PHILADELPHIA (KYW Newsradio) — Pennsylvania legislators gave Philadelphia permission on Friday to create a new 20-year tax abatement to help convert vacant schools and underused office buildings into affordable housing.
Philadelphia’s 10-year tax abatement for residential construction is credited with creating a building boom in the city. Mayor Cherelle Parker hopes this new abatement will do the same for her affordable housing plan.
“The 20-year abatement is exactly the kind of innovative incentive we need to redevelop these vacant buildings into residential housing,” Parker said.
The abatement could apply to any government building, including schools, or an industrial or commercial building that is converted to residential use, even if the building has to be demolished first.
It could potentially create new sites for Parker’s $2 billion HOME plan, but City Council would first have to pass a bill to make it happen. The mayor says she plans to send council legislation at the beginning of next year.
Meanwhile, her HOME plan has stalled in council as members seek changes to her spending proposal.
“Do I think we’ll get to yes? Absolutely. Do you want me to give you an absolute date and time? I can’t do that right now, but I can tell you that I believe we are well on our way,” Parker said.