the neighborhood transformation initiative philadelphias equitable development strategy

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The Neighborhood Transformation Initiative Philadelphia’s Equitable Development Strategy

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Page 1: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

The Neighborhood Transformation Initiative

Philadelphia’s Equitable Development Strategy

Page 2: The Neighborhood Transformation Initiative Philadelphias 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

Page 3: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

$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

Page 4: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

• 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

Page 5: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

Housing Markets, 2001Source: The Reinvestment Fund

Page 6: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

Housing Markets, 2003Source: The Reinvestment Fund

Page 7: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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

Page 8: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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

Page 9: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

Pursuing Equitable Community Development

Page 10: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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.”

Page 11: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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

Page 12: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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

Page 13: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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

Page 14: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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)

Page 15: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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%

Page 16: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy
Page 17: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

Proposed Interventions

Page 18: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy
Page 19: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy
Page 20: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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

Page 21: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

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

Page 22: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

Reporting/Performance Integration

create/track performance goals measuring: outputs outcomes impacts

track outcomes and impacts at household and neighborhood levels as measures of success

Page 23: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy

Resources

NTI bond proceeds will fund:Project managementTraining, professional services, staffPerformance measurementFlexible loans and/or grantsReserve for HERO loan program

Leverage CDBG resources

Page 24: The Neighborhood Transformation Initiative Philadelphias Equitable Development Strategy