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PMC Property Group to Pay $3.75M in Lieu of Affordable Housing

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The money will go to the Philadelphia Housing Trust Fund

The luxury development company that failed to deliver on its promised affordable housing units at One Water Street will pay $3.75 million to the Philadelphia Housing Trust Fund.

The alternative deal was brokered last week between senior administrative city officials and PMC Property Group, reports Philadelphia Inquirer’s Inga Saffron, who first broke the news on the company’s failure to deliver the initial deal in early June.

In 2014, PMC Property Group became the first development company to take advantage of the city’s inclusionary zoning bonus, which allows developers to exceed building heights as long as they include affordable housing units in their projects. PMC made this deal with the city for their luxury housing development One Water Street, but in June 2016 revealed that they wanted out. (See the timeline of the whole saga here.)

In a statement about the new deal brokered between PMC and the city, the Philadelphia Association of Community Development Corporations said:

This announcement is not only an example of the Kenney Administration holding a developer accountable to the Zoning Code, but also to equitable development in the interest of low- and moderate-income Philadelphians for whom the Mixed Income Housing density bonus was created.

With the pay-up, residents will be able to immediately move into One Water Street’s luxury apartments, which start at $1,795/month for a one bedroom.