The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy.
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Transcript of The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy.
The Neighborhood Transformation Initiative
Philadelphia’s Equitable Development Strategy
1.Use planning as an investment tool
2.Balance affordable and market rate housing
3. Invest public funds to stimulate private market activity
4.Foster competition to get the best product
5.Maximize private capital and minimize public dollars
6.Link housing with other public and private investments
NTI Guiding Principles
$306.6m Investment in Neighborhoods
Commercial Demolition, $6,075,297
Land Assembly,
$72,076,418
Vacant Property
Stabilization, $5,528,000
Housing + Neighborhood Preservation, $78,392,305
MIS Activities, $8,925,000
Residential Demolition,
$135,660,895
• Demolished 7,713 vacant buildings
• Removed 275,012 abandoned cars
• Stabilized and maintaining 3.7 mil. sq. ft. of vacant land (= 3700 row home parcels); cleaned and maintaining 2.5 million sq. ft. of vacant land (=2500 row home parcels).
• Completed 12,974 new residential units, including 8,931 affordable housing units
• Provided 31,315 units with housing preservation assistance
NTI Accomplishments
Housing Markets, 2001Source: The Reinvestment Fund
Housing Markets, 2003Source: The Reinvestment Fund
To create and stabilize mixed-income neighborhoods, NTI will lead or support efforts to:
• Manage and influence neighborhood change
• Strengthen neighborhood markets
• Promote open space; and
• Propel transit-oriented development
Sustainable, Smart Growth Revitalization
Positives and negatives in neighborhood change
+ Increased equity = more wealth + Attractive physical environment = better quality of life + Higher density = new markets, more amenities
- Low / fixed income impacted by higher cost of living - Higher property taxes = liens, exposure to predatory lenders - Less than perfect credit = less options, deferred home repairs
Managing and Influencing Neighborhood Change
Pursuing Equitable Community Development
Equitable Community Development…
“actions that build and protect the assets of low-wealth residents in revitalizing neighborhoods so they may fully enjoy the benefits of a healthy neighborhood.”
Principal Issues & Challenges
recent appreciation of residential properties in markets that were stagnant for the previous decades
perceptions that property taxes, operating costs, and rents will increase beyond the means of low-wealth residents
fears that the above factors will lead to gentrification and eventual displacement of low-income residents
how to best use, target, and deploy limited City resources (principally counseling and home repair programs) to address the above issues
Rapidly Appreciating Market Areas Studied
Brewerytown area
Northern Liberties/West Poplar neighborhoods
Walnut Hill area of West Philadelphia
South Kensington/Fishtown area
South Philadelphia, West of Broad
Emerging Patterns/Characteristics (2000-2006)
High rate of homeownership (60% to over 80%)
Incidence of: cost-burdened owner-occupied households (paying > 30% of
income on housing) annual household income < $25,000
Moderate to heavy single-family sales activity 20%-30% in some blocks-groups 30%-50% in others
Emerging Patterns/Characteristics (2000-2006)
Modest to substantial increases in median sales prices $10,000 to $50,000 generally in most areas $50,000 to $100,000/$150,000 in some block-groups $150,000+ in others
30% of all single-family properties tax-delinquent(23% in rest of city / 24% citywide)
23% increase in foreclosure filings 2005-2006(2% rest of city / 3% citywide)
Mortgage Foreclosure Filings (2005 and 2006)
mortgage foreclosure
filings in 2005
mortgage foreclosure
filings in 2006
%
change
Targeted Areas% of all SF properties
3120.8%
3960.9%
23%
Rest of City% of all SF properties
4,2471.1%
4,3291.1%
2%
Citywide% of all SF properties
4,5681.0%
4,7251.1%
3%
Proposed Interventions
Equitable Development Goals
facilitate lower-wealth residents’ participation in neighborhood revitalization and its benefits by:
protecting and building their equity and wealth preserving existing affordable housing units increasing supply of new affordable housing units
enhance role of/coordination between housing counseling, financial literacy and home repair programs
Principal Actions Community Outreach:
identify at-risk households/at-risk blocks facilitate targeting/delivery of:
housing counseling/financial literacy services home repair/improvement resources
Housing Counseling: create two-track case management service:
core services (pre/post-purchase, credit analysis, budgeting) special services (foreclosure prevention, loss mitigation)
Housing Preservation: ensure access to resources to support:
home repairs and improvements community outreach housing counseling
Reporting/Performance Integration
create/track performance goals measuring: outputs outcomes impacts
track outcomes and impacts at household and neighborhood levels as measures of success
Resources
NTI bond proceeds will fund:Project managementTraining, professional services, staffPerformance measurementFlexible loans and/or grantsReserve for HERO loan program
Leverage CDBG resources