Philadelphia is on the brink of a housing transformation under Mayor Cherelle Parker’s ambitious plan to build or preserve 30,000 housing units over the next four years. This initiative aims to address the City’s housing affordability crisis while creating diverse neighborhoods and promoting homeownership. Here’s a breakdown of what this plan means for developers, homebuyers, and the community.

The Big Picture: 30,000 New Housing Units

Mayor Parker’s administration is setting out to create a mix of affordable and market-rate housing to boost the City’s real estate landscape. The goal is to attract a diverse range of residents, stabilize neighborhoods, and promote economic growth. 

Key Initiatives Include:

• Affordable and Market-Rate Housing: The city aims to build units across income levels, not just high-end condos but also affordable options that fit within the middle-income bracket.
• Support for Home Repairs: Expanding programs like the Basic Systems Repair Program and Restore, Repair, Renew initiative, which help income-eligible homeowners with essential repairs and low-interest loans.
• Regulatory Streamlining: The City plans to make zoning and permitting processes faster and more efficient, reducing barriers for developers to start construction quickly.

What is the “Turn the Key” Program?

A major component of this housing strategy is the “Turn the Key” program, designed to create affordable, workforce housing. Here’s how it works:

1. City-Owned Land for Development: Philadelphia is partnering with private developers to build at least 1,000 new homes on vacant, city-owned parcels that could otherwise contribute to blight. The City offers this land almost for free, reducing development costs.
2. Workforce Housing Focus: These homes will be priced below the City’s median sale price, targeting middle-income families who earn up to 100% of the Area Median Income (AMI), which is $105,400 for a family of four. This helps stabilize neighborhoods by making homeownership more accessible.
3. Quicker, Simpler Financing: Unlike low-income housing that requires extensive public subsidies, these projects can use private market financing, making them cheaper and faster to build.
4. Preference for City Employees: The program gives priority to municipal workers, helping them afford homes within the City, while also providing some funding assistance for eligible buyers.

What does the “Turn The Key” program mean for Developers?

Philadelphia is offering a golden opportunity for private developers to contribute to the City’s housing goals while benefiting from reduced costs and streamlined approvals:

• Incentives for Developers: With access to low-cost land and simplified financing options, developers can build affordable homes while still turning a profit.
• Community Impact: By participating in these programs, developers can play a key role in revitalizing neighborhoods, promoting diversity, and supporting the City’s growth.

Legal Zoning Considerations for Developers participating in the program

Developers interested in this program should be aware that many city-owned lots offered under “Turn the Key” are not currently zoned for residential use. As a result, developers may need to secure a zoning variance before construction can proceed.

• Developer Responsibility: If you purchase a lot that isn’t zoned for residential development, it will be your responsibility to obtain the necessary zoning variances. This process includes filing an appeal with the Zoning Board of Adjustment (ZBA) and presenting your case in a hearing.

• Mandatory Legal Representation: If the property is owned by a business entity, you are required to have legal counsel when applying for a zoning variance before the ZBA. This is a legal requirement in Philadelphia to ensure compliance with City regulations.

• Potential Challenges: Navigating the variance process can be complex, with potential hurdles like community objections and compliance with City planning guidelines.

How Attorneys at Console Matison Can Help

At Console Matison, our attorneys have 15+ years of experience dealing with Philadelphia zoning law and can provide the necessary legal representation for businesses seeking a variance as required by the “Turn The Key” program. We guide developers through the zoning appeal process, from filing applications to representing you at ZBA hearings, ensuring a smooth and efficient path to project approval.

Contact Console Matison at Info@ConsoleLegal.com today to learn how we can assist you in taking advantage of the “Turn the Key” program and successfully meeting Philadelphia’s zoning requirements for your development projects.