Philadelphia Awarded $28.6 Million In Homeless Grants From Department Of Housing And Urban Development

Philadelphia, February 20 – The U.S. Department of Housing and Urban Development (HUD) has announced that it has awarded Philadelphia $28.6 million through the 2008 Continuum of Care Homeless Assistance Program. Philadelphia was awarded $26,360,293 in the competitive portion, and $2,303,406 in formula Emergency Shelter Grant funds. This year’s competitive award is $1m more than Philadelphia received last
year.

“This year’s award will allow us to continue and build upon the successes that we have achieved in tackling homelessness over the last year”, said Mayor Nutter. “With this award, the City will create 100 new units of permanent, affordable housing for homeless families and for the men and women who are living on our streets.”

Since last May when Mayor Nutter unveiled his strategy to create new housing and treatment opportunities, 278 homeless individuals and families have moved into affordable housing units. With case management and behavioral health supports, every one of them has remained in housing – ending, for some individuals, years of
homelessness. Another 120 individuals and families are in the pipeline.

This award enables a continuation of funding for 2,200 units of Safe Havens, transitional housing, and permanent housing for homeless individuals and families. It includes funding for 100 new units of housing, including five years of rental assistance funding for 56 of the 125 Housing First units managed by Pathways to Housing under the Mayor’s Homeless Strategy.

It is important to note that this funding does not alleviate any of the City of Philadelphia’s financial difficulties as the funding was already anticipated in the City’s budget and homeless strategy. The vast majority of the award goes direct to non-profit organizations to continue the work that they were already doing, and the balance ($4.8m) provides funding for new construction, multi-year rental assistance, and supportive service and
operating dollars for the new housing that will be created. The Administration is currently reviewing the new stimulus package from the federal government to identify further potential funding opportunities.

HUD’s funding is provided in two ways:

Continuum of Care Grants provide permanent and transitional housing to homeless persons. In addition, Continuum grants fund important services including job training, health care, mental health counseling, substance abuse treatment and child care. More than $1.5 billion in Continuum of Care grants are awarded competitively to local programs to meet the needs of their homeless clients. Continuum grants fund a wide
variety of programs from street outreach and assessment programs to transitional and permanent housing for homeless persons and families. Half of all Continuum funding awarded today, more than $783 million, will support new and existing programs that help to pay rent and provide permanent housing for disabled homeless individuals and their families (see attached summary of the funding awarded today).

Emergency Shelter Grants provide funds for the operation of local shelters and fund related social service and homeless prevention programs. HUD is awarding $160 million in Emergency Shelter Grants that are allocated based on a formula to state and local governments to create, improve and operate emergency shelters for homeless persons. These funds may also support essential services including job training, health care, drug/alcohol treatment, childcare and homelessness prevention activities. By helping to support emergency shelter, transitional housing and needed support services, Emergency Shelter Grants are designed to move homeless persons away from a life on the street toward permanent housing.

Mayor Nutter And Controller Butkovitz Announce Plan To Reduce City’s Pension Obligations

$172 million in savings will be realized over five years

Today, Mayor Michael Nutter, City Controller Alan Butkovitz and the Pension Board announced a plan to reduce the City’s pension obligations while saving the city $170 million over the next five years.

The pension plan proposal includes: lowering the assumed return on the pension investments from 8.75% to 8.25%; increasing the period over which the unfunded liability is paid off from 20-40 years; and spreading out the fund’s earnings and losses from five to 10 years. The total savings from these actions would amount to more than $170 million to the City’s general fund through FY14.

Mayor Nutter Creates Task Force On Tax Policy And Economic Competitiveness

February 10 – Mayor Michael A. Nutter signed an Executive Order today establishing the Mayor’s Task Force on Tax Policy and Economic Competitiveness. Mayor Nutter signed the Executive Order after a speech given to the Greater Philadelphia Chamber of Commerce in which he asked for the support of the business community as the City engages in a budget process to close a $1 billion Five Year Plan deficit.

The Task Force will evaluate the City’s current tax structure, compared to other major cities; analyze the impact of the City’s tax structure on competitiveness; and evaluate the cost of development in Philadelphia.

Mayor Nutter Announces $13 Million In Funding For Small Businesses

FUNDING PART OF NEW STRATEGY FOCUSING INVESTMENT ON NEIGHBORHOOD COMMERCIAL CORRIDORS

Philadelphia, February 8 – This afternoon Mayor Michael A. Nutter and Deputy Mayor Andy Altman announced that two programs will direct $13 million to developments and small businesses along high-potential commercial corridors across Philadelphia.  These targeted investments are part of a larger effort to support small businesses during this period of economic downturn.   

“Commercial corridors are at the heart of maintaining healthy and vibrant neighborhoods,” said Mayor Nutter.  “Investing in local businesses now underscores our commitment to ensuring that neighborhoods emerge from this recession stronger than ever.”

The $13 million is allocated across two programs:

The Targeted Blocks Façade Grant Program is a new Administration initiative that will provide five $200,000 grants ($1 million total) to key commercial corridors across the City.  Grant funds will be used to help businesses make external improvements to their buildings, including painting and signage upgrades.  These changes will improve the aesthetics and overall business climate along the corridors. 

The commercial corridors that will receive awards were selected based on their potential for growth and corresponding potential for positive change in the surrounding neighborhoods due to increased commercial activity.  Grants will be distributed to Community Development Corporations operating along the corridors, which will work with local business owners to identify and execute façade improvement projects.  Funding for the program comes from bonds issued in 2007 and will not impact the City’s General Fund.

Targeted Blocks Façade Grant Recipients:
3900 & 4000 Blocks of Lancaster Avenue
(CDC –  People’s Emergency Center)

6700,6800, 7100, 7200 Blocks of Germantown Avenue
(CDC — Mt Airy USA)

Ridge Avenue from Green Lane to Leverington Avenue
(CDC — Roxborough Development Corporation) 

5600 Block of North Fifth Street 
(CDC — Korean Community Development Services Center)

2700, 2800 & 2900 Blocks of North Fifth Street
(CDC – HACE Commercial Development Corporation)

The Commercial Revitalization Deduction Program allows the City to allocate Federal tax credits to developers building or renovating projects in economically disadvantaged Renewal Communities.  This year, the City awarded $12 million in credits to six projects on or near commercial corridors across Philadelphia.  Projects range from a job placement center and charter school to apartments and office space.  Collectively, they will leverage approximately $56 million in private construction and create 622 full time jobs.  The funding for this program consists entirely of Federal tax credits and does not impact the City’s General Fund.

Commercial Revitalization Deduction Recipients
Wexford-UCSC II, LP: $4,155,000 million credit for new construction at The Science Center
Sedgely Avenue Properties, LP: $5,106,389 credit for a mixed use building including a job placement center and a charter school.
Laminated Materials Corporation: $507,000 for factory and office space.
Sally Gardens, LP: $726,611 for apartment, retail, and office space.
3820 Lancaster Ave LLC: $617,000 for apartment and office space.
Cenova, Incorporated: $492,500 for office and truck dispatching space.

The two programs announced today are only a part of a larger initiative designed to aid commercial corridors in their role as the economic lifeblood of our neighborhoods. 

Other recent initiatives include:$8 million in Gap Financing Loans to help jumpstart stalled commercial and mixed-use development along commercial corridors, $1.6 million in Targeted

Redevelopment Project grants to commercial and mixed-use building projects along commercial corridors, $500,000 in Merchants Fund Corridor Partnership grants to The Merchants Fund to support new and expanding retail along commercial corridors.     

Mayor’s Box Attendees, October – December 2008

More than 50% tickets given to outside groups, non-profit organizations, and Recreation Centers

February 06 – The City of Philadelphia has released the names of those who received tickets to the Mayor’s Box at the Wachovia Center, Wachovia Spectrum, Lincoln Financial Field, Citizens Bank Park, and the Mann Music Center during the second quarter of FY09 (October – December 2008).

The City’s ticket policy, the first time the distribution of tickets to the Mayor’s Box has been governed by a written, public policy, is in place to provide for the equitable distribution of complimentary tickets received by the City of Philadelphia to events at the Wachovia Center, Wachovia Spectrum, Lincoln Financial Field, Citizens Bank Park, and the Mann Music Center.

Major cities lost 1.2M jobs in ‘08

BizJournals.com  

Not all cities reported job losses last year there are 15 cities that reported job gains with Houston topping the list with a gain of 57,300 jobs.

Gov. Rendell Nixes Pay Raises to Plug Budget Holes

KYW1060.com  

Governor Rendell cancels the 3% and 2.25% raises that where due in July and next January.

Nutter visits Juniata to hear budget views

Daily News  

Mayor Nutter visited a block captain’s house to discuss his upcoming budget plans. The residents at the meeting said they would rather pay higher taxes then have their city services cut.

Survey shows Nutter retains support

The Philadelphia Inquirer  

In a recent poll 71% of respondents favor Mayor Nutter. The poll also unveiled that 81% understand the financial crisis the city is facing.

Furlough Fridays begin for Calif. state workers

Philly.com  

200,000 California State Employees are staying home today as the mandatory state furlough begins. The 2-day a month furlough is going to reduce the average state workers salary 9.2%.