Affordable Housing Bonus Program Expanded in Philadelphia

The city of Philadelphia launched a height and density bonus in 2018 to create incentives for the development of affordable housing, but so far the results have proven underwhelming.

2 minute read

October 5, 2021, 6:00 AM PDT

By James Brasuell @CasualBrasuell


Philadelphia Construction

Fernando Garcia Esteban / Shutterstock

"Philadelphia City Council on Thursday overwhelmingly passed a bill that backers hope will encourage developers to build more affordable housing units in desirable areas," reports Aaron Moselle.

The bill tweaks the city's voluntary Mixed-Income Housing Bonus program, launched in 2018, which has so far underperformed expectations. The program "allows developers to construct larger buildings than allowed under zoning regulations if they agree to build affordable housing units or contribute to the city’s Housing Trust Fund," according to Moselle. "The fund provides money for new affordable homes, as well as the preservation and repair of existing homes."

"Since launching, the program has resulted in developers building fewer than two dozen affordable housing units, with the majority of developers who got the so-called bonuses to build extra floors or floor space opting to contribute to the trust fund instead of building on site," adds Moselle.

The bill's modification to the program will allow developers allow developers of smaller projects (i.e., less than ten units) to be granted mixed-use bonuses of height and density if they build affordable housing on site.

"The measure also includes a provision designed to encourage the preservation of active commercial corridors. That provision bars developers from getting a mixed-use bonus if they are also getting a zoning variance for residential use in a ground-floor commercial space."

More details on the new ordinance and the existing program are included in the source article. A soundbite by Mo Rushdy, the treasurer of the Building Industry Association, expressing skepticism that the bill will achieve the expected benefit for affordable housing in the city, is also included.

Thursday, September 30, 2021 in PlanPhilly

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25,% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Two yellow and white Dallas Area Rapid Transit light rail streetcars at station in Dallas, Texas.

North Texas Transit Leaders Tout Benefits of TOD for Growing Region

At a summit focused on transit-oriented development, policymakers discussed how North Texas’ expanded light rail system can serve as a tool for economic growth.

April 3, 2025 - KERA News

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

Green and white interstate freeway signs pointing to Hayward and San Mateo and Half Moon Bay exits in Northern California.

San Mateo Formally Opposes Freeway Project

The city council will send a letter to Caltrans urging the agency to reconsider a plan to expand the 101 through the city of San Mateo.

5 seconds ago - Streetsblog San Francisco

Kingsbridge Armory, large hangar-like brick building in the Bronx, New York City with brick lower floors and glass/metal curved roof..

A Bronx Community Fights to Have its Voice Heard

After organizing and giving input for decades, the community around the Kingsbridge Armory might actually see it redeveloped — and they want to continue to have a say in how it goes.

1 hour ago - Shelterforce Magazine

Close-up of white sign with black text; line drawing of bike and 'BIKE LANE'

Houston Mayor Promises Dedicated Austin Street Bike Lane After Public Backlash

Although the one-way bike lane won’t be protected by physical barriers, the proposal is an improvement over the mayor’s initial plan to only include sharrows on the Austin Street project.

2 hours ago - Houston Chronicle