Philadelphia Housing Authority to Introduce Affordable Housing in Center City After Ten-Year Delay
Nearly two decades after vacating its Center City headquarters, the Philadelphia Housing Authority (PHA) is set to embark on the much-anticipated construction of a mixed-income residential tower. This development, which marks PHA’s return to the downtown area, is scheduled to break ground in early 2024.
The 14-story building will be constructed by Alterra Property Group, a local development firm that may also oversee the management of the property upon completion. The site, located at 2012 Chestnut Street, is significant as it will house PHA’s only affordable housing project in Center City. PHA will enter into a 99-year ground lease for the property, signifying a long-term commitment to the area.
Kelvin Jeremiah, the president and CEO of PHA, emphasized the project’s importance as it introduces a multifaceted living option in a high-opportunity neighborhood. With access to transportation, employment, and various amenities, the development aims to provide residents with enhanced living conditions and opportunities. The proposed building will comprise 121 apartments, with 40% designated for market-rate occupants while the remaining units will be allocated for tenants earning below 80% of the area median income—approximately ,000 annually for a household of three. The apartment mix will include 28 studio units, 63 one-bedroom units, and 30 two-bedroom units. Additionally, the project will feature 2,000 square feet of retail space, off-site parking, and attractive amenities such as a roof deck. JKRP Architects designed the project, reflecting a contemporary vision for urban living.
The timeline for the project’s development has encountered various delays, beginning with PHA’s departure from its previous headquarters in January 2008. Over the years, numerous proposals have been floated regarding the use of the property, ranging from a new headquarters to the sale of the land to private developers. The partnership with Alterra initiated in 2016 included plans for a larger project with 200 total units. However, local opposition, followed by the impacts of the COVID-19 pandemic, increased construction costs, and changing interest rates significantly hindered progress. New financing strategies, including the issuance of bonds backed by future rents and funds from federal housing programs, were developed to rejuvenate the project.
Council President Kenyatta Johnson noted that the project will enhance downtown vibrancy and ensure it remains accessible to working families. This initiative aligns with Mayor Cherelle Parker’s Housing Opportunities Made Easy (H.O.M.E.) program, aimed at fostering affordable housing developments within the city.
Despite experiencing setbacks during the planning and design phase, Jeremiah remains optimistic as the project approaches the groundbreaking stage. He acknowledged the challenges faced over the years, particularly the intricate processes involved when navigating federal guidelines and local regulations. Jeremiah views the upcoming tower as a landmark achievement for both PHA and Philadelphia, representing a significant step toward diversifying affordable housing options within the city’s core.
As the region anticipates the completion of this project, it may serve as a model for future mixed-use developments that prioritize inclusivity and accessibility, thereby reflecting the diverse fabric of Philadelphia’s population.
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