In response to major funding cuts, the Philadelphia Housing Authority is auctioning off over 200 properties in hopes of raising funds for community programs.
Real estate auction company Max Spann will hold the auction at 10 a.m. on July 16 in First District Plaza at 3801 Market Street.
The PHA saw $32 million cut from its budget following the federal government’s sequester. The organization receives over 90 percent of its funding from the Department of Housing and Urban Development.
If the past is any indicator, the auction could offer PHA’s coffers a substantial boost. The agency’s first auction, in fall of 2011, netted approximately $6.4 million. The funds will finance a new PHA program designed to help community development organizations create housing for the same low-income population served by the PHA.
“The Philadelphia Housing Authority knows it cannot meet the demand for housing alone,” said Nichole Tillman, a PHA spokeswoman.
The program, called the “6 in 5” initiative, seeks to create or preserve 6,000 affordable housing units over the next five years. The PHA has already issued a request for proposals to community development organizations. Winners will receive long-term subsidies to help serve low-income households in existing, newly constructed or renovated units.
The PHA requires all purchasers to develop auctioned properties.
“PHA hopes these properties will return to the tax roll, improving neighborhoods,” Tillman said.
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