Long-awaited legislation authorizing the Philadelphia Redevelopment Authority to issue $800 million worth of bonds to fund Mayor Parker’s HOME initiative was introduced in Philadelphia City Council last week.
The bill stipulates the Redevelopment Authority will issue the bonds for the project and essentially be the conduit for all project activities under the auspices of the city. Sources have told Hall Monitor that because the bonds are being issued through the Redevelopment Authority, a ballot referendum brought before the voters will not be necessary.
Ensuring a level of oversight was important to City Council, so a clause in the bill requires the Mayor to submit resolutions to council detailing the yearly spending of the program. Prior to the annual report, each member of council is also to receive an “Annual Program Statement and Budget.” The Annual Program Statement and Budget will be comprised of the following:
The following City Council Committees met last week to hear testimony on the following legislation:
The targeted percent(s) of Area Median Income (AMI) for each program;
An identification of each Council District affected by each program;
A list of any properties the Mayor will ask Council to take action on, and the nature of the action that will be requested. This provision does not preclude the Mayor from requesting any action from Council on properties related to the H.O.M.E. Plan at any time.
The targeted percent(s) of Area Median Income (AMI) for each program;
An identification of each Council District affected by each program;
A list of any properties the Mayor will ask Council to take action on, and the nature of the action that will be requested. This provision does not preclude the Mayor from requesting any action from Council on properties related to the H.O.M.E. Plan at any time.
A “Project Review Team” will also be created that will consist of one member appointed by the Mayor and two by the Council President. Their charge will include authorizing the following:
Changes to the approved Annual Program Statement and Budget, including reallocation of program funds, provided that the total Annual Program Statement and Budget does not change and the cumulative reallocation of funds does not exceed 2% of the total Annual Program Statement and Budget. Any change in the total Annual Program Statement and Budget or reallocation exceeding 2% of the Annual Program Statement and Budget must be submitted to Council for approval in a revised Annual Program Statement and Budget.
Start-up expenditures of $5 million prior to approval of the first Annual Program Statement and Budget, provided that the program allocations for the funds are identified.
District Councilmembers will also have opportunities to meet with the Review Team if their individual districts are affected by the aims of the project, which they all surely will.
There are numerous programs that will be created or utilized to further the goals of the HOME plan. A comprehensive list is provided below, Hall Monitor will provide deeper coverage over the next few months.
HOME Initiative Programs
Acquisition Fund. This program shall provide capital for the Authority or PHDC to acquire occupied multifamily buildings or land for development to increase the supply of affordable residential units within the City.
Adaptive Modifications Program (AMP). This program shall provide free adaptation projects to provide easier access to and mobility within homes (which may be delivered pursuant to grant or other arrangements) for permanently disabled renters (with permission of the related property owner) and homeowners with household income up to 80% of Area Median Income (AMI). Eligible homes shall be those meeting the AMP’s existing criteria.
Affordable Housing Preservation (HPres). This program shall include the provision of “gap” financing (i.e., financing including short to medium-term loans to address timing considerations or longer-term financing to complete the “capital stack” for a project financed predominantly from other sources) to developers for renovation, acquisition of property and other expenditures for housing preservation projects.
HPres may consist of providing loans and/or grants to PIs, property owners and developers for costs of existing property acquisition and rehabilitation, and providing funds for existing property acquisition and rehabilitation directly by the City or PIs for potential resale, to preserve existing affordable rental housing, with special emphasis on the preservation of Low-Income Housing Tax Credit rental housing developments. The major components of the HPres program will consist of programs in the following areas for which proceeds may be expended:
Preservation Acquisition Funds – Providing funds for the public, private or not for profit acquisition of rental units at risk of being converted to market-rate units. This may include properties with expiring tax credits, projects placed on the open market for sale or naturally occurring affordable housing that is at risk of market-rate conversation, including the payment of settlement and other costs related to the acquisition and transfer of such properties and costs related to maintaining, managing and holding properties prior to their resale or other conveyance.
Capital Improvements – Providing funds to be used to make capital improvements to existing affordable units. These improvements may take the form of wholesale rehabilitation or may include specific capital needs such as roof replacement, new heating system, energy upgrades or accessibility improvements.
Affordable Housing Production (HPro). This program may similarly provide “gap” financing for construction, reconstruction, acquisition of property and other expenditures for housing production projects.
HPro may consist of providing loans and/or grants to PIs, property owners and developers for costs of rehabilitation, property acquisition and new construction, and providing funds for property acquisition directly by the City, to increase the production of affordable rental housing. The major components of the HPro program will consist of programs in the following areas for which proceeds may be expended:
Low-Income Housing Tax Credit Projects – Providing funding as long-term, low interest subordinate debt to fill financing gaps for low-income housing projects which have already secured a reservation of tax credits.
Increased Rental Affordability – Providing grant funding as short-term rent assistance to buy down the cost of rent for newly created units to make them affordable to low- and very low-income tenants, including with respect to projects that may include a mix of units at market rate rents and certain percentages of median rental prices.
Acquisition – Providing grant funding via the Philadelphia Land Bank to purchase properties at Sheriff Sale in order to complete development parcels for the development of affordable and mixed-income housing units.
Basic Systems Repair Program (BSRP). This program shall provide free home repairs (which may be delivered pursuant to grant or other arrangements) to correct electrical, plumbing, heating, limited structural, and carpentry and roofing emergencies. Eligible grant recipients shall be homeowners with household income up to 100% percent of AMI, and in owner-occupied homes which are eligible according to BSRP’s existing criteria.
Employer-Assisted Housing. This program shall provide participating employers with financial assistance and services for such employers’ City-based employees, including homebuyer assistance for first-time home buyers. Homebuyer assistance may be in the form of below-market loans or other arrangements that “buy down” the effective rate of such loans. Other financial assistance and services which may be provided to such employees for residential purposes shall include loan and credit counseling type services.
Façade Improvement Program. This program shall provide one-time funding (which may be administered on either a per residential unit basis or a per recipient basis) for the repair of housing façade work. Already existing architectural details in such facades may be restored or preserved. These projects may include weatherization assistance (which may be provided through grants and/or other services to homeowners or other property owners) required to maintain homes for the long term or to prevent structural damage which may shorten the useful life of such property.
Homelessness Prevention. This program shall be operated by the City in order to provide support to individuals and families at risk of homelessness, resources for housing stabilization, and a pathway towards permanent housing for such individuals and families. Specific services to be provided directly to such individuals and families as part of this program shall be tailored toward meeting direct needs for adequate shelter and housing.
This program may consist of providing funds for the City or PIs to improve existing properties or provide for the costs of the acquisition of properties and their transfer to responsible owners/managers who will maintain the properties’ suitability for permanent housing options for homeless residents, including the funding of loans to property owners and developers, the payment of settlement and other costs related to the acquisition and transfer of such properties and costs related to maintaining, managing and holding properties prior to their resale or other conveyance, any of the foregoing of which may be implemented in whole or in part through the funding of an acquisition and capital improvements fund. The major components of this program will consist of programs in the following areas for which proceeds may be expended:
Acquisition – Providing funds for the acquisition of properties to provide for permanent housing for currently homeless individuals. Funding would either take the form of direct property purchases to bring properties into the public inventory or as long-term, subordinate loans to third party providers to acquire properties.
Capital Improvements – Providing funds to either directly fund capital improvements for property in public inventory or as long-term, subordinate loans to private, third-party owners to make capital improvements to create or maintain units for permanent, homeless housing. Capital improvements may take the form of rehabilitation in order to convert a property from its current or former use into a homeless housing facility or may include specific capital needs such as roof replacement, new heating system, energy upgrades or accessibility improvements.
Small Landlord Incentive Program – Providing funds in the form of grants to provide incentives, such as an upfront participation payment (per unit) and a rental loss and damages reserve (per unit) for rental property owners who commit to renting to people with rental assistance vouchers or other subsidy for a period commensurate with receiving public funding support to encourage their participation in providing housing to people exiting homelessness.
Housing Counseling and Foreclosure/Eviction Prevention. This program shall provide housing counseling services, mediation services, and assistance to City residents at risk of eviction and foreclosure of their homes.
Land Bank Acquisition Fund. This program shall provide capital to acquire repossessed property at public auctions to increase the supply of affordable owner-occupied and rental residential units within the City.
Neighborhood Infrastructure Improvement Programs (NIIP). This program shall fund providing grants or loans to property owners for improvement or enhancement of privately owned neighborhood infrastructure for the benefit of the residents of the City. A principal focus of this program is the stabilization of retaining walls, repair of dilapidated shared driveways, and removal of dangerous trees in common alley ways. Retaining walls to be improved will in particular include those that are classified by the City as imminently dangerous or unsafe under the City Code. Improvements to other private assets in disrepair (e.g., driveways, alleys, sidewalks, trees, sewers) that may create dangerous or unhealthy conditions may also be funded. The City may cause improvements or enhancements to be made directly to property. The City may impose assessments to adjacent property owners to recover costs.
One Philly Mortgage Program. This program shall partner with local and regional lending institutions to provide purchasers and owners of residential housing 30-year fixed-rate loans with reduced down-payments and very low (or below market) interest rates by utilizing loan loss reserves and by buying down interest rates (points). This program is intended to remove the need for private mortgage insurance (PMI) for participating borrowers.
Operational and Programmatic Efficiency Assessment. This program shall consist of the assessment by the City, the Authority and PHDC of agency structures, processes, and technology that impact housing production and preservation within the City to ultimately reduce time for processing applications, permits, and other matters requiring City review, approval or direction and improve customer service for developers, landlords, tenants, homeowners, and Contractors.
Philadelphia Accelerator Fund (Multi-family). This program shall provide funding to be used in the form of loans to developers. The Philadelphia Accelerator Fund (PAF) provides flexible financing for affordable housing and works to increase access to capital for Philadelphians across the City including historically disadvantaged groups. This program will support the financing of multi-family properties by PAF, or any successor or similar additional entity, and may include, without limitation, mixed income and mixed-use projects.
Philadelphia Accelerator Fund (Turn the Key). This program shall provide funding to be used in the form of loans to borrowers under the Turn the Key Program consistent with its provisions as currently in effect. This program will support the financing of Turn the Key properties by PAF or any successor or similar additional entity.
Philadelphia Eviction Prevention Programs and Right to Counsel. This program shall offer free legal assistance to eligible renters facing eviction, lease termination, or loss of housing subsidies together with services such as financial counseling, a live hotline, a court help center, community trainings, and educational materials.
Purchase and Rehabilitation of Residential Housing Units by Program Intermediaries. This program shall provide funds to be used for grants and/or loans to PIs, the proceeds of which the applicable PI may use for financing (including refinancing (which may be by the purchase of the debt of a PI)) the costs of the purchase and/or rehabilitation, as applicable, of existing, new, or recently constructed/renovated residential housing stock within the City, particularly within areas where levels of supply have lowered prices or within certain price/rent strata. Among other purposes, this program is intended to contribute to the conservation and expansion of housing within the City, an increase in the vitality of neighborhoods, and the revitalization of deteriorated or deteriorating neighborhoods.
Philly First Home (PFH). This program shall provide grants or forgivable loans for first-time homebuyers (or other homebuyers eligible in accordance with existing PFH guidelines) which funds are available to reduce the principal of homebuyer loans and cover down payment and loan closing costs for such homebuyers with household income of up to such percentage of AMI as the City may from to time determine. Loan forgiveness is generally conditioned upon the homeowner remaining in the home for a specified number of years. If the home is sold prior to the end of the specified period, the loan must be repaid. A waiver may be issued under extenuating circumstances on a case-by-case basis due to factors such as loss of a job, job relocation or illness.
Purchase Bank Liens. This program is designed to increase the City’s land inventory available for housing development through the purchase by the City, the Authority, or PHDC of liens on parcels of land (or the purchase of interests in real estate in order for the City’s Land Bank to otherwise obtain such land and associated real property with marketable title) from U.S. Bank National Association (or its applicable affiliates) or from other banks, savings institutions, and financial institutions.
Remove Vacant or Blighted Housing through Demolition. This program will fund removal of blighted and vacant units owned by or in the possession of the City directly (or through arrangements where ownership or possession is with the Authority or PHDC) through demolition. The scope of this program may be supplemented beyond demolition work to include site clearance, environmental remediation, soil stabilization, stormwater management, and related work to cause the applicable parcels to be ready for site preparation work for future development and redevelopment pursuant to other programs and not to deteriorate during any period of time pending such future development or redevelopment.
Rent and Moving Assistance Programs (Fresh Start). This program shall provide rent/security deposits for the benefit of individuals who are in danger of eviction or homelessness. In administering this program, individuals who qualify to be assisted may be supported in maintaining residence at either a current location in the City or establishing residence at some other location in the City if required rentals or other factors associated with the applicable current location are not commercially reasonable, make the prospects of sustaining residence at such location unfavorable, or lead to uneconomical results from the standpoint of maximizing the number of City residents who can benefit from this program.
Rental Improvement Fund (RIF). This program shall offer a loan product to small landlords (30 or fewer units in the portfolio for the particular landlord) to be used for making property repairs/improvements for their rental properties. Loans are eligible for full forgiveness or a preferable 0% interest rate if landlords meet program affordability requirements during the loan term. Subject to such later adjustment of program loan parameters as the City may determine, the loan is for $10,000-$24,999 per property (up to $100,000 per landlord) over 10 years. The loans may be forgiven in such manner as the City determines, if conditions are met. Loan forgiveness may begin at any point during the life of the loan. An increased interest rate may be applied if affordability requirements are not met. For purposes of this program, the categories of eligible repairs and improvements shall include, but not be limited to, repairs/improvements addressing building code or lead-paint issues, and repairs of the same types and character as those funded through BSRP as well as AMP. Loan proceeds may also be used for working capital for costs related to the rental properties of such small landlords incurred in the ordinary course of their business.
Shallow Rent Assistance, Property Based. This program shall expand the Shallow Rent program to “buy affordability” in market-rate apartment buildings (>80% of AMI).
Shallow Rent Program, Tenant-Based. This program shall provide rental assistance through grants either to landlords or directly to tenants to provide rental payment support for tenants living in affordable housing developments who are low-income or cost burdened (i.e., spending more than 30% of their income on rent) and who are at risk of being evicted.
Tangled Title Fund and Tangled Title. This program shall provide assistance to clear legal title to homes for residents earning up to 80% of AMI to cover administrative, legal and other costs that may arise in resolving homeownership issues.
Targeted Financial Assistance. This program shall offer resources for landlords and tenants in residential rental properties to resolve disputes. Funds under this program may be used to pay limited amounts of back rent and future rent as part of the resolution. This program is intended to enable such parties to avoid costly or prolonged court proceedings.
Turn the Key. This program shall assist Philadelphia families buy new affordable homes and build equity for their futures. Funding for this program shall be applied for loans and program expenditures consistent with the Turn the Key program as currently in effect, including without limitation, AMI, other eligible buyer, primary residence, and soft mortgage/soft loan/mortgage buy down provisions.
Weatherization. This program shall offer on-site energy audits to evaluate conditions in homes and identify the most cost-effective energy savings measures to implement. This program may fund installation and inspection services for such identified measures.
The Committee on Public Property and Public Works
Authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to acquire fee simple title or a lesser real estate interest in and to all or a portion of the property bounded by Cobbs Creek, 75th Street (extended), Buist Avenue, and 78th Street and owned by the Philadelphia Redevelopment Authority, the Philadelphia Land Bank, or the Philadelphia Housing and Development Corporation, all under certain terms and conditions.
Renaming the Wissinoming Recreation Center to the “Margaret Tartaglione Recreation Center” to honor the life and legacy of Margaret “Marge” Tartaglione, a pioneering public servant and leader in Philadelphia’s politics.
Authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to acquire fee simple title or a lesser real estate interest in and to all or a portion of the properties known as 4368, 4370, 4372, 4374 Germantown Avenue, all under certain terms and conditions.
Authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to acquire fee simple title or a lesser real estate interest in and to all or a portion of the properties known as 1911, 1913, 1915, 1917, 1919, 1921, 1923, 1925 and 1927 Cayuga Street, all under certain terms and conditions.
Committee on Housing, Neighborhood Development, and the Homeless
Amending Subcode “A” (The Philadelphia Administrative Code) of Title 4 of The Philadelphia Code (The Building, Construction and Occupancy Code), by defining affordable housing projects and establishing specific application and permitting procedures for such projects, all under certain terms and conditions.
Amending Chapter 9-800 of The Philadelphia Code, entitled “Landlord and Tenant,” to establish requirements related to security deposits for residential rentals and establishing remedies for violations, all under certain terms and conditions.
Amending Chapter 9-800 of The Philadelphia Code, entitled “Landlord and Tenant,” to establish requirements related to fees charged by landlords to individuals applying for residential tenancy, all under certain terms and conditions.
Special Committee on Kensington
Authorizing the Special Committee on Kensington to hold public hearings to examine the current state of transportation infrastructure and services in the City of Philadelphia in response to the opioid crisis.
Authorizing the Special Committee on Kensington to hold hearings on the implementation of Art Therapy Programming as a low-barrier intervention method in addressing substance abuse disorder and serious mental illness during and after incarceration.
Committee on Parks and Recreation
Amending Title 15 of The Philadelphia Code, entitled “Parks and Recreation,” to add new Chapter 15-800, entitled “Events Permits,” to encourage applicants for event planning permits to establish contingency measures, all under certain terms and conditions.
Amending Title 15 of The Philadelphia Code, entitled “Parks and Recreation,” by adding a new Section 15-606 and new Section 15-706 to establish animal-free areas and provide for the management of animals in parks, playgrounds, and recreation centers and to provide for penalties and enforcement, all under certain terms and conditions.
Amending an Ordinance (Bill No. 877), approved September 16, 1994, by amending an exhibit thereto, in order to increase the limit of the amount of funding any entity may receive in any fiscal year from the Philadelphia Activities Fund.
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