Mayor Parker’s $2B housing proposal clears major hurdle with critical Philadelphia City Council votes

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Philadelphia City Council has given preliminary approval to legislation crucial to Mayor Cherelle Parker’s $2 billion housing proposal, a multifaceted strategy rooted in creating and preserving 30,000 units of housing amid an ongoing crisis.

The bill, passed Thursday, essentially authorizes the city to borrow $800 million in bonds under a service agreement with the Philadelphia Redevelopment Authority — dollars the administration hopes to pair with additional public funding and $1 billion in city land and assets.

Following hours of private negotiations, lawmakers also advanced four zoning bills drafted by the administration to help achieve its policy goals under the Housing Opportunities Made Easy, or H.O.M.E. initiative.

All five measures are now expected to pass during a final vote on June 12, Council’s last regular meeting before summer recess. That keeps intact Parker’s goal of having her signature housing plan approved in tandem with the city’s next budget, which must be passed by July 1.

Administration officials have insisted the H.O.M.E. proposal cannot wait given the great need for safe and affordable housing in Philadelphia, which remains the poorest big city in the country.

“We have a crisis and we want to address it now,” said Tiffany Thurman, Parker’s chief of staff, during a May budget hearing. “We don’t want to be paralyzed by inaction.”

Under the bond legislation, the $800 million would support more than three dozen programs, the majority of which already exist. The list includes programs that create and preserve housing, provide rental assistance for low-income renters, remove vacant and blighted properties and prevent homelessness, among other priorities.

It includes the Basic Systems Repair Program, which provides free repairs to homeowners who can’t afford to make needed repairs, including electrical, plumbing and heating issues. H.O.M.E. funding would also support the Shallow Rent Program, which provides grants to cost-burdened tenants who are at risk of being evicted.

If approved by the full Council, the Parker administration expects the redevelopment authority to borrow two tranches of $400 million, with the first expected this fall. The second would come two years later, depending on the “pace of spending,” Finance Director Rob Dubow said Wednesday during a marathon hearing in front of the Finance Committee.

“We have the ability to spend and get these dollars out the door quickly,” Dubow said.

The funding measure also contains provisions meant to give Council, as well as the City Controller’s Office, oversight over how the bond proceeds are spent under the initiative.

After amendments, the Parker administration will be required to submit to Council program statements and budgets on a quarterly basis, which must be approved by lawmakers. The final version of the ordinance also establishes a “Project Review Team,” now composed of two members appointed by the mayor and two members appointed by the Council president.

The project review team would be authorized to change how program dollars are allocated, as long as those changes do not exceed 10% of the annual spending for H.O.M.E. If they do, the alterations will require Council to approve legislation.

Notably, language was also added to the bill to allow 1,000 parcels of city-owned land to be sold without legislative approval from a district council member. The pre-approved list of properties is intended to fast-track the land for redevelopment. During Wednesday’s hearing, Councilmember Isaiah Thomas sparred with Dubow over the administration’s financing strategy, which would see lawmakers authorize the bond in full instead of in phases.

During Wednesday’s hearing, Councilmember Isaiah Thomas sparred with Dubow over the administration’s financing strategy, which would see lawmakers authorize the bond in full instead of in phases.

Thomas advocated for a more cautious approach to funding the initiative, saying he “fundamentally” disagrees with authorizing $800 million in bonds for housing, particularly at a time when the city has other fiscal needs and its federal funding sources are under threat.

“We can also use those two years to maybe iron out any kinks or unanticipated problems that might exist,” said Thomas, who co-sponsored the bill.

Councilmember Jamie Gauthier, who is not on the Finance Committee, took time to back the mayor’s push for an $800 million bond.

“We absolutely need this level of investment in housing in the city in order to make a dent in the housing crisis and in order to keep what makes Philadelphia so unique and special,” Gauthier said.

“I don’t always agree with the mayor on philosophical issues or ideological issues. I am squarely behind her on this issue — that we will not get to where we want to be from a housing perspective if we don’t make a bold investment, ” added Gauthier, who chairs council’s housing committee.

Ultimately, Council authorized the full $800 million up front. Dubow has said the loan will cost roughly $1.3 billion when interest is taken into account.

The zoning legislation passed out of committee Thursday would eliminate parking minimums for certain multifamily developments, create a new residential zoning district, ease zoning restrictions in the 5th Council District and make a series of technical changes to the zoning code.

The hope is to help lower construction costs in higher demand neighborhoods; streamline the approvals process for stacked townhomes; and make it easier to build taller and denser housing in parts of Center City, Fairmount, Fishtown and North Philadelphia.

Editor’s Note: This story has been updated to remove details of legislation that has not been introduced to City Council.