PHFA thanks General Assembly, Governor and others for significant housing investments in new state budget for fiscal year 2021-22

HARRISBURG, Pennsylvania., June 30, 2021 / PRNewswire / – The Pennsylvania Housing Finance Agency today expressed its appreciation to the State Legislature, Governor Tom wolf, and all the housing advocates who have worked tirelessly to ensure that housing programs will receive substantial financial support in the new 2021-2022 budget, providing absolutely critical resources as the recovery continues after the COVID pandemic.

“We are grateful to the General Assembly and the Governor for making these important investments in housing,” said the Executive Director and CEO of PHFA. Robin wiessmann. “We also want to thank the housing advocates who have worked with our state leaders to meet the enormous need for stable, quality housing at a time when so many residents of the state face financial hardship. thanks to everyone for making housing a priority in this year’s state budget.

Pennsylvania and the nation has experienced a growing need for affordable housing over the past decade, as housing costs continue to rise. If this situation was not clear before, it is all the more evident now that the pandemic has led to uncertainties about employment or reduced working hours for some.

“The funding made available in this year’s state budget to help affected homeowners is critical to preventing homelessness and supporting the construction of more affordable housing to meet this pressing public need, and we at the PHFA , are grateful for this generous financial support. ”

The new state budget includes funding for housing in four main program areas:

  • $ 50 million for the Construction Cost Relief Program from the receipt by the Commonwealth of US Rescue Plan funds. This money will help ensure that the state’s Low Income Housing Tax Credit construction projects are not further delayed due to rapidly rising construction costs and other cost increases. unforeseen. Some projects that received more recent funding from LIHTC have been compromised due to significant increases in material and labor costs.
  • $ 350 million in federal homeowner assistance funds provided to the Commonwealth through the US bailout. This financing will help homeowners who fall behind on their mortgages due to the economic downturn caused by the pandemic. It will be used to prevent mortgage delinquency, default and foreclosure; providing assistance to public services; help with insurance payments and homeowner / condominium association fees; and provide other types of assistance as permitted by the US Treasury in its guidelines for federal ARP funding.
  • Authorization of $ 10 million each year in state tax credits to help finance multi-family housing projects receiving credits under the New Pennsylvania Housing Tax Credit Program, established with the passage of Bill 107 of 2020. This program was created last year but did not receive tax credits at that time. The PHFA will administer the program.
  • Increase in the annual state tax credit allocation to the existing mixed-use development tax credit program from $ 3 million at $ 4.5 million. The proceeds from the sale of tax credits are used by the PHFA to finance the construction of mixed-use (commercial / residential) construction projects under the community revitalization fund program. The PHFA is authorized by the General Assembly to administer these two programs.

About PHFA
The Pennsylvania Housing Finance Agency strives to provide affordable home ownership and rental housing options for seniors, low- and moderate-income families, and people with special housing needs. Through its carefully managed mortgage programs and investments in multi-family housing developments, PHFA also promotes economic development statewide. Since its creation by the legislator in 1972, it has generated more than $ 15.2 billion Funding for more than 182,570 single-family home mortgages, helped finance the construction of 138,000 rental units, distributed about $ 191 million to support local housing initiatives and saved the homes of nearly 50,400 families from foreclosure. PHFA programs and operations are funded primarily through the sale of titles and fees paid by program users, not public money. The agency is managed by a board of directors of 14 members.

Media contact:
Scott Elliott
717-649-6522 (mobile)
[email protected]

SOURCE Housing Finance Agency of Pennsylvania

Related links

www.phfa.org


Source link

Comments are closed.