With a shared goal of ensuring that residents of Philadelphia have access to affordable housing options, regardless of their financial situation, the city’s Mayor Jim Kenney and the City Council were at odds as to how to fund the plan. In April, City Council member Maria Quinones-Sanchez introduced Bill 180351 which proposed a one percent construction impact tax on all new construction and major renovations (exempt from this bill were affordable housing and non-profit projects). The revenue generated from this tax would fund he Housing Trust Fund (HTF) for affordable housing projects throughout the city.
While the bill had its supporters including the Building Industry Association (BIA), those opposed, including the Building Trades Union, argued that the bill could dissuade important developers from coming to Philadelphia.
On Wednesday, Sept. 12, Mayor Kenney suggested that instead of the construction tax bill, the city use the money generated by real estate taxes from properties with expiring 10-year abatements to fund the HTF. On Thursday, Sept. 13, during the city council’s first session following their summer recess, Mayor Kenney and the city council reached a last-minute agreement to recall the construction tax and allocate $70 million in General Fund revenue for affordable housing over the next five years, beginning in the current fiscal year 2019.
The agreement is not yet finalized; Council is expected to vote on the amended legislation at its next meeting.
For almost 50 years, Madison Concrete Construction has been delivering quality concrete construction throughout the city of Philadelphia. We are proud of our city leaders for working together in a continued effort to help the citizens of our great city grow, evolve and prosper.