Gov Shapiro’s Annual Increases to PHARE Fund Continue for Affordable Housing | Commonwealth of Pennsylvania

Harrisburg, PA - Today, the Pennsylvania Housing Finance Agency (PHFA) announced $93.4 million through the Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) program for 432 housing and community development initiatives across all 67 counties to expand affordable housing opportunities for Pennsylvanians.

The Shapiro Administration has significantly expanded funding available for building and repairing affordable homes. In 2024, Governor Shapiro secured a $10 million annual increase until 2027 for the PHARE Fund, raising the cap to $100 million by 2027.

Since Governor Shapiro took office in 2023, Pennsylvania has funded over 1,000 projects to build or repair more than 8,200 housing units, launched a statewide Right-to-Counsel initiative for people facing evictions, and piloted Pennsylvania's first mixed-use housing development program.

"PHARE is one of the most effective tools we have to expand access to safe, affordable housing in every corner of the Commonwealth," said Governor Josh Shapiro. "That's why we've nearly doubled our investment in PHARE, giving local communities more resources to meet those needs, tackle the housing crisis, and help more Pennsylvanians stay in their homes."

PHFA anticipates that today's PHARE funding will assist Pennsylvania households by:

• Building 49 new single-family homes.
• Assisting 204 potential new homebuyers with downpayment/closing cost assistance.
• Supporting 5,990 households with housing counseling and financial education.
• Preserving and rehabilitating 1,662 affordable non-LIHTC rental units and creating an additional 18 units through health for housing partnerships.
• Building more than 2,000 units from PHARE funding to support LIHTC projects.
• Creating or rehabilitating 57 units specifically for households in danger of homelessness.
• Supporting 2,057 households with programming from healthy housing investment funds.
• Providing housing assistance (rent, utility, transportation) to more than 134,000 housing insecure residents in danger of homelessness.

At least $74.6 million (79%) of the $93.4 million allocated today will be used to fund housing projects benefiting households with incomes below 50% of the area median income.

Under current projections, Pennsylvania will face a shortage of roughly 185,000 homes by 2035 without further action. Housing costs continue to rise at a rate faster than wages, with over one million households in the Commonwealth spending more than 30 percent of their income on housing, while more than 50 percent of Pennsylvania's housing stock is over 50 years old - making it increasingly more expensive to maintain.

Earlier this year, Governor Shapiro unveiled Pennsylvania's first-ever Housing Action Plan, which will build and preserve more homes, modernize housing regulations and zoning rules, and break down barriers preventing people from finding stable housing - all to grow the Commonwealth's economy and improve Pennsylvanians' quality of life.

Governor Shapiro's 2026-27 Budget Builds on Three Years of Progress to Improve Access to Affordable Housing

Governor Shapiro's 2026-27 Proposed Budget takes the first steps to implement this plan, calling for investments and reforms to expand housing access, protect renters and homeowners, and strengthen coordination across state agencies to further strengthen his Housing Action Plan. The Governor's budget proposal includes:

• Establishing Critical Infrastructure Investment Fund: One of the best ways to lower the cost of housing is to build more homes. The Governor's budget proposal creates a new $1 billion initiative supported through the issuance of general obligation bonds, with proceeds deposited into the Capital Facilities Fund. This initiative would provide flexible funding for major infrastructure projects across the Commonwealth, including building and preserving more housing, bringing new energy generation onto the grid, and upgrading school and municipal facilities.
• Protecting Renters and Promoting Housing Stability: Establishes a statewide cap on rental application fees tied to the actual cost of screening and prohibits fees before a property is viewed; affirms a tenant's right to terminate a lease due to domestic violence without financial penalty; seals eviction records for individuals who were not actually evicted; and advances fair-chance housing reforms to regulate when and how criminal history may be considered in rental decisions; and invests $1 million in an Investments in Health pilot, leveraging federal funding to total $2.5 million to connect Pennsylvanians experiencing homelessness or housing instability with housing-related supports.
• Supporting Manufactured Homeowners: Limits annual lot rent increases in manufactured home communities and requires advance notice of increases, protecting residents - many of whom own their homes but rent the land beneath them - from sudden and unaffordable cost spikes.
• Addressing Tangled Titles and Preserving Generational Wealth: Authorizes transfer-on-death deeds for primary residences, providing a streamlined way for homeowners to pass property to heirs, avoid costly probate, access home repair programs, and reduce blight in communities across the Commonwealth.
• Strengthening Housing Coordination and Accountability: Creates a Deputy Secretary for Housing at DCED to coordinate housing policy and oversee implementation of the Housing Action Plan.
• Modernizing Local Planning and Permitting: Updates the Municipalities Planning Code to reduce regulatory barriers to residential development, improve permitting processes, and incentivize county and regional planning that reflects the diverse housing needs of Pennsylvania's communities.

Governor Shapiro remains committed to ensuring every Pennsylvanian has the dignity and security that comes with a safe, affordable place to call home.

Learn more about the Shapiro Administration's efforts to support Pennsylvania's workers and businesses and spur the economy to build a stronger, more competitive economy for all Pennsylvanians.