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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.

5 days ago: Construction underway on first Center City apartments

Overview

Updated 5 days ago

The Philadelphia Housing Authority broke ground Nov. 6 on its first apartment building in Center City: a 14-story project at 2012 Chestnut St. with 121 units, 60% of them set aside for lower-income households. It is a departure for an agency whose housing has historically been concentrated in the city's poorest neighborhoods.

PHA puts the income cap for those units at 80% of the area median income, about $78,500 for a two-person household; WHYY reported it as 60%, or $51,540 for one person. The building is scheduled to open in 2028, after three designs and a pandemic-era stall. Alterra Property Group is building it for PHA, which is funding the project and will own it.

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
Studios, one-bedroom and two-bedroom units.
60%
Set-aside units
Share reserved for lower-income households. PHA cites an 80% AMI income cap; WHYY reported 60%.
$62.5M
Project cost
Figure from PHA's November release; the board authorized financing up to $65 million in September after cost increases.
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

Philadelphia Housing Authority
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

5 events Latest: 5 days ago
Tap a bar to jump to that date

  1. Construction underway on first Center City apartments

    Latest Construction

    PHA announces construction underway on first Center City apartments.

  2. PHA board raises financing ceiling, replaces contractor

    Decision

    PHA's board raised authorized financing for 2012 Chestnut from $60 million to $65 million and swapped Gilbane Building Company for Hunter Roberts Construction Group after permitting delays and cost increases, according to a board summary. The Inquirer reported the project's cost had risen by $5 million.

  3. Former headquarters demolished

    Construction

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

  4. Pandemic disrupts project economics

    Setback

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

  5. 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

(4)
WHYY Philadelphia Housing Authority The Philadelphia Inquirer CivicIQ