A community land trust operated by the North Philadelphia nonprofit Esperanza is acquiring deteriorated rowhomes and converting them into renovated, below-market rental housing in eastern North Philadelphia. The initiative focuses on properties that were previously vacant or in severe disrepair and transforms them into upgraded rental units with new structural and mechanical systems while keeping monthly rents lower than typical market prices.
Esperanza launched the Stable Affordable Rental Trust, known as START, in 2023. In 2024, the organization created the Esperanza Community Land Trust as a separate nonprofit entity to manage the rental portfolio. The nonprofit transferred several existing rental properties into the land trust and added homes donated by the Philadelphia Housing Authority during the initial phase. The land trust currently oversees approximately 24 units distributed across eastern North Philadelphia.
Eastern North Philadelphia covers about five square miles and has roughly 100,000 residents. Research conducted in 2024 by Esperanza with Drexel University’s Nowak Metro Finance Lab and other partners found that 67% of residents identify as Hispanic or Latino. Median household income in the area measured $27,000 in 2019 compared with $46,000 across Philadelphia.
Housing prices in the neighborhood have risen in recent years. The research found that rents in parts of eastern North Philadelphia increased by more than 25% during the previous five years. Across Philadelphia overall, rents rose by about 16% during the same period. Property sale prices in sections of the neighborhood were also increasing faster than in other areas of the city. The study concluded that the analysis “shows limited signs of gentrification but does find characteristics of a population at risk of displacement should housing prices continue to rise.”
Esperanza has worked in housing development and community revitalization in North Philadelphia for three decades. Maritza Ortiz, the organization’s vice president of construction and property management, said rising rents and displacement pressures led the nonprofit to develop the land trust approach. The organization began acquiring properties in order to preserve housing affordability for neighborhood residents over the long term.
The first phase of the START program included seven houses, one of which was a five-bedroom rowhouse in West Kensington. These properties were donated by the Philadelphia Housing Authority from its inventory of deteriorated housing. Many of the buildings required extensive rehabilitation before they could be occupied.
One property located on a residential street in the East Tioga and Franklinville area illustrates the conditions encountered during acquisition. The house had been reduced to a shell structure and had squatters entering and leaving the building before Esperanza took possession in 2024.
Renovations rebuilt the structure with new interior and mechanical systems. Construction work included installation of brand-new drywall, vinyl flooring, recessed lighting, stainless steel appliances including a refrigerator and stove, washer and dryer hookups, white molding, new windows, a new electrical panel, updated plumbing, a new heating system, and a new roof.
The renovation funding for the first phase included a $750,000 grant from the Federal Home Loan Bank of Pittsburgh toward a projected $1.8 million development cost. Esperanza’s chief executive officer, Rev. Luis Cortés Jr., previously served on the board of the bank.
The funding agreement established strict affordability requirements for residents of the renovated units. All tenant households must earn less than 60% of the area median income. Three units are reserved for households earning less than 50% of area median income. Two units are reserved for households earning less than 30% of area median income, which equals $35,800 for a family of four.
Eligibility for the housing program includes families who have experienced domestic violence, individuals with chronic illnesses or special needs, and households facing the possibility of homelessness.
Tenants may receive financial support through various programs connected to Esperanza and partner agencies. Assistance may come from Esperanza, the Philadelphia Housing Authority, Congreso de Latinos Unidos, or other organizations. Support may include monthly rental assistance or one-time financial help during the move-in process.
Community land trusts function differently from traditional housing development models. In most community land trusts, the nonprofit organization retains ownership of the land under the housing units while residents purchase the homes built on the property. Buyers agree to resale restrictions that maintain affordability for future occupants while allowing the homeowner to build limited equity.
Philadelphia has several community land trusts operating in different neighborhoods. These include projects run by the Women’s Community Revitalization Project, HACE, Mt. Vernon Manor CDC, and other organizations.
Rick Sauer, executive director of the Philadelphia Association of Community Development Corporations, described community land trusts as a growing approach in Philadelphia for preserving long-term housing affordability and maintaining access to affordable housing for future households.
Esperanza’s land trust differs from most community land trusts because it focuses entirely on rental housing. The organization has developed more than 100 homes for sale over several decades and continues to provide counseling programs for households seeking homeownership. Staff members observed that many people requesting assistance were unable to afford down payments due to rising home sale prices.
Walter Toliver, Esperanza’s senior vice president and general counsel, explained that the nonprofit created a separate land trust organization to manage funding requirements associated with different grants. Some funding sources require applicants with larger operating budgets, while others target smaller organizations.
The land trust currently manages about 24 units after transferring several properties from Esperanza’s existing rental portfolio. Other housing projects remain under the parent nonprofit, including a 38-unit development created through renovation of the former Roberto Clemente Middle School in the Hunting Park neighborhood. Esperanza opened that project in 2018 after completing a large-scale building renovation.
The START program is currently entering a second development phase. Esperanza is purchasing nine additional houses for renovation. Many of these buildings have not been vacant as long as the earlier properties and require less extensive rehabilitation work.
Renovations for the new properties are scheduled to begin in May. The Federal Home Loan Bank of Pittsburgh has awarded approximately $1.35 million toward the projected $1.75 million development cost for the second phase.
Federal funding is also supporting the project. The Congressional Record lists a $750,000 allocation for the Esperanza Stable Affordable Rental Housing Trust in an appropriations bill signed by President Donald Trump.
Additional support comes from Pennsylvania’s Neighborhood Assistance Program. The program provides $377,000 through tax credits offered to businesses that contribute funding to neighborhood preservation initiatives.
