Bidding Opens for Pennsylvania's $4.5 Million Mixed-Use Development Tax Credits

Pennsylvania's $4.5 Million Mixed-Use Development Tax Credits

The Pennsylvania Housing Finance Agency (PHFA) has recently announced an opportunity for various stakeholders to participate in revitalizing communities through mixed-use developments. As part of this initiative, PHFA is accepting bids for $4.5 million in mixed-use development tax credits, a program aimed at stimulating investment in Pennsylvania's neighborhoods and cities. The deadline for submitting bids is set for 2 p.m. on July 18, providing a narrow window for interested parties to engage in this funding opportunity.

Purpose of the Tax Credits

These tax credits are designed to incentivize construction or rehabilitation projects that combine commercial activity with affordable housing. This dual approach not only enhances the livability of community spaces but also promotes economic growth by supporting local businesses and providing necessary housing options. This initiative represents a significant investment in the state's revitalization efforts, allowing winning bidders to reduce their tax liabilities while contributing positively to their communities.

Robin Wiessmann, PHFA's Executive Director and CEO, emphasized the dual benefits of mixed-use developments, stating, "Mixed-use developments bring the benefit of both commercial activity and affordable housing to a community." The agency is hopeful that the competitive bidding process will attract a wide range of bidders, including businesses, organizations, and individuals, to maximize the potential funding raised from the available tax credits.

Bidding Process

The bidding process is structured to ensure that the funds collected will be utilized effectively in various Pennsylvania communities. After the bids are evaluated, projects will be selected through a competitive Request for Proposals process scheduled for later this year. This approach ensures that the most impactful and feasible projects receive the necessary funding.

Participants should be aware that the tax credit awards will be granted within 90 days after the bidding concludes. However, while the credits will be awarded in 2025, they will be applicable against state tax liabilities for the fiscal year 2026.

Who Can Bid?

Entities eligible to bid on these tax credits include companies, nonprofit organizations, and individuals with viable mixed-use development projects. This inclusive approach aims to encourage diverse participation, reflecting a broad spectrum of ideas and initiatives that can address local housing and economic challenges.

Accessing More Information

For those interested in obtaining more information about the bidding process and specifics regarding program guidelines, PHFA has made resources available on their official website. Detailed instructions along with criteria for bids can be accessed at www.phfa.org/mhp/developers/loans.aspx. Additionally, organizations seeking further clarification can reach out directly to Shelby Rexrode at PHFA by phone or through email.

About PHFA

The Pennsylvania Housing Finance Agency plays a pivotal role in promoting affordable housing options for various demographics, including low- and moderate-income families, older adults, and individuals with special needs. Established in 1972, PHFA has facilitated over $19.7 billion in funding for single-family home mortgages and has supported the construction and preservation of numerous rental units across Pennsylvania. The agency is funded primarily through the sale of securities and user fees, ensuring that taxpayer dollars are not the source of its operational budget.

This bidding opportunity demonstrates PHFA's ongoing commitment to fostering economic development and enhancing community livability through innovative housing solutions. By leveraging tax credits, the agency aims to transform spaces into vibrant community centers where housing and commerce coexist, ultimately enriching the communities they serve.

For more inquiries, media representatives can contact Scott Elliott at PHFA for media-related questions regarding this initiative.