income for a homeowner, would not require zoning approval unless they make “material changes” to the original footprint.

ADUs would be permissible in attached, detached or semi-detached homes. To start, the new rules would only affect council districts where these units are already allowed in rowhouse zoning districts. The list includes the 1st, 2nd, 3rd and 7th council districts, which cover parts of Center City, South Philadelphia, West Philadelphia and North Philadelphia, respectively.

Mohamed “Mo” Rushdy, president of the Building Industry Association of Philadelphia, said his organization supports the bill, as well as any “common sense” measures that cut the time it takes for affordable housing units to hit the market.

But the BIA has serious reservations about requiring developers to make affordable housing commitments when seeking variances from the ZBA. To Rushdy, that is beyond the board’s jurisdiction and would have negative consequences on housing production.

“This really would politicize ZBA and that is the last thing we want to do,” said Rushdy. “It opens up a can of worms and will basically drive developers away from building in the city.”

In February, Gauthier introduced a separate legislative package — the first under the “Defying Displacement” campaign. City Council passed all of the measures.

The package included measures designed to help residents trying to rent on the private market through the Housing Choice Voucher Program; homeowners burdened by increased property taxes; and neighborhoods that desperately need affordable housing.

This is a developing story. Check back for updates.