PHILADELPHIA (KYW Newsradio) — Philadelphia’s construction trade unions will help fund a Philadelphia Housing Authority project, in what officials have called a first-of-its-kind agreement.
The Philadelphia Building and Construction Trades Council will loan PHA $50 million to turn the Brith Sholom apartments in West Philadelphia into low-income senior housing. The city facilitated the deal as part of Mayor Cherelle Parker’s HOME initiative to create and preserve affordable housing.
PHA bought the apartments at the request of its elderly tenants, after an absentee owner allowed it to fall into severe disrepair. President Kelvin Jeremiah said he quickly realized the renovation was going to take a massive investment.
“I was shocked and dismayed by the conditions that the remaining residents were living under,” he said. “It turns out that PHA is going to be doing a gut rehab of this building to preserve it.”
Jeremiah estimated the cost at $150 million, for which the Building Trades loan will cover one-third. City Finance Director Rob Dubow, who facilitated the agreement, called it unprecedented.
“The result of the investment will be hundreds of family-sustaining union jobs, a steady return for union pension funds, funding for PHA and hundreds of units of affordable housing,” Dubow said.
PHA will pay the loan back over 15 years at 4 1/2% interest. The finished building will have 340 units.
Building Trades Council business manager Ryan Boyer said it was more than just a business deal. “We’re changing lives here. This isn’t an investment for the Building Trades,” he said. “It’s a down payment on our city’s future.”