**Philadelphia City Council Reviews $194.5 Million Budget for H.O.M.E. Initiative**
Philadelphia City Council recently took an in-depth look at the proposed $194.5 million inaugural budget for the Housing Opportunities Made Easy (H.O.M.E.) initiative. During a Committee of the Whole hearing held on Wednesday, Council members reviewed allocations across more than two dozen programs designed to tackle the city’s housing needs.
Mayor Cherelle Parker introduced the H.O.M.E. initiative in March with a bold vision to build or rehabilitate 30,000 housing units throughout Philadelphia. According to city officials, the goal is to complete over 2,400 new housing units by the end of 2026.
### Focus on Deeply Affordable Housing
A significant point of discussion during the hearing centered on housing for residents at or below 30% of the area median income (AMI)—those who qualify for “deeply affordable housing.” Minority Whip Nicolas O’Rourke voiced concerns that 5,500 units of such housing may be lost within a decade, primarily due to landlords increasing rental prices.
Officials reiterated that 40% of the properties built or refurbished under the initiative would be allocated to this low-income group. However, when O’Rourke, along with Housing Committee Chair Jamie Gauthier, pressed for a codified commitment to this allocation, representatives from the administration declined.
Tiffany Thurman, Chief of Staff for Mayor Parker, explained, “From the very beginning, we said we’re not going to get into a trap where we get into an argument regarding deeply affordable versus affordable.” She affirmed the administration’s commitment to the 41% allocation outlined in the current plan, emphasizing that “we have the workforce in mind.”
### Questions About Eligibility and Impact
Council members also expressed concerns about how many Philadelphians would actually qualify for the various programs, which range from home repair funds to first-time homebuyer mortgages.
Councilmember Curtis Jones Jr. highlighted that 74% of constituents in his 4th District could not qualify under the program’s current AMI guidelines. He shared an encounter with a homeowner who cited ineligibility as the reason he and his wife were selling their home and relocating outside the city.
Majority Leader Katherine Gilmore Richardson raised a related concern: “My worry is that we unintentionally create circumstances where we have more higher-income individuals who can afford homes above market value, while the very low-income population continues to depend heavily on social services. Meanwhile, we risk losing our middle class—the essential tax base needed to sustain our city.”
### Workforce Access and Program Affordability
Democratic Councilmember Jim Harrity asked specifically about workforce access to the “Turn the Key” program, which the administration plans to bolster with an additional $43.5 million. If amendments are approved, the 2026 budget for H.O.M.E. could approach nearly $272.5 million.
Harrity also mentioned recent criticism from striking District Council 33 members, who expressed disapproval of the H.O.M.E. initiative during their eight-day strike in July. They claimed that new housing developments are located in areas they would not consider moving to.
Additionally, Harrity questioned whether the cost of homes—even with mortgage assistance—would be affordable for municipal workers. In response, administration officials noted that income is one of several eligibility factors considered for the programs.
### Addressing Application Backlogs and Administrative Challenges
Council members voiced concerns about the city’s capacity to handle a potentially large backlog of applications while expanding program eligibility. City officials acknowledged that reworking application processes could take over a year but stressed that this would not impede the ability to allocate increased funding or serve more residents.
“We will not be crippled by the ineptness of bureaucracy,” stated Jessie Lawrence, Director of Planning and Development.
### Next Steps
After over three hours of questioning and public testimony, Council President Kenyatta Johnson (D-2nd District) recessed the hearings. Council members will have an opportunity to continue questioning officials during a session scheduled for Monday, starting at 10 a.m.
If the Committee votes to advance the bill—amended or not—it could be brought before Council for a vote on November 20. Should Council approve the budget by next week, the city may proceed with issuing bonds next month. Otherwise, bond issuance would be postponed until the following year.
https://www.phillytrib.com/news/local_news/council-questions-mayors-administration-on-ambitious-housing-plan-for-philly/article_ef775c36-3a30-4f82-88fc-36cb6c27e44b.html