Philadelphia launches $2 billion housing initiative for affordability

Mayor Cherelle Parker announced on Monday an ambitious housing plan to address Philadelphia's ongoing housing crisis. This initiative, called Housing Opportunities Made Easy (H.O.M.E), aims to create and preserve 30,000 units of both market-rate and affordable housing during her time in office. The mayor's proposal includes a significant $2 billion investment in housing. Of the units, 13,500 would be newly built and 16,500 would be preserved. The plan focuses on providing affordable housing for those earning 50% or less of the area median income, which is about $57,350 for a family of four in Philadelphia. Parker's administration plans to borrow $800 million in bonds as part of a larger $6.7 billion budget proposal. This funding would be used to both build new housing and support existing housing programs. To enhance housing access, the initiative includes measures to make it easier for developers to build, as well as creating new funds to acquire tax-delinquent properties. Partnerships with local building trades aim to train future laborers for construction jobs. City Council President Kenyatta Johnson expressed support for the plan, noting its alignment with Council housing priorities. However, some council members are concerned about proposals that would allow city-owned land to be developed without prior legislative approval. While the plan is seen as a positive step, there are uncertainties regarding funding sources. Parker suggested increasing the realty transfer tax to help generate revenue, but the overall funding landscape, especially federal assistance, remains unclear. Community advocates emphasized the need for more focus on the city’s most vulnerable residents, urging that their needs not be overlooked in the housing discussion. A budget hearing to discuss the H.O.M.E initiative is scheduled for April 21.