Senate Bill 30, introduced by Senator Tom Killion (R-Chester and Delaware), that would establish a state housing tax credit to incentivize private investment to create new and preserve existing affordable rental housing, passed the Senate unanimously last week.
“Seniors, individuals with disabilities, families and children benefit from greater availability of affordable housing,” said Killion. “And this program will promote the job creating and economic potential of private rental developers by incentivize financing to return blighted and abandoned homes to productive reuse.”
According to the Housing Alliance of Pennsylvania (HAP), the Commonwealth is faced with a shortage of housing that is available and affordable, especially for households making 30 percent of median family income.
“Affordable housing is too hard to find in Pennsylvania,” said HAP Executive Director Phyllis Chamberlain. “For every 100 extremely low-income households, there are only 42 affordable units available. We support the State Housing Tax Credit because it stimulates private investment in affordable housing.”
“Our housing authority is a vital driver of economic development in the City of Chester,” said Steven Fischer, Executive Director of the Chester Housing Authority. “Tax Credit developments, in particular, help to spur further development in the surrounding community. By creating good, quality homes and communities for seniors, families, and others who need assistance, and managing them well, a housing authority like ours supports jobs and growth for the entire community.”A state housing tax credit would mirror and be used in conjunction with the federal Low Income Housing Tax Credit (LIHTC). Federal LIHTC is the main vehicle for the creation and preservation of affordable rental housing in the Commonwealth and across the nation.
The legislation is co-sponsored by a broad, bipartisan group, including Senate Appropriations Committee Chairman Pat Brown (R-Lehigh) and Democratic Chairman Vincent J. Hughes (D-Philadelphia).
“Every dollar invested in housing results in nearly $20 in economic impact, including jobs in the community,” said Killion. “The federal affordable housing tax credit has proven to be very successful, and the state should incentivize investments to make affordable housing more widely available for Pennsylvanians.”