In this Chapter 7-200, the following definitions apply:
(1) Affordable Housing Property. Any building or substantially-related buildings under common ownership containing 4 or more dwelling units leased or intended to be leased to households for occupancy as their primary residences, excluding any building that qualifies as an exempt building, that is bound by a restrictive covenant or regulatory agreement under City, state or federal law commemorating housing affordability requirements on site, including but not limited to:
(a) Tenants receive a federal housing subsidy pursuant to 42 U.S.C. § 1437f that is not a tenant-based subsidy;
(b) A loan financing the property is insured or assisted under § 221(d)(3), § 202, or § 236(a) or (b) of the National Housing Act, 12 U.S.C. § 1701q, § 1715l(d)(3), or § 515 of the Housing Act of 1949, 42 U.S.C. § 1485; 42 U.S.C. §§ 5301 et seq.; or 42 U.S.C. §§ 12722 et seq;
(c) The property is subject to a Low-Income Housing Tax Credit indenture or other use agreement pursuant to 26 U.S.C. § 42;
(d) The property is bound by a restrictive covenant or regulatory agreement with the Pennsylvania Housing Finance Agency, City of Philadelphia, or Philadelphia Redevelopment Authority commemorating housing affordability requirements on site; or
(e) The property was developed with funding from and remains subject to the requirements of the New Markets Tax Credit Program, as authorized by 26 U.S.C. § 45D. 9
(2) Bona-fide Offer. An offer evidenced by a purchase contract reflecting a sales price equal to or more than the appraised value prepared by a certified appraiser, and an earnest money deposit equal to at least five percent (5%) of the sales price as identified in the purchase contract.
(3) Certified Appraiser. A licensed real estate appraiser who is a Member of the Appraisal Institute or who meets standards comparable to those imposed by the Appraisal Institute; and who is experienced in determining the appraised value of multifamily real estate.
(4) Department. The Department of Planning and Development.
(5) Eligible Party. Any City or Commonwealth agency, non-profit developer, for profit developer, tenant, or tenant organization that is able to demonstrate a commitment to affordable housing preservation to the owner at the time of submission of a purchase offer through documentation of one or more of the following: the ability to finance the purchase, improvements and long-term maintenance of the property, consent to long-term affordability of the property upon purchase, affordable housing development and management expertise, general commitment to preservation of affordable housing, community support, and knowledge of the development process.
(5.1) Exempt Building. Any building to which one or more of the following conditions apply:
(a) The building is financed pursuant to loans insured or assisted under 12 U.S.C. § 1715z-1, also known as Section 236 of the National Housing Act.
(b) The building is insured or assisted under 12 U.S.C. § 1715l(d)(3) and either:
(.1) bears interest at a rate determined under the proviso of 12 U.S.C. § 1715l(d)(5), also known as Section 221(d)(3) "Below Market Interest Rate" mortgage insurance program; or
(.2) is housing where tenants receive a federal housing subsidy pursuant to 42 U.S.C. § 1437f that is not a tenant-based subsidy, where such housing is financed by a loan or mortgage insured under 12 U.S.C. § 1715l(d)(3) that receives loan management assistance under 42 U.S.C. § 1437f due to a conversion from section 1701s of Title 12 of the United States Code.
(c) The building is financed by a loan or mortgage that is held by the Secretary of the Department of Housing and Urban Development and was formerly insured under a program described in either (1) or (2) above.
(d) The building is otherwise insured, assisted, or financed in a manner that precludes local regulation related to changes in its federal affordability.
(6) Long Term Affordability Indenture. A deed restriction against the property, executed and recorded by the owner and approved as to form by the Law Department, which requires the property be maintained as affordable (using the same standard and remaining duration of affordability as the program under which the property qualifies as an Affordable Housing Property) and allows the City to inspect for, or demand proof of, continued compliance with this requirement. Where a property qualifies as an Affordable Housing Property under multiple programs, the terms of the program with the restrictions that are longest in duration shall be used for the Long Term Affordability Indenture.
(7) Matched Agreement of Sale. An agreement of sale between an owner and an eligible party made to substantially match the terms of an offer from an entity other than an eligible party.
(8) Notice of Intent. A notice of intent to take a protected action as defined below; or to sell, convey, or otherwise transfer an affordable housing property under the conditions of subsection 7-203(5).
(9) Owner. A person or legal entity that holds legal title to an affordable housing property or any mortgagee in possession, receiver, trustee, or other person that may take a protected action.
(10) Protected Action. An action taken by an owner that removes the owner's legal commitment to provide affordable housing and includes one or more of the following:
(a) The prepayment in full before the maturity date of mortgage financing, if the prepayment would have the effect of removing the affordability restrictions applicable to the Affordable Housing Property, and the financing is:
(.1) Insured under § 221(d)(3) of the National Housing Act, 12 U.S.C. § 1715l(d)(3), and assisted under either § 101 of the Housing and Urban Development Act of 1965, 12 U.S.C. § 1701s, or under § 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f;
(.2) Insured or assisted under § 202 or § 236(a) or (b) of the National Housing Act, 12 U.S.C. § 1701q, also known as Section 202 Housing for the Elderly;
(.3) Insured or assisted under § 515 of the Housing Act of 1949, 42 U.S.C. § 1485; or
(.4) Held by the United States Department of Housing and Urban Development and either currently or formerly insured or assisted, as an affordable housing property.
(b) The expiration, termination before expiration, or failure to exercise any renewal option, under an agreement providing for project-based rental assistance for any units in an affordable housing property under § 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f; or
(c) The expiration or termination of affordability and use restrictions in the Low-Income Housing Tax Credit use agreement pursuant to 26 U.S.C. § 42.
(11) Tenant. Any individual lawfully residing at an affordable housing property at any point between the date an owner is obligated to send a notice of intent pursuant to this Chapter 7-200 and the date such owner takes one or more protected actions, whether or not such residence is continuous.
(12) Tenant Organization. Two or more tenants from separate households.
Notes
| 8 | Amended, Bill No. 221017 (approved May 24, 2023). |
| 9 | Added, Bill No. 230776 (approved December 20, 2023). |