#United States #affordable housing #Harrisburg #Pennsylvania #HOME-ARP

Pennsylvania Housing Finance Agency Awards $25 Million in HOME-ARP Funding

In a significant move to enhance affordable housing in the state, the Pennsylvania Housing Finance Agency (PHFA) recently announced the allocation of $25 million in HOME-ARP funding. This initiative aims to support the construction and preservation of rental units targeted towards at-risk and homeless residents of Pennsylvania, providing essential housing solutions in a time of great need.

Overview of the Initiative

The funding announced today will facilitate the creation or preservation of a total of 257 rental units across various projects in Pennsylvania. Out of these units, 204 will be specifically designated for at-risk or homeless individuals, thereby addressing the urgent housing demand faced by these vulnerable populations.

Eight development projects have been selected to receive this funding, showcasing a diverse range of housing solutions:

• - Western Manor in Pittsburgh, offering 32 units.
• - Briar Creek Apartments in Berwick, with 12 units.
• - Washington Square Apartments in Erie, contributing 22 units.
• - North Scranton Infill Housing Initiative in Scranton, focused on 8 units.
• - Oyster Point Landing in Lancaster, with 16 units.
• - Drueding Center Residential in Philadelphia, providing 26 units.
• - Germantown Life Enrichment Center in Philadelphia, featuring a substantial 133 units.
• - Melville Way in Philadelphia, with an additional 8 units.

The Importance of Affordable Housing

PHFA Executive Director and CEO, Robin Wiessmann, emphasized the crucial role that this funding will play in the community, stating, “The funding will make a significant impact by creating affordable rental units for some of our most vulnerable residents.” The need for affordable housing options is at an all-time high across Pennsylvania, and this new source of funding is seen as a vital step to alleviate the pressing housing crisis.

Conditional Funding Process

It's important to note that the awards announced today are conditional and will proceed only after the completion of essential processes related to construction costs, capital stacking, and other underwriting criteria. Moreover, PHFA may potentially commit up to $10 million to other qualifying projects down the line as part of their ongoing efforts to fight homelessness and promote affordable housing in the state. The agency received a total of 22 applications requesting more than $56 million, highlighting the overwhelming need for financial support in this sector.

HOME-ARP Program Details

The HOME-ARP program provides 0% interest, deferred-payment loans. These loans can be utilized for the development, rehabilitation, and preservation of rental housing tailored to eligible populations, particularly low-income households facing housing instability. More comprehensive information about the HOME-ARP program is available on the PHFA website, which serves as a guide for developers and stakeholders involved in creating affordable housing solutions.

The HOME Investment Partnerships Program – American Rescue Plan (HOME-ARP) was established under the American Rescue Plan Act of 2021, as a response to the challenges posed by the COVID-19 pandemic. Administered by the U.S. Department of Housing and Urban Development, it aims to fortify communities by ensuring access to safe and affordable housing.

About the Pennsylvania Housing Finance Agency

Since its establishment in 1972, the Pennsylvania Housing Finance Agency has been a cornerstone in providing affordable housing opportunities. The agency focuses on supporting older adults, low- and moderate-income families, and persons with special housing needs. Through various mortgage programs and investments in multifamily developments, PHFA has contributed significantly to economic growth across the state. To date, the agency has facilitated around $20.1 billion in funding for over 210,310 home mortgage loans, supported the construction of more than 113,200 rental units, and allocated nearly $437 million to local housing initiatives.

The PHFA's commitment is primarily funded through the issuance of securities and user fees, showcasing a self-sustaining model that does not rely on public tax dollars. Governed by a 14-member board, PHFA continues to adapt and respond to the evolving housing landscape in Pennsylvania.

For media inquiries, please contact Chris Anderson at 717-780-3915.