Housing Justice for Philadelphia

Philadelphia is experiencing a luxury housing/condominium boom. The average price of condos that sold last year was $450,000.  After decades of disinvestment and population loss, this investment and generation of new wealth is welcome in our City.

 

So what’s the problem?

 

In order to afford one of those new condos you would have to earn over $100,000 a year!  Most Philadelphias earn less than $20,000 a year and the City’s median household income is only $30,746.  In reality, the “boom” is more of a “bust” for most Philadelphians.

 

Philadelphia City Council is poised to do something about it, but if you don't speak up, they will leave 70% of Philadelphians out of the program!

 

Sample Letter for Campaign

Subject: REAL Inclusionary Zoning!

Dear [ Decision Maker ] ,

As a resident of Philadelphia, I see evidence of an affordable housing crisis everyday. Skyrocketing rents are forcing families out of neighborhoods, rising property taxes are threatening seniors and low-income families, and homelessness is on the rise.

One way to help address this problem is by adopting an effective inclusionary housing policy. Inclusionary Housing laws require builders of market rate and luxury housing to include affordable housing units in their developments and/or contribute in-lieu payments to an affordable housing fund. This is a strategy that has worked in over 300 cities and municipalities across the country.

The Philadelphia Campaign for Housing Justice (PCHJ) is a city-wide coalition of housing advocates, labor unions, congregations, and social-justice organizations, representing hundreds of thousands of low- and moderate-income Philadelphians that has been fighting for just such a policy.

On November 16th the Committee on Rules will be conducting hearings on a proposed 'Inclusionary Affordable Housing' ordinance (060732). Although I fully support Inclusionary Zoning for Philadelphia, the current proposal has many major problems.

The biggest problem with the bill is that it only helps households earning between $55-$100,000/year. This leaves out the over 70% of Philadelphia families that earn less than $55,000. This current proposal is more exclusionary than inclusionary

It is essential that this law help low- and moderate-income families in Philadelphia.

I urge you to support the changes proposed by the Philadelphia Campaign for Housing Justice and to involve them in the process of fixing this legislation.

Sincerely,

Campaign Launched:
November 06, 2006


Background Information

The good news:                 Philadelphia’s housing market has been experiencing growth for the first time in years.

 

The bad news:                    With this growth, housing prices and rents have risen so high that many Philadelphians cannot afford their housing costs.

 

In reality, the “boom” is more of a “bust” for most Philadelphians.

 

  • Lack of affordable housing has made living and working in Philadelphia nearly impossible for many low- and moderate-income Philadelphians.  A study conducted by the University of Pennsylvania shows that Philadelphia has nearly 60,000 fewer units of affordable housing than are needed.
  • Skyrocketing rents are displacing renters who can’t keep up.  In some neighborhoods, rents have doubled in the last five years.
  • Rising property taxes force existing homeowners out of their neighborhoods while new homeowners enjoy ten years tax-free.
  • Homelessness has increased.   More Philadelphians lived on the street this winter than the previous one. 

 

The Philadelphia Campaign for Housing Justice

 

Dozens of organizations – neighborhood associations, faith congregations, labor union locals, housing advocacy groups, and others – are following the lead of cities around the country and are coming together to address this issue.  We see the contradictory trends of luxury housing construction and lack of affordable housing as a dangerous sign for our future.  We believe that the tremendous wealth that is being generated by Philadelphia’s luxury housing boom needs to be distributed fairly, so that all Philadelphians can reap the benefits.  We fear that our City will become even further segregated by race and class unless we enact sensible policies that will guide the future development of our City.

 

A Simple Solution: Inclusionary Housing

 

 

What is Inclusionary Housing?

 

Inclusionary Housing ordinances require builders of market rate and luxury housing to include a fair percentage of affordable housing units in their developments and/or contribute a per-unit (or per-square-foot) dollar amount to a fund dedicated to affordable housing (called “in-lieu payments”).  In exchange, the city offers developers certain incentives, bonuses, or zoning flexibility.  It’s a win-win strategy!

 

More than 300 municipalities across the country have Inclusionary Housing ordinances. These ordinances have helped create tens of thousands of affordable housing units that otherwise would not have been built and have generated tens of millions of dollars for affordable housing that otherwise would not be generated -- in cities such as Burlington (VT), San Diego (CA), Boston (MA), and New York (NY).

 

The Benefits of Inclusionary Housing:

 

·         Ensures that new housing development includes homes and apartments that are affordable

·         Provides affordable housing at little or no financial cost to local government

·         Creates inclusive communities

·         Provides housing for a diverse labor force, allowing people to live in the same community in which they work

·         Generates funds for the development of additional affordable housing through in-lieu payments

 

Inclusionary Housing in Philadelphia: The Time Has Come

 

We invite your organization to join our effort to ensure that all Philadelphians benefit from our current luxury housing boom, to help our City live up to the ideals of fairness and equal opportunity.  These are the goals of the Philadelphia Campaign for Housing Justice:

 

  • Affordable Housing Units are part of all market-rate developments or in-lieu fee contributions from developers to an affordable housing fund
  • Low- and moderate- income Philadelphians benefit from available new housing, with the majority of resources going to low-income Philadelphians
  • Living wage jobs will be available for Philadelphians who work on and in all large-scale development projects

 

 

For More Information about the Philadelphia Campaign for Housing Justice, call:

 

 

Joanna Bouldin @ 215-627-5550 ext. 218

 

Philadelphia Campaign for Housing Justice participating organizations include: ACORN, Action Alliance of Senior Citizens, Circle of Hope Church, Congreso de Latinos Unidos, Disabilities Law Project, Disabled In Action, District 1199c, Interfaith

Advocates of Philadelphia, Jewish Labor Committee, Jobs with Justice, Kensington Welfare Rights Union, Liberty Resources, Neighborhood Networks, New Jerusalem Laura, One Philadelphia, PA-Public Interest Research Group, Philadelphia Affordable Housing Coalition, Philadelphia Senior Center, Philadelphia Unemployment Project, Prevention Point of Philadelphia, Project H.O.M.E., Raise of Hope, SEIU 1199p, SEIU 32BJ, Tenant Union Representative Network, United Communities Southeast Philadelphia, and the Women’s Community Revitalization Project