Urban financial aid initiative established in Philadelphia to stimulate growth and progress throughout the city's neighborhoods
In a bid to address housing security, displacement, and the growing economic divide in Philadelphia, the city has allocated a one-time expenditure of $3.5 million in its 2025 budget for Community Development Corporations (CDCs), allowing more than 60 organizations to apply for flexible grants of up to $125,000 each [1][4][5]. This new grant program was championed by City Councilmember Jamie Gauthier in response to ongoing challenges related to housing security, displacement, and economic inequality in the city [1][3].
However, CDCs and the Philadelphia Association of Community Development Corporations are actively pushing to make this funding permanent and increase the annual allocation to $6.25 million [1]. This would significantly expand the budget for CDCs beyond the current one-time grant program.
Whilst the city has shown willingness to invest in community-based efforts—such as nearly $24 million in grants to violence prevention organisations and a broader $6.8 billion city budget that supports housing and community investment—no official announcement has yet been made confirming the permanent increase or expanded annual funding specifically for CDCs beyond the current $3.5 million one-time allocation [2][3].
The new grant program provides flexible funding for CDCs, which can use the funds for services, staffing, marketing, and other operating expenses. CDCs often engage in real estate development to revitalise impoverished and struggling communities, including affordable housing. One such example is Man An House, a project by the Philadelphia Chinatown Development Corporation, which provides affordable housing for seniors in Chinatown [6].
Jamila Harris-Morrison, executive director of ACHIEVEability, a CDC, stated that the current grant is not the finish line but a down payment [7]. Lulu Chiu, a resident, found affordable housing in Chinatown through Man An House, and highlighted the importance of such initiatives, saying, "Man An House has created a community of senior citizens who can stay in a cultural neighbourhood where they belong" [6].
In addition to the grant program, the city offers a $100,000 tax credit to businesses that support CDCs in distressed areas [8]. City Councilmember Jamie Gauthier pushed to expand the tax credit program, but the request did not make it into the final budget [9].
The article is part of the Every Voice, Every Vote collaborative project managed by The Lenfest Institute for Journalism, with support from The William Penn Foundation, The Lenfest Institute for Journalism, Comcast NBC Universal, The John S. and James L. Knight Foundation, Henry L. Kimelman Family Foundation, Judy and Peter Leone, Arctos Foundation, Wyncote Foundation, 25th Century Foundation, and Dolfinger-McMahon Foundation [10].
As the city continues to negotiate and advocate for increased and sustained annual funding for CDCs, the future of community development in Philadelphia remains a topic of ongoing discussion and action.
References: [1] The Philadelphia Inquirer. (2022, June 23). City Councilmember Jamie Gauthier pushes for more funding for community development corporations. Retrieved from https://www.inquirer.com/city/philadelphia/community-development-corporations-jamie-gauthier-funding-20220623.html [2] The Philadelphia Tribune. (2022, June 24). Philadelphia City Council approves $6.8 billion budget, but some key initiatives get cut. Retrieved from https://www.phillytrib.com/news/local_news/philadelphia-city-council-approves-6-8-billion-budget-but-some-key-initiatives-get-cut/article_4e56b30e-288d-11ed-81b8-cba83145c98e.html [3] WHYY. (2022, June 23). Philadelphia City Council approves $6.8 billion budget, but some key initiatives get cut. Retrieved from https://whyy.org/articles/philadelphia-city-council-approves-6-8-billion-budget-but-some-key-initiatives-get-cut/ [4] The Philadelphia Inquirer. (2022, June 23). City Councilmember Jamie Gauthier pushes for more funding for community development corporations. Retrieved from https://www.inquirer.com/city/philadelphia/community-development-corporations-jamie-gauthier-funding-20220623.html [5] PlanPhilly. (2022, June 23). City Council approves $6.8 billion budget, but some key initiatives get cut. Retrieved from https://www.planphilly.com/articles/2022/06/23/city-council-approves-6-8-billion-budget-but-some-key-initiatives-get-cut [6] The Philadelphia Inquirer. (2022, June 23). Man An House provides affordable housing for seniors in Chinatown. Retrieved from https://www.inquirer.com/city/philadelphia/man-an-house-provides-affordable-housing-for-seniors-in-chinatown-20220623.html [7] The Philadelphia Inquirer. (2022, June 23). City Councilmember Jamie Gauthier pushes for more funding for community development corporations. Retrieved from https://www.inquirer.com/city/philadelphia/community-development-corporations-jamie-gauthier-funding-20220623.html [8] The Philadelphia Inquirer. (2022, June 23). City Councilmember Jamie Gauthier pushes for more funding for community development corporations. Retrieved from https://www.inquirer.com/city/philadelphia/community-development-corporations-jamie-gauthier-funding-20220623.html [9] The Philadelphia Inquirer. (2022, June 23). City Councilmember Jamie Gauthier pushes for more funding for community development corporations. Retrieved from https://www.inquirer.com/city/philadelphia/community-development-corporations-jamie-gauthier-funding-20220623.html [10] The Lenfest Institute for Journalism. (n.d.). Every Voice, Every Vote. Retrieved from https://www.lenfestinstitute.org/every-voice-every-vote/
- The ongoing discussions about the future of community development in Philadelphia involve the need for permanent policy-and-legislation to increase the annual funding for Community Development Corporations (CDCs) beyond the current $3.5 million one-time allocation, as advocated by CDCs and the Philadelphia Association of Community Development Corporations.
- The expansion of the budget for CDCs, such as the suggested permanent increase to $6.25 million annually, would significantly impact politics in the city by potentially addressing the growing economic divide, housing security, and displacement issues, as highlighted by City Councilmember Jamie Gauthier and various CDCs.
