During her budget address on March 13, 2025, Mayor Cherelle L. Parker unveiled an ambitious $800 million housing plan aimed at addressing the city's pressing housing crisis.

The H.O.M.E initiative is central to this plan, designed to facilitate the development of new housing, the revitalization of existing properties, and improved access to mortgage rates for residents earning between 30% and 60% of the area median income.

In addition to housing, Parker's budget includes a reduction in the wage tax for residents and non-residents, aiming to stimulate economic growth.

To incentivize new housing development, Parker also proposed eliminating the construction impact tax, which has generated minimal revenue since its implementation.

Moreover, $216 million is earmarked for the city's wellness ecosystem, which includes services for opioid outreach and homelessness, particularly in Kensington and Riverview Wellness Village.

The budget proposal has received mixed reactions, with some advocates praising the initiative while others question its feasibility given the uncertainties surrounding federal funding.

A significant focus of the budget is the revitalization of Kensington, with $300 million allocated over five years for cleanup and rehabilitation efforts in the area.

The budget address initiates a negotiation period with City Council, which will conduct hearings from late March to early May, with final negotiations expected before the end of June.

If approved, this budget would represent the largest investment in housing in Philadelphia's history, marking a significant step toward addressing the city's housing challenges.

However, her budget address comes amid concerns about potential cuts to federal funding, particularly affecting cities like Philadelphia that are designated as sanctuary cities.

Parker's goal is to build or rehabilitate 30,000 housing units during her tenure, supported by a proposed increase in the real estate transfer tax from 3.278% to 3.578%.

Half of the $800 million will be available immediately, with further details to be disclosed during a special City Council session on March 24, 2025.