Mayor Parker’s $195 million plan for the first year of her H.O.M.E. initiative is drawing criticism about who will benefit

Mayor Cherelle L. Parker plans to spend almost $195 million this year on 26 new and existing programs as part of her signature housing initiative, with the largest allocation being about $37.5 million for preserving existing affordable housing units, according to a budget resolution obtained by The Inquirer.

The resolution, which was drafted by Parker’s administration and must be approved by City Council, represents the most detailed account to date of how Parker intends to use the vast resources she has secured for her Housing Opportunities Made Easy, or H.O.M.E., initiative. Council in June approved the sale of $800 million in city bonds for the housing plan, and the administration said then that it intends to issue the first $400 million this fall.

» READ MORE: Here’s how Mayor Parker plans to spend $800 million on housing

In addition to affordable housing preservation, highlights of the spending plan include:

“The Parker Administration and the City’s Department of Planning and Development are confident Council will pass the program statement and budget in time for us to issue bonds this year so that we can begin innovative new programs and prevent any disruption in crucial existing programs,” Angela D. Brooks, Parker’s chief housing and urban development officer, said in a statement.

Council reconvenes Oct. 9, the first day that the resolution could be formally introduced. After that, City Council President Kenyatta Johnson is expected to refer the resolution to a committee, which will hear testimony on the plan before voting on whether to recommend it for final approval.

Johnson said in a statement that he has been “working in partnership” with Parker’s administration on the budget resolution and that members are doing the “necessary due diligence” of reviewing it.

He added that Council isn’t rushing.

“This is a massive multibillion dollar plan to build and preserve 30,000 housing units over the next few years,” Johnson said. “This is about making smart, responsible investments that will impact every neighborhood and every resident of Philadelphia. We owe it to the people we serve to take the time to get it right.”

Parker’s H.O.M.E. plan is perhaps the clearest articulation of her vision for saving Philadelphia’s “middle neighborhoods,” which are working-class enclaves that are neither destitute nor thriving and are disappearing in cities across the country.

Parker has said her goal is to give more people access to “affordable luxury,” and that she wants to help Philadelphians who are working to stay in the middle class as well as those struggling at the bottom end of the economic scale.

Because housing programs are often targeted toward the neediest, Parker’s H.O.M.E. plan increases income eligibility levels for some programs — a move that critics say diverts resources from families who are most in need. That strategy is likely to be a central point of contention when Council takes up the resolution.

» READ MORE: Philly City Council probes Mayor Parker’s housing plan in tense hearing as battle lines become clear

For instance, the Basic Systems Repair Program has previously been limited to Philadelphians who make 60% of the area median income or less. Parker’s plan would accept people making 100% of AMI, which is $119,400 for a family of four.

Brooks said the administration “aims to address the crisis holistically, not just one neighborhood or one income bracket.”

“The H.O.M.E. plan is specifically designed to address Philadelphia’s housing crisis across all income levels,” Brooks said.

Progressive political groups and advocates for renters on Wednesday criticized Parker for not dedicating more resources to homeowners on the lower end of the income scale and to renters. They also attacked the plan for subsidizing private developers to produce new housing units.

“Philadelphia is one of the poorest cities in the country, and this funding plan puts on full display exactly how we ended up here — prioritizing funding for corporate developers and people making over $100,000, while leaving low-income families with only a small percentage of funding,” said Patty Torres, co-executive director of Make the Road PA, a progressive group that advocates for Latinx and immigrant communities. “Philadelphia’s housing crisis demands real affordable housing.”

Shawmar Pitts, comanaging director of the renters organization Philly Thrive, said he supports “deep investment in housing” and “increased funding for home repairs.”

“We know, however, that those who are most affected by the housing crisis need to be prioritized,” Pitts said in a statement. “This plan falls short of that — with only 2% of proposed funding targeted to the third of our city who make under $30,000 per year, and only 12% of funding going directly to renters who make up half of our city.”

Brooks noted that $59.6 million, or 30.6% of H.O.M.E.’s first-year budget, would be dedicated to households making 60% of AMI or less, “demonstrating the initiative’s significant commitment to serving Philadelphia’s lowest-income residents."

“In review of our existing programs and services, although the AMI would increase, the majority of those we serve would still be at the lower end AMI,” Brooks said.

Councilmember Jamie Gauthier, a progressive who chairs the housing committee, has embraced Parker’s H.O.M.E. agenda while trying to push the administration to keep income thresholds low.

“I am encouraged that the mayor’s proposed budget for the first year of her HOME Initiative reflects several changes I championed this spring, especially around strengthening home repair programs,” Gauthier said in a statement. “As I have emphasized from the start, addressing our city’s housing crisis means seizing this historic opportunity to support the 200,000 households earning under $30,000 a year — families who are just one maintenance emergency or rent hike away from homelessness.”

Council approved the major planks of the H.O.M.E. initiative in June, and authorized the administration to fund the plan with $800 million in city bonds.

But before lawmakers gave their green light, they inserted a provision requiring the administration to submit for approval an Annual Program Statement and Budget detailing what the bond money will be spent on that fiscal year, including the size of the allocations for each program, the Council districts where the money will be spent, and the income level ranges for which the programs will be targeted.

» READ MORE: Council takes up Mayor Cherelle Parker’s $800M housing bond request — with a catch

Parker sent Johnson an initial version of the program statement this summer and formally transmitted it to Council on Sept. 18. After working with the administration on revisions, Johnson shared an updated version with the rest of Council on Tuesday.

The budget resolution does not include details about the Council districts where the money will be spent.

“The intention is to benefit all citizens of Philadelphia with all HOME Programs throughout all of the City’s Councilmanic Districts,” the resolution reads.

Staff writers Jake Blumgart and Anna Orso contributed to this article.