Mayor Cherelle Parker’s ambitious housing plan appeared to be in jeopardy Wednesday afternoon, with at least a few City Council members expressing reservations over her proposal to borrow $800 million to fund the initiative.
“I fundamentally disagree with H.O.M.E., and I don’t know if there’s anything that you could say to convince me right now that this is the direction that the City of Philadelphia needs to go in as far as investing a billion dollars,” Majority Whip Isaiah Thomas told administration officials.
Lawmakers recessed a hearing about the Housing Opportunities Made Easy, or H.O.M.E., bond Wednesday afternoon without a preliminary vote but with plans to return later in the day.
The Parker administration has pressed to have the H.O.M.E. plan advance alongside the municipal budget, which must be adopted by the end of the month. Negotiations on that front were also ongoing late Wednesday.
Council’s rules dictate that the legislative package be finalized by Thursday, in order for a final vote to be held June 12, the body’s final scheduled meeting before summer break. Council President Kenyatta Johnson has stated his hope of keeping to that timeline, though he could call or a special session.
Go to metrophiladelphia.com for more information and updates on the budget and H.O.M.E. Initiative.
H.O.M.E. is perhaps the signature policy offered by Parker in her second year in office. The plan calls for the building or preservation of 30,000 units of affordable housing in a four-year period through the creation, expansion and continuation of dozens of programs aimed at helping tenants, homeowners, developers and prospective buyers.
In addition to borrowing $800 million, the mayor’s initiative involves utilizing $1 billion worth of publicly-owned land and $200 million from a mix of sources, including partnerships with labor unions and other organizations.
Thomas, during a marathon hearing that touched on a variety of legislation, engaged in an intense back-and-forth with Parker’s finance director, Rob Dubow. At one point, the pair talked over each other.
“I’m not convinced that this is a good idea,” Thomas said. “I’m not convinced that $400 million is a good idea, let alone $800 million is a good idea.”
He and a couple of his colleagues indicated they might look more favorably on a proposal to issue a $400 million bond first, with the possibility of additional loans being approved down the line, should the initiative be successful.
But Dubow asserted that the administration wants to pass H.O.M.E. as a complete, cohesive plan.
“There is a housing crisis in Philadelphia. I think everyone agrees with that,” he testified. “We are proposing ways to attack that crisis.”
Despite his apparent strong opposition, Thomas told reporters outside Council chambers that he would not be lobbying fellow lawmakers to vote against the H.O.M.E. legislation.
As part of the housing bond, Dubow said the administration intends to borrow $400 million this fall and another $400 million in November 2027. Officials project $500 million in interest, bringing the total cost to taxpayers to $1.3 billion.
Majority Leader Katherine Gilmore Richardson asked administration officials detailed questions about previous large bond-funded programs, such as the Neighborhood Preservation Initiative and Rebuild.
“At no point, as a city, were we able to spend $400 million in two fiscal years,” she said. “Why is there a rush on borrowing $800 million right away?”
Dubow assured lawmakers that the city would not issue the second bond before spending all of the money from the first borrowing.
In a fairly odd development, some of Parker’s strongest support is coming from Council’s progressive wing. The mayor is typically considered a moderate Democrat, and she usually gets the most backing from like-minded legislators.
Though they are not members of Council’s finance committee, which is considering the bond bill, Jamie Gauthier and Rue Landau – two progressive Democrats – showed up to advocate for the plan.
“I think we absolutely need this level of investment in housing in the city in order to make a dent in the housing crisis,” Gauthier said. “We have seen dramatic gentrification in neighborhoods across the city, and we’ve also seen a lot of displacement.”
“I don’t always agree with the mayor on philosophical issues or ideological issues,” she added. “I am squarely behind her on this issue.”
Parker, for her part, took to social media Wednesday to rally support for H.O.M.E.
“The $800 million H.O.M.E. Plan is big and bold because the housing crisis is severe and gaining steam across our neighborhoods,” she posted on X, formerly known as Twitter. “We need to take H.O.M.E. to scale — it’s the best way to build, preserve and restore the 30,000 units of housing that Philadelphians need and deserve.”
