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The Neighborhood Transformation Initiative

The Neighborhood Transformation Initiative. Philadelphia’s Equitable Development Strategy. NTI Guiding Principles. Use planning as an investment tool Balance affordable and market rate housing Invest public funds to stimulate private market activity Foster competition to get the best product

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The Neighborhood Transformation Initiative

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  1. The Neighborhood Transformation Initiative Philadelphia’s Equitable Development Strategy

  2. NTI Guiding Principles • Use planning as an investment tool • Balance affordable and market rate housing • Invest public funds to stimulate private market activity • Foster competition to get the best product • Maximize private capital and minimize public dollars • Link housing with other public and private investments

  3. $306.6m Investment in Neighborhoods

  4. NTI Accomplishments • 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). • Completed12,974 new residential units, including8,931 affordable housing units • Provided31,315 units with housing preservation assistance

  5. Housing Markets, 2001 Source: The Reinvestment Fund

  6. Housing Markets, 2003 Source: The Reinvestment Fund

  7. Sustainable, Smart Growth Revitalization • 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

  8. Managing and Influencing Neighborhood Change • 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

  9. Pursuing Equitable Community Development

  10. 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.”

  11. 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

  12. 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

  13. 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

  14. 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)

  15. Mortgage Foreclosure Filings (2005 and 2006)

  16. Proposed Interventions

  17. 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

  18. 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

  19. Reporting/Performance Integration • create/track performance goals measuring: • outputs • outcomes • impacts • track outcomes and impacts at household and neighborhood levels as measures of success

  20. Resources • NTI bond proceeds will fund: • Project management • Training, professional services, staff • Performance measurement • Flexible loans and/or grants • Reserve for HERO loan program • Leverage CDBG resources

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