Philadelphia Housing Authority to provide affordable housing in Center City after ten-year delay.

In a significant development for affordable housing in Philadelphia, the long-awaited construction of a mixed-income residential tower is set to commence early next year. The project comes nearly 20 years after the Philadelphia Housing Authority (PHA) vacated its former headquarters in Center City.

The forthcoming 14-story building will rise at 2012 Chestnut St., crafted by Philadelphia-based Alterra Property Group, which may take on the management responsibilities upon completion. This structure is designed to be PHA’s sole affordable housing development in the Center City area, positioning it as a critical element in addressing the city’s housing needs.

According to Kelvin Jeremiah, the president and CEO of PHA, the project aims to create a multifamily mixed-use building within a neighborhood that offers substantial opportunities. He highlighted the strategic location’s access to transportation, employment venues, and numerous amenities, making it a desirable residence for many.

The development will feature 121 apartments, with 40% designated for market-rate rentals. The remainder will specifically target individuals and families earning below 80% of the area median income, which is approximately ,000 for a household of three. The housing mix includes 28 studio apartments, 63 one-bedroom units, and 30 two-bedroom configurations, catering to varied demographics.

In addition to residential offerings, the building will encompass 2,000 square feet of commercial space and provide off-site parking. Complementing the living spaces, amenities such as a roof deck will enhance the living experience for future residents. JKRP Architects is responsible for the project’s design.

Mark Cartella, Alterra’s senior vice president of development and construction, announced intentions to break ground in the first quarter of next year. The project has faced multiple delays since PHA vacated its Chestnut Street headquarters in January 2008. Over the years, various plans for the property were considered, including the introduction of a new headquarters and the potential sale of the land to private developers.

The partnership with Alterra began in 2016, originally proposing a larger development with 200 units predominantly at market rates. However, community opposition and complications from the COVID-19 pandemic, alongside rising construction costs and interest rates, complicated the financing of the initial plan.

Ultimately, a revised approach was adopted, enabling PHA to utilize bonds backed by future market-rate rents to finance the project, supplemented by support from federal housing initiatives and a million contribution from Philadelphia City Council President Kenyatta Johnson, made available through the H.O.M.E. initiative.

Johnson emphasized the project’s significance in ensuring that downtown Philadelphia remains vibrant, diverse, and accessible for working families and individuals. With the 95-year-old headquarters demolished earlier this year, the community eagerly anticipates the start of this transformative project. Jeremiah expressed optimism about the development’s implications for affordable housing in the city, labeling it a signature initiative in creating a more inclusive Center City that reflects the diversity of Philadelphia’s residents.

As construction prepares to advance, the project heralds a new chapter in meeting the pressing demands for affordable housing in urban centers, underscoring efforts to create equitable living spaces across the city.

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