Building an Affordable Future

Transcription

1 Building an ffordable Future ity ouncil of Philadelphia

2 ity ouncil 15 ew ffordable ousing nits nitiative xecutive summary n uneven economic recovery following the reat ecession has brought income inequality into sharp relief across the country, including in Philadelphia. oupled with the housing crash, which spurred the recession, many regions of the country are grappling with a critical shortage of affordable housing. his crisis can be seen in cities, suburbs and rural areas, and is found not just in large municipalities like ew ork ity and an Francisco but in smaller cities such as arlsbad, ew exico and Fort ollins, olorado. Philadelphia is uniquely positioned to tackle our affordable housing crisis because we have what many other major cities do not: thousands of publicly owned, buildable parcels of land plus access to untapped federal resources to spur development. he Philadelphia ity ouncil ( ity ouncil ) proposes the 1,5 ew ffordable ousing nits nitiative, a legislative and policy response to growing demand for affordable housing in Philadelphia. he initiative envisions the construction of 1, affordable rental units and 5 ownership units affordable for moderate-income households over a two-year period. o create 1, affordable rental units, ity ouncil proposes the use of ousing rust Funds in conjunction with unspent federal and state housing assistance funding to accelerate the production of affordable housing units on vacant land in the public inventory through (i) new construction or (ii) substantial rehabilitation of existing housing units in strategically designated neighborhoods throughout the city. he proposed plan combines existing affordable housing programs of the ity, the Pennsylvania ousing Finance gency (PF) and Philadelphia ousing uthority (P) to leverage each more effectively and to unlock greater outside funding in order to generate 1, affordable rental housing units in Philadelphia. o create 5 affordable ownership units, ity ouncil proposes the use of vacant land in neighborhoods experiencing rapid increases in housing value as leverage to construct homes affordable to households whose incomes are between 8 to 12 percent of rea edian ncome. he primary goals of the 1,5 ew ffordable ousing nits nitiative are: ore effectively utilize state and federal housing funds that are allocated to the city but are not used to their maximum potential or at all; ick-start revitalization in blighted neighborhoods by developing affordable rental units on publicly owned land; Promote and maintain sustainable mixed-income communities by developing affordable rental housing and affordable ownership units on publicly owned land in rapidly gentrifying areas; onvert publicly owned land into taxable properties, owned by a taxable entity, providing an additional annual property tax revenue stream to the city; and reate jobs, both construction and construction-related, in addition to post-construction jobs in managing and maintaining the affordable rental units. he economic and fiscal impacts of the initiative include: ne-time construction-related economic impact of $681.8 million, supporting 4,248 jobs generating an aggregate of $416.8 million, and adding $518.1 million to Philadelphia s P (value added); one-time fiscal impact of $26.9 million in revenue to the city from the economic activity generated by the construction of 1,5 housing units; nnual ongoing economic impact of $11.5 million in output, supporting 118 jobs, $5.2 million in labor income, and adding an additional $9.6 million to local P; and n estimated $136.5 million in value added to the property tax base, resulting from both additional units ($28 million) and positive spillover effects of eliminating blight ($18.5 million). 2 ity ouncil 15 ew ffordable ousing nits nitiative

3 he ffordable ousing ssue for Philadelphia ousing affordability is a key and growing concern in the nited tates, especially in revitalizing cities like Philadelphia. rowing demand for housing has generated greater residential investment activity, and in some cases higher property values. uch growth can result in rapid transformation of neighborhoods and displacement of longtime residents. mproving the quality of life for residents across all of the city s neighborhoods is a priority of Philadelphia ity ouncil. hile some residents have realized significant increases in the values of their homes, many have not. ity ouncil deems it in the public interest to mitigate negative social costs associated with rapid neighborhood transformation and the lack of affordable rental and homeownership opportunities, while encouraging private investment and the benefits growing asset values can bring to property owners. ity ouncil understands that significant reinvestment in the city s housing stock is necessary for real and lasting improvement in the quality of life in our neighborhoods. n order to increase housing affordability, our city should encourage a greater overall supply of housing so that traditional market filtering dynamics will maximize the housing opportunities for all Philadelphians. ue to a variety of dynamics, the housing market in Philadelphia has generated relatively few new affordable units over the past several decades, leading to a tremendously restricted supply of housing that is affordable to middle- and lower-middle-income residents. he city s housing stock has gotten much older, more obsolete and more dilapidated. he middle class and those in challenged communities are the most impacted by negative effects of these unfavorable market conditions. he city s housing market is enormous: nearly 67, units with a total market value of approximately $7 billion. ity government, even when tapping Federal and tate housing resources, has had limited funding available for low- and moderate-income housing. oday, more than 44, Philadelphians (or 26.9 percent) live in poverty, and the majority of these need affordable housing. P alone has a waiting list that exceeds 11, families (for 1,5 units/ year that become available). P, the ity s ffice of ousing and ommunity evelopment () and community development organizations such as Project... strive to meet the high demand for affordable housing in both rental and ownership markets, but the financing tools available to create an adequate supply of homes in Philadelphia and throughout the ommonwealth are severely limited. he identification and implementation of new financing options must be a priority in order to address the basic needs of Philadelphians for safe, familyfriendly, quality housing. espite significant investment by the ity in new construction of affordable housing, there remains a severe overall shortage of affordable housing in Philadelphia. he private market also has not met this need because of insufficient investment in both market rate and affordable housing over several decades. 4 ity ouncil 15 ew ffordable ousing nits nitiative

4 ne impediment to increasing affordable housing supply is that construction and development costs are often far greater than the market value of completed units. s a result, a significant portion of existing public subsidies goes toward paying down costs rather than producing additional units. ity government s ability to directly influence the personal wealth of residents or lower construction costs is severely limited. owever, ity government can directly influence the supply of new affordable housing by increasing public subsidies, including the availability of publicly owned land, to encourage development. ot at th 1. umerous counties throughout Pennsylvania are struggling to provide affordable housing for the growing number of residents facing unemployment or low-wage employment. he median renter in 3 out 67 counties spends more than 3% of their income on rental housing. 2. he median monthly rent increased by about 47% from $569 in 2 to $836 in 21. here are approximately 26,861 rental households of which nearly 72%, or 186,225, have extremely low to moderate incomes and are cost burdened. 3. he causes and conditions that give rise to this shortage are outlined extensively in the ffice of ousing and ommunity evelopment s nalysis of mpediments to Fair ousing hoice. Further documentation can be found in the ity s nnual onsolidated Plan, which is prepared and submitted to the.. epartment of ousing and rban evelopment () in order to receive federal funds. Francisville ast icetown ourt 6 ity ouncil 15 ew ffordable ousing nits nitiative

5 Potential Partners PF (Pennsylvania ousing Finance gency) PF manages two federal ow ncome ousing ax redit () programs: 9% and 4%. he 9% is clearly a greater subsidy for which there are more applicants than can receive the credits. he 4% is never oversubscribed, but provides a lesser subsidy, and therefore the need to provide greater local subsidy in order to develop units. P (Philadelphia ousing uthority) P is a participant in the.. epartment of ousing and rban evelopment () ovingto-ork emonstration Program ( Program ). P has the authority, under the Program, to establish a local unit-based rental assistance program and to develop new approaches for administering public housing operating subsidy. P has created the ocal nit-based perating ubsidy Program using Program authority to further P s goal of increasing the availability of, and private investment in attractive, affordable, quality housing, in quality neighborhoods throughout the ity of Philadelphia. nits in the ocal nit-based perating ubsidy Program are subject to the requirements of the federal public housing program. his program requires residents to pay a rent of 3 percent or less of monthly adjusted income. apital Funds (as defined in ection 1437g[d] and 24 F Part 95 and which may include replacement housing factor funds) may be provided to help pay for the costs of acquiring, repairing, rehabilitating or constructing affordable rental units. apital Funds may be provided in the form of loans to ensure long-term affordability. 8 ity ouncil 15 ew ffordable ousing nits nitiative

6 P may modify the ocal nit-based perating ubsidy Program as follows: P may combine public housing operating subsidy with other Program funds to establish a local Program subsidy level higher than the standard public housing operating subsidy amounts (this amount may be higher than the $55 that P has offered through its ocal nit-based perating ubsidy FP); P may allow owners of ocal nit-based perating ubsidy Program units to utilize operating subsidy and other Program funds to pay for debt service associated with the units. his modification will require P to obtain a waiver from ; and he eclaration of estrictive ovenants (required by on all ocal nit-based perating ubsidy Program properties) may be modified to eliminate or change the standard 1-year affordability tail. his is permitted even when the operating subsidy is provided in combination with voucher or other Program funds. his modification will require P to obtain a waiver from. ot at th ity of Philadelphia ore than 11, surplus properties in Philadelphia are owned by four public entities: the ity, the Philadelphia ousing evelopment orporation (P), the Philadelphia edevelopment uthority () and P. he Philadelphia ity ouncil 1,5 ffordable ousing nits nitiative will utilize more than 1, publicly owned parcels to develop new affordable rental housing. his will reduce the public inventory by approximately 1 percent. Paschall Village Benefits of using the existing public inventory include: no acquisition costs, reduction of the public inventory of approximately 1 percent, and generation of taxes and other revenue. strategic benefit is that there is significant unused public inventory in areas of rapidly increasing real estate values such as Francisville (24 parcels), Point Breeze (33 parcels) and antua (623 parcels). Building affordable rental units in gentrifying neighborhoods guarantees some level of economic and social diversity -- one of the key goals of this initiative. evelopment of affordable rental units also will kick-start revitalization in non-gentrifying areas of the city. aps identifying these areas, known herewith as pportunity Zones, can be found in ppendix B. ity ouncil has identified the Philadelphia ousing rust Fund as an appropriate source for the ity s funding contribution, to be used in conjunction with PF and P program funding to complete the gap financing for projects under this initiative. ather than borrowing $1 million to capitalize a rent subsidy fund and incur substantial interest costs, ity ouncil proposes adopting a model similar to the hicago s ow-ncome ousing rust Fund s ental ubsidy Program, which provides over $15 million in rental subsidies per year out of current revenues. sing this methodology would save an estimated $3 million per year in interest costs that would be incurred if debt financing were to be utilized. 1 ity ouncil 15 ew ffordable ousing nits nitiative

7 conomic and Fiscal mpacts he ity will annually provide up to $5 million of ousing rust Fund revenues to leverage or unlock approximately $2 million in federal and state subsidies and low-income tax credit equity. he total up-front expenditure of $3 million for the construction of 1, affordable rental housing units will generate a significant number of jobs and both direct and indirect economic activity benefiting a variety of local industries. n addition to the initial construction period economic impact, there will also be an unquantifiable, lasting economic impact resulting from the stabilization and revitalization of communities. ffordable housing frees up a larger share of residents income to be spent in the community. ngoing operation of the rental housing units will have lasting economic impact in the form of building maintenance, new utility hook-ups and the positive effects of replacing vacant lots with housing. etailed economic and fiscal impacts of the 1, ffordable ental ousing nits program include: otal one-time impact of $512 million in economic activity during the construction period (includes a one-time impact of more than $31 million in labor income from approximately 3,2 construction jobs and approximately $17.2 million in tax revenue to the city); otal annual impacts of $8.6 million in economic activity from ongoing operations (includes $3.9 million annually from 92 jobs in support of building operations and maintenance); and n estimated $94. million in taxable property value added to the property tax base, resulting both from additional units ($22 million) and the positive spillover effects from eliminating blight ($72 million). 12 ity ouncil 15 ew ffordable ousing nits nitiative

8 ne-time conomic and Fiscal mpacts from p-front onstruction p-front expenditure of $3 million from the ity, tate and Federal sources will generate approximately $512 million in total economic activity in Philadelphia, including 3,189 total jobs and $312.6 million in labor income (able 1). irect jobs -- those associated with the design and construction of housing units -- account for 1,775 of the total ($228.5 million in income). ndirect jobs -- those in industries up the supply chain that provide goods and services to the direct industries -- account for 447 of the total ($28.2 million in income). nduced jobs -- those in industries supported by household spending of direct and indirect workers -- account for 967 of the total ($55.8 million in income). his economic activity is estimated to add $388.6 million in P (Value dded) to the ity of Philadelphia s economy. nnual conomic and Fiscal mpacts from ngoing perations conomic activity generated by ongoing maintenance of the 1, rental units, including new utility hook-ups, is estimated to contribute $8.6 million annually in output to Philadelphia s economy -- supporting a total of 92 jobs and $3.9 million in labor income, and adding $7.2 million in P (Value dded). able 4 - nnual conomic mpact of ngoing perations of 1, ffordable ousing nits in Philadelphia. able 1 conomic mpact of onstruction of 1, ffordable ousing nits in Philadelphia he distribution of total jobs from ongoing operations is shown in able 5. istribution of total jobs (inclusive of indirect and induced) generated by up-front construction is shown in able 2. ndustries most impacted are construction (1,47 jobs and $188 million in labor income) and architecture/engineering (42 jobs and $46.2 million in labor income). able 5 ector Breakdown of otal mployment and ages enerated by nnual conomic mpact of ngoing perations of 1, ffordable ousing nits in Philadelphia able 2 ector Breakdown of otal mployment and ages enerated by onstruction of 1, ffordable ousing nits in Philadelphia conomic activity generated by up-front construction spending is estimated to contribute $17.2 million in tax revenue to the city (able 3). able 3 ne-time Fiscal mpact of onstruction of 1, ffordable ousing nits in Philadelphia ngoing operations of the 1, rental housing units is estimated to have a total fiscal impact of $1.9 million, comprising both new tax revenues and cost savings associated with the city having fewer vacant lots to maintain. here are three sources of tax revenue: 1) wage taxes on $3.9 million in total labor income (able 4); 2) property taxes from the new housing units; and 3) more tax revenue from property value increases associated with revitalization. he fiscal impacts are summarized in able * axable value of units fixed at $22,, property tax rate is 1.34%. otal blighting effect of ~4, vacant parcels estimated to be $3.6 billion, here we assume putting 1 into use would ameliorate 1% of total - hence $3.6 billion x 2% = $72 million. (ee consult 21 report Vacant and anagement in Philadelphia for detail on calculation). otal ascertainable direct cost of ~4, vacant parcels estimated at $21.3 million, or approximately $533 per parcel. his is an annual reduction of city expenditures, not direct city revenue. (see consult 21 report Vacant and anagement in Philadelphia calculation). ity ouncil 15 ew ffordable ousing nits nitiative

9 able 6 nnual Fiscal mpact of ngoing perations of 1, ffordable ousing nits in Philadelphia P Financing odel ot at 37th and allace Paseo Verde 16 ity ouncil 15 ew ffordable ousing nits nitiative

10 5 ew ffordable wnership ousing nits ity ouncil recognizes there is a significant price gap between subsidized affordable housing offered in homeownership programs and market rate housing in neighborhoods that are seeing rapid increase in values. his gap has discouraged the development of new homeownership opportunities in these neighborhoods for households that fall between 8 percent and 12 percent of rea edian ncome. ity ouncil proposes the use of publicly owned land in neighborhoods experiencing rapid increases in value to leverage and stimulate new construction homeownership units affordable to households whose incomes range from 8 percent to 12 percent of rea edian ncome. Publicly owned parcels will be provided to developers for nominal consideration with a restrictive covenant that requires them to build and sell at prices affordable to the target income group. he restrictive covenant will be passed on to buyers that will require them to sell the property at a price affordable to households within the target income group if they decide to sell within 1 years of purchase. $2, mortgage is affordable to households in the target income range. t is assumed that the new construction units will receive a 1-year tax abatement on improvements and that only the value of land will be taxed during this period. suggests that no more than 3% of gross household income should be spent on Principle, nterest, axes and nsurance (P). For a $2, mortgage at 4.5% interest for 3 years P would require a 23% of a four person household earning 8% of and 15% for a four person household earning 12% of, well within the guidelines. here is a sufficient number of parcels located in neighborhoods where values are increasing rapidly to implement this proposal (ppendix B). he opportunity to create even more affordable homeownership units could increase exponentially through the Philadelphia and Bank, which will have authority to acquire some privately owned, vacant, tax-delinquent properties. uch properties are highlighted in pink in the pportunity Zones maps. 18 ity ouncil 15 ew ffordable ousing nits nitiative

11 conomic and Fiscal mpacts he 5 ew ffordable wnership ousing nits plan will confer benefits to the ity of Philadelphia similar to those offered in the 1, ew ffordable ental ousing nits plan. First, construction will generate a significant amount of one-time activity, not just in directly affected industries (primarily construction and professional services) but also among suppliers of goods and services to those industries, as well as the shops and restaurants where construction workers spend their income. his activity will generate wage, sales and business tax revenue, as well as transfer tax revenue from the sales of the new homes. hese homes will generate continued economic benefits through household maintenance costs and utility spending, as well as fiscal benefits stemming from increased property revenue and blight removal. 1. ne-ime conomic and Fiscal mpacts from onstruction otal evelopment costs: $2, per unit. ale Price: $215, per unit. able 1 conomic mpact of onstruction of 1, ffordable ousing nits in Philadelphia he economic and fiscal impacts of the 5 ew ffordable wnership ousing nits plan include: otal one-time impact of $17 million in economic activity during the construction period (includes more than $14 million in labor income from approximately 1,59 jobs and approximately $9.7 million in tax revenue to the ity); otal annual impacts of $2.9 million in economic activity from ongoing operations (includes $1.2 million in labor income from approximately 26 jobs); and n estimated $42.5 million in taxable property value added to the property tax base, resulting both from the additional units ($6.5 million in taxable land value) and the positive spillover effects from eliminating blight ($36 million). 2. nnual conomic and Fiscal mpacts from ngoing perations able 4 nnual conomic mpact of ngoing perations of 5 ffordable wnership nits able 2 ector Breakdown of otal mployment and ages enerated by onstruction of 5 ffordable wnership nits able 5 ector Breakdown of otal mployment and ages enerated by ngoing peration of 5 wnership nits able 6 nnual Fiscal mpact of ngoing perations of 5 ffordable wnership nits able 3 ne-ime Fiscal mpact of onstruction and ale of 5 ffordable wnership nits (econdary ransfer ax assumes half of new homeowners will move from and sell homes owned elsewhere in the city. Previous homes are assumed to sell for $1,.) * edian taxable land value for residential properties is approximately $13, per unit; total $6,5,; property tax rate is 1.34%. ssumes all improvements (i.e., the home itself) will be abated. otal blighting effect of ~4, vacant parcels estimated to be $3.6 billion. e assume putting 5 into use would ameliorate 1% of total - hence $3.6 billion x 1% = $36 million. (ee consult 21 report Vacant and anagement in Philadelphia for detail on calculation). otal ascertainable direct cost of ~4, vacant parcels estimated at $21.3 million, or approximately $533 per parcel. his is an annual reduction of city expenditures, not direct city revenue. (ee consult 21 report Vacant and anagement in Philadelphia calculation). 2 ity ouncil 15 ew ffordable ousing nits nitiative

12 conomic and Fiscal mpacts 1,5 ew nits of ffordable ousing nitiative he total economic and fiscal impacts of creating 1, new affordable rental units and 5 new affordable ownership units include: ne-time economic impact of construction spending of $681.8 million in economic activity, supporting 4,248 jobs earning an aggregate of $416.8 million in labor income, and adding $518.1 million to Philadelphia s P (value added); one-time fiscal impact of $26.9 million in revenue to the city from the economic activity generated by the construction of 1,5 housing units; nnual ongoing economic impact of $11.5 million in output, supporting 118 jobs, $5.2 million in labor income, and adding $9.6 million to the local P; and n estimated $136.5 million in property value added to the property tax base, resulting both from the additional units ($28.5 million) and the positive spillover effects from eliminating blight ($18.5 million). able 7 - ombined conomic mpacts of onstruction and peration of 1,5 ousing nits in Philadelphia able 8 - ombined Fiscal mpacts of onstruction and peration of 1,5 ousing nits in Philadelphia able 9 - ombined Property Value mpacts of onstruction and peration of 1,5 ousing nits in Philadelphia 22 ity ouncil 15 ew ffordable ousing nits nitiative

13 his report is the result of a collaborative effort between ity ouncil echnical taff and consult olutions with input and data from various public entities and private stakeholders. ll analysis of economic impact in this proposal was prepared by consult olutions, nc. brief description of the methodology used for the economic impact analysis can be found in ppendix. ppendix : Brief emographic ata ummary he.. epartment of ealth and uman ervices sets the poverty line for a family of four at incomes equal to or below $23,55 per year. n 212, the median household income nationwide was $53,46; in Pennsylvania, it was $52,267. he median household income in Philadelphia is $37,16, which places the city near the bottom of the top 25 comparable cities, which includes leveland, Baltimore, and Pittsburgh. eighborhoods in ortheast, est, and orth Philadelphia have median household incomes of $28,988, $26,487, and $14,586 respectively -- all near or below the federal poverty line. he unemployment rate in the ity of Philadelphia from 22 to 212 has consistently exceeded national, state, and regional rates. n 212, the city s unemployment rate hit 1.7%, while the national, state, and regional rates were 8.1%, 7.8%, and 8.5% respectively. hen compared to the top 25 cities in the country, Philadelphia s unemployment rate was exceeded only by the ity of etroit. ince 22, the city has lost more than 3% of jobs (or 22,1), while the population of the city, in the same period, grew by 3.2% (or 49,114 people). n general terms, the city s population and workforce expanded for middle- to higher-income economic brackets during this period while the number of Philadelphians who are unemployed and living in poverty continued to grow. any residents of challenged neighborhoods in Philadelphia commute to area suburbs for low- or minimum wage-jobs in the hospitality and retail sectors. Job growth in the city is seen in the health and education sectors, where education requirements for employment are an obstacle for the majority of the city s moderate - and lowincome families. his has resulted in an increased supply of middle- to high-income rentals in the expanding boundaries of enter ity and orthern iberties to meet the housing demands of workers employed in the city s economic growth sectors and stagnating housing supply for moderate- and low-income families. his imbalance has further concentrated poverty in challenged neighborhoods in the orth, est, and lower ortheast. verall, P residents experience higher levels of unemployment and lower levels of educational achievement when compared with the overall population of the city. he unemployment rate of residents living in P s 57 developments is 67.8% compared with the citywide unemployment rate of 9.5%. igh unemployment among P residents is reflective of low rates of educational achievement among this population. he most highly requested social service among P residents aged 18 to 3 years of age is assistance with achieving a eneral ducation iploma (). esting of nearly 5 residents in the past five months has shown an average literacy at the fourth to fifth grade levels and an average numeracy rate of third to fourth grade. itywide, 82% of eighth graders tested at a basic or below basic proficiency in math and reading, according to the 213 Pew haritable rust tate of the ity eport. he wait for P housing is 1 years long on average. pproximately 43 units become available annually for waiting list clients. esidents occupy P units for 12.5 years on average. ecipients of ousing hoice Vouchers retain the vouchers for 9.5 years on average before self-sufficiency is achieved. iven the financial tools that are currently available and the lack of assured federal funding, P will never be able to fully meet the enormous demand for affordable housing in Philadelphia. 4 ee, Pew haritable rust 213 tate of the ity. 5 d. 6 For residents aged 18 to ee,.. Bureau of abor and tatistics, ovember 213 at, Philadelphia -ity-tatistics.pdf. 9 d. 1 d. 24 ity ouncil 15 ew ffordable ousing nits nitiative

14 1st istrict - pportunity Zone #2 PPX B: pportunity Zones P B V P P J F V F V B B F F B 2 B XP PP F F BF V 2 P P B Z B 16 BV B P F V F 2 P PZ P V PP B F P F 7 F B F B XP 3 F F B P egend otal Potentially vailable Vacant ax elinquent Parcels = 394 otal vailable urplus Public Parcels = 133 ombined otal Potentiallyl vailable Parcels = iles B XP P 15 BF 8 B 8 P P P P FZ P 9 PB V F P 9 Vacant ax elinquents F V J P F egend V FF 6 B F FZ 22 FF PP P 1 B V B P P FF 3 P J XP F 11 JP PB V F.75 B.5.25 JP P iles 1 2nd istrict - pportunity Zone "Point Breeze" B P JP B F.125 JP Vacant ax elinquents otal vailable urplus Public Parcels = 357 otal Potentially vailable Vacant ax elinquent Parcels = PP 5 F F P P P 11 JP JP 13 egend otal Potentially vailable Parcels = F B F P FZ 12 F B JP P V F JP V F JP P P F P Z F FF B P V F P F B P B JP F P 7 PP B 26 B P B B FF B F F P.3 J V Z F P FZ B ZZ FF P P F V Z B P P PP J Z B J B P F F B P F V PV B B B B P J PP B B Q J P B P J V F 1st istrict - pportunity Zone #1 B J P P B PP P P F P F J PV J B PP P J B he following maps were created using data from the ity, P, and P. Privately owned tax-delinquent properties, which are potentially acquirable by the Philadelphia and Bank uthority, were identified using ater and evenue epartment data. he following maps do not represent the entire universe of potential pportunity Zones, nor is the identification of pportunity Zones a recommendation for implementation of the nitiative. he maps are meant to illustrate the many opportunities across Philadelphia to use publicly owned land for the creation of new affordable housing. P pportunity Zones are defined as areas within the city that contain a sufficient number of publicly owned properties to effectively implement this nitiative. For economic feasibility, each pportunity Zone must contain 5 or more publicly owned parcels. Vacant ax elinquent P P Pub V P otal Potentially vailable Vacant ax elinquent Parcels = 768 otal urplus Public Parcels = 329 otal Potentially vailable Parcels = iles ity ouncil 15 ew ffordable ousing nits nitiative

15 3rd istrict - pportunity Zone "antua" 25 4th istrict - pportunity Zone # 2 B P J P 35 B BB F F egend 25 B B P J B 4 34 Vacant ac elinquent B 28 V P PB V VF Z PB V 22 2 P otal Potentially vailable Parcels = iles otal Potentially vailable Vacant elinquent Parcels = B Vacant ax elinquents otal vailable Public Parcels = 669 V 23 otal Potentially vailable Vacant ax elinquent Parcels = 458 egend P V 39 4 B B V 32 PP V P P F V 36 B P 3 P P 32 PP F 33 P X PP B F V B 34 otal vailable Public urplus = 133 otal Potentially vailable Parcels = iles 5th istrict - pportunity Zone "Francisville" 4th istrict - pportunity Zone #1 53 P FZ 56 B P P F V B FZ B 6 F B B B P PP P P V X 28 P P B P PP FZ P 55 FZ B F PB V B FB.3.4 iles B F V Vacant ax elinquent otal vailable Public urplus Parcels = 384 otal Potentially vailable Parcels = B B egend.2 52 V.5.1 FB F V FB B F Q PP B P P otal Potentially vailable Vacant elinquent Parcels = 992 P 59 F B F P P B 15 B V P P F P B P P P F 16 V P V V F F PP 19 B P B PP PP 63 B F B P FZ V F 17 otal Potentially vailable Vacant elinquent Parcels = 142 otal vailable Public urplus Parcels = iles otal Potentially vailable Parcels = 343 egend Vacant ax elinquents P PB V ity ouncil 15 ew ffordable ousing nits nitiative

16 7th istrict - pportunity Zone # 2 7th istrict - pportunity Zone # 1 XF P V J P otal Potentially vailable Vacant ax elinquent Parcels = 378 otal Potentially vailable Parcels = 477 J P P otal vailable Public Parcels = 99 B F PP V FF F P B 2 P P 3 P B P J J P F P PP egend Vacant ax elinquent P PB V iles 7 Q P 7th istrict - pportunity Zone # 3 otal Potentially vailable Vacant ax elinquent Parcels = 1974 F B P Z B F F 4 B P PP B B P F J P F F X 5 B B.5.1 otal vailable Public urplus = 643 V B P P P F B P XF P P B F B ZZ otal Potentially vailable Parcels = 2617 B B V V V Z B V F V V P B B 4 B PP P B F PP 6 XF F B F F B B F F V F B PP P XF B F P 6 otal Potentially vailable Vacant elinquent Parcels = 1562 B B otal vailable Public nventory = 1331 otal Potentially vailable Parcels = 2893 XF JFF egend Vacant ax elinquent P iles.4 P PB V egend Vacant ax elinquent P PB V.75 1 iles ity ouncil 15 ew ffordable ousing nits nitiative

17 8th istrict- pportunity Zone #1 P V P F Z V P B B B V V BV V B.1 V F Z egend Vacant ax elinquent ombined otal of Potentially vailable Parcels = F otal Potentially vailable Vacant ax elinquent Parcels = 59 otal vailable Public urplus Parcels = 154 B B P P X F P V V B B P P Q B P X P P F B P P.2 PB V iles.4.3 ppendix : conomic mpact odeling (ethodology) F Q B P PB X F B 8th istrict- pportunity Zone #2 P V o estimate economic impacts associated with the construction and operation of 1,5 new affordable housing units, consult olutions, nc. constructed an economic impact model that utilized multiplier data from the innesota mplan roup s mpacts for Planning software (P) to estimate the composition and scale of expenditures, employment, and earnings resulting from the direct expenditures associated with the design, build, and occupation of affordable housing units. his model estimated two forms of spillover impacts resulting from these direct expenditures: 1. ndirect expenditures are generated as local vendors increase production in response to initial expenditures. ew expenditures on inputs and services (e.g., equipment, materials, professional services) cause suppliers of those inputs and services to ramp up production and to acquire additional inputs and services from their suppliers, who themselves will do the same. he sum of these economic activities is known as indirect expenditures, and they support additional employment and earnings beyond the employment and earnings supported by direct expenditures. 2. nduced expenditures are generated as employees spend their earnings within the local economy. ew expenditures on people (i.e., salaries) create additional spending power. ome of that spending power is exercised within the region, supporting local providers of goods and services (e.g., food, entertainment, lodging, transportation). he sum of these economic activities is known as induced expenditures, which support additional employment and earnings beyond the employment and earnings supported by direct expenditures. irect, indirect, and induced expenditures support a scale and composition of employment and earnings that can be estimated using P multipliers. For the purposes of this report, the unit of geography for which estimates were made was the ity of Philadelphia. F B X 22 otal vailable Public urplus Parcels = 231 egend otal Potentially vailable Vacant elinquent Parcels = 1393 Vacant ax elinquent ombined otal Potentially vailable Parcels = P iles.4 PB V ity ouncil 15 ew ffordable ousing nits nitiative

18 ot at 37th and averford ot at 11th and omerset edars Village John. nderson pts. 34 ity ouncil 15 ew ffordable ousing nits nitiative

19 ity ouncil of Philadelphia 214