Philadelphia City Council passed bills to change how the Housing Trust Fund works, aiming to make sure money from density bonuses helps affordable housing directly in neighborhoods, despite the mayor’s office disagreeing.
Philadelphia City Council Acts to Change Housing Trust Fund
According to Audacy, the Philadelphia City Council has passed two bills to reform the Housing Trust Fund, originally established in 2005 to support affordable housing through document recording fees. Introduced in 2018, “density bonuses” aimed to incentivize developers to include affordable units, but with limited uptake. A 2021 update now allows developers to contribute payments instead, indirectly funding the HTF via the General Fund.
Councilmember Jamie Gauthier, who represents University City facing rapid gentrification, sponsored both bills. One bill asks voters to ensure that density bonus payments directly go to the HTF. The other bill mandates that these funds must be used in the same Council district where they were collected. Gauthier stressed that these changes will ensure that communities impacted by high-density, market-rate development benefit directly from promised affordable housing funds.
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Philadelphia City Council Passes 2 Bills to Reform Housing Trust Fund – Ensuring Affordable Housing Benefits in Rapidly Gentrifying Neighborhoods (PHOTO: Audacy)
Philadelphia City Council Mayor Faces Decision on Housing Fund Reform Bills
Furthermore, despite the Philadelphia City Council’s approval, the Cherelle Parker administration opposes both bills. Officials argue that these new rules could increase fixed costs in an already tight budget, limiting flexibility for elected officials to allocate funds where they are most needed. The decision on the referendum bill will rest with voters next May, while Mayor Parker has until September 5 to decide whether to approve the bill restricting fund allocation.
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