PHILADELPHIA – Today the City announced its plan to spend $26.5 million in resources from the Housing Trust Fund in Fiscal Year 2021 to support Philadelphians facing housing insecurity.
“Philadelphia faces many housing challenges,” said Mayor Jim Kenney. “We need more affordable housing, we need to preserve housing we have, and we need to support residents with special needs. This plan will not solve all of our housing problems, but it takes meaningful steps in the right direction.”
The City is targeting four key areas with Housing Trust Fund resources:
Production and Preservation ($12.0 million)
These funds support the development of new affordable housing and the preservation of existing affordable homes. City funding is often the seed money developers need to move projects forward. City funds also leverage private sector investment in affordable housing through Low Income Housing Tax Credits.
Home Repair ($1.6 million)
Many Philadelphians own their homes but lack the funds to maintain them. The City partners with nonprofits to make repairs to major home systems – roofing, plumbing, heating, electrical – in a targeted area to strengthen the neighborhood. The City also supports a program to make emergency repairs to heaters.
Tenant & Homeowner Assistance ($9.8 million)
For those tenants who are only by a few hundred dollars short each month a City “shallow rent” program helps to make up the difference. The City offers forgivable grants to help residents buy a first home. City programs also help residents through housing counseling and a program to resolve title issues.
Homeless & Special Needs Housing ($3.1 million)
The City funds a program to help people with disabilities gain better access to and mobility within the home. The Housing Trust Fund also supports the Office of Homeless Services’ Homelessness Prevention Program.
“Housing that a family can afford is the bedrock of stable neighborhoods,” said Anne Fadullon, Director of Planning and Development. “By helping families get into an affordable home or stay in an affordable home we are strengthening neighborhoods across the City.”
“Funding from the City is critical to developing affordable housing,” said Casey O’Donnell, CEO of Impact Services. Impact Services is using City funding to secure Low Income Housing Tax Credits to rehabilitate a vacant mill in Kensington into 48 units of affordable housing for formerly homeless veterans and low-income families.
Of the $26.5 million to be spent, $8.5 million will come from mortgage and deed recording fees. $18 million is general fund resources directed through the Housing Trust Fund.