by Cindy Daley, Director of Community Development Initiatives
Starting in July 2023, the PA Housing Finance Agency (PHFA) will receive an additional $20 million a year for the state housing trust fund known as PHARE*. PHARE supports affordable housing development, housing services (including legal services), and blight remediation.
PHARE receives funding from three sources, but the majority comes from the state’s share of the Realty Transfer Tax (RTT). The RTT funds were originally capped at $25 million a year. In 2019, the cap was raised to $40 million. This year, RHLS, the Housing Alliance of PA, ACTION Housing, The Pittsburgh Foundation, UPMC Center for Social Impact, Neighborhood Allies, and advocates across the state worked to convince the General Assembly to increase the cap to $60 million – a 50% increase from the current cap of $40 million.
THANK YOU to our legislative champions: bill sponsors Sen. Vogel (R-Beaver, Butler, Lawrence), Sen. Haywood (D-Montgomery, Philadelphia), and Rep. Masser (R-Columbia, Montour, Northumberland), as well as to House and Senate leadership who worked tirelessly to ensure that the increase happened.
Also on the PHARE front, a new report by the Reinvestment Fund* shows just how impactful PHARE is. “PHARE funding helps support some of the most vulnerable residents across the state, but at the same time also supports the broader community.” Written prior to the increase in RTT funding, the report demonstrates the urgent need for the additional funds, stating, “Every year the PHARE program receives more applications than it can fund, and only 35% of PHARE grantees in 2019 to 2020 received the full funding amount that they requested.” We are looking forward to seeing many more projects funded next year!
*PHARE stands for the PA Housing Affordability and Rehabilitation Enhancement fund.
**Commissioned by RHLS and funded by the Heinz Endowments