Mayor Parker wanted a 20-year tax abatement to spark development. Why hasn’t it happened?

Philadelphia Mayor Cherelle L. Parker promised in November to introduce a 20-year property tax abatement to encourage the conversion of vacant office buildings and long-empty public schools into housing. However, the legislation was never submitted to City Council amid ongoing disputes over school closures and public education funding battles. Parker frames the abatement as a critical component of her Housing Opportunities Made Easy (H.O.M.E.) initiative, aiming to create or repair 30,000 housing units. She stated in a recent statement that the proposal would ‘put our H.O.M.E. plan on steroids,’ though she emphasized the need to refine it carefully. Local real estate and development groups, including building trades unions, support the abatement but argue that current financial conditions make redevelopment unviable without government incentives. Philadelphia still has up to 15 million square feet of underused office and industrial space, despite recent redevelopment in Center City. John Hawkins, a lobbyist representing these interests, noted that developers would already be converting buildings if the economics worked without incentives. City Council President Kenyatta Johnson has not yet received a formal proposal but expressed openness to the idea, provided it includes below-market-rate housing to address affordability concerns. Progressives in the council share this stance, insisting that any abatement must prioritize housing accessibility. Last year, Parker and the Philadelphia delegation in Harrisburg successfully pushed for a 20-year abatement framework, doubling the existing 10-year abatement for building renovations. The push gained momentum after office vacancies surged due to remote work trends following the COVID-19 pandemic. Parker previously argued that the extended abatement could drive redevelopment beyond Center City, particularly in areas with vacant public sector buildings. The administration and development community plan to collaborate over the summer to build consensus with City Council, ensuring the proposal aligns with affordability goals before reintroducing it in the fall.