City Council caves to mayor’s threat, agrees to push back abatement reform

The new revenue generated by the 1% tax on residential development is intended to send millions of dollars towards new affordable housing projects.

City Council is close to an agreement on a bill that would create a new tax on residential construction and push back a change to the city’s controversial development subsidy.

An upgrade to Philadelphia’s property assessment system has created problems for homeowners who bought into the city’s 10-year tax abatement.