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Pennsylvania Unveils Major Affordable Housing Funding

On June 11, 2025, the Pennsylvania Housing Finance Agency (PHFA) made a significant announcement regarding its latest round of funding that will bolster affordable housing initiatives across the state. With $73 million allocated through the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund (PHARE), nearly 400 housing initiatives will benefit from this injection of capital. This funding will impact all 67 counties in Pennsylvania, addressing a critical need for affordable housing in various communities.

A Growing Commitment to Affordable Housing

PHFA has pointed out that the 2024-25 bipartisan budget has nearly doubled the Commonwealth’s commitment to affordable housing by raising the PHARE fund cap to $100 million per year by 2027. According to Governor Josh Shapiro, this funding is designed to provide local communities with the resources they need to effectively tackle the housing crisis, significantly enhancing their capacity to meet the diverse needs of residents while emphasizing that “PHARE is one of the most effective tools we have to expand access to safe, affordable housing.”

This commitment not only signals an increase in funding but also represents a concerted effort to alleviate housing issues that many Pennsylvanians face.

Utilizing Diverse Funding Streams

The funding for these awards is derived from two main sources. Since 2012, the program has benefitted from a percentage of impact fees collected from natural gas companies operating in Pennsylvania. These fees aim to mitigate the housing shortages that stem from drilling activities. Additionally, the PHARE funding is supplemented with revenue from realty transfer taxes, leading some to refer to the fund as the state's Housing Trust Fund.

PHFA Executive Director Robin Wiessmann expressed confidence in the program’s efficacy, stating, “I’m impressed each year with how well local organizations target PHARE dollars to address communities’ housing needs.” This year’s initiatives are expected to maximize impact by leveraging PHARE funding with other funding sources, amplifying housing initiatives even further.

Expected Housing Developments

This current tranche of funding is anticipated to significantly impact Pennsylvania households through a variety of initiatives:

• - 270 new affordable housing units will be constructed.
• - 2,050 existing affordable housing units will receive preservation or rehabilitation funding.
• - 56 new single-family homes will be introduced to the market.
• - 140 housing units will be developed or refurbished with a focus on families facing homelessness.
• - 122 prospective homeowners will receive down payment and closing cost assistance.
• - More than 11,400 families will have access to housing counseling and financial education services.
• - Around 13,900 families in jeopardy of homelessness will benefit from housing assistance programs.

Significantly, it is reported that at least $49 million—representing 67% of the funds allocated—will directly support housing projects serving households earning below 50% of the area’s median income.

A Vision for the Future

As part of Governor Shapiro's strategic approach to addressing the housing crisis in Pennsylvania, the 2024-25 budget indicates a commitment to sustained investment in affordable housing solutions. The overarching goal is to expand access to safe, affordable housing and support successful community development.

Looking ahead, the PHARE fund cap will increase further to $110 million by 2028. The Governor's budget for 2025-26 proposes an additional $10 million for PHARE, signaling the largest overall investment in housing in Commonwealth history. The funding will also incorporate initiatives such as the $50 million earmarked for a new statewide housing repair fund and $10 million designed specifically for first-time homebuyers. Furthermore, targeted reforms aimed at sealing eviction records demonstrate a holistic strategy to stabilize housing for all Pennsylvanians.

About PHFA

Since its establishment in 1972, the PHFA has facilitated affordable homeownership and rental opportunities for a diverse range of Pennsylvanians, including older adults and low- to moderate-income families. Its operational mechanisms leverage carefully crafted mortgage programs along with investments in multifamily housing developments. By doing so, PHFA has promoted economic growth and housing stability throughout the state.

As the agency continues to foster affordable housing solutions, it also plays a critical role in community development initiatives, striving to establish a supportive environment that not only provides shelter but contributes to the overall well-being of Pennsylvanians. For those seeking more information on PHARE funding announcements and initiatives, visit www.phfa.org for additional resources and updates.