As Philadelphia continues to grapple with a shortage of affordable housing, a new partnership between the Philadelphia Housing Development Corporation (PHDC) and Frankel Enterprises, a civic-minded and forward-thinking real estate development firm, is helping qualified residents unlock the door to homeownership.

Through PHDC’s Turn the Key initiative, Frankel Enterprises is developing more than 100 newly constructed, single-family homes on publicly owned land, with financing support from Firstrust Bank, Philadelphia’s Hometown Bank. The program, designed to make homeownership attainable for first-time buyers earning up to 100 percent of the Area Median Income (AMI), represents a growing model of how public, private, and financial institutions can work together to close the city’s affordability gap.

Managed by PHDC, Turn the Key provides new homes on city-owned lots to eligible first-time homebuyers at below-market prices. Rather than subsidizing developers, the city discounts the cost of land, while participating lenders and builders assume project risk.

“The subsidy goes to the homebuyer,” said Angel Rodriguez, PHDC’s Senior Vice President of Land Management, who oversees the initiative. “The developers and the banks are really taking on the risk. We’re leveraging their investment, while ensuring that Philadelphia families can afford to buy quality, newly built homes.”

The subsidy Rodriguez is referring to is the mortgage buydown (up to $75,000) provided by PHDC that reduces the total price of the mortgage. Participating eligible buyers also receive a first-time-homebuyer grant (up to $10,000), called Philly First Home, that can be applied to down-payment or settlement costs.

Rodriguez said that the average homebuyer in the program earns around $45,000 a year, or about 59 percent of AMI. Many of these residents currently rent, paying between $1,600 and $1,800 per month for a two-bedroom apartment. Under Turn the Key, their average mortgage payment is closer to $1,350.

“That’s less than rent,” said Rodriguez. “It’s a life-changing opportunity for people who never thought they could own a home. They’re building equity, saving money, and creating stability for their families.”

Turn the Key evolved from an earlier workforce housing program launched by PHDC in 2018. Back then, developers like Zach and Max Frankel — brothers, Philadelphia natives, and the Principals of Frankel Enterprises — were among the first to take a chance on the concept.

“Zach and Max Frankel were some of the original participants,” said Rodriguez. “They were adventurous and willing to work through the bumps to help us shape what became the model we have today.”

Through years of testing and adjustment, the PHDC refined the program into one that works for all parties: the city, the developers, the lenders, and, most importantly, the homeowners.

“We listened to what developers needed: help finding qualified buyers and access to financing,” said Rodriguez. “We listened to what banks needed: assurances on risk and compliance. And we made it all work together.”

For Zach Frankel, affordable housing is both a civic responsibility and a long-term investment in the city’s health.

“Our family has been investing in Philadelphia for generations,” he said. “We’re in the midst of an affordable housing crisis, and far too many people are spending a huge portion of their paycheck on rent. We saw this as a way to have a real impact.”

Frankel Enterprises, through its Philadelphia Workforce Homes division, currently has three Turn the Key projects under construction — located in the West Poplar and Ludlow neighborhoods — totaling 108 new single-family homes.

“These are three-bedroom, two-bathroom homes designed for working families,” Frankel said. “Fifty-four of them are already underway in West Poplar, and we expect to open reservations before the end of the year.”

To make the projects possible, Frankel Enterprises turned to Firstrust Bank for financing.

“We’ve known the Green family for years,” Frankel said, referring to Richard Green, Firstrust’s Executive Chairman and Owner, whose grandfather founded the bank in South Philadelphia more than 90 years ago. “They’re prolific in Philadelphia real estate, and their deep understanding of the local market makes them an incredible partner.”

Frankel said what sets Firstrust apart is the personal attention and long-term partnership they bring to each project.

“Everyone from (Executive Vice President of Real Estate Finance) Seth Mackler’s team to (CEO and President) Tim Abell himself is hands-on and deeply involved,” he said. “Tim knows the details of every deal. You really feel like you’re part of their business and part of the Firstrust community.”

Firstrust, for its part, views its role as an extension of its commitment to community impact and responsible lending. The program aligns with the bank’s Community Reinvestment Act objectives by helping low- and moderate-income households achieve homeownership.

“Single-family infill housing is one of the toughest markets,” Rodriguez said. “The margins are tight, and the risks are real. That’s why programs like Turn the Key are so important; they bring all the stakeholders together to make these projects feasible.”

The benefits of Turn the Key ripple far beyond the buyers themselves. Each home sold represents a family staying in the city, contributing to neighborhood stability, and building intergenerational wealth.

“Buyers are often saving money from day one because their mortgage is lower than their rent,” said Rodriguez. “They’re also building equity immediately, since these homes are appraising at higher values than their purchase price, which creates wealth right away.”

To ensure long-term affordability, PHDC enforces deed restrictions requiring homeowners to maintain residency for several years before reselling, preventing speculative flipping and preserving the program’s intent.

Frankel said the emotional payoff is just as significant.

“When you go to a closing and see a family get the keys to their first home, it’s incredibly moving,” he said.

Prospective buyers who live or work in Philadelphia are encouraged to explore eligibility by visiting Turn the Key’s website.

Firstrust Bank, which has the experience and local presence to ease the path to homeownership in Philadelphia, is a participating lender in the Turn the Key initiative. Learn more about the several tailored loan programs for eligible homebuyers at Firstrust Bank.