Mayor Cherelle Parker unveils plan that would invest $2B into housing for Philadelphia

PHILADELPHIA (WPVI) -- The issue of affordable housing took center stage Monday at a first-of-its-kind meeting inside Philadelphia City Council chambers.

The purpose of the special session was to focus on the issue of affordable housing with the introduction of a new initiative by Mayor Cherelle Parker.

It's a $2 billion plan that aims to create and preserve affordable housing across the city.

"This is the largest single investment in housing in Philadelphia history," said Parker.

It's an investment that affordable housing advocates say is long overdue.

"It is not fair," said Nora Lichtash with the Philadelphia Coalition for Affordable Communities. "Philadelphia citizens need the help of all of us."

Mayor Parker's solution is a proposed plan called HOME, which is short for "Housing Opportunities Made Easy." The cornerstone of the plan is a $2 billion investment in housing.

One billion dollars would be in the value of vacant land that will be made available to developers. The other $1 billion would come from public funds, including $800 million in bonds, city and state funds and federal funds which city leaders know could be impacted by the Trump administration.

"We have to be fiscally responsible as we stated by putting $95 million in our reserves just to protect us in the event any cuts have an impact on the city of Philadelphia," said City Council President Kenyatta Johnson.

Parker is also proposing an increase in the realty transfer tax. She says the increase is small enough to not greatly impact individuals but, instead, get more funds from commercial and industrial real estate.

The funds would go to programs that build new housing units, address blight, give homeowners money for improvements and help renters facing eviction. The plan, though, needs approval from City Council members who heard it for the first time on Monday.

"Certainly we all need to see more details, but in general it's exciting that this is the priority of the administration," said Councilmember Jamie Gauthier (D, 3rd District) who also serves as chair of the city council's Committee on Housing.

Former HUD secretary Marcia Fudge was among those who provided guidance for Mayor Parker's plan-- as she works to create and preserve 30,000 units of affordable housing.

"This plan, Mr. President, proposes the production of 13,500 new homes and the preservation of 16,500 existing homes," said Parker.

Parker vows, if her plan is approved, progress won't be slow.

"I want shovels in the ground. I want houses built, preserved and restored," said Parker.

The mayor is also proposing something she calls One Philly Mortgage. The program would provide 30-year fixed rate loans with buyers putting just 3% down.

This entire proposal, though, still has a long way to go. It needs to be formally introduced and go through a series of hearings in city council.

The proposal will be presented alongside the 2026 city budget. The first HOME Inititiave budget hearing will be held on April 21 at 10 a.m. in City Council Chambers.

For more information: https://phlcouncil.com/budget2026/