When Pennsylvania legislators return to Harrisburg later this month, two housing-related bills could be on the agenda: one aiding the construction of more affordable housing, and one aiding first-time homebuyers.
Both bills passed the Republican-controlled Senate unanimously with bipartisan support.
Senate Bill 30 would create a state housing tax credit, similar to the federal Low Income Housing Tax Credit, which aids developers in building new affordable housing.
The federal Low Income Housing Tax Credit is the main way new units of affordable housing are financed and constructed. However, the demand for the tax credit far outstrips the supply, said Levana Layendecker, deputy director of the Housing Alliance of Pennsylvania, which has pushed for the creation of the state credit.
“We wanted to add the state housing tax credit to help move more of those projects forward,” she said.
Sen. Tom Killion, R-Chester, the bill’s primary sponsor, said it can benefit urban, suburban and rural areas.
Locally, a number of projects have benefited from the federal tax credits, among them: Krause Commons in Squirrel Hill, Morningside Crossing in Morningside, and the former Lemington Home for the Aged in Lincoln-Lemington, which is being redeveloped as senior apartments.
The state tax credit would create an additional $10 million in funding annually that could aid such projects.
“I think the main thing [it would] do is fill financing gaps with projects that are receiving federal credits,” said Peter Kaplan, a board member of the Housing Alliance.
Senate Bill 309 would create savings accounts for first-time homebuyers in Pennsylvania. The bill would allow homebuyers to establish accounts to save for a home purchase; that money could be deducted from their state income tax.
“It goes to the same type of philosophy that a 529 [college savings account] does. If you can start saving for a new home, why not?” said Sen. Wayne Fontana, D-Brookline, a co-sponsor of the bill.
“Since the financial crisis, we have lost a large percentage of first-time buyers,” said William Festa, president of the Pennsylvania Association of Realtors, which supports the bill. “We’re looking to do something to get those people back in the market."
“Anything that helps people buy homes, stay in their homes, is something I’m going to be supportive of,” Mr. Fontana said.
Both bills are in the House Urban Affairs Committee.
Kate Giammarise: kgiammarise@post-gazette.com or 412-263-3909.
First Published: March 9, 2020, 10:30 a.m.
