Legislation creates a state housing tax credit program to encourage private investment
Senate Bill 30, authored by Senator Tom Killion (R-Chester and Delaware), promoting new construction and the rehabilitation of blighted buildings for affordable housing is headed to the governor’s desk after being approved by the General Assembly today.
“Affordable housing is in short supply in Pennsylvania,” said Killion. “Seniors, individuals with disabilities, working families and children are disproportionately affected by this scarcity. My legislation will address this critical need and promote job growth and stronger communities.”
Killion’s legislation establishes a state low-income housing tax credit program. The state program will 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.
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.
“I want to thank Senator Killion for his leadership to make a state housing tax credit a reality in Pennsylvania,” said Phyllis Chamberlain, executive director of the Housing Alliance of Pennsylvania. “Affordable housing is an issue that has enjoyed significant bipartisan support, in no small part because of Senator Killion’s effort.”
“A state housing tax credit will incentivize the creation of new affordable housing which impacts Pennsylvania’s economic growth. This is even more critical now given Pennsylvania’s need to focus on long term economic recovery,” Chamberlain added.
The legislation is co-sponsored by a broad, bipartisan group of legislators, including Senate Appropriations Committee Chairman Pat Browne (R-Lehigh) and Democratic Chairman Vincent J. Hughes (D-Philadelphia).
“Every dollar invested in housing results in nearly $20 in economic impact,” said Killion. “With the success of the federal affordable housing tax credit, it is wise for Pennsylvania to also promote these private investments.”
“COVID-19 has exacted a tremendous toll on our economy and our citizens and state government must do what it can to promote recovery. This new program will foster the creation of jobs, strengthen communities and expand the availability of affordable housing throughout our state,” Killion added.