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Construction begins on Philadelphia Housing Authority's first Center City apartments

Construction begins on Philadelphia Housing Authority's first Center City apartments

Built World Philadelphia, PA local

The 121-unit mixed-income project at 2012 Chestnut St. is expected to open in 2028.

Today: Construction underway on first Center City apartments

Overview

Updated 1 hour ago

The Philadelphia Housing Authority has started construction on its first apartment building in Center City, a 14-story project at 2012 Chestnut St. with 121 units, 60% of them subsidized for households earning up to 60% of the area median income. It is a departure for an agency whose housing has historically been concentrated in the city's poorest neighborhoods.

The $62.5 million project is expected to open in 2028. If it succeeds, it could become a model for placing affordable housing in high-opportunity areas, but it has already gone through three iterations and a pandemic-induced delay.

Why it matters

If this project works, it could change where public housing residents can live in Philadelphia and offer a template for other cities.

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Key Indicators

121
Total apartments
Includes studios, one-bedroom, and two-bedroom units.
60%
Affordable units
Share of units reserved for households earning up to 60% of area median income.
$62.5M
Project cost
Total development cost funded by PHA.
2028
Expected opening
Leasing is expected to begin in the second quarter of 2028.

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People Involved

Kelvin Jeremiah
Kelvin Jeremiah
President and CEO, Philadelphia Housing Authority
Active
MC
Mark Cartella
Principal, Alterra Property Group
Active
NM
Nathaniel Margolies
President, Center City Residents Association
Active

Organizations Involved

PH
Philadelphia Housing Authority
Public Housing Authority
Developer and owner

The public housing authority for Philadelphia, which owns and operates thousands of subsidized units.
Alterra Property Group
Alterra Property Group
Real estate developer
Design-builder and development manager

A Philadelphia-based real estate development firm.
CC
Center City Residents Association
Civic group
Supporter

A civic association representing residents in Center City Philadelphia.

Timeline

January 2016 November 2026

4 events Latest: Today
Tap a bar to jump to that date

  1. Construction underway on first Center City apartments

    Today Construction

    PHA announces construction underway on first Center City apartments.

  2. Former headquarters demolished

    Construction

    PHA's former headquarters is demolished, clearing the site for development.

  3. Pandemic disrupts project economics

    Setback

    Pandemic-related cost increases and lending shifts force PHA to rethink the project.

  4. Planning begins for former headquarters site

    Planning

    PHA begins planning to redevelop its former headquarters site at 2012 Chestnut St.

Scenarios

1

Project opens on schedule in 2028

Possible Resolves by End of 2028

Discussed by: PHA and Alterra executives

PHA and Alterra have said leasing will begin in the second quarter of 2028. If construction stays on track, the building will welcome residents that year. The project's financing is now entirely under PHA control, which could reduce delays.

2

Project faces delays beyond 2028

Possible Resolves by End of 2028

Discussed by: Housing analysts

Construction projects often face delays, especially those with complex financing. The project has already been delayed once by the pandemic. If costs rise or approvals stall, opening could slip past 2028.

3

PHA announces second Center City project by 2028

Unlikely Resolves by End of 2028

Discussed by: Alterra principal Mark Cartella

Cartella said he hopes the project can be replicated. If it succeeds, PHA could pursue similar mixed-income developments in other high-opportunity neighborhoods. But no plans have been announced.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

1975, 1983

Mount Laurel decisions (1975, 1983)

The New Jersey Supreme Court ruled that municipalities must provide their fair share of affordable housing. The decisions led to the construction of affordable homes in wealthier suburbs, often over local opposition.

Then

Many towns resisted, but the rulings forced them to allow affordable housing.

Now

The decisions became a national model for inclusionary housing and fair-share requirements.

Why this matters now

Like PHA's project, Mount Laurel forced affordable housing into high-opportunity areas, showing the legal and political battles involved.

1995-2011

Cabrini-Green redevelopment (1990s-2000s)

Chicago demolished the Cabrini-Green high-rise public housing complex and replaced it with mixed-income communities. The process displaced thousands of residents, and many could not return.

Then

Former residents faced long waits and many were relocated to other poor neighborhoods.

Now

The redevelopment created mixed-income housing but reduced the total number of affordable units.

Why this matters now

PHA's project also aims for mixed-income housing, but on a much smaller scale. Cabrini-Green shows the risks of displacement and the difficulty of preserving affordability.

Sources

(1)
WHYY