City Council, in another rebuke to Mayor Cherelle Parker, on Thursday passed a version of the first-year budget for her signature housing plan that prioritizes Philadelphians with lower yearly earnings.
Lawmakers and the Parker administration have been at odds over where to set household income limits for a pair of key programs – Basic Systems Repair and Adaptive Modifications – funded through her effort to restore or build 30,000 units of affordable housing over four years.
The initial $277 million spending plan for the Housing Opportunities Made Easy, or H.O.M.E., plan approved Thursday permits the administration to ease salary maximums for the two programs but mandates that 90% of the money go to those earning no more than 60% of the area median income, which is the current limit.
Parker has pushed to increase the AMI guidelines for BSRP and Adaptive Modifications to 100% and 80%, respectively.
AMI is set on a metropolitan basis, meaning the metric is higher than the median household earnings for a household in the city. For a single person in the Philadelphia region, 100% AMI is set at $83,600, and the number is just under $120,000 for a family of four, according to the website for the city’s Department of Housing and Urban Development. 60% AMI is $50,160 for an individual and $71,640 for a four-person household.
Council adopted the one-year H.O.M.E. budget in a voice vote during its last session of the year. Following the meeting, Council President Kenyatta Johnson called it a “win-win” for the city.
“This is the biggest and boldest investment that the city has ever made in affordable housing,” said Councilmember Jamie Gauthier, who championed the legislative amendments. “And it was critical, particularly in this moment, that we prioritize the Philadelphians who need our help the most, and those are the ones that are one rent increase or one home repair item away from being homeless.”
The plan was passed as a resolution, which, unlike a bill, is not subject to a possible mayoral veto. Parker's chief of staff, Tiffany Thurman, thanked Council for "affirming the first year of spending" for H.O.M.E.
"We look forward to continuing conversations with Council President Kenyatta Johnson and all members of City Council in the weeks ahead, and to fulfilling Mayor Parker's strong vision to save Philadelphia's rowhomes," she added, in a statement Thursday evening.
Thursday is unlikely to be the end of the AMI battle. Legislation is pending to update a bill allowing City Hall to borrow $800 million for H.O.M.E. It is expected to come up for a final vote in late January, once lawmakers return from their holiday recess.
Council advanced the bond amendment Wednesday, despite the protestations of Parker’s top housing deputies.
In an apparent last-ditch attempt at a compromise, administration officials said they would agree to a provision giving Council the authority to set income eligibility for up to 60% of the funding allocated for a particular program. As written, the legislative body has the power to dictate qualifications for all of the money.
Parker, in a statement Wednesday, noted that Council leaders did not formally consider an amendment her team drafted. The document was distributed to lawmakers more than an hour after the hearing began, according to legislative officials.
Gauthier, chair of Council housing committee, told reporters Thursday that the mayor’s office was unwilling to budge at all on AMI through months of H.O.M.E.-related hearings and meetings.
“And so yesterday, it was simply too late,” she said. “Council had already made up its mind.”
Thurman had also requested Wednesday that Johnson delay a decision on the budget resolution until the bond amendment could be brought to a final vote. Johnson said Council decided to move forward anyway because “we want to get shovels in the ground.”
Although the H.O.M.E. rift is the most public clash since Parker and Johnson assumed their positions in January 2024, he reiterated Thursday that there is “no personal animosity or beef” between the mayor and himself.
In the AMI fight, Parker has deployed campaign-style tactics, including embarking on a church tour Dec. 7 and recruiting Democratic Party ward leaders to lobby lawmakers.
“I wasn't a fan,” Gauthier said. “I felt that those actions made something that was about policy political, and this was a discussion that we should have been able to have in this chamber and come to an agreement.”
Progressive activists cheered Council’s vote Thursday and thanked them for holding firm in the face of pressure.
“I represent 350,000 Philadelphians who struggle every day,” said an emotional Melissa Monts, of OnePA Renters United, who has previously shared her own experience with substandard housing, during public testimony. “I am only one voice but I am immensely grateful for all your hard work.”
