Community Development: Information on the Efforts by the City of Philadelphia, Pennsylvania, to Relocate and Compensate Residents of the Logan Triangle Area Page: 3 of 25
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According to a March 2000 Relocation Plan authorized by the Corporation, it will cost an
estimated $15.2 million to complete the relocation and compensation effort over the
next 3 years-$13.1 million to fund the benefit payments to the remaining 215 eligible
property owners and $2.1 million to cover the Corporation's associated operating
In addition to the 714 owners and tenants eligible to receive relocation benefits, there
are an additional 193 ineligible properties (for which relocation benefits cannot be paid
under the Uniform Relocation Act) remaining in the Logan Triangle, as of December 31,
1999. Of these 193 ineligible properties,2
* 175 were unoccupied and mostly vacant lots because of demolition,3 and
* 18 were occupied by either homeowners or tenants.
Management Challenges Faced by the Corporation
The Corporation faces several management challenges in completing the remaining 215
eligible relocations and/or compensations. According to HUD, the city is obligated
under the Uniform Relocation Act to compensate some, if not all, of the 186 former
eligible Logan Triangle property owners who moved on their own without receiving
compensation. In order to do so, the city must locate these property owners, which may
be difficult, particularly if these owners moved out of town or out of state. If the city
decides to retain the Corporation to perform this task, the Corporation may need to hire
additional staff with investigative skills to locate these owners or contract out for this
type of service. Also, assisting and convincing the remaining 29 eligible property
owners to sell their properties has been a problem for the Corporation because most of
these owners have poor credit histories, multiple property liens, and/or lower incomes
because of a disability or retirement. These financial problems prevent many of the
homeowners from obtaining financing to purchase replacement housing. As of March
22, 2000, about $2.4 million4 was available to the Corporation to pay for housing
acquisitions, relocations, and administrative costs.
In February 2000, HUD interviewed responsible officials of the city's Office of Housing
and Community Development and prepared a status report, which included the
following findings related to the management challenges faced by the Corporation in
completing the remaining relocations:
* There is currently no agreed on time frame to locate and compensate the 186 eligible
property owners who previously vacated their properties.
2 The Corporation was unable to provide us with the number of ineligible tenants currently residing in the
Logan Triangle because it is not responsible for identifying or assisting these tenants.
3 As of January 2000, the city of Philadelphia had demolished 862 houses in the Logan Triangle.
4 The $2.4 million is included in the estimated $15.2 million to relocate or compensate the remaining
GAO/RCED-00-165R Logan Sinking Homes
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United States. General Accounting Office. Community Development: Information on the Efforts by the City of Philadelphia, Pennsylvania, to Relocate and Compensate Residents of the Logan Triangle Area, text, June 9, 2000; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc300144/m1/3/: accessed July 18, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.