The Philadelphia Housing Authority (PHA) is looking for a development partner or partners to rehabilitate 59 PHA-owned vacant homes to create affordable homeownership opportunities for families in the rapidly changing Brewerytown neighborhood of North Philadelphia.
The properties involved are bounded by Ridge, Glenwood, and Girard avenues, from 24th to 30th streets. The homes range in size from two-to-six bedrooms. Under the program, PHA will convey the properties for a nominal fee.
In exchange, the developers can sell to families earning only as high as 80% of Area Median Income, which in Philadelphia is about $75,000 a year for a family of four.
“Part of our mission is opening the door to homeownership opportunities for PHA families who have worked hard to raise their income,” said PHA President and CEO Kelvin Jeremiah. “We will expect the chosen developer to work with our Homeownership Department to seek qualified PHA buyers for these properties while also making them available to the general public within the income guidelines.”
As Pennsylvania’s largest affordable housing agency, PHA works to mitigate gentrification by creating affordable homeownership options in communities where housing prices are quickly escalating. That is the goal of this initiative. The agency has a long and successful record of fostering affordable homeownership.
The home development plan has seven groupings. A developer may propose buying one, some, or all seven clusters. Once selected through this Request for Qualifications, the developer will lead all aspects of the process, including design, financing, construction, and marketing and selling the homes.
PHA expects them to communicate with community stakeholders throughout the development process. The developer will set the sales price by adding a $25,000 developer fee to all developer costs. The sale price of a home may not exceed established limits. For example, the top price for a three-bedroom home is $215,000 and a four bedroom $240,000.
Homes will have an anti-flipping provision because these units will be sold at below-market prices. If a buyer decides to sell their home, the home will have to be sold to a family earning at or below that same 80% of Area Median Income with the same sales price restrictions. “This initiative is intended to make newly rehabbed homes available to working families in previously underserved communities, not to be used as a get-rich-quick scheme,” ” Jeremiah said. “The anti-flipping provision remains in effect for 20 years.”
Developers of these properties will not be subject to the Davis Bacon Act prevailing wage requirements. Proposers have until January 10, 2022, to submit proposals. Site visits will be scheduled for December 6-10, 2021. While not mandatory, PHA recommends that potential developers for these homes attend the proposal meeting and site visits.
PHA strongly encourages minority-owned and women-owned businesses to apply as well as local businesses, nonprofits and mission-driven housing organizations.
To see the full Request for Proposals, please visit: https://pha.bonfirehub.com/opportunities/55440.
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