Mayor Parker outlines specifics on $800 million spending plan for housing affordability

Philadelphia Mayor Cherelle L. Parker unveiled a comprehensive $2 billion housing initiative back in March aimed at addressing the city's pressing need for affordable and market-rate housing. 

The "Housing Opportunities Made Easy" (H.O.M.E.) plan seeks to build or preserve 30,000 homes, marking the largest housing investment in the city's history.

On Monday, her office shared an outline with the Philadelphia Inquirer with specifics for her plan for the first time.

Key Components of the H.O.M.E. Plan

Financial Framework: The initiative proposes $800 million in city bonds, with an initial $400 million issuance in fiscal year 2026. An additional $1 billion is anticipated from the value of city-owned land designated for housing development, complemented by $200 million from local, state, and federal sources. 

Housing Goals: The plan aims to construct 13,500 new housing units and preserve 16,500 existing homes, targeting both renters and homeowners across various income levels. 

Program Enhancements:

• Basic Systems Repair Program: Expansion of this program will provide free emergency repairs to address critical home maintenance issues. 
• ONE Philly Mortgage: A new initiative offering 30-year fixed-rate loans with low down payments and competitive interest rates, eliminating the need for private mortgage insurance. 
• Shallow Rent Program: A pilot program designed to assist middle-income tenants in accessing affordable rental units. 
• Land Utilization: The plan proposes repurposing significant city-owned properties, such as the former police headquarters and the decommissioned Holmesburg Prison, into mixed-income housing developments. 
• Regulatory Reforms: To expedite housing development, the administration intends to streamline processes within the Philadelphia Land Bank, including pre-authorizing land for housing and creating a pre-approved list of developers. 

Collaboration with the Philadelphia Housing Authority

The Philadelphia Housing Authority (PHA) is set to play a pivotal role in the H.O.M.E. initiative through its "Opening Doors" plan, which aims to preserve, redevelop, build, or acquire approximately 20,000 housing units over the next eight years. This $6.3 billion investment will modernize public housing and expand affordable housing options, aligning with the city's broader housing objectives.

Next Steps

The H.O.M.E. plan requires approval from the City Council, with an initial vote on the $400 million bond issuance expected before the July 1 budget deadline. The administration emphasizes the urgency of addressing the housing crisis and is seeking collaborative efforts to implement the plan effectively.