|Posted:||January 30, 2019 10:35 AM|
|From:||Senator Thomas H. Killion and Sen. Elder A. Vogel, Jr., Sen. Vincent J. Hughes, Sen. Art Haywood|
|To:||All Senate members|
|Subject:||State Housing Tax Credit|
|In the near future, we plan to introduce legislation that would create a state housing tax credit to incentivize private investment to create new and preserve existing affordable rental housing.
A state housing tax credit will increase economic opportunity for senior citizens, individuals with disabilities, families and children; unleash the job creation and economic generating power of private rental developers; and incentivize financing to return blighted and abandoned homes to productive reuse.
According to the Housing Alliance of Pennsylvania, across the Commonwealth, we are faced with a shortage of housing that is available and affordable, especially for households making 30 percent of median family income; and below which equals an annual salary of $22,200 and below. For every 100 low income renter households in PA, there are only 66 affordable rental homes available, and for 100 very low income renter households, there are only 38 affordable units available.
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 state housing tax credit will be used to serve households up to 80 percent Area Median Income (AMI) with an overall annual program targeting of 10% of funds used for households at 30% AMI. A credit period of five years will increase the financial present value of the credits and maximize the value of the credit.
Affordable housing is very important to every individual and family residing in the Commonwealth. The creation of a state housing tax credit will help ensure continued economic growth; promote educational and employment opportunities; and overall, help provide a better quality of life in our neighborhoods and communities in our districts and throughout the Commonwealth.
This legislation will be similar to SB 1185 of the 2017-2018 Legislative Session which was co-sponsored by Senators McGarrigle, Argall, Blake, Browne, Fontana, Gordner, Hughes, Leach, Vogel, Vulakovich and Yudichak.
SB 1185 was unanimously approved by the Senate Urban Affairs & Housing Committee on October 2, 2018; however, due to the limited number of voting Session days remaining during that time, the bill was not considered by the full Senate prior to the last scheduled voting Session day.
Please join us in co-sponsoring this important legislation.
Introduced as SB30