The City of Philadelphia reached an agreement with IBID Associates on March 17 to transfer part of IBID’s property to the City to be redeveloped as affordable homes and provide $3.5 million to temporarily relocate the 70 households currently living in the University City (UC) Townhomes. When faced with the sale of the property to a new owner who planned to demolish and redevelop it, residents came together with other allies to halt the sale and ensure measures were put in place to prevent their displacement from the homes and neighborhood where they had lived for decades. While the settlement addresses some of their concerns, residents plan to continue organizing to secure additional protections and commitments from the City and other stakeholders.
According to information made available by the Save the UC Townhomes Coalition, the UC Townhomes was a Project-Based Section 8 property built in 1983 in what had been an historically Black neighborhood in West Philadelphia called the Black Bottom. IBID’s subsidy contract with HUD, which ensured the units were affordable to low-income residents, expired on July 8, 2022. Rather than maintain the property as affordable housing, the owner decided to sell it for redevelopment. Tenants were given notice that they would have to move out and would receive housing vouchers to use to rent other apartments. But when it came time to transfer the property to the new owner, not all tenants had received their vouchers and those who had were finding it extremely difficult to rent a similar apartment in the same neighborhood. Councilmember Jami Gauthier stepped in and introduced a bill that effectively halted the sale and demolition of the existing property. In response, IBID sued the City for infringing on its property rights.
For over a year, UC Townhomes residents and allies organized protests and direct actions targeting IBID owners and the potential new developer, including a 31-day encampment at the “People’s Townhomes.” They clarified their demands and engaged faith, labor, and other leaders to support their efforts. They met with dozens of public officials and others to learn about strategies to preserve their homes, including HUD Secretary Marcia L. Fudge. They proposed a plan to purchase the site themselves, and when the owners refused to sell the entire property, residents shifted their strategy to preserving a portion of the site for affordable homes.
The terms of the settlement transfer approximately 20% of the property to the City of Philadelphia to redevelop as 75 affordable homes. The written terms indicate all units must be affordable to households at 60-80% of the area median income (AMI), which is higher than the 30% AMI that residents have persistently demanded. While a spokesperson for the City’s Law Department told the press it will pursue additional housing subsidies to achieve deeper affordability, no such written commitment has been made despite repeated requests from residents. The settlement includes a tenant compensation fund of $3.5 million, $50,000 per household, to be administered by the United Way. In addition to the settlement, local anchor institutions including the University of Pennsylvania and Drexel University have stated that they will contribute some funds for resident support services, such as financial counseling and legal aid.
At a press event on April 21, UC Townhomes Resident Council members recounted the victories won through the settlement, summarized the resident-led organizing that resulted in this outcome, clarified the terms of the settlement as they relate to the list of their demands, and reiterated their vision for an equitable and inclusive redevelopment process. They issued the following demands to the City of Philadelphia and local universities, as shared with NLIHC by Sheldon Davids, the UC Townhomes resident leader:
- “To start – residents MUST be at the table with the city as they decide the next steps. No development for us…. WITHOUT US.
- We want a written commitment from the City that guarantees a ‘Right to Return’ with a housing subsidy for current and former residents. This is not currently written in to the settlement terms.
- A written commitment to work with the residents on the redevelopment of the preserved site and a commitment to get resident input on the design and developers of any future site.
- [Making homes affordable to households at or below] 30% AMI and a property that makes sure there’s access for seniors and persons with disabilities.
- A commitment to resident control and governance of any future site.
- We are demanding the University of Pennsylvania and Drexel University address the displacement of historically Black communities by contributing funds toward this future development and other sites in the area.
- We are also continuing to call on the Universities to work with the city to secure housing close by for displaced residents. We don’t want talk – we must have action.”
The loss of affordable homes due to expiring federal subsidies is a growing crisis across the U.S. The National Housing Preservation Database, a joint project of NLIHC and the Public and Affordable Housing Research Corporation, estimates that 327,565 units of publicly supported rental homes with affordability restrictions will expire in the next five years, including 1,700 in Philadelphia. NLIHC and our partners work to raise awareness of this issue and direct more federal and state funding for the long-term preservation of deeply affordable housing. To learn more about preservation risks to the federally-assisted housing stock and recommended policy solutions, read Picture of Preservation 2021.
Find more information about the Save the UC Townhomes Coalition at: savetheuctownhomes.com.