HARRISBURG, PA — The Pennsylvania Housing Finance Agency (PHFA) has announced significant funding for the construction and rehabilitation of 1,916 rental units across the state. A notable 1,801 of these units will be affordable for households earning at or below 60% of the area median income.
Multifaceted Funding Sources
The funding for these projects comes from a diverse pool:
- Over $57.5 million in federal Low-Income Housing Tax Credits.
- More than $16.8 million from PennHOMES funding.
- $17.5 million from National Housing Trust Funds and Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) funds.
- More than $22.6 million in state housing tax credits.
These federal and state tax credits are administered by PHFA and were approved by its board.
Addressing Urgent Needs
“We’re pleased to announce these tax credit awards and additional funding that is so urgently needed to support the construction of more affordable housing around the state,” said PHFA Executive Director and CEO Robin Wiessmann. She highlighted the increasing demand for affordable rental housing, a need that has intensified since the pandemic.
Of the 1,801 affordable units, 76 will cater to households earning at or below 20% of the area median income, and 40 units will serve those at or below 30%, funded by the federal Housing Trust Fund.
New Health-Oriented Initiative
PHFA has also introduced a new initiative targeting an additional $1.8 million in matching funds for four projects that link stable housing to improved health outcomes. This initiative stems from 18 months of planning, supported by the National Council of State Housing Agencies, exploring collaborations between housing and healthcare organizations.
The Health for Housing Investment (HHI) Program, launched last year, incentivizes developers to partner with healthcare organizations. Four projects under this program have been awarded PHARE funding, matched dollar-for-dollar by healthcare partners:
- 17th Street Community Corridor (Philadelphia): $300,000 match ($200,000 from AmeriHealth Caritas and $100,000 from Temple Health Systems).
- Meadowbrook (Bucks County): $824,950 match ($575,000 from Woods Services and $249,950 in donated land).
- North Park Avenue (Philadelphia): $600,000 match (Jefferson Health, Penn Medicine, and Temple Health).
- St. Katherine Drexel Place (Philadelphia): $100,000 match (Trinity Health).
Implications and Future Prospects
Wiessmann expressed excitement about the new initiative, emphasizing the strong connection between housing and health. “We will monitor these four projects to learn more about how PHFA can best work cooperatively with healthcare organizations to provide more quality, stable housing that helps residents live longer, healthier lives,” she said.
The PHFA’s efforts are a critical step toward addressing the severe shortage of affordable housing in Pennsylvania, ensuring that more residents have access to safe, stable, and affordable homes. The integration of healthcare partnerships aims to enhance overall community well-being, showcasing a holistic approach to housing policy.
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