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Philadelphia’s affordable housing strategy depends on repairing existing homes

By Michaelle Bond – Originally posted by The Philadelphia Inquirer https://www.inquirer.com/real-estate/housing/home-repair-grant-loan-philadelphia-affordable-housing-20201107.html?__vfz=medium%3Dsharebar

“Belinda Eldridge has been living in her South Philadelphia home for 48 years. For the last three, she’s known something was wrong with the wiring. Her lights dimmed, appliances periodically stopped working, and, sometimes, electrical outlets spit sparks.

Roof leaks damaged her ceilings. Every time it rained, Eldridge, 69, was afraid to look down into her basement and confront the flooding there from cracked pipes. Her husband had been able to fix some things around the house, but he died eight years ago.

“I just couldn’t afford all the repairs I knew I needed,” Eldridge said. “There are other people just like me feeling like I did that they don’t want to leave their homes, but they can’t afford to get the work done.”

So a few years ago, she applied for a home repair grant. And this year, she got a new roof, plumbing, and electrical work. The repairs will keep her in her home.

Philadelphia’s housing stock is old and can be expensive to maintain — challenges in a city with a 23% poverty rate, incomes that aren’t keeping pace with rising home prices, and now a pandemic-induced recession. Philadelphia and other cities across the country have been struggling to address a lack of housing that their residents can afford. Every home that becomes uninhabitable and abandoned or crumbles due to disrepair is one fewer home available to mitigate the affordable housing crisis. Two years ago, the city’s 10-year housing plan identified revitalizing existing housing stock as one of Philadelphia’s greatest challenges. But it’s also one of its biggest opportunities.

City officials and housing advocates repeat a common sentiment: The most affordable house for residents is usually the one in which they already live because they don’t have to take on new debt or spend money relocating. So repairing existing homes is a key part of Philadelphia’s affordable housing strategy. The city’s agreements with unhoused Philadelphians who protested the lack of affordable housing at encampments on the Benjamin Franklin Parkway and in North Philadelphia include the transfer of now-vacant homes. Most of them need to be rehabilitated.

“It’s much more cost-efficient to maintain our existing housing than it is to create new housing,” said Andrew Frishkoff, executive director of LISC Philadelphia, a community development support nonprofit. He called repair programs “essential.”

The city relies on nonprofits such as the Philadelphia Housing Development Corp., Habitat for Humanity Philadelphia, and the volunteer program Rebuilding Together Philadelphia, and community development corporations to help homeowners with repairs. The Rental Improvement Fund, a pilot program the city and the Impact Loan Fund started in May, provides loans to small landlords to make repairs to improve the quality and affordability of rental housing.

A patchwork of programs in the city work together to fill gaps, but the need for housing repair is great, said David Thomas, chief executive officer of the Philadelphia Housing Development Corp., a community development organization that administers several home repair programs and partners with the city to meet housing goals. In early October, PHDC asked for more contractors to participate in its basic repair and adaptive home modification programs. Its low-interest loan program saw a spike in applicants over the summer, and the nonprofit is reviewing proposals from additional banks that want to participate.

Housing advocates anticipate fewer city, state, and federal funds and tighter budgets because of the coronavirus pandemic and are hoping to blend public and private support to keep housing initiatives going. City Council is considering a 1% tax on construction to fund affordable housing programs that would help close funding gaps for initiatives such as home maintenance grant programs, Thomas said.

Cities should consider housing to be essential infrastructure in the same way as roads and bridges and devote funding to it accordingly, said Gregory Heller, senior vice president of community investment at PHDC and executive director of the Philadelphia Redevelopment Authority.

Jill Roberts, director of the Healthy Rowhouse Project, said that many times, grant and loan programs are the only way homeowners can afford repairs to make their homes safe and healthy, an even greater concern during the pandemic. Roberts, who manages PHDC’s home repair loan program for the financial counseling nonprofit Clarifi, remembers one homeowner whose front door didn’t close properly. Others have sewage in their basements or can’t use stairs for lack of railings.

The pandemic has been “a blessing and a curse,” she said. Residents are paying more attention to necessary repairs because they’re spending more time in their homes. But they also may have lost income and have less money available for those repairs.

“People should not have to be just surviving. They should be thriving,” she said. “We are helping people preserve their most valuable asset.”

Restore, Repair, Renew loan program

When Joyce Brooks heard that the Philadelphia Housing Development Corp. had started a program early last year for homeowners to get low-interest, 10-year loans for home repairs, she applied right away.

Brooks, 74, hoped to fix up the Nicetown house she’s called home for 52 years. She said the Restore, Repair, Renew program can be overwhelming, but the result is worth the effort. A leaking toilet damaged her kitchen ceiling, so her loan of roughly $18,000 is helping to finance a new bathroom and kitchen. A contractor also found mold in her basement and problems with her heating system.

“It’s a good program, and I think people need to get into it,” said Brooks, a Nicetown Community Development Corp. board member. She’s seen what happens when homes deteriorate. A long-abandoned house next door damaged her home, she said, and another nearby is being demolished.

Homeowners with credit scores above 580 and who meet other criteria can get loans up to $24,999 and pay 3% interest. The program includes financial counseling, home assessments, and guidance throughout the renovations. It assists people who earn a little too much money to qualify for grant programs but may not have savings or can’t afford the higher interest rates of typical loans. Many wouldn’t qualify for loans at all.

In its first year, the program had a 53% loan approval rate, compared with a 25% approval rate in the private market, according to the Philadelphia Housing Development Corp. The program distributed more than $1.6 million in loans in its first year.

Clarice McIntosh and her husband, Lee, took out a loan to fix an extension of their kitchen so they can relocate their washer and dryer, which now waste valuable living space at their home’s entrance. They’d planned fixes to their Germantown home soon after they moved in about 15 years ago. But Lee was diagnosed with cancer, and Clarice left her job to become his caregiver.

“Financially, you don’t have the money you used to have, so everything was put on hold,” she said. They can’t afford to move and are relying on the loan program to be able to stay.

“You’re not looking for a freebie, but you’re looking for help,” said McIntosh, 70.

Loans allow for more freedom in choosing renovations than grants do, but Dana Brown, executive vice president of consumer services at Montgomery County-based Univest Bank and Trust Co., said a lot of the loans homeowners request are for necessities.

“There was just a great need [when the program started] and obviously such a greater need now,” Brown said.

Grant programs

Through the Philadelphia Housing Development Corp.’s Basic System Repair Program, income-eligible homeowners can get repairs such as plumbing, electrical, structural, and roof work for free.

“If not for this program that provides the grants, homelessness would be through the roof in Philadelphia,” said Thomas, head of PHDC. Homeowners receive more than 3,000 repairs a year, he said.

Low-income Philadelphians with physical disabilities don’t have to be homeowners for PHDC’s Adaptive Modifications Program, which helps them live independently in their homes. Free modifications include installing stairlifts, widening doorways, and building ramps. Depending on funding, the program makes repairs for 150 to 300 people each year, Thomas said.

Eldridge, the Southwest Center City homeowner, had to wait a couple of years to be approved and for repairs to begin. Physical disabilities limit her mobility, so she said a new, larger bathroom will be “a godsend.”

“This is such a light at the end of the tunnel for me,” she said of the help she’s gotten fixing her home. “I feel hope, optimistic.”

Residents can find more information about home repair programs athttps://phdcphila.org/residents/home-repair/.”

Philadelphia Community Podcast

Have you listened to Healthy Rowhouse Project Executive Director Jill Roberts’ interview with Loraine Ballard Morrill of iHeartRadio? They speak about our Restore, Repair, Renew home improvement loan program and the importance of protecting your home to build wealth. Listen below, starting at the 13-minute mark.

Insight: Family Practice and Counseling Network, PHLPreK, Healthy Rowhouse Project, PA Conference for Women

The Family Practice and Counseling Network is opening a birth center in the Woodland Village Plaza next year and on October 30th they’re offering free services at the grab-n-go event including: health screenings, FREE COVID testing, FREE flu vaccines, give-aways, FREE haircuts and more 6120 Woodland Avenue from 11-3 pm. I speak with LaQuesha Garland, the Center Director of the impending Family Health & Birth Center

Shante Brown, Director of Operations for PHLpreK in the City of Philadelphia’s Office of Children and Families tells us how to sign up for free, quality Pre-K.
www.PHLprek.org

or call 844-745-7735

One of the best strategies for supporting affordable housing – is offering home owners help to repair and maintain their homes with low cost loans and assistance finding reputable contractors. That’s what the Healthy Row House Project does. I speak to Jill Roberts, Director Healthy Rowhouse Project. To determine if you are eligible, call 215-866-5200 or submit an RRR form at wwwclarifi.org/rrr.

Wanda Bryant Hope is Johnson and Johnson’s Chief Diversity and Inclusion Officer and she comes by profession inspired by her Civil Rights activist mother – we’ll tell you about a dramatic story of courage in the face of Jim Crow. We also discuss about the upcoming PA Conference for Women which takes place November 11th.
www.paconferenceforwomen.org

Restore, Repair, Renew: Remediating the Effects of Systemic Racism on Healthy Housing

Clarifi’s Jill Roberts, Director of the Healthy Rowhouse Project, was awarded with a Greater Philadelphia Social Innovation Award for Community Development for the work she and Clarifi have done to preserve homes, prevent displacement by gentrification and help close the wealth gap in Philadelphia.

Read an article co-written by Cedric Steenberghs, Director of Development, and Jill Roberts on the Restore, Repair, Renew program here.

Restore, Repair, Renew Annual Report

In March, the City of Philadelphia’s low interest loan program for which Clarifi is a program intermediary, Restore, Repair Renew (RRR) celebrated it’s one-year anniversary.  The City just released its first Annual Report on the program.

  • RRR has a 53% approval rate (compare that to the 25% approval rate on the private market in Philadelphia)
  • The average RRR borrower’s income is 60% of Area Median Income, and 84% of RRR borrowers are minorities. 
  • The total amount of RRR loans closed or preapproved is $2.7M! (which is pretty good for one year)
  • Our borrowers have a 0% default rate! We are proving that Philadelphia’s low- and moderate-income homeowners are a safe bet.
  • And last, but certainly not least, RRR has provided assistance in every Council District in the city!

Click here to view the report

Repairing the city, one house at a time

Updated: March 20, 2019 – 5:53 AM The Inquirer Editorial Board

Repairing the city, one house at a time | Editorial
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Updated: March 20, 2019 – 5:53 AM The Inquirer Editorial Board 

 The city’s high rate of poverty is a familiar story that tends to dominate when we talk about Philadelphia’s future. But there is at least one mitigating factor that makes the city unique — and can ultimately minimize the negative impacts of our poverty problem.

Despite recent declines, the city boasts a high rate of homeownership, especially compared to other East Coast cities. And, according to a recent Pew report, Philadelphia also boasts a high percentage of low-income homeowners. It’s a double-edged sword, though, when those homeowners can’t afford to make necessary repairs to their homes. As anyone who owns a home knows, small problems only get bigger if left unfixed.

The city has for years offered a grant program for low-income homeowners to do repairs to basic systems. The waiting list always has been long. This week, the city announced it is going a step further and launching a loan program for low-income homeowners to do repairs.

Under the Restore, Repair, Renew program championed by council members Darrell L. Clarke and Cherelle L. Parker, select lenders will offer 10-year loans at 3 percent fixed interest rate; the loans will range from $2,500 to $24,999. The Philadelphia Redevelopment Authority has issued bonds and will use the proceeds to buy the loans outright from the banks. They will administer the program, which also provides borrowers with financial guidance. Similar programs in other cities found very low default rates on the loans.

The city’s high rate of poverty is a familiar story that tends to dominate when we talk about Philadelphia’s future. But there is at least one mitigating factor that makes the city unique — and can ultimately minimize the negative impacts of our poverty problem.

Despite recent declines, the city boasts a high rate of homeownership, especially compared to other East Coast cities. And, according to a recent Pew report, Philadelphia also boasts a high percentage of low-income homeowners. It’s a double-edged sword, though, when those homeowners can’t afford to make necessary repairs to their homes. As anyone who owns a home knows, small problems only get bigger if left unfixed.

The city has for years offered a grant program for low-income homeowners to do repairs to basic systems. The waiting list always has been long. This week, the city announced it is going a step further and launching a loan program for low-income homeowners to do repairs.

Under the Restore, Repair, Renew program championed by council members Darrell L. Clarke and Cherelle L. Parker, select lenders will offer 10-year loans at 3 percent fixed interest rate; the loans will range from $2,500 to $24,999. The Philadelphia Redevelopment Authority has issued bonds and will use the proceeds to buy the loans outright from the banks. They will administer the program, which also provides borrowers with financial guidance. Similar programs in other cities found very low default rates on the loans.

Homeowners with credit scores of 580 and above are eligible. That’s significant because homeowners with scores below 660 find it difficult if not impossible to get a loan on the private market. In fact, a recent report from the Philadelphia Federal Reserve found that 74 percent of city homeowners applying for a loan to repair their houses were denied.

In Philadelphia, another report from Healthy Rowhouse, a program designed to improve housing conditions, found that of 24,000 homeowners applying for home-repair loans between 2012 and 2014, 62 percent were denied.

Homes with such problems as leaky roofs, broken windows, or broken heating don’t just impact individuals, but entire neighborhoods — and eventually, the city as a whole. That’s why the city’s involvement in the loan program makes sense: It stands to gain the most by helping to stabilize homes in disrepair. A stabilized home is a more valuable home — and that allows homeowners to build wealth.

Houses in need of repair also can cause health issues, especially among children and seniors. Leaks can cause mold, for example, which comes with a host of health problems.

It’s not as if most repairs are complicated problems, either: According to data supplied by Healthy Rowhouse, which is part of Clarifi, one of the nonprofits managing the program, the majority of health-related repairs can be done for under $10,000.

Philadelphia is seeing rising housing prices squeezing out many long-time residents. For many, the most affordable house is the one they already live in. The loan program can help make it the safest house, too.

Posted: March 20, 2019 – 5:53 AM The Inquirer Editorial Board

Getting a home improvement loan in Philly is harder when you’re low-income or a minority, study shows

by Caitlin McCabe, Updated: December 27, 2018

Getting a home improvement loan in Philly is harder when you’re low-income or a minority, study shows
TIM TAI / STAFF PHOTOGRAPHER
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Philadelphia is often called “The City of Neighborhoods,” an ode to its diverse housing stock and a high rate of home ownership.

More than 52 percent of homes in the city are owner-occupied, 2017 data from the U.S. Census Bureau show, and the city tends to outperform the national average when it comes to minority home ownership. Nearly two-thirds of Philadelphia homes, according to some estimates, are classified as rowhouses. And more than 80 percent of the city’s housing supply was built before 1970.

Fixing housing issues can fix a host of larger problems

US News & Word Reports article by Gaby Galvin, The Home Base of Health, is a terrific example of how repairing a family’s home can improve health, increase school attendance, reduce energy burdens and and improve a number of other outcomes that are being studied. Check out the link in the article to Philadelphia’s population heath indicators and ranking.