The Pennsylvania Housing Finance Agency (PFHA) announced that the newly signed state budget increased the allocation of tax credit by $1.5 million to now total $4.5 million for its Mixed-Use Development Tax Credit Program. The agency and Pennsylvania legislature is grateful that these funds will support progress in redevelopment across the state.
The PFHA wants to ensure that all interested bidders are aware of this significant change in tax credit availability, and that the deadline for bids is being extended until 2 p.m. on Friday, July 23. The tax credits will be awarded to winning bidders, which can be companies, organizations, or individuals, to reduce state tax liability.
The intention behind the bidding process is to raise as much funding as possible from the $4.5 million in tax credits to afford significant community revitalization. Particularly, these funds will be invested in mixed-use developments throughout various communities. The projects or individuals to receive funding will be selected during a competitive Request for Proposal process later this year.
PHFA executive director and CEO Robin Wiessmann, said, “We appreciate this additional funding from the General Assembly and the governor, which demonstrates their support for the revitalization of communities across the commonwealth through mixed-use developments that include affordable housing and commercial space. These mixed-use projects bring a double benefit because they not only provide more critically needed housing, but the commercial part of these developments brings economic revitalization, too.”
This tax credit program was created by the commonwealth fiscal year 2016/2017 budget, and the PFHA was directed to administer these credits. Credit awards will be made in 2021, but will not be effective until 2022 for a 2021 tax liability.
More information about the mixed-use development tax credit program is available on the PFHA website.
