PHFA Advances Housing and Community Renewal with PHARE Funding and Revitalization RFP

The Pennsylvania Housing Finance Agency (PHFA) continues to lead the state’s affordable housing efforts through two recent initiatives: delivering $73 million in PHARE funding and issuing a Request for Proposals (RFP) for community revitalization projects.

On June 11, 2025, PHFA announced an allocation of $73 million in PHARE funding, to be distributed across all 67 counties in support of 387 housing and community development projects. The funding is projected to create more than 270 new affordable rental units, rehabilitate or preserve 2,050 units, and construct 56 new single-family homes. In addition, 122 households will receive down payment and closing cost assistance, and more than 13,900 households facing homelessness will benefit from rental, utility, and transportation aid. Over 11,400 families will also receive housing counseling and financial education. Nearly 67% of this funding will serve households earning less than 50% of the area median income, targeting assistance to those with the greatest need.

Building on this momentum, PHFA released a Request for Proposals for the new construction or rehabilitation of mixed-use projects seeking financial support on August 25, 2025. This program is funded through the Mixed-Use Development Tax Credit Program. Created as part of the Commonwealth’s fiscal year 2016-2017 budget, PHFA was directed to administer the tax credit program. As such, PHFA accepted bids through July 18, 2024, for $4.5 million in tax credits. Proceeds from the sales of the tax credits are directed into the Community Revitalization Fund Program to finance eligible projects.

More information on the RFP can be found on the PHFA website. Below is a summary of facts:

Who Can Apply?

Eligible applicants include:

• Units of local government
• Redevelopment authorities
• Nonprofit organizations
• For-profit developers
• Economic development organizations

Projects located in third-class cities receive special priority, reflecting the program’s goal of directing investment to smaller urban areas in need of revitalization.

What Types of Projects Are Eligible?

• Rehabilitation of underutilized or vacant buildings for immediate reuse
• Build-out of commercial space for lease
• Conversion of existing structures for mixed residential/commercial use
• Construction or renovation of mixed-use buildings that combine affordable housing with retail or community-serving businesses

Deadlines and Submission Requirements

• Proposals must be submitted to PHFA by Friday, October 17, 2025, at 2:00 p.m. EST.
• Applications must be completed using PHFA’s online system. Full guidelines and application materials are available on the PHFA website.
• Applicants must demonstrate both financial feasibility and alignment with local revitalization strategies.

Together, these initiatives illustrate PHFA’s comprehensive commitment: the PHARE funding provides direct, wide-ranging assistance to households across the Commonwealth, while the Community Revitalization Fund Program RFP incentivizes creative, mixed-use projects led by local partners. By pairing affordable housing creation with community revitalization, PHFA is not only addressing immediate housing needs but also laying the groundwork for long-term neighborhood renewal.

McKonly & Asbury, LLP is a leader in accounting for affordable housing entities. Our team has the specialized knowledge to help you ensure you comply with industry requirements. For more information on these services and more, be sure to visit our Affordable Housing page, and don’t hesitate to contact us.

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