The Philadelphia Housing Authority (PHA) owes the city a lot of money and the agency has agreed to soon pay up.
PHA failed to pay the city for demolitions, repairs and maintenance of some of its scattered site properties for the last decade. Payment for those services coupled with a host of back taxes brought PHA's bill to $10 million.
An agreement that allows PHA to pay the city $6,225,303 for service related work and delinquent taxes was approved by the PHA Board today.
"This is a good deal," said Kelvin Jeremiah, interim PHA director. "It's a win-win for the city."
Jeremiah said PHA had agreed to pay the city back in 2009, but for some reason the agency never followed through and "the costs continued to escalate." PHA is set to pay the city in at least 30 days.
Mayoral spokesman Mark McDonald said the money will be used to create more affordable housing.
PHA has been marred by scandal over the years. The latest this summer when former executive director Michael Kelly resigned following an affair with a woman he had appointed to head the agency's Department of Human Resources.