The Philadelphia real estate landscape is undergoing a large structural transformation. The most critical policy to understand in the Philadelphia real estate market is Mayor Cherelle L. Parker’s $2 billion HOME (Housing Opportunities Made Easy) plan. This is a four-year initiative designed to create and preserve 30,000 housing units across Philadelphia.
The plan is to inject capital into the market through city bonds and by utilizing $1 billion in publicly owned land value. The current administration is actively seeking production and neighborhood stabilization. This plan targets a balanced split of building 13,500 new homes and preserving 16,500 existing ones. Let’s take a look at what the plan includes in the simplest terms possible.
What is the Proposed H.O.M.E. Plan in Philadelphia?
How this new plan will impact everyday buyers and renters
Residents who are meeting a challenge of affordability will find that the plan is designed to provide direct relief and a clearer path to ownership and building wealth assets. About 30% of Philadelphia renters spend over half of their income on housing. This plan will help keep things affordable.
One Philly mortgage and financial aid
The plan extends first-time homebuyer assistance, grants, and introduces the One Philly mortgage program. This program is intended to give workers access to low-interest loans, making homeownership a realistic goal instead of something that is just out of reach.
Affordable luxury everywhere
The Parker Administration is shifting the standard of subsidized housing. New builds and rentals funded by the program are required to feature high-quality fixtures and modern finishes. This ensures that affordable housing is also quality housing.
Wider eligibility
Many housing programs implemented in cities are restricted to low-income thresholds. This initiative expands eligibility to include working- and middle-class potential Philadelphia homebuyers who have been previously priced out of home purchase plans.
The plan impacts local builders and developers
For contractors, developers, and local builders, the plan unlocks significant capital and clears hurdles that traditionally slow down new construction. The zoning and parking reform is designed to accelerate high-density and middle-density housing. The plan introduces sweeping zoning reforms, including permitting, two-family, duplexes, and traditional home zones; it eliminates some of the strict multifamily parking mandates in certain commercial corridors and holds back development impact taxes for some affordable projects.
The new plan will also introduce priority bidding for affordable housing builders, an updated tracking website, and a dedicated acquisition to speed up public land sales and transfers for developers.
Additionally, a public-private funding piece of the new plan will have hundreds of millions in freshly priced city housing bonds, actively hitting the market. This creates a reliable public partner to back large-scale residential projects.
How does this impact neighborhood preservation?
Rather than completely overhauling what is in place and special about Philadelphia, the plan focuses on keeping communities intact.
It will offer
Free major home repairs: a major component of the plan is keeping current homeowners in their properties. The plan will help to fund free structural roof and mechanical repairs for low-income and elderly homeowners. The city hopes to prevent properties from falling into unlivable disrepair and facing foreclosure.
Curbside appeal, matching grants: the plan offers areas to uplift entire blocks with plan funds matching grants for exterior property improvements. It keeps neighborhood aesthetics strong and raises standard property values without forcing residents out of their homes.
FAQ about the HOME Plan
Where is the money for the $2 billion plan coming from?
The funding is a mix of public and physical assets. It relies on $8 million in authorized city housing bonds and traditional local, state, and federal funding streams. The remaining $1 billion comes directly from the estimated value of publicly owned city land and underutilized municipal buildings that will be repurposed for other development.
How fast is housing being built under the plan?
The plan operates on a fast-track timeline. Currently, the administration has reached the halfway mark of 30,000 units being built. The pace is expected to continuously increase as new zoning and land-use reforms help streamline the construction process.
Who qualifies for help under this plan?
Eligibility is designed to be broader than previous city housing initiatives. The framework deliberately includes working-class and middle-class residents of Philadelphia. This helps to encourage widespread wealth building and stable home ownership for more people.
Will this plan also provide help to fix Philadelphia homes?
The preservation portion of the $2 billion budget expands existing local repair initiatives. It routes funds directly into home service clearinghouses, free structural repair programs for low-income homeowners that are eligible and exterior matching grants to combat neighborhood loss.
If you are considering Oakvale at Yardley, Anfield at Malvern, Charterfield Landing, Copperleaf Ridge or another Philadelphia-area development, start with Victory before scheduling several model-home visits. The team can help narrow the search based on location, property type, budget, and the homes currently available.
Search current Philadelphia-area homes for sale or visit Victory Real Estate LLC’s real estate services to learn more about working with the brokerage.