![]() In a somewhat surprising move, the Building Industry Association (BIA) joined the group of supporters, with with Leo Addimando, the BIA’s Vice President saying that the recognized the city’s need for more affordable housing.īut the bill has its fair share of opposers, too, starting with the Building Trades Union. Quinones-Sanchez said the bill would generate money for affordable housing and would combat economic and racial segregation in the city. “I know Philadelphians are afraid of a tale of two cities,” Clarke said, referencing economic divide in Philly. The bill was introduced in April by City Council member Maria Quinones-Sanchez, and it was announced at a press conference held by supporters, including Council President Darrell Clarke, who said the tax would put residents first. There’s a multi-faceted debate going on over the bill, which includes people concerned about how the money will be used, and others worried that it will deter city development. That means any group regardless of legal status, including for-profit developers, is eligible to access those funds. That money will then be used to fund housing for people making up to 120 percent of Philly’s median income, meaning anyone making less than $105,000 a year. It suggests amending the Housing Trust Fund section of the Philadelphia code to include a sub-fund for the revenue generated by the tax. The second bill, Bill 180347-A, determines how the money is used. They then keep the city informed about any changes to that number throughout the construction. However, construction costs are subject to change throughout the course of the project, and if a property owner doesn’t know how much the costs will be at the beginning, they’re expected to submit their best guess. If there’s no final inspection, they’ll need to pay the whole tax at the beginning. The property owner would have to pay half of tax at the beginning of the project-when they’re issued a building permit-and half during the building’s final inspection. Also exempt are constructions in Keystone Opportunity Zones, which are state-designated sections of the city that already have reduced or tax-free status. Several projects are exempt from this bill, including affordable housing and non-profit developments. The first is the construction tax bill, Bill 180351, which would implement a 1 percent construction impact tax on all new construction and major renovations that require a building permit. When people discuss the bill, they’re generally referring to two bills, which work in tandem. It’s the latest news in a long saga over the bill, which was narrowly approved by council members in June, and which has drawn ardent support and harsh opposition.Īs council prepares to go back in session tomorrow, and the deadline for the bill’s decision gets down to the wire, we’ve put together an explainer on the bill, its backstory, and what it means for Philly. City officials estimated that could raise between $52 and $56 million over the next five years, which would go to the Housing Trust Fund to pay for affordable housing, according to .Īlready some council members have voiced their opposition to Kenney’s proposal, including Maria Quinones-Sanchez, who proposed the construction tax bill, and said it would be “irresponsible” to spend less than $125 million over the next five years on affordable housing, wrote. On Wednesday morning, 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 for affordable housing. ![]() And, with less than 24 hours to go, he proposed an alternative. Mayor Jim Kenney has one day to veto the bill before Philly City Council reconvenes after their summer recess tomorrow. The deadline for a new, controversial construction tax bill, which would levy a one percent tax on new constructions in the city, is winding down.
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