Philadelphia City Council passed new legislation today that aims to create more affordable housing in parts of the city, including West Philadelphia, which are seeing rapid housing development.

The new Mixed Income Neighborhoods Overlay Bill, proposed by Councilmembers Jamie Gauthier (3rd District) and María Quiñones Sánchez (7th District), is the first-ever mandatory inclusionary zoning legislation that requires affordable housing be part of new large development projects in select tracts of the 3rd and 7th Districts.

The 3rd District includes West Philadelphia and Southwest Philadelphia neighborhoods, which have seen rapid growth of housing development in the past couple of decades and displacement of many lower income residents.

“The continued growth of our city is important, but it’s unacceptable if it comes at the detriment of vulnerable Philadelphians,” Councilmember Gauthier said. “With many developers prioritizing profits, regardless of the social repercussions, the best way for us to ensure that affordable housing options remain available in desirable neighborhoods over the long-term is to enact policy change.”

The legislation will require 20 percent of the units in any new housing development with ten or more residential units within the overlay boundaries be made available at restricted pricing for a 50-year period. At least 15 percent of those units must be on-site. These units must be affordable for rental households earning up to 40 percent area median income (AMI), and for owner-occupied households earning up to 60 percent of AMI. Property owners would be entitled to additional development rights, such as additional building height or reduced parking requirements.

This zoning bill comes at a crucial time for many West Philadelphia residents. A study commissioned by Councilmember Gauthier last year showed nearly half of 3rd District households are housing cost-burdened, meaning they spend over 30 percent of their income on housing expenses.

Housing prices have tripled in the University City area since the 1970s, and in the past two decades alone, most neighborhoods east of 52nd Street have seen Black populations cut in half, according to the study. Seventy percent of 3rd District rental units cost more than $750 per month, a price that is only affordable to 35 percent of renter households.

The Mixed Income Neighborhoods Overlay bill will go into effect six months after it is signed by the Mayor.