Increase the PHARE Funding Cap
Pennsylvania has never been better positioned to invest in housing. With a surplus of funding from the American Rescue Plan, the time is now to prioritize housing and make a transformational commitment for residents across our state. Take one minute today to join Habitat for Humanity Philadelphia in calling for an increase to the funding cap on the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund (PHARE).
PHARE creates, rehabs, and supports local housing, blight remediation, supportive services, homeownership counseling, and home purchase. Since 2012, PHARE has helped more than 7,000 households in each of Pennsylvania's 67 counties.
A portion of Pennsylvania's Realty Transfer Tax (RTT) revenue is dedicated to help fund PHARE, but that allocation is currently capped at $40 million. We have a unique opportunity to increase state investment in this program, by raising the funding cap which will allow the program to grow in response to need without raising taxes.
Currently, the RTT funding for PHARE is determined by a formula, but for the past few years it has reached the funding cap thanks to the strength of the real estate market. According to the Housing Alliance of Pennsylvania, in FY 2020-21, the RTT could have generated $91.5 million, if not for the current funding cap. Looking at FY 2021-22 projections with the current funding cap in place, more than $55 million would be returned to the state's general fund instead of being invested into housing. At a time when the affordable housing crisis impacts every county in our state, this is our chance to fund a program that works to ensure more people have a home that is safe, warm, and dry.
Simply put, PHARE works. Legislation will soon be introduced to raise the PHARE RTT funding cap.
Sign on to tell your elected officials to vote to increase the cap on PHARE RTT funding , and allow the program to grow to meet the housing needs of families across Pennsylvania.
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