The Pennsylvania Housing Finance Agency has awarded $66.5 million in Low-Income Housing Tax Credits to a number of affordable housing developments taking shape around the Commonwealth. They will be used to facilitate the construction and rehabilitation of more than 1,900 multifamily units.
The tax credits are being awarded to 41 separate developments statewide. The funding will support 454 affordable housing units in Allegheny County and 597 affordable units in Philadelphia County, with the remaining being allocated to projects in Beaver, Bucks, Westmoreland and 13 other counties.
The low-income housing tax credits’ individual award totals range from a little less than $1 million to about $1.85 million, and they’ll be used alongside local, state, federal and private financial resources for solidifying financing plans for the projects.
READ ALSO: Icing on the Cake: FHFA Doubles LIHTC Cap
The largest property to benefit from the tax credits will be Riverview Manor, a 98-unit affordable senior housing development in Pittsburgh. The largest Philadelphia project receiving tax credit financing is the 70-unit Philly House Residences, which isn’t age-restricted.
Beside the tax credit awards, PHFA’s board authorized Pennsylvania housing tax credits and recognized the agency will also contribute first mortgages or soft funding sources to many of the awarded developments.
Since its creation, PHFA has generated more than $20.1 billion of funding for more than 206,750 single family home mortgage loans, and has helped fund the construction of 110,284 rental units. The agency has otherwise distributed about $362 million to support local housing initiatives.
Short supply in the Commonwealth
Pennsylvania has a particularly stubborn affordable housing shortage, with both renters and mortgage holders squeezed by high costs, according to a 2024 report published by Regional Housing Legal Services. The cost of housing for renters and homeowners has roughly doubled over the last decade.
Nearly a majority—48.5 percent—of Pennsylvania renters, and 20.3 percent of homeowners, spend more than 30 percent of their income on housing expenses. Pennsylvania is estimated to have a shortage of about 267,000 affordable housing units for extremely low-income renters.
Moreover, data from the National Housing Preservation Database shows that by 2032, the commonwealth is at risk of losing 22,634 publicly-supported rental homes. Another 12,000 or so units of public housing need investment for upgrades, the report notes.
The post Pennsylvania Awards $66M for Statewide LIHTC Initiative appeared first on Multi-Housing News.
Gillian Executive Search is a leader in Affordable Housing Development, Financing, Design and Construction recruiting. www.gessearch.com