Philadelphia Coalition for Affordable Communities Calls for Anti-Speculation Tax

The Philadelphia Coalition for Affordable Communities, formed in September 2014 around the goal of stopping displacement caused by rising property values, is calling for an anti-speculation fee. The tax would be levied against developers who buy and sell houses within two years, a practice commonly known as “flipping.”

The Coalition, which includes faith-based organizations, community development corporations, unions and nonprofits, announced the proposed tax and other policy recommendations at a press conference yesterday at City Hall.

“Philadelphia has tackled a declining population for decades and our recent resurgence has meant big changes in our housing market,” said Nora Lichtash, executive director of the Women’s Community Revitalization Project and a principal organizer of the Coalition, in a press release.

“As housing costs skyrocket, income levels for most Philadelphians are shrinking and what we end up seeing are long-term residents being pushed out of their communities. Our proposal allows development to continue but will make developers who ‘flip’ houses contribute to a fund that helps expand affordability in our city.”

Other recommendations include increasing the Realty Transfer Tax by 1.5 percent to generate $12 million per year for the Philadelphia Housing Trust Fund, a fund for affordable housing development established in 2005 funded mostly by non-city revenue.

Read the coalition’s Displacement Without Development report here.

Photo via Flickr user JD Hancock