Philly City Council, Mayor Parker Clash Over HOME Initiative Budget

The Philadelphia City Council has outlined how it would like Mayor Cherelle Parker to carry out the first leg of her signature HOME Initiative with a budget proposal advanced Tuesday. She has issues with the plan.

The broad affordable housing program the council greenlit in June aims to build or preserve 30,000 affordable units citywide via an $800M bond issuance. Council oversight of Parker’s spending through the program was a key agreement reached before the body gave its blessing.

The version of the HOME 2025-2026 budget proposed by the council Tuesday includes $277.2M, up 42% from the $194.6M in a version floated Oct. 30.

Council President Kenyatta Johnson said the latest iteration is more focused on impoverished Philadelphians.

“We are the second-poorest big city in America,” he said. “This reflects the will of members of city council who want to have a particular emphasis on that population.”

Parker had concerns with the changes, according to a statement provided to Bisnow on Tuesday night.

“The resolution that City Council passed out of the Committee of the Whole today contained language that our bond lawyers have repeatedly advised would prevent the administration from being able to issue the bonds,” she said.

"That means homes are not being restored. It means homes are not being built or repaired."

A spokesperson declined to identify what specific language the mayor was referring to.

Johnson released a statement Wednesday responding to Parker’s comments, saying the council wasn’t obligated to “rubber-stamp” her proposal. He also countered that city housing programs will not be shutting down due to the resolution advanced Tuesday.

“Philadelphia City Council members, our lawyers and housing experts strongly disagree with the suggestion that Council’s actions on the new H.O.M.E. resolution are the cause of delays in delivering housing resources to Philadelphians,” he said in the statement.

He plans to introduce another amendment to resolve the remaining legal and policy issues, which could happen as soon as later this week.

Of the $82.7M added to the budget, $39.2M is earmarked for the Turn the Key program, which was omitted entirely from the previous version of the budget.

The affordable home ownership program for first-time buyers making up to 100% of the area median income is a common talking point for Parker. A HOME Initiative budget she proposed in April included $112M for Turn the Key.

“Homeownership programs are great, but too many people in my community cannot afford those $200K houses,” said Kingsessing resident Kenny Golson, one of dozens who testified ahead of the council's vote.

The council's funding proposal also includes a 55% increase for the Affordable Housing Preservation Funds program, which provides gap financing to developers with a focus on Low Income Housing Tax Credit projects. This would bring the total to $46.2M.

The Basic Systems Repair Program to support emergency construction for single-family homeowners got a more modest 15% increase to $40M. An amendment in the budget would also require that 90% of funding from the program go to households making up to 60% of the AMI. 

A large share of the people who testified Tuesday urged lawmakers to refocus the initiative on the poorest Philadelphians.

“When we fund deeply affordable housing for people making under 30% of [area median income], it frees up units at every other income level,” resident Melissa Monts said. “It is not only morally right, it is structurally sound policy.”

Some smaller line items focused on low-income renters, and the unhoused population saw significant boosts in the new budget proposal.

The previous $1M allocated for Rent and Moving Assistance Programs, which will provide rent support and security deposits for homeless people and those at risk of eviction, was quadrupled in the council proposal.

The budget for the Homelessness Prevention Program jumped 132% to $8.8M, while a shallow rent program focused on assisting tenants spending more than 30% of their income on rent grew 75% to $3.5M.

All 15 lawmakers present at the Tuesday meeting voted in favor of the budget proposal. Councilmembers Isaiah Thomas and Brian O’Neill were absent.

Councilmember Curtis Jones Jr. knocked the budget proposal as he pledged to vote in favor of it.

“I’m voting for it, but you will not forget the middle class,” he said. “They are also the backbone of our city.”

His remarks echoed those made by Parker, who didn't attend the meeting, and similar comments from Philadelphia Building and Construction Trades Council Business Manager Ryan Boyer earlier in the hearing.

Boyer said the outflow of residents to the suburbs and Delaware is a problem for the city.

“If we don’t keep some of the middle class and working class people in Philadelphia, that can create craters in our tax base,” he said.

The outcome of Tuesday’s Committee of the Whole meeting positioned the funding proposal for a final Dec. 11 council vote. The Committee of the Whole is composed of all 17 council members, so, in most cases, the second vote is solely procedural.

But it’s not clear if the proposal will ultimately get Parker’s backing.

“I am in discussion with Council President Johnson now as to possible next steps, so we can get these bonds issued ASAP,” the mayor said in her statement.

UPDATE, DEC. 3, 4:55 P.M. ET: This article was updated to include additional comments from Council President Kenyatta Johnson.