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Residents at affordable housing complex near 40th and Market told to leave to make way for development

October 15, 2021

Residents of the University City Townhomes, which are surrounded by high-priced properties near 40th and Market, have been told they have to leave the affordable housing complex so it can be sold to developers.

Residents of the University City Townhomes at 40th and Market, an island of affordable housing amid the frenzied development surrounding the University of Pennsylvania, have been told by the property’s owners that they will have to move to make way for more development. But City Councilmember Jamie Gauthier and other elected officials stood with residents during a press conference to say they will fight for residents to stay.

“We are here to sound the alarm,” Gauthier said at a press conference at the complex on Thursday. “Considering the history of this site and the scarcity of affordable housing, it’s hard to fully capture in words what an injustice this is.”

University City Townhomes opened in 1982 as hard-won compensation for the razing of the historic Black Bottom  neighborhood during the 1970s to make way for the expansion of the University of Pennsylvania, Drexel University and the construction of the University City Science Center and later UCity Square along Market Street. Neighborhood residents and activists with the help of some Penn students won control of the parcel along Market Street between 39th and 40th Streets and the City rezoned it for residential use in 1979, offering it to the U.S. Department of Housing and Urban Development (HUD) for affordable housing. An arm of the Fort Washington-based Altman Group, then a small construction company, bought the parcel and developed the property under the HUD contract.

But now that contract is about to expire and Altman Group, now a large real estate conglomerate, wants to cash in. The 120,000-square-foot property, which is steps from the 40th Street station of the Market-Frankford line and in the shadow of massive commercial development on Chestnut Street to the south and on Market Street to the east, is estimated to be worth nearly $10 million.

The property owners recently notified residents that they have to leave by July 2022.

“I want to be clear,” Gauthier said. “If we lose these units, we will not get them back. This is something that cannot be replicated in today’s housing market.”

Rent at University City Townhomes, like many “deeply affordable” complexes in the city, are a fraction of nearby market-rate apartments, particularly in the rapidly developing areas around Penn and Drexel. Utility costs are also capped as a percentage of the residents’ income.

Gauthier recently introduced legislation that would halt demolition for a year and place an affordable housing mandate on the parcel.

Meanwhile, residents like Karen Mouzone hope that they can remain in their homes, which she said provide a safe space for children amid rising gun violence in the city.

“I am hoping and praying that we can all work together and bring this to a just closure,” said Mouzone. “And that everyone can stay here. For the children’s welfare.”

Photos by West Philly Local

14 Comments For This Post

  1. Mary Says:

    I too hope people get to stay. Children need the stability of family, friends, school. Neighbors help neighbors.

    We who live in the area want this housing preserved, along with the senior buildings nearby.

    What do we ask? That the people living at 3990 stop with the incessant firecrackers, fireworks, weekend long DJ type loud music that you can hear for blocks stop. Let’s all be good neighbors to each other. Children throwing cherry bombs at seniors sitting outside isn’t neighborly.

  2. wireless Says:

    The arm of the Altman Group that provided 40 years of affordable housing may have been motivated to maintain their side of the contract.

    Regardless of their motives, creation of affordable housing can likely only be temporary.

  3. ACD Says:

    Why not build a new dense high-rise and guarantee current tenants spots at current rates? Let the developers also build enough market rate units to support the project. Pay for them to live somewhere in 19104 during construction. Or would that be too simple? I’m all for affordable housing, but we need way more density in a prime spot right on the El.

  4. Mike Says:

    I agree with ACD, let the low rise townhomes (along a huge transit stop: 40th and market MFL) be demolished and make way for a new highrise and require the same amount of units that were available in the townhomes be in the highrise at the same price. The residents will have to live somewhere else (city provided) during construction, but when all is done, they will get brand new units!
    It does not make sense to me to fight for a low rise old building for the sake of keeping affordable housing, when affordable housing can come from the replacement.
    What we need is more density (more density = more affordability) and better transit to go with it.

  5. Keith Says:

    The problem with covenants like that is that the people who operate the building will usually just wait a few years and then break it, and there is no recourse for people when they do. One way or another they’ll find a way to get rid of the tenants who aren’t paying market rate.

    In theory that’s a good solution, although you’re also asking tenants to give up their townhomes for an apartment, which is not equivalent housing. But they won’t have affordable housing there forever.

  6. Dominik Says:

    Affordable housing as it is usually structured (and maybe here too?) tends to institutionalize and preserve poverty. Can we create a model for affordable housing that helps the residents build wealth and grow beyond the income limits required to live in affordable housing developments? If the residents of this housing development owned their homes, they would all own part of the $10 million asset mentioned in the article. Philadelphia is experiencing success, why can’t the people living in this development also benefit from that success and from their own labors that make this city great?

  7. Mary Says:

    The thing with truly affordable housing, not the few 40% of median (the affordable rents start at $800) is, yes the tenants are paying 30% or less depending on the type, but the owners are getting the FULL amount from the government. Local, state, federal. They’re making their money. And getting tax breaks, easements, things the everyday homeowner couldn’t begin to touch. This is more UofP, Wharton, USciences gentrification whitewashing of the entire neighborhood.

  8. Truth Says:

    It is a shame that the ridiculous demands of neighbors caused parking to be increased at 5000 Warrington, which led to a reduction of 70 below-market-rate units. This is the same amount of low-income units we are losing at this spot. Could we have had those affordable units at 5000 Warrington ready for the residents of 3900 Market to move into, if not for the “community leaders” that slowed down the project, and chose parking over people?

    Do we truly care about affordable housing, or are we just using progressive-sounding language to minimize the amount of inevitable change that is coming to our communities?

  9. James Says:

    Best question to ask is the covenant for affordable housing one of permanance? If no, then the developer would be within his rights to seek to terminate the affordable housing on the site.

    Which means we will have to do a better job of protecting affordable housing by doing a better job of adding protection to the property deed to ensure that affordable housing on site is permanently protected from 40 year shockers as a developer seeks to terminate affordable housing and seek to sell the land and building to others seeking to buy. That may be seeking other sites of land to purchase.

  10. John Says:

    Good riddance. These are terrible buildings. They destroy the fabric of the city.

    Sure, try to include some affordable housing.

  11. Iofnewt Says:

    Hi John, I am fairly new to Philadelphia. I am from the mid-west and this is my first time living in a big city. I am still trying to get the vibe of the city because I haven’t been as social as I want. Can you briefly describe your interpretation of the ‘fabric of the city’. Thanks, mate!

  12. Angel Says:

    Gentrification plain and simple. This process whereby the character of a poor urban area (people of color with limited income) is changed by wealthier people moving in, upgrading housing, and attracting new businesses, typically displacing current inhabitants. This is something that is happening throughout many cities and is not new. This issue should have been addressed long ago.

    In the University City area you will find that there are many developments occurring at this time. In fact, there is a website that has information regarding developments throughout the West Philadelphia area. The publication is called State of University City2021 and the website is listed below. Check it out and see all that is to come and has already been put into place.

    https://www.universitycity.org/publications

  13. Jacobin Says:

    It seems like folks should be less concerned with new investment in previously disinvested communities, and more focused on ensuring that existing residents and businesses are not displaced.

  14. SmegmaJoe Says:

    That place was maintained pretty well but frankly residential projects should have never been built at that location. That terrible brutalist building across the street and the retirement high rises are also terribly unattractive. The whole strip needs a redo – it could be like Frankford Ave in Fishtown.

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