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Authorizing the Committee on Commerce and Economic Development to hold hearings which investigate the planning process, the 1997 HOPE VI application, and the current proposed development plan for the Schuylkill Falls Public Housing Authority site in order to determine if the current proposed development plan conforms to the 1997 application submitted to and approved by the U.S. Department of Housing and Urban Development, and to further determine the extent to which any amendments, development agreements, or any other documents related to this HOPE VI award materially modify any of the commitments, representations or promises made to the Schuylkill Falls Tenant Council, the East Falls Community Council, public officials or other interested parties; and, further authorizing the Committee to issue subpoenas as may be necessary to compel the attendance of witnesses and the production of documents to the full extent authorized under Section 2-401 of the Home Rule Charter in furtherance of such investigation.
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WHEREAS, The HOPE VI program is a key U.S. Department of Housing and Urban Development (HUD) initiative which seeks to transform public housing by changing the physical shape of public housing in order to complement surrounding neighborhoods; by providing comprehensive self-sufficiency services in order to empower residents and move them up and out of public housing; by promoting mixed income communities in order to end social and economic isolation of public housing residents; and, by forging partnerships with other agencies, local governments, non-profits and private business in order to leverage additional support and resources; and
WHEREAS, The Philadelphia Housing Authority (PHA) applied for a HOPE VI grant on July 18, 1997 in order to "transform the [Schuylkill Falls] site into a mixed-income neighborhood which provides housing for low income families blended with housing for middle income, working families and links families to the surrounding opportunities”; and
WHEREAS, This grant application was developed with input from the Schuylkill Falls Tenant Council and the East Falls Community Council and was submitted to HUD along with support letters from these community organizations; and
WHEREAS, On December 5, 1997, HUD announced the award of a $26.4 million HOPE VI grant for the Schuylkill Falls site; and
WHEREAS, PHA filed a Schuylkill Falls Revitalization Plan with HUD on February 23, 1998 which was conditionally approved by HUD in April of 1999; and
WHEREAS, The East Falls Community Council and the Schuylkill Falls Tenant Council have continuously met and negotiated with the Developer in order to insure a new housing development consistent with the initial grant application and HOPE VI goals; and
WHEREAS, PHA and the Developer have executed a Master Development Agreement and a Mixed Finance Proposal which were submitted to HUD for approval in October of 2000; and
WHEREAS, This Master Development Agreement and Mixed Finance Proposal contain material differences from the initial grant application including, but not limited to the following:
(1) the initial grant application proposed 300 new housing units with an even mix of rental and homeownership, subsidized and market rate homes interspersed throughout the site; WHEREAS, the current plan proposes that mix of 300 new housing units be comprised of 220 subsidized and 80 market rate, with 135 for homeownership and 165 for rental;
(2) rather than a mixing of subsidized units and rental units throughout the development site as originally proposed and consistent with HOPE VI goals, the current plan appears to segregate all of the subsidized units into an area the Developer refers to as the "lower portion of the site;"
(3) a 50-unit "empty nester" building for primarily older adults appears to have been dropped from the plan; and
(4) other amenities originally envisioned in the initial grant application including a recreation facility appear to have been dropped from the plan; and
WHEREAS, To date, an undetermined amount of self-sufficiency services promised to the tenants and required by the HOPE VI program have been delivered even though these comprehensive services were to begin immediately and were to follow the Schuylkill Falls tenants as they were relocated to accommodate redevelopment of the site; and
WHEREAS, There is no identified funding source for the current proposed 50 units of market rate for sale housing and the 30 units of market rate rental housing and the Developer has stated in writing that these units "will be built and sold just as soon as there is evidence that the market will support that development;" and
WHEREAS, The City has been asked to invest in the development of the HOPE VI site by providing millions of dollars in capital and CDBG funs for infrastructure improvements and the Developer is currently seeking an additional $2 million for further infrastructure improvements; and
WHEREAS, The many changes in the development teams, plan components and the mix of housing have generated intense community distrust and concern over the long-term viability of this site and the impact on the surrounding neighborhoods; and
WHEREAS, The unfounded components of this revitalization plan raise serious and legitimate concerns about the completion of market rate rental and homeownership units for this development which help promote a mixed-income community which is a key goal of the HOPE VI program; and
WHEREAS, the PHA has a responsibility to oversee the full completion of this development and to fulfill the commitments made to the public housing and community residents and to adhere to the goals of the HOPE VI program; now therefore
RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That the Committee on Commerce and Economic Development is authorized to hold hearings which investigate the planning process, the 1997 HOPE VI application, and the current proposed development plan for the Schuylkill Falls Public Housing Authority site in order to determine if the current proposed development plan conforms to the 19|10 13|7 application submitted to and approved by the U.S. Department of Housing and Urban Development, and to further determine the extent to which any amendments, development agreements, or any other documents related to this HOPE VI award materially modify any of the commitments, representations or promises made to the Schuylkill Falls Tenant Council, the East Falls Community Council, public officials or other interested parties; and, further authorizing the Committee to issue subpoenas as may be necessary to compel the attendance of witnesses and the production of documents to the full extent authorized under Section 2 of the Home Rule Charter in furtherance of such investigation.
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