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Resources
The Neighborhood Transformation Initiative (NTI)
represents an unprecedented investment of resources in Philadelphia neighborhoods.
These resources, funded by a variety of local, state and federal sources,
are used in a manner that maximizes their impact and effectiveness.
NTI Bonds
General Operating Funds
Other Resources - Acquisition
Other Resources - Federal
Other Resources - State of Pennsylvania
Other Resources - Leveraging Outside Resources
NTI Bonds
Bond Ordinance (Bill 020036)
Former Mayor John F. Street signed into law a bond ordinance that authorizes the City to issue bonds to pay for blight elimination, redevelopment, land assembly, housing investment and neighborhood preservation activities. This legislation enabled the City to raise approximately $295 million for these activities. It also spells out the program framework and annual budget adoption process for NTI bond proceeds. With NTI bond proceeds the City will demolish dangerous buildings, preserve homes for renovation and reuse, and provide home repair grants and loans to homeowners. NTI bond funds are allocated to the following
uses:
- $142 million for demolition of abandoned residential,
commercial and industrial buildings.
- $74 million finances land assembly for future
development
- $70 million supports preservation activities
including stabilization, housing rehabilitation and home improvement loans
- $8 million to upgrade the City's land management
information systems
To view the NTI 2007 Proposed Program Statement
and Budget click here
To view the Year 32 Consolidated Plan click here
General Operating Funds
The City committed general operating funds to support
NTI projects. A portion of these funds has been allocated to the Green City Strategy for street tree
removal, pruning and planting, vacant lot remediation, and NTI Quality
of Life code enforcement programs, such as the Community Life Improvement
Program (CLIP) and graffiti abatement.
In addition, $20 million annually will cover debt service
payments on the NTI bonds, which represent the most significant investment
in the City's neighborhoods.
Other Resources
- Acquisition
Investments in land represent investments in future development in Philadelphia's
neighborhoods. The City has sought opportunities to stretch
the NTI Land Assembly budget even farther by taking advantage of opportunities
to leverage its acquisition funds.
- $15 million for Land Assembly - The City committed
an additional $15 million - $10 million in Community
Development Block Grant funds and $5 million
in PA State Department of Commercial and
Economic Development dollars - to increase
NTI funding for Land Assembly to $89 million. The NTI $89 million commitment
to Land Assembly is the largest investment its kind in the history of
the City of Philadelphia.
- Recycled Acquisition Funds
- Thanks to a "Recycling Agreement" between the Redevelopment
Authority and the City, a portion of the $89 million dedicated to Land
Assembly can be reinvested for future land acquisitions. Most of the property
acquired as a part of NTI is tax delinquent. At the time of acquisition,
the City is entitled to collect its outstanding liens up to the appraised
value of the property. Through this agreement ,the City will be able to
reuse 42 cents for each dollar - a windfall of approximately $15-$20 million
over the life of NTI - for further land acquisitions.
Other Resources
- Federal
NTI is an integral part of all of the City's community development activities,
from affordable housing development to economic development activities.
Many of these activities are made possible through Federal sources.
- The Community Development Block Grant (CDBG)
and associated federal funds (HOME, HOPWA, etc) are the principal source
of funding for housing and community development investments in Philadelphia.
The City will also receive an allocation through the American Dream Downpayment
Initiative, which will provide settlement and down payment assistance
to new low- and moderate-income homeowners. These grants will be made
available to homeowners buying homes in some of the City's new homeownership
developments.
- Philadelphia is home to one of 40 U.S. Department
of Housing and Urban Development Renewal Communities.
This designation, which lasts through 2009, offers tax and other financial
incentives for the development of commercial properties, purchase of equipment
and employment of area residents. For example, the Renewal Community can
allocate up to $12 million in tax deductions to businesses building or
expanding within the Renewal Community. The Renewal Community exemplifies
NTI's approach of involving local, state and federal governments, private
businesses, community-based organizations and neighborhood residents in
efforts to revitalize Philadelphia's neighborhoods.
Other Resources - State of Pennsylvania
The State of Pennsylvania supports NTI and community
development activities in Philadelphia through allocations from the Department
of Community and Economic Development and the Pennsylvania Housing Finance
Agency, among others. Other State programs are potential funding sources
for NTI activities. These programs include PennDOT's Hometown Streets program,
which provides funding for improvements along State Highways. DCED's Business
in Our Sites is a possible funding source for mixed-use development and
the Elm Street St./Main Street Program can help support neighborhood development
strategies. The Department of Conservation of Natural Resources' Growing
Greener program has provided additional sources of land acquisition funding.
Other Resources - Leveraging
Outside Resources
In order to making lasting change in our neighborhoods, the City needs
the active cooperation of community partners.
- Citizens Bank
-City of Philadelphia NTI Partnership
The Citizens Bank/City of Philadelphia NTI Partnership, launched on April
2, 2003, will leverage $104.3 million in support (over five years) for
residential mortgages and home improvement loans ($50 million); small
business loans ($25 million); community development project financing
and property acquisition loans ($26 million); small business technical
assistance program ($850,000); and support for anti-predatory lending
efforts and the Green City Strategy. These funds will be used to support
revitalization efforts in Philadelphia's most economically depressed neighborhoods.
- Preservation Development Initiative
- Philadelphia is one of four cities nationwide selected to receive a
Preservation Development Initiative (PDI) grant from the National Trust
for Historic Preservation and the John S. and James L. Knight Foundation.
The Preservation Development Initiative program was created as a means
to leverage historic preservation tools to foster economic development.
Each community selected this year will receive strategic assessments and
planning, technical assistance, loans and grants with a capitalized value
of up to $1.8 million to build preservation-based economic development
strategies and implementation programs. Philadelphia plans to use the
PDI grant program to jump start economic redevelopment in blighted areas
and raise the visibility of historic and architectural assets in low/moderate
income neighborhoods
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