|
.jpg)
Recent Similar ArticlesHousing, Homeless Issues:
|
Toward a More Equitable Housing Policy
by
Aaron Couch, PhillyIMC | 03.20.2006
The former Director of Housing in Philly is proposing a revision of the city's taxes to help fund affordable housing. But is amending a tax loophole for high end developers the solution?  John Kromer sees opportunity and peril in Philadelphia's recent housing boom. The former Director of the Office of Housing and Community Development during the Rendell Administration is also ready to broker a deal that "10 years ago wouldn't have been possible." He is proposing that the city keep the current 10-year tax abatement program but give revenue from the 11th year to affordable housing in the form of donations to the Philadelphia Housing Trust Fund or City Development Block Grants. It would generate $7 to $8 million a year for affordable housing. "This is an opportunity for a political alliance between developers and housing advocates," Kromer told an audience at a recent forum held by Project H.O.M.E. at their Kate's Place facility. See his presentation here (PPT viewer needed). Affordable Housing CrisisPhiladelphia is facing an affordable housing crisis. A 2003 study by the University of Pennsylvania calculated that 60,000 units of affordable housing are needed to meet the demand. The recent housing boom is part of a process that has brought in new revenue and a downtown revitalization to the city. But this has also increased housing prices making it more difficult for many to keep up. Many are also being forced out of their current homes. Both homelessness and poverty have increased recently in Philly. "Unless more is done on affordable housing we will have a very serious situation here," Kromer advised at the Project H.O.M.E. forum. "It is an economic development issue as well… even for those who don't care about the human dimension." 50 Years of DivestmentDespite the recent center city housing boom, Philadelphia is facing 50 years of divestment that has cost the city half a million residents and millions of dollars of tax revenue. Much of the city's housing policy is engineered toward reversing that trend. Jobs, housing, and tax policy are all part of that mix. 10-Year Tax AbatementThe 10-Year Tax Abatement attempts to level playing field with the suburbs that have drained the city of a quarter of its tax base. The abatement allows for a ten year reprieve for owners on the increased market value of development or improvement on housing. This can save thousands of dollars on property taxes over the ten year abatement period. The abatement is available city-wide for all new housing, vacant rehab, and improvements on housing. The abatement has been available since 1997. 1,876 properties have used the abatement, the overwhelming majority of which has gone to condo and rental development. Proponents describe the abatement as a wealth magnet drawing in needed well-off taxpayers. Many credit the abatement as significantly contributing to the recent housing and condo boom in center city. An Inequitable TaxSome community and housing advocates argue that the abatement should be eliminated entirely because it is so heavily geared toward wealthy developers. According to a recent study led by John Kromer most of the benefits of the 10-Year Tax abatement go to the richest developers in the city's strongest housing markets. The abatement is also a gentrification engine, as it puts the tax burden on neighbors for new construction or improvement in their community. "The better place to get those taxes would be from the developers themselves," said a participant at Project H.O.M.E.'s panel. "Banks will not lend us money for development. They are not lending money to the community," said Bonita Cummings, Director of the Strawberry Mansion Community Center. While the influx of wealthy tax-payers is a boon, whether or not these developments would have occurred without the abatement is also up for discussion. Empty nester trends, the Center City District, and low interest rates have also contributed to the recent boom. Widening the DebateJohn Kromer's plan is to leverage funds from the tax abatement for affordable housing. This is funding is desperately needed. Other models for generating revenue for affordable housing include "inclusionary zoning" and further modifications to the tax abatement such as barring it from center city or not offering it to large developers. The tax abatement is up for renewal and discussions will be held in city hall this spring. Some call for an elimination of the tax abatement entirely. While the debate continues, people are still being pushed out of their homes. A number of city residents expressed outrage during Project H.O.M.E.'s panel at the inequality of the situation. "If you don't talk about racism, you're not going to get to the bottom of it," said Bonita Cummings. "This is a have and have not situation." |
|
© 1999–2008 Philadelphia Independent Media Center |
|
Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by PhillyIMC.
|
Comentarios
Enviar un comentario nuevo