The Philadelphia Empowerment Zone

Q. How long will the Empowerment Zone benefits be available?

A. Empowerment Zone benefits are set to expire on December 31, 2009.

Q. What is the Empowerment Zone (EZ)?

A. The Empowerment Zone (EZ) is a federally funded community development and economic revitalization initiative. The EZ designation provides localities with a federal grant and a set of tax and financing incentives to improve public safety, advance human development, create a welcoming environment and invigorate commerce.

Q. Does Philadelphia have an Empowerment Zone?

A. Yes. The City of Philadelphia and Camden received a bi-state Empowerment Zone designation in December 1994. At that time, Philadelphia received a $79 million grant.

Q. Is the whole city an Empowerment Zone?

A. No. Twelve census tracts in three sections of Philadelphia (American Street, North Central, and West Philadelphia) constitute the EZ. According to the 1990 census, approximately 38,000 people resided in these neighborhoods. Selected census tracts were required to have a certain percentage of people below the poverty level. The map section shows the EZ neighborhoods and tracts. You can determine if a specific address is in the Empowerment Zone by accessing the HUD website at the following address: www.hud.gov/offices/cpd/ezec/index.cfm. Click on the Address Locator under Helpful Tools. You will need to know the zip code of the property.

Q. Does the Empowerment Zone provide grants to organizations?

A. The EZ allocates its funds to specific programs. It issues Requests for Proposals (RFPs) or Requests for Qualifications (RFQs) to seek organizations to operate these programs. An independent Provider Selection Panel reviews proposals and recommends the most qualified organization. The EZ then enters into a contract with the selected providers. The EZ also enters agreements with other city agencies to implement programs.

Q. Does the EZ fund any programs to help residents with their housing needs?

A. Each EZ neighborhood has funded housing programs, including housing counseling, home repairs and loans to support housing development. These programs are operated by other organizations. The listing of programs found on this website will guide you to these EZ resources. In addition, you can seek assistance from the City's Office of Housing and Community Development.

In the American Street EZ three non-profit organizations run housing counseling programs designed to assist first time homebuyers. Call APM at 215-235-6788; NSCA at 215-426-8723; and KSNAC at 215-427-3463 for details. A pre-development loan fund is also available through the American Street Financial Services Center, call 215-426-3882 for more information.

The Reinvestment Fund offers a housing loan program designed to develop housing in the North Central EZ neighborhood. Call 215-925-1130 for details.

The Carrol Park Community Council runs a housing counseling program designed to assist first time homebuyers in the West Philadelphia EZ neighborhood. Call 215-877-1157 for details. In addition, the WPEZ has established a Housing Trust Fund that will make loans to homeowners. For details, contact the West Philadelphia Financial Services Institution at 215-452-0100.

Q. Does the EZ provide job placement or referral services?

A. The EZ has funded a variety of workforce development programs for its residents. The listing of programs found on this website will guide you to these EZ resources. You can also visit the Philadelphia Workforce Development Corporation's website for information about additional programs and resources in the city.

Q. How can we clean up the vacant lots in our neighborhood?

A. The Pennsylvania Horticultural Society (PHS) is working with local non-profit organizations to clean and stabilize vacant lots throughout the EZ. Call 215-988-8884 for more information. Additionally, WPEZ and NCEZ have allocated funding for PHS to work with residents and community organizations to stabilize vacant land in these neighborhoods as well. Hundreds of vacant lots have been cleaned, stabilized and maintained through these programs.

Q. I'm an EZ Resident. How can I become involved?

A. The EZ is currently funding many programs that may have opportunities for your involvement. Click here for a list of current programs and contact information. Additionally, the EZ is always taking applications for residents, those working in the EZ, and other experts to serve on its three Community Trust Boards. An application can be downloaded here. Visit the Community Trust Board page for additional information.

Q. How do I find out if a parcel is located in the Empowerment Zone?

A. Once you identify the property address, you can either go to our maps page or visit HUD's Address Search Engine.

Q. I operate a business located in the Empowerment Zone. What benefits are available to my business?

A. Your company may be eligible to receive a tax credit of up to $3000 per year per employee who resides in the Empowerment Zone. The Empowerment Zone will also provide your company with assistance in identifying Empowerment Zone residents. Other benefits include the increased Section 179 deductions for depreciable property, tax-exempt bond financing for capital projects of $3+ million, and access to low-interest rate loans from federally funded community lending institutions.

Q. I want to move my business to a new location. Why would I want to locate my business in the Empowerment Zone?

A. Locating your business in the Empowerment Zone will provide your company with opportunities for greater profits and success. The Empowerment Zone offers tax and financial incentives, technical assistance, Empowerment Zone resident hiring assistance, and retail opportunities that are unavailable in other locations. Further information on Empowerment Zone incentives can be found on our Programs and Incentives page.

Q. How do I find out about available properties in the Empowerment Zone?

A. A list of some of the available properties in the Empowerment Zone can be found on our Available Properties page. The Empowerment Zone, through the Mayor's Business Action Team (MBAT), can also send a broadcast fax to Philadelphia real estate brokers to help you identify an available property that meets your needs. Please Contact Us for further information on a specific parcel or to discuss your specific real estate needs.

Q. I operate a business located in the Empowerment Zone. There are abandoned properties adjacent to my business that I would like to acquire for business expansion. How do I go about acquiring these properties?

A. The Empowerment Zone can assist you with acquiring abandoned properties for business expansion. Once you have identified the property addresses, contact the Empowerment Zone and we will research the property's owner and tax status, and advise you on what options are available to you for gaining title to the properties. Often, the Empowerment Zone will collaborate with the Philadelphia Department of Commerce, the Philadelphia Industrial Development Corporation (PIDC), the the Redevelopment Authority (RDA), and other public agencies to move abandoned properties into productive use.

Q. Is there special financing available to Empowerment Zone businesses?

A. Each neighborhood of the Empowerment Zone has a Community Lending Institution that provides both debt and equity financing for Empowerment Zone businesses. Empowerment Zone businesses also have access to low interest loans from the Philadelphia Industrial Development Corporation (PIDC).

Q. My business is not located in the Empowerment Zone, but is located in the city of Philadelphia. Does the city offer any assistance to Philadelphia based businesses?

A. The city has many programs that provide both technical and financial assistance to Philadelphia based businesses. Contact the Mayor's Business Action Team (MBAT) at (215) 683-2100 for more information.

Q. What are Keystone Opportunity Zones (KOZ) and Enterprise Zones, and how do they relate to Empowerment Zones?

A. The Empowerment Zone is a federally sponsored and funded program, while the KOZ and Enterprise Zone programs are Commonwealth of Pennsylvania sponsored programs. The KOZ program virtually eliminates all state and local taxes on designated properties through December 31, 2010, while the Enterprise Zone program offers designated properties low interest rate loans, tax credits, and security improvement rebates. Certain Empowerment Zone properties in the West Philadelphia and American Street Empowerment Zones are also KOZs and/or Enterprise Zones. Where applicable, benefits from the various programs may be combined.

Q. I recently purchased a residence/lot in the Empowerment Zone that I would like to develop into residential apartments/housing. Does the Empowerment Zone provide any financial assistance for these projects?

A. Generally, the answer is no. However, developers interested in projects that create housing opportunities for low-income individuals or homeownership opportunities should contact the city's Office of Housing and Community Development (OHCD) at (215) 686-9727. OHCD-administered activities include programs for producing new housing, acquiring and maintaining existing occupied housing, and providing housing and service delivery for homeless people and others with specialized affordable housing and service needs. The Empowerment Zone Community Lending Institutions can also provide lending assistance to housing developers.