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To kick off year that’s ‘all about housing,’ City Council introduces legislation to cut upfront fees for new tenants

by myphillyconnection
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In a push to address affordable housing barriers, City Council introduced legislative packages Thursday that would reduce red tape for new builds and lower upfront costs for renters.

Councilmember Rue Landau's (D-At-Large) Move-In Affordability Plan would limit rental application fees to $20 and allow new tenants to pay security deposits in four installments over four months. Councilmember Jamie Gauthier's (D-3rd) legislation would speed up the approval process for affordable developments and make it easier for homeowners to turn extra space into bonus units.

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Landau's plan would also put limits on landlords by codifying existing state laws into Philly's housing code that say more than two months' rent can't be kept as a security deposit and deposits must be returned within 30 days after a tenant moves out. With the average rent in the city around $1,600, according to Apartments.com and Zillow, initial costs can be overwhelming for some homeseekers.

"It's the outrageous upfront fees that make securing housing nearly impossible for too many people," Landau said Thursday. "That's why we have to make changes now. … It's about ensuring that people aren't priced out of housing before they even have a chance to sign a lease."

Application fees can cost $50 to $200 each, Landau said, and the bill would limit those to $20 or the cost of a background check, whichever is lower. It would also prohibit landlords from charging the same tenant multiple fees within a year, and renters would be allowed to provide a background check themselves if it's from an accredited agency and took place in the last 30 days.

Gautheier's legislative package, which she referred to as Phase 2 of her Defying Displacement campaign, calls for returning Licenses and Inspections permit reviews for affordable housing projects within 5-10 days, accelerating hearing dates for the projects in the Zoning Board of Adjustment and expanding the definition of an affordable housing project.

The legislation would make it easier for homeowners to create secondary living spaces by removing size restrictions and allowing units in attached, detached or semi-detached buildings. These changes would affect districts (1st, 2nd, 3rd and 7th) that already allow bonus units in row home zoning, but other districts could opt in.

"I've been told that 2025 is all about housing," Gauthier said.

Last year, Gauthier introduced legislation that provided additional protections for tenants using housing vouchers, which went into effect in December. That bill said landlords can't advertise that they won't accept vouchers, purposely neglect or delay paperwork for voucher processing or put off repairs for tenants using vouchers. A bill from Gauthier calling for a tax freeze for homeowners making under $33,000 annually as a single person or $41,500 as a married couple also went into effect in January.

Following Thursday's meeting, Council President Kenyatta Johnson (D-2nd) added that Mayor Cherelle Parker is expected to put forth a plan to address affordable housing in her upcoming budget.

"That's one key issue that I know for fact that she will be rolling out," Johnson said.

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