#United States #Harrisburg #Tax Credits #Mixed-Use Development #PHFA

PHFA Opens Bidding for $4.5 Million in Mixed-Use Development Tax Credits

The Pennsylvania Housing Finance Agency (PHFA) has initiated the bidding process for $4.5 million in tax credits specifically designed for mixed-use development projects. This significant funding aims to bolster community revitalization efforts across Pennsylvania, and the deadline for submitting bids is 2 p.m. on Friday, July 24.

Supporting Community Revitalization

The proceeds generated from this competitive bidding will be strategically allocated to support the construction and rehabilitation of mixed-use developments that enrich communities. The awarded tax credits can be utilized by the winning bidders to lower their Pennsylvania state tax liability. Eligible participants in this bidding process include corporations, nonprofit organizations, and individuals who are interested in contributing to community development.

PHFA is focused on maximizing the impact of the $4.5 million available through this tax credit program, aiming to fund transformative community projects across different regions of the state. The selection of projects that will receive funding will be determined through a competitive Request for Proposals (RFP) process that will occur later this year.

Tax Credit Program History

This tax credit initiative was established as part of Pennsylvania's fiscal year budget for 2016-2017 and officially launched on July 1, 2017. PHFA was tasked with overseeing the administration of the program, which involves the sale of these tax credits to qualified taxpayers. The agency has been authorized to facilitate this through either a directed or negotiated sale.

It is expected that the tax credit awards will be finalized within 90 days after the close of the bidding period. Although the awards will be made in 2026, they will not be applicable for use until 2027, specifically against the tax liability of the year 2026.

Comments from PHFA Leadership

Robin Wiessmann, Executive Director and CEO of PHFA, emphasized the importance of mixed-use developments, stating, "These projects exemplify the power of robust public-private partnerships. The funding derived from the sale of these tax credits will substantially enhance revitalization efforts, leading to the creation of affordable housing and the expansion of commercial opportunities, thereby strengthening communities throughout Pennsylvania. Without the proceeds from these tax credits, undertaking such transformative efforts would be significantly more challenging."

For more information regarding the mixed-use development tax credit program, including detailed guidelines and bidding requirements, visit PHFA's official website. Interested parties can also reach out directly to Shelby Rexrode at PHFA by calling 717-780-1854 or via email at [email protected].

About PHFA

Since its establishment by the Pennsylvania legislature in 1972, the Pennsylvania Housing Finance Agency has dedicated itself to providing affordable housing options for older adults, low- and moderate-income families, as well as individuals with unique housing needs. Through its well-managed mortgage programs and investments in multifamily housing projects, PHFA has played a significant role in promoting economic development throughout the state.

To date, the agency has facilitated over $20.1 billion in funding for more than 210,310 single-family home mortgage loans, assisted in the construction of over 113,200 rental units, distributed approximately $437 million to bolster local housing initiatives, and helped over 51,400 families avoid foreclosure. Funding for PHFA’s programs primarily comes from the sale of securities and fees from program users, rather than public tax revenue. The agency is governed by a dedicated board comprised of 14 members.