Housing remained a top priority during the final City Council meeting before summer recess Thursday, with members approving multiple pieces of legislation in the hopes of easing barriers to rent and own in Philadelphia.
The top-ticket items were Mayor Cherelle Parker's Housing Opportunities Made Easy plan — a $2 billion effort that calls for building and preserving 30,000 units — and the increase of the city's Real Estate Transfer Tax. Legislation was also passed to create a displacement fund during licensing and inspection violations and allow some security deposit payments in installments for renters.
The H.O.M.E. initiative calls for selling $800 million in city bonds, starting in July, to pay for a number of efforts for housing accessibility. The plan's provisions include setting money aside for assistance with repairs and beautification, a city mortgage program offering 30-year, fixed-rate loans with a 3% down payment and additional investments in Turn the Key, a program that helps families buy affordable homes. It also slightly changes the city Land Bank program, establishing a list of pre-approved sites that can be sold without the need for a City Council vote.
"Housing Opportunities Made Easy is on its way to the people of the City of Philadelphia," Parker said.
A slight change from the original plan, which was introduced in March, is the creation of a four-person review team for projects, two appointees from the council and two from the mayor's office. The council also approved a slight adjustment to the plan from Councilmember Mike Driscoll (D-6th), which gives the city controller the authority to review all finances and activities for the H.O.M.E. initiative. That includes reviewing contracts, auditing any expenditures related to the plan and overseeing vendor invoicing during construction.
"This plan represents a historic investment in affordable housing, and with that comes a responsibility to ensure that every dollar is spent wisely, fairly and transparently," Driscoll said. "Oversight isn't about slowing down progress, it's about building public trust, protecting taxpayer resources and ensuring that the housing crisis is addressed with both urgency and integrity."
The H.O.M.E. plan was introduced in tandem with Parker's budget, which included increase to the Real Estate Transfer Tax — a fee charged to both sellers and buyers during a home purchase — from 3.27% to 3.57%. The jump would help offset the debt service needed for the $800 million in borrowing for the plan, and Parker said the increase would generate $173 million over the next five years.
One bill from Councilmember Nicolas O'Rourke's Safe Healthy Homes package was also approved — the establishment of an anti-displacement fund within the Department of Licenses and Inspections. If signed by the mayor, the fund would be available to renters for a one-time payment if they're forced to relocate when a property is deemed unsafe by L&I. The two other pieces of legislation failed to make it out of council's Housing Committee after a heated hearing last week.
The bill was approved 16-0, as O'Rourke himself was absent from the meeting. While advocates cheered upon the fund's passage, one speaker described it as "heartbreaking" that only one bill from the plan moved forward.
"We need more protections for residents against retaliation and displacement," said Mark Quincy, a member of the Philly Thrive organization. "Please put your low-income, senior and disabled constituents over the profit of corporate landlords and developers."
After being tabled last week, an amendment from Councilmember Rue Landau (D-At-Large) to the city's policy on security deposits was approved. The legislation allows tenants to pay in installments if the amount exceeds one month's rent. The amendment was approved 13-3, with Councilmembers Jeffery Young Jr. (D-5th), Jim Harrity (D-At-Large) and Anthony Phillips (D-9th) voting against it.
"I'm incredibly proud of this legislation, that moving costs won't be as expensive a burden," Landau said. "And I appreciate all the conversations I've had with colleagues and advocates to get this done."
City Council will reconvene Sept. 11 following the summer recess.
