(PHILADELPHIA, PA - May 17, 2013) - The
Philadelphia Housing Authority has launched the formal process to
form new development partnerships as part of its "6 in 5"
Initiative, which is designed to create or preserve 6,000
affordable housing units over the next five years.
The agency has issued a request for proposals (RFP) for a local
unit-based operating subsidy program to assist developments that
serve low-income households. The subsidies may be used for
existing, newly constructed, or renovated housing units, and will
provide long-term financial assistance to property owners.
The housing authority's redevelopment of large sites into lower
density sites for more than a decade triggered the need for
replacement housing sites. However, federal funding to build new
sites has shrunk and the agency has decided that partnering with
other development groups that build affordable housing will be much
more effective.
PHA has some experience doing this already, notably at
privately-owned apartment complexes that house senior citizens.
"The severe reduction in federal funding for affordable housing
makes these types of partnerships critical to our success," said
Kelvin A. Jeremiah, President and CEO of PHA. "For too long, we
operated on our own. We cannot meet the need for affordable housing
in Philadelphia by ourselves."
The RFP (formally known as P-004278) invites proposals from
property owners and developers with existing units and new
construction that are or will be available for rental to extremely
low-income households (less than 80 percent of area median
income).
Operating subsidies could go as high as $550 per month, and the
agency may consider a higher subsidy for cases with exceptional
need. Interested parties may also request higher subsidy if they
agree to provide supportive services to residents substantially in
excess of services offered at comparable units, or if they can
demonstrate extraordinary infrastructure costs at new
developments.
Applicants to the subsidy program may also request capital funds
to support the acquisition or new construction of units to house
families eligible for public housing. PHA will give preference to
those proposals that request less capital funding, or none at
all.
The unit-based operating subsidy program also has the goals of
increasing affordable housing opportunities in neighborhoods not
impacted by poverty, fostering the revitalization of neighborhoods
targeted by the City, testing new opportunities and approaches for
assisting low and very low-income families, and increasing the
number of units available to income-eligible individuals who are
disabled, homeless or have special needs.
PHA is accepting proposals for the program through the end of
2014. Developers and others interested in viewing the RFP can
request a copy by following the instructions posted here. PHA is also holding
a non-mandatory pre-proposal conference on Thursday, May 23 at 1:00
p.m. at 3100 Penrose Ferry Road, Philadelphia, PA 19145. Please
call 215-684-4059 to confirm attendance.