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Bill To Ban Housing On Former Hospital Campus Creates Roadblock For Conversion Plan

In October, Dwight City Group bought several former Hahnemann University Hospital buildings with plans to build hundreds of apartments.

Now, the project could be in peril after the Philadelphia neighborhood’s council member, Jeffery "Jay" Young Jr., introduced a bill that would ban new residential uses in the area bounded by Race Street, North 16th Street, Callowhill Street and North Broad Street.

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Dwight City Group LLC has placed a $16.25M bid on former Hahnemann University Hospital buildings in Center City.

“It is for commercial preservation in that part of our district,” the lawmaker told The Philadelphia Inquirer. “We want to make sure that area keeps producing jobs for our city.”

His proposal is likely to pass due to the councilmanic prerogative tradition, which means other members of the body typically don't oppose a district member’s bill that only affects their territory.

The bill was introduced during the last city council session of the year on Dec. 11, just three months after Dwight City Group finalized its $16.25M purchase of the properties near Broad and Vine streets.

The developer, which has offices in New York City and Upper Darby, plans to build 288 units along with amenities including a coworking space, but it still needs a final slate of approvals, which would require a variance if Young's proposal passes.

Dwight City Group and CEO Judah Angster declined to comment.

Restrictive zoning overlays across Philadelphia have long been decried by developers and housing advocates as a barrier to new supply in a city facing a housing affordability crisis.

Mayor Cherelle Parker aims to build and preserve 30,000 affordable units before the end of her first term through her HOME Initiative. The council also passed the first phase of funding for the HOME Initiative on Dec. 11 after a contentious back-and-forth with some lawmakers. 

Young, who was elected in 2023, has stood in the way of other projects prior to the Hahnemann redevelopment. 

He effectively killed a plan the Philadelphia Housing Authority had to build 57 units across 14 city-owned lots by appealing a variance the Zoning Board of Adjustment issued for the project in June.

Young also has been pushing for the Cecil B. Moore Library in his district to be completely rebuilt instead of renovated, despite the wishes of several community groups.

The council member may face a rare competitive challenge in the 2027 election from attorney Jalon Alexander, who formed an exploratory committee in September and blamed Young for causing "a slowdown in the development of affordable housing."