Philly lawmakers want to expand eviction diversion and rent relief as Mayor Parker proposes cuts

A cohort of progressive Philadelphia lawmakers are angling to make the city’s lauded eviction diversion system a permanent fixture, and they want the city to commit $100 million to related rental assistance programs.

But getting those dollars into the city budget will require negotiation with Mayor Cherelle L. Parker’s administration, which has proposed discontinuing a rent relief component.

On Thursday, four City Council members will introduce legislation that makes permanent the city’s eviction diversion program, which was created during the pandemic and requires landlords and tenants to seek mediation and rental assistance before going to court. Since its creation, agreements have been reached in two-thirds of cases in the program, and eviction filings are 39% lower citywide compared to pre-pandemic levels.

The law that requires the mediation is scheduled to expire in June. But six of the city’s 17 Council members said during a news conference Wednesday that it should be permanent.

“Now that Philadelphia has become a leader in housing justice, we can’t go backwards,” said Councilmember Kendra Brooks, of the Working Families Party. “It’s time to go bigger.”

So in addition to pushing to codify the eviction diversion program, Brooks said she and her allies in Council want the city to spend $50 million a year over the next two years to bolster the city’s Targeted Financial Assistance program, which pays landlords directly if they agree to delay eviction proceedings. Nearly 4,000 landlords have been paid, according to the city.

» READ MORE: Philly City Council will consider new measures to protect low-income residents from displacement

Funding for the program has come from multiple sources, including $30 million from the city over the last two years. But the budget proposal Parker introduced last month cut the city’s contribution.

Finance Director Rob Dubow said during a City Council hearing last month that, in fiscal year 2023, the city only committed to funding for two years.

“This was a two-year program, and that is up,” he said, “so this is what was always anticipated.”

But City Councilmember Jamie Gauthier, who represents parts of West Philadelphia and chairs Council’s housing committee, pushed back, saying that more than half of the renters in her district are cost burdened and that the need for rental assistance remains the same as it did over the last two years.

She said the eviction diversion program that’s supported by rental assistance “took Philadelphia from the fourth highest eviction city in the country to being able to offset evictions and keep people in their homes.”

She asked Parker administration officials whether its budget meets need in the city.

“It does it a little differently, that’s for sure,” said Aren Platt, chief deputy mayor of planning and strategic initiatives. “We’re doing what we can with the finite resources that we have available.”

» READ MORE: Mayor Parker’s $6.29 billion budget plan keeps taxes flat, increases spending on police and code enforcement

Platt said a patchwork of programs remain in place that provide assistance to the city’s renters, who make up more than half of Philadelphia residents. He said Parker’s administration is taking a “data-based approach” and is open to reassessing its funding allocation based on need.

It’s unclear whether a majority of Council would support such a large investment in rental assistance as Brooks and Gauthier are calling for. They’re introducing the legislation to make eviction diversion permanent alongside Councilmembers Nicolas O’Rourke and Rue Landau, and Councilmembers Nina Ahmad and Isaiah Thomas said they’re supportive.

“When you come up with something that is moving the needle on a systemic problem that essentially becomes a national model, it puts us in a position to be obligated to make sure it stays,” said Thomas, a Democrat who is a member of Council’s leadership team.

And the original rental assistance program was sponsored by Kenyatta Johnson, who is now the Council president.

Still, the funding could become a sticking point through budget negotiations that are underway and will last through the spring. The administration and Council must come to an agreement on the city’s more than $6 billion budget by the time the current spending plan expires in June.

Brooks said lawmakers must consider the impact on renters like Haniah Harvey, a 26-year-old mother who spoke alongside the Council members Wednesday and said she was helped by the program.

With tears in her eyes, Harvey described being removed from an old apartment after the city declared it unsafe, being homeless for three weeks, then using all her savings to move into a new place. She at first struggled to pay rent, but was supported by the city program while she saved up.

“They helped me get back on track,” she said. “I’m still in that place today, and my rent is paid on time.”

Inquirer staff writer Jake Blumgart contributed reporting.