PHILADELPHIA – Today, two bills that expedite affordable housing production became law.
Councilmember Jamie Gauthier, Chair of City Council’s Housing Committee and architect of the two laws, said, “We cut red tape to move affordable housing through the municipal approvals process faster, so we can keep development costs down and get families into affordable housing sooner. We also empowered the Zoning Board of Adjustment to approve variances on the condition that a developer includes affordable housing – building trust in the variance process so we can bring more community-based development and affordable housing online.”
Bill No. 250043:
- Compels the Department of Licenses and Inspection to review zoning permit applications for affordable housing projects on an expedited timeline of five business days.
- Compels the Department of Licenses and Inspection to review building permit applications for affordable housing projects on an expedited timeline of ten business days.
- Removes the “to the extent capacity permits” qualifier so expedited review stays in place when department or City leadership changes.
- Enables affordable housing projects that require Zoning Board of Adjustment (ZBA) approval to receive an accelerated hearing date for no additional fee.
- Expands the existing definition of “Affordable Housing Project” that already exists in L+I departmental regulations to include additional types of deed-restricted affordable housing, and applies it to the Building Code.
Bill No. 250041 authorizes the Zoning Board of Adjustment (ZBA) to make affordable housing commitments made by developers a mandatory condition of their approval via “a proviso.” The number of housing units and affordability rates will be referenced in the ZBA’s Notice of Decision and the subsequently issued zoning permit.
Bill No. 250043 — cutting red tape:
By reviewing affordable housing quickly, efficiently, and predictably, the City of Philadelphia organically accelerates development and reduces costs.
Jane Allen from the Philadelphia Association of Community Development Corporations (PACDC) testified during the committee hearing on this bill, “During a period where the already significant need for affordable housing is increasing faster than our ability to build it, municipal interventions that improve efficiency are an integral strategy to reducing pre-development costs, especially as the community and economic development sector navigates federal policy changes that may spike already high borrowing costs and will increase the price of building materials above and beyond the historically high levels we saw during the pandemic.”
Kevin Malawaski, Philadelphia Chapter of the American Institute of Architects, testified during the committee hearing on this bill, “Philadelphia’s affordable housing shortage demands urgent action. The bill injects predictability into a process that too often delays projects and drives up costs as a result.”
The variance process in particular slows down affordable housing production because it takes more than six months for a hearing to be scheduled. Instead of having to pay the former fee of up to $2,250, affordable housing jumps to the front of the line for no cost. This change will get families into homes sooner, for a lower price.
Bill No. 250041 — restoring trust in the zoning variance process:
To keep costs down, many developers depend on adding extra density, which often requires a zoning variance from the Zoning Board of Adjustment (ZBA).
To gain community support for these variances, developers sometimes pledge to include affordable housing in their projects. In the past, these promises were typically handshake agreements, since the ZBA had no way to enforce them. As a result, some developers failed to deliver once their variances were approved, creating mistrust in the process that slowed down ZBA decisions.
Now, the ZBA can grant zoning variances on the condition that a developer includes the affordable housing they promised to build. This makes affordable housing commitments enforceable, something Registered Community Organizations indicated would make them more willing to support proposals.
Rev. Jay Broadnax of the West Powelton/Saunders Park RCO told City Council’s Rules Committee, “We as a community are not anti-development but we insist on promises being kept. A proviso from the zoning board would help to accomplish that.”
The ZBA is only authorized to impose this type of proviso in select situations. Affordable housing conditions can only be included in approval if a request is initiated by either the applicant or the Coordinating RCO. Written documentation must also be submitted to the ZBA confirming that this was a topic of discussion at the mandatory community meeting.
During the committee hearing for this bill, Garrett O’Dwyer of the Philadelphia Association of Community Development Corporations testified, “An equitable Philadelphia with safe housing options affordable to all levels of the income spectrum is what makes welcoming, vibrant communities possible. When developers take advantage of the system to break affordability promises made to communities, that goal becomes more out of reach for all of us. This legislation will help level the playing field.”
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