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Pennsylvania Housing Finance Agency (PHFA)
PHFA is the Commonwealth of Pennsylvania’s leading provider of
capital for affordable homes and apartments.
Click
here to link to PHFA website
Homeownership Choice Program (HCP)
The PHFA board sets aside funds to create the PHFA Homeownership Choice
Program (HCP). HCP provides funds for the development of single-family
homes for purchase in urban communities. HCP is intended to be a part
of a municipality’s comprehensive approach to increase the net
investment in housing in urban areas while building mixed-income communities
and encouraging diversity of homeownership. HCP encourages market-sensitive
and innovative land-use planning concepts and works in concert with
commercial development and community and downtown revitalization efforts.
The focus is on the development of new homeownership opportunities and
the transformation of disinvested urban neighborhoods into attractive
places to live, thereby offering a viable alternative to sprawling development.
Requirements:
Program requires partnerships between the municipality, a for-profit
and non-profit builder/developer. Minimum size is 50 units.
Timeframe:
PHFA issues Requests For Proposals (RFP) periodically. The City of Philadelphia
selects development projects to submit in response. Developers do not
apply directly.
Contacts:
215-686-9750
Director, OHCD
717-780-1801
Director, Office of Strategic Planning and Policy, PHFA
Click here to
visit the HCP page on the PHFA website
PennHOMES Program
PHFA provides permanent financing for rental projects through the PennHOMES
Program. It offers interest-free, deferred payment loans to support
the development of affordable rental housing for lower-income residents.
Financing is structured as primary or secondary mortgage loans. Eligible
sponsors include for-profit or nonprofit entities. Developers may receive
up to $22,500/unit in PennHOMES financing but increase their chances
of receiving financing if requesting a lower per-unit amount. Application
is competitive.
Requirements:
Development proposal submitted to PHFA
Timeframe:
Annual application
Contact: 717-780-3882
Director of Development, PHFA
Low-Income Housing Tax Credits (LIHTC)
PHFA allocates federal Low-Income Housing Tax Credits (LIHTC) to generate
private investment equity for rental ventures. It administers a $20-million
annual allocation for the Commonwealth of Pennsylvania. This program
provides owners of, and investors in, affordable rental housing developments
with tax credits that offer a dollar-for-dollar reduction in their tax
liability. The credit may be taken for up to 10 years. Tax credits are
usually sold to investors with the proceeds used to cover project costs.
Application is competitive. Tax credits are set aside regionally. Monthly
LIHTC rates are available online.
Requirements:
Requests for an application (the Tax Credit Program Guide) should be
submitted in writing to the address below.
211 North Front Street
P. O. Box 8029
Harrisburg, PA 17101-8029
717.780.3818
FAX 717.780.3867
Timeframe:
Generally two applications per year are issued.
Contact: 717-780-3882
Manager, Tax Credits, PHFA
Click
here to view the LIHTC Manual on the PHFA website
Construction Loans
This program makes below-market-rate construction loans available to
sponsors of rental housing projects who have permanent take-out financing
from other lenders. At least 20 percent of the residents must have incomes
that do not exceed 80 percent of the area’s median income.
Requirements:
Development proposal submitted to PHFA
Timeframe:
Annual application
Contact: 717-780-3882
Director of Development, PHFA
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Housing Developments using
HCP funding
Pradera Phase 1 completed in North Philadelphia
Jeferson Square under construction in South Philadelphia
Section of the future site of Union Hill Homes
in West Philadelphia
Housing Developments using
LIHTC funding
Universal Point in South Philadelphia
Belmont Affordable Project in West Philadelphia
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