(1) In this Chapter the following definitions shall apply:
(a) Surplus Properties. Surplus properties are those properties which:
(.1) have been acquired by an Agency or the City;
(.2) the City has no bonded indebtedness in connection with such property;
(.3) are determined by the City or the relevant Agency to be suitable for disposition to effectuate the purposes of this Chapter; and
(.4) if owned by the City, have not been designated by the Commissioner of Public Property as necessary for other municipal uses.
(b) Agency. The Philadelphia Land Bank ("Land Bank") and the Philadelphia Redevelopment Authority ("Redevelopment Authority").
(c) Qualified Applicant. An individual or entity who meets the standards of the provisions of subsection 16-404(2)(a).
(d) Disposition. The conveyance, exchange, sale, transfer, grant, or mortgage of one or more interests in real property from any Agency to a private, non-Agency or non-governmental, party, but not including the provision of a leasehold interest.
(e) Disposition Policy. A uniform policy for the disposition of property by the Agencies that is attached as Exhibit A, that may be amended by ordinance, and that supplements, but is not inconsistent with, the provisions of this Chapter.
(f) Community Trust. An organization, subsidiary, or partnership that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1954, a majority of whose founders, board officers, management and resources are independent of any for-profit corporation or funder, and whose bylaws or other documentation submitted at time of application indicate that the organization or partnership of organizations:
(.1) Acquires parcels of land and holds them in perpetuity with an intent to never resell, under alternative ownership structures like community land trusts, community investment trusts, and neighborhood trusts;
(.2) Ensures the permanent affordability of any structural improvements located on its land;
(.3) Serves community constituents who are defined by specific demographic characteristics or inclusive of all individuals who live, work, or worship in the geographic area served by the organization;
(.4) Has a governing body that is at least fifty-one percent (51%) composed of the organization's constituents, as defined in subsection 16-402(1)(f)(.3), and stewards, occupants, and residents of the organization's land holdings.
(.5) Has obtained required certificates of insurance and demonstrated financial capacity to maintain the land it intends to lease;
(.6) Demonstrates prior experience in implementing projects of similar scope and target demographic;
(.7) Has a documented succession plan that outlines how land will be transferred and project maintained in the event of default or dissolution; and
(.8) Submits a proposal that achieves permanent affordability, community control, and aligns with either an Adopted Neighborhood Plan or a Neighborhood Plan conducted by a non-profit that serves the community where the City surplus property is located.
(g) Reserved.
(h) Permanent Affordability. The continuous preservation of housing or other structural improvements, pursuant to restrictions of a City or Agency contract, financing agreement, funder or lender restriction, indenture, or covenant, or ground lease, at a sales price or rent that remains affordable to the same economic class of households as that of the initial purchaser or renter over a period spanning the useful life of the structure, and in no case for fewer than ninety-nine (99) years. Disposition applications will be considered to achieve permanent affordability if more than fifty percent (50%) of the residential rental units developed in such projects are occupied, at the time of the each initial and subsequent lease, by households whose income is at or below fifty percent (50%) of AMI; or more than fifty percent (50%) of the homeownership units developed in such project are occupied, at the time of the each initial and subsequent sale, by households whose income does not exceed eighty percent (80%) of AMI.
(i) Community Garden. A parcel of land managed and maintained by a group of individuals for neighborhood residents to share in the products of the land, which may include but not be limited to affordable food, accessible play areas, and open community space.
(j) Community Control. A system of land ownership and decision-making in which property residents, occupants, stewards, and in some cases other community constituents as defined in subsection 16-402(1)(f)(.3), participate in and benefit from ownership, stewardship, and governance of property within a given neighborhood.
(k) Adopted Neighborhood Plan. A plan that has been adopted by the City Planning Commission, including but not limited to Comprehensive Plans and/or Redevelopment Area Plans.
(l) Area Median Income or AMI. The median income for the Philadelphia area adjusted for household size as calculated by the U. S. Department of Housing and Urban Development.
(m) Affordable. Having total monthly costs for occupants of the property that do not exceed thirty percent (30%) of household income, as measured by AMI; for homeownership projects, monthly costs shall include mortgage principal and interest, mortgage insurance, property taxes, homeowner's insurance, and condominium or homeowner association fees applicable and owing; for residential rental projects, monthly costs shall include the monthly rent amount and a reasonable allowance, adjusted for household size, for utilities that are not included in the rent amount.
Notes
| 35 | Amended, 1977 Ordinances, p. 164; amended, 1979 Ordinances, p. 1520; amended, Bill No. 190606-AA (approved November 12, 2019). See note 32 for effective date provisions. Amended, Bill No. 220322-AAA (became law January 19, 2023). |