Mayor Parker’s 5 million H.O.M.E. initiative faces criticism over potential beneficiaries in its first year.

Mayor Cherelle L. Parker’s administration is set to allocate nearly 5 million this year across 26 new and existing programs as part of her ambitious housing initiative. This plan, part of the Housing Opportunities Made Easy (H.O.M.E.) initiative, prioritizes the preservation of affordable housing units, allocating approximately .5 million to this cause. The proposed budget resolution outlines a comprehensive strategy for utilizing the significant resources allocated to the initiative, which the Philadelphia City Council approved in June with the authorization for the sale of 0 million in city bonds. This fall, the first half of that amount, 0 million, is expected to be issued.

The spending plan emphasizes several key components beyond affordable housing preservation. Among the noteworthy aspects is the allocation of .8 million for the Basic Systems Repair Program, aimed at preventing the displacement of low- to medium-income homeowners by funding essential repairs. Additionally, million is designated for the One Philly Mortgage program, which will provide low-cost mortgages to eligible Philadelphians. The initiative also includes .4 million to produce new affordable housing units and million for targeted financial assistance through the Eviction Diversion Program, which seeks to provide resources for both landlords and renters to avoid evictions.

The budget resolution, which requires City Council approval, will be formally introduced on October 9. Following this, the City Council president, Kenyatta Johnson, will assign the resolution to a committee for review and recommendations. Johnson has acknowledged collaboration with Parker’s administration, emphasizing the necessity of thorough examination of this significant multi-billion-dollar plan. It aims to build and preserve 30,000 housing units across Philadelphia, impacting a broad spectrum of neighborhoods and residents.

Critics of the H.O.M.E. initiative have raised concerns over its focus. The plan aims to assist Philadelphia’s “middle neighborhoods,” areas that are economically challenged yet not impoverished. While Parker’s intention is to provide broader access to affordable housing, critics argue that the increased income eligibility levels for many programs may divert essential resources from the most vulnerable families. For instance, the Basic Systems Repair Program, traditionally limited to individuals earning 60% of the area median income (AMI) or less, has seen its threshold rise to accommodate individuals earning up to 100% of AMI, which equates to 9,400 for a family of four.

The administration insists it understands the complexity of the housing crisis and intends to address it holistically, with 30.6% of the H.O.M.E. budget earmarked for households earning 60% of AMI or less. However, organizations advocating for renters and lower-income families have criticized the distribution of resources as being insufficient. Advocates argue that those who are most impacted by the housing crisis require prioritized support, highlighting that only a minor fraction of the proposed funding targets low-income families and renters.

As discussions continue, Councilmember Jamie Gauthier has expressed enthusiasm for the initial budget while pushing for lower income thresholds to ensure the needs of the city’s most vulnerable residents are met. The City Council’s upcoming deliberations will be crucial in determining the final shape and impact of the H.O.M.E. initiative. The strategic focus on housing aims to provide a comprehensive solution to the ongoing housing crisis in Philadelphia, but achieving consensus on the approach will require careful negotiation and review.