1. The Neighborhood Transformation Initiative
Philadelphia’s Equitable Development Strategy

2. NTI Guiding Principles
Use planning as an investment tool
Balance affordable and market rate housing
Invest public funds to stimulate private market activity
Foster competition to get the best product
Maximize private capital and minimize public dollars
Link housing with other public and private investments

3. $306.6m Investment in Neighborhoods

4. NTI Accomplishments Demolished 7,713 vacant buildings
Removed 275,012 abandoned cars
Stabilized and maintaining 3.7 mil. sq. ft. of vacant land
(= 3700 row home parcels); cleaned and maintaining 2.5 million sq. ft. of vacant land (=2500 row home parcels).
Completed 12,974 new residential units, including 8,931 affordable housing units
Provided 31,315 units with housing preservation assistance

5. Housing Markets, 2001
Source: The Reinvestment Fund

6. Housing Markets, 2003
Source: The Reinvestment Fund

7. Sustainable, Smart Growth Revitalization
To create and stabilize mixed-income neighborhoods, NTI will lead or support efforts to:
Manage and influence neighborhood change
Strengthen neighborhood markets
Promote open space; and
Propel transit-oriented development

8. Managing and Influencing Neighborhood Change
Positives and negatives in neighborhood change
+ Increased equity = more wealth
+ Attractive physical environment = better quality of life
+ Higher density = new markets, more amenities
- Low / fixed income impacted by higher cost of living
- Higher property taxes = liens, exposure to predatory lenders
- Less than perfect credit = less options, deferred home repairs

9. Pursuing Equitable Community Development

10. Equitable Community Development…
“actions that build and protect the assets of low-wealth residents in revitalizing neighborhoods so they may fully enjoy the benefits of a healthy neighborhood.”

11. Principal Issues & Challenges
recent appreciation of residential properties in markets that were stagnant for the previous decades
perceptions that property taxes, operating costs, and rents will increase beyond the means of low-wealth residents
fears that the above factors will lead to gentrification and eventual displacement of low-income residents
how to best use, target, and deploy limited City resources (principally counseling and home repair programs) to address the above issues

12. Rapidly Appreciating Market Areas Studied
Brewerytown area
Northern Liberties/West Poplar neighborhoods
Walnut Hill area of West Philadelphia
South Kensington/Fishtown area
South Philadelphia, West of Broad

13. Emerging Patterns/Characteristics (2000-2006)
High rate of homeownership (60% to over 80%)
Incidence of:
cost-burdened owner-occupied households (paying > 30% of income on housing)
annual household income < $25,000
Moderate to heavy single-family sales activity
20%-30% in some blocks-groups
30%-50% in others

14. Emerging Patterns/Characteristics (2000-2006)
Modest to substantial increases in median sales prices
$10,000 to $50,000 generally in most areas
$50,000 to $100,000/$150,000 in some block-groups
$150,000+ in others
30% of all single-family properties tax-delinquent
(23% in rest of city / 24% citywide)
23% increase in foreclosure filings
(2% rest of city / 3% citywide)

15. Mortgage Foreclosure Filings (2005 and 2006)
mortgage foreclosure filings in 2005
mortgage foreclosure filings in 2006 %
change
Targeted Areas
% of all SF properties
312
0.8%
396
0.9%
23%
Rest of City
4,247
1.1%
4,329 2%
Citywide
4,568
1.0%
4,725 3%

17. Proposed Interventions

20. Equitable Development Goals
facilitate lower-wealth residents’ participation in neighborhood revitalization and its benefits by:
protecting and building their equity and wealth
preserving existing affordable housing units
increasing supply of new affordable housing units
enhance role of/coordination between housing counseling, financial literacy and home repair programs

21. Principal Actions Community Outreach:
identify at-risk households/at-risk blocks
facilitate targeting/delivery of:
housing counseling/financial literacy services
home repair/improvement resources
Housing Counseling:
create two-track case management service:
core services (pre/post-purchase, credit analysis, budgeting)
special services (foreclosure prevention, loss mitigation)
Housing Preservation:
ensure access to resources to support:
home repairs and improvements
community outreach
housing counseling

22. Reporting/Performance Integration
create/track performance goals measuring:
outputs
outcomes
impacts
track outcomes and impacts at household and neighborhood levels as measures of success

23. Resources
NTI bond proceeds will fund:
Project management
Training, professional services, staff
Performance measurement
Flexible loans and/or grants
Reserve for HERO loan program
Leverage CDBG resources