In a recent session, the Philadelphia City Council took significant measures to tackle housing affordability, including approving $800 million in borrowing for Mayor Cherelle Parker’s H.O.M.E. plan.
This decision was part of a wider range of legislative actions aimed at making housing more accessible for residents.
The Council also voted on initiatives designed to expand low-income real estate tax benefits for homeowners, establish an anti-displacement fund, and allow potential renters to pay security deposits in installments under certain conditions.
The legislation was deliberated during a marathon session on Thursday, which included nearly 80 pieces of legislation as well as this year’s budget.
This was the Council’s last meeting before taking a summer break, resuming sessions in September.
**Low-Income Property Tax Freeze**
One of the key components of the recent vote includes extending the deadline for residents to apply for the low-income property tax freeze program until September 30.
This freeze, introduced last year, aims to mitigate the impact of rising real estate assessments on homeowners earning $33,500 or less per year, or married couples making over $41,500.
Originally, the application deadline had been set for January but has been extended as the city’s Department of Revenue continues to accept applications.
Councilmember Jamie Gauthier, who sponsored the freeze, indicated that this change aligns the program with other similar tax breaks, such as the Longtime Owner Occupants Program and the Homestead Exemption.
Further provisions now allow eligible homeowners to revert their assessments to 2024 levels, and in the future, applicants will be able to go back to the lowest billed amount within the last decade.
The legislation also mandates that the city finds eligible property owners and automatically enroll them in the program.
However, uptake has been disappointingly slow, with less than 5% of those eligible currently enrolled, according to Community Legal Services.
The Reinvestment Fund estimates that 62,000 Philadelphians qualify for this benefit.
Officials from the Parker administration previously raised concerns regarding the legality of automatic enrollment and forecasted that the legislation could cost the city and school district more than $6 million in tax revenue over five years.
Despite these concerns, Parker signed the bill into law on Friday, as documented in legislative records.
**Anti-Displacement Fund**
Another significant piece of legislation, championed by Councilmember Nicolas O’Rourke, aimed at creating an anti-displacement fund for tenants displaced due to city inspections, passed unanimously.
While this step is seen as a positive move, O’Rourke and his supporters expressed dissatisfaction that no funding was allocated for this initiative in the municipal budget.
Organizations such as One Pennsylvania Renters United Philadelphia and Philly Thrive are pushing for the Parker administration to dedicate $5 million from the H.O.M.E. budget to this fund.
If funded, the program would offer one-time rental assistance to tenants forced to vacate their homes following cease operations orders typically issued due to uninhabitable conditions.
The proposal is part of O’Rourke’s broader Safe Healthy Homes Act, which includes additional measures against tenant harassment and proactive rental inspections.
However, these latter two bills have been postponed for consideration until at least September.
As renter advocate Melissa Monts stated during the public comment period, “Renters need the full package of protections.”
She emphasized a commitment to returning in the fall to advocate for the advancement of these other crucial legislative measures.
**Improved Move-In Affordability**
In another effort to enhance housing accessibility, prospective renters may soon benefit from legislation allowing them to pay security deposits in installments rather than a lump sum.
This regulation, spearheaded by Councilmember Rue Landau, mandates landlords to offer the option when the requested deposit exceeds one month’s rent.
However, landlords with two or fewer rental units are exempt from this requirement.
Crucially, no interest can be added to the total through the installment payments, ensuring the overall deposit amount remains unchanged.
An earlier draft of this proposal did not include exemptions for small landlords and allowed installment plans for all security deposit amounts.
This installment option is part of Landau’s larger Move-In Affordability Plan, which saw its other component—capping rental application fees at $50—approved by the Council on June 5.
Landau articulated the need for these reforms, stating, “Every Philadelphian deserves the opportunity to move into safe, stable housing without being priced out before they even get through the door.”
Both of these legislative changes are set to take effect 90 days after receiving the mayor’s signature, which Parker has yet to provide.
image source from：https://metrophiladelphia.com/city-council-housing-costs/
