As part of increasing Philadelphia’s affordable housing stock, the city aims to build 1,000 new low-cost housing units. City Council President Darrell Clarke also said they want to assist low-income residents in improving their quality of life through Philadelphia affordable housing.
Turn the Key Program
The City Council and other city officials unveiled the “Turn The Key” program at 55th and Poplar streets in West Philadelphia. It is part of the $400-million Neighborhood Preservation Initiative approved by the City Council in 2020.
The city will construct 1,000 units of 3-bedroom, 1.5 bathroom homes on city-owned public lands. The priority beneficiaries of the project are first-time home buyers, and the mortgage will be about $1,200 per month. Clarke said that this mortgage payment is lower than the average price of renting a 2-bedroom apartment in Philly.
Councilmember Curtis Jones said that owning a house is the most significant investment most people make. A home is an asset that should continually increase in value. But in its initial phase, it should be affordable as well.
Loans and costs
First-time home buyers will be offered a soft loan for a maximum of $75,000. The buyers can secure the loan via a second amortization on the housing unit to keep affordable prices for low-income households. These households are within or below 80 percent of the Area Median Income with approximately $94,500 per family.
The total cost of houses is between $190,000 to $230,000, less than the current median home price. The term of the loan will be payable for up to 30 years.
To qualify for the Philadelphia affordable housing program, residents must be first-time homebuyers with confirmable income. They must attend a free, city-funded homeownership counseling program before signing an Agreement of Sale.
“This is an interesting project that will have a great impact on our city. We are looking forward to partnerships to create these opportunities for families to improve their lives and gain other benefits that come from homeownership,” said Anne Fadullon, the director of the city’s Department of Planning and Development.
The first stage of the “Turn the Key” housing program is about $7 million to $8 million. It will include more than 40 homes to be constructed at 55th and Poplar streets, Carroll Park section of West Philadelphia.
The Philadelphia Housing Market
Philadelphia’s housing market has experienced challenges due to the ongoing COVID-19 pandemic. Compared with pre-pandemic levels, the city’s housing inventory declined by almost 41 percent. Because of this, first-time homebuyers are anxious and concerned about competition in housing prices.
The University City Townhomes, an affordable housing complex at 39th and Market streets, will close in just two months. The closure was due to the non-renewal of the contract by its property management company, IBID Associates, with the Department of Housing and Urban Development.
With additional HUD contracts set to expire over the next several years, affordable housing development and preservation have become a hot-button issue for City Council and housing advocates.
The Philadelphia affordable housing program will enable residents to own a home for the first time, said Ernest Garrett, president of District Council 33 of the American Federation of State, County, and Municipal Employees.
Aside from income and eligibility requirements, the “Turn the Key” program will include a preference for City of Philadelphia employees. Legislation to implement that preference is currently pending in City Council and will be up for a hearing soon.
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