Philly is giving $7.6M to legal aid agencies to clear residents’ tangled titles

More than 10,400 homes in Philadelphia have unclear legal ownership that can prevent residents from keeping, repairing, or selling their properties. In Philadelphia’s latest — and largest — effort to help residents clear so-called tangled titles, the city is giving $7.6 million over four years to legal aid organizations that are tackling the problem, officials announced Wednesday.

The money will cover fees and legal help for more Philadelphians and allow legal aid groups to work together and reach residents more effectively. Community Legal Services of Philadelphia, Philadelphia Legal Assistance, SeniorLAW Center, and Philadelphia VIP expect to at least double the number of clients they can help with tangled titles and to double or triple the number of estate planning documents such as wills they prepare for clients. Their goal is to clear titles for an additional 1,000-plus homes and help an additional 800-plus people plan their estates by the end of the fourth year of funding.

» READ MORE: Unclear ownership impedes upkeep and sale of houses in Philly. The city is working on a solution.

The legal services nonprofit Philadelphia VIP has been helping residents obtain legal ownership of their homes for two decades, and it’s never seen investment and collaboration like this.

“This was just sorely needed,” said executive director Rida Haq.

Most tangled titles occur when a property owner dies and the deed is not transferred to a new owner. The complexity and cost of clearing up estates prevent thousands of Philadelphians from transferring homes’ titles, or legal ownership, after a loved one’s death.

» READ MORE: Tangled titles in Philly threaten more than $1.1 billion in generational wealth

Tangled titles leave properties vulnerable to deed theft and prevent residents from taking advantage of property tax relief and home repair grant programs. Residents also cannot use a home’s equity or refinance mortgages. Homes with unclear legal ownership are more likely to be abandoned and cause blight in a neighborhood, which is linked to increases in crime.

Philadelphians are at risk of losing more than $1.1 billion in generational wealth because of tangled titles.

This has been a problem for a long time, said City Council President Darrell L. Clarke, but “there were never enough resources to do what we needed to do across the city of Philadelphia,” and legal aid groups were doing the work on “a shoestring budget.”

Funds for more legal aid will come from City Council’s Neighborhood Preservation Initiative, a $400 million plan to build and preserve affordable housing, help first-time home buyers, and revive commercial corridors.

Because of the Neighborhood Preservation Initiative, “we are now able to make the largest, most significant investment in helping families across the entire city of Philadelphia eliminate tangled titles, gain ownership of their homes, and move on to have more generational wealth for them and their loved ones,” Councilmember Katherine Gilmore Richardson said at a news conference Wednesday in West Philadelphia, one of the areas with the most tangled titles in the city.

Tangled titles disproportionately affect Black residents, partly due to racial gaps in estate planning that transcend education. This contributes to the racial wealth gap.

» READ MORE: Philadelphia funeral homes must educate survivors about tangled property titles

Lawyers and fees mean that, without assistance, residents can spend $9,200 to clear the title of a median priced home valued at $88,800. Philadelphia’s Register of Wills office and Department of Records partnered almost two years ago to create the Probate Deferment Initiative, which connects residents with free legal help and waives and defers certain fees.

With the additional funding, legal aid groups now are allowed to help Philadelphia households with higher incomes — up to 100% of the area median, according to Philadelphia VIP. That’s $94,900 for a household of three.

As part of Register of Wills Tracey Gordon’s push to educate more Philadelphians about tangled titles, Mayor Jim Kenney signed a City Council bill in December that requires Philadelphia’s funeral service providers to tell people how they can avoid them. The city released its tangled title information sheet this summer.

Philadelphians looking for help with tangled titles can call the Save Your Home Philly Hotline at 215-334-4663.