Agency issues provisional tax credits for affordable housing in Central Pa.
The Pennsylvania Housing Finance Agency on Thursday said it plans to award tax credits to support construction of 39 multifamily housing projects in Pennsylvania, including seven in the midstate.
But due to the new federal tax law adopted at the end of 2017, the agency has changed the way it is allocating the tax credits, adding an extra step for developers who use the credits to help fund their projects.
Instead of simply awarding the credits, the agency is handing them out on a conditional basis.
Agency spokesman Scott Elliott said the conditional label was added because the federal tax cuts have decreased the value of the tax credits, which developers sell to fund their projects. Because the corporate tax rate has fallen from 35 percent to 21 percent, the credits are worth less to investors.
What that means, he said, is that developers might need to find additional funding sources. If they can't, some projects could be delayed.
"The market (for tax credits) hasn't stabilized quite yet," Elliott said. "As a result, all developments conditionally awarded tax credits today will be given 90 days to confirm the financial viability of their proposal before their tax credit award will be finalized."
The 39 developments are slated to create more than 1,900 rental housing units for Pennsylvania residents.
The Central Pennsylvania projects include two each in Dauphin, Lancaster and York counties, plus one in Cumberland County, according to PHFA.
Collectively, the seven projects will add 334 housing units, including many designed specifically for affordable senior living.
Here is a brief summary of each project, by county, with the tax credits requested:
- Cumberland: PIRHL Developers LLC requested $934,672 in tax credits for its Carlisle Veterans housing project at 515 Factory St., Carlisle. The project, which is targeting veterans as tenants, calls for four three-story buildings with 42 apartments overall, including 14 one-bedroom apartments, 12 two-bedroom units and 16 three-bedroom units.
- Dauphin: Affordable Housing Associates of Dauphin County Inc. requested $1.2 million in tax credits for its Cherry Orchard Place project at 2323 Linglestown Road in Susquehanna Township. The project calls for a three-story building with 38 one-bedroom and 11 two-bedroom apartments for people age 62 and older.
- Dauphin: Monarch Development Group LLC requested $862,981 in tax credits for its Paxton Place project at 1100 S. 20th St., Harrisburg. The project calls for a three-story building with 35 one-bedroom and two two-bedroom apartments for people age 62 and older.
- Lancaster: Presbyterian Senior Living requested $1.2 million in tax credits for its Long Crest project in the 900 block of West Walnut Street in Lancaster. The project would include 46 one-bedroom and six two-bedroom apartments for people 62 and older.
- Lancaster: Mission First Housing Development Corp. requested $1.1 million in tax credits for its Sassafras Terrace project at 330 E. Main St., Mount Joy. The project calls for rehabilitation and preservation of 10 two-story buildings with 64 total apartments, consisting of 15 one-bedroom apartments, 34 two-bedroom units, 14 three-bedroom units and one four-bedroom unit.
- York: York Family Residences LLC requested $1.2 million in tax credits for its York Family Residences project at 300 N. State St., York. The project calls for construction of eight two- and three-story townhomes and walk-up apartments, consisting of a mix of 56 one-, two-, three- and four-bedroom units.
- York: Woda Housing of PA LLC requested $980,391 in tax credits for its Stone Ridge Commons project at Stone Ridge Road and Cinema Drive in Springettsbury Township. The project calls for construction of two buildings with 34 apartments overall, including 18 one-bedroom units, nine two-bedroom units and seven three-bedroom units.