VICTORY: PHARE Funding will be raised to $100 million!
We did it! On Thursday, July 11th, Governor Shapiro signed legislation that will increase funding to the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund (PHARE) by $10 million each year until the fund reaches $100 million in the year 2027.
Notably, the legislation has eliminated the long-standing funding formula that often limited the allocation to PHARE. This means that the PHARE program will now steadily increase from its current $60 million cap to $100 million and receive $100 million each year going forward.
The is a monumental win for housing in Pennsylvania and represents a steadfast commitment from both the Administration and Legislature to steadily and predictably fund affordable housing each year. Members of both parties in both chambers came together to help make this happen. We thank the legislators who sponsored bills to increase PHARE including Senators Elder Vogel (R, Beaver) and Art Haywood (D, Montgomery), as well as Senator Frank Farry (R, Bucks) Chairman of the Senate Urban Affairs and Housing Committee. House legislation was sponsored by former state Rep. Sara Innamorato (D, Allegheny) along with Rep Khan (D, Philly), Rep. Twardzik (R, Schuylkill), Rep. Major (R, Armstrong), and Rep. Kutz (R, Cumberland). Of course, Governor Josh Shapiro has been instrumental in prioritizing PHARE and other housing initiatives. A much longer list would include the leaders of all four legislative caucuses who preserved this initiative among so many competing priorities.
Most importantly, recognition goes to all those who have used PHARE funds for so many excellent projects that have gained the program its strong reputation across state government. All those who reached out to legislators in support of PHARE have created a monumental education and awareness campaign that continues to pay off years into the future.
2024-25 State Budget Signed into Law
On Thursday night, Governor Shapiro signed the main spending bills making up the 2024-25 FY State Budget.
In addition to the PHARE increase, the General Assembly enacted the following:
- Increased the tax credit allocation for the Neighborhood Assistance Program (NAP) from $36 million to $72 million. NAP allows for neighborhood improvements in disadvantaged communities including the creation of affordable housing.
- $2.5 million in new funding was approved for legal counsel for tenants.
- The State’s Homeless Assistance Program received a $5 million increase.
We regret to report that the Whole Home Repairs Program once again received no additional funding in this year’s budget. We are hopeful that further assessment of the program’s outcomes will generate a renewed push for funding in 2025.
Aaron Zappia
Director of Government Affairs