The Pennsylvania Housing Finance Agency announced six projects to be awarded $4.3 million for the construction or rehabilitation of mixed-used developments. The funding was raised through the sale of tax credits under the Mixed-Use Development Tax Credit Program, the proceeds of which are being used to fund the work of the Community Revitalization Fund Program.
The goal of CRFP is to stimulate high-impact neighborhood-revitalization projects around the state. This round of funding is prioritizing applications from smaller cities and communities, including third-class cities.
PHFA anticipates this round of funding will deliver 70 units of new/rehabilitated rental housing (53 units of which will be at or below 80% area median income) and 58,572 square feet of new/rehabilitated commercial space.
“Communities across the state continue to face an urgent need for affordable rental homes, and the commercial components of these developments often serve as important economic engines for the neighborhoods they anchor,” said PHFA Executive Director and CEO Robin Wiessmann. “We’re confident these six projects will be valuable additions that strengthen and support their communities.”
The Mixed-Use Development Tax Credit Program is administered by PHFA, and the selected projects were approved today by its board of directors. The list of funding recipients is provided in the table below.
The Mixed-Use Development Tax Credit Program was created as part of the commonwealth’s fiscal year 2016 budget. PHFA is allocated $4.5 million in credits annually to sell to generate community-revitalization capital. The agency has been directed by the General Assembly to administer both the tax credit and program components of this initiative.
CRFP seeks to expand or rehabilitate affordable housing coupled with retail/commercial space to promote community revitalization, especially in those parts of the state that are struggling economically. The term “mixed-use” for these projects refers to buildings that combine commercial/retail and residential space.
The application of funding through CRFP is flexible, and it can be used in several ways to address the program’s objectives. For instance, the dollars generated can fund the rehabilitation of older or underutilized buildings that can then help promote community development. Those buildings can be restored for commercial use and to provide affordable housing.
