The purpose of the Philadelphia Targeted Housing Preservation Program (THPP) is to augment investments made in affordable housing production by the City of Philadelphia. This program supports property repairs for homeowners located in proximity to existing or newer housing developments or in targeted neighborhoods. Repairs can include façade and system repairs. For example, if a CDC is developing a larger-scale homeownership or rental development, they could also submit an application to the THPP to fund the repair of existing owner-occupied home on the adjacent blocks. The Targeted Housing Preservation Program will be carried out by community-based organizations that are referred to herein as Sponsors. Applications can be submitted on a rolling basis.
Targeted Housing Preservation funds may be used to support both basic systems repairs and exterior repairs, such as windows, doors, facades and streetscape improvements. After completion the property must meet basic health and safety standards for continued occupancy. Additional repairs can be made that go beyond eligible repairs, such as internal cosmetic repairs, or that go beyond the maximum grant amount, if they are paid for by additional financing or homeowner contributions. Application that use multiple funding sources will need to document the specific repairs being paid for each funding source.
In order to maximize the impact of affordable housing investments, targeting of a home repair program is key. Funds will be made available to preserve homes adjacent to existing or new public and/or private investments or to provide concentrated home repairs in a specifically targeted geographic area. A significant level of resident participation is required in the targeted area. Blocks to be preserved may have a vacancy rate no higher than ten percent (10%). ¹ Properties must be single-family owner occupied.
¹ Vacant properties are defined as those properties that have been abandoned by their owner. They are properties that are not being currently marketed, maintained or have any immediate development plans. They are not necessarily boarded up. It is the responsibility of the Sponsor to identify all vacant or abandoned properties. Vacant lots are also considered vacant properties if they are not being maintained. However, in the case of targeted support adjacent new development, the vacancy will be measured post-construction
Participants in the program must have clear title to the property and be current in their real estate taxes and mortgage payments (or have an approved payment agreement). Household income may not exceed 115% of the area median income (Please see attachments). Homeowners must contribute a minimum of $500.00 towards eligible repairs. Sweat equity may not be used to satisfy this requirement.
Project sponsors must be community development corporations and/or other non-profit entities. Sponsors must be able to make application to the program, market the program in their neighborhoods, identify contractors and solicit bids, prepare the scope of work and cost estimates, and perform basic routine project management. Sponsors must be able to review and submit invoices for projects, receive payment from PHDC, and issue disbursement checks to contractors.
III. Available
Funding
The maximum grant for this program is $20,000. The grant will be disbursed at the end of the project, unless it is requested by the sponsor to issue progress payments. The project sponsors will receive a fee of $5,000/unit for each completed case.
IV. Second
Mortgage
The subsidy will be provided to the participating homeowner as a grant. However, to maintain the property as affordable housing, the grant will be recorded as a self-amortizing second mortgage. This will be a zero interest (0%) mortgage and will be forgiven 10% each year the homeowner lives in the property (Please see attachments). The participating homeowner will not be required to make any payments as long as he/she remains in the property for ten years, or sells the property to a household with an income at or below 115% of the area median income. At the end of ten years, the mortgage will be satisfied.
If you would like to have your block or neighborhood considered for this program and PNHS sponsorship, please contact Bernard Hawkins at (215) 476 – 4205 or via email: bhawkins@phillynhs.org
To calculate a vacancy rate, first count the properties on the block. Then count all the vacant properties. Divide the number of vacant properties by the total number of properties on the block and you will have the vacancy rate