PHFA Introduces Two-Step Funding Consideration Process for LIHTC Projects
The Pennsylvania Housing Finance Agency (PHFA) will be changing the way applicants can seek agency loan funding and federal low-income housing tax credits (LIHTC) in 2011. The PHFA has instituted a two-step application funding process that emphasizes site location and market conditions.
Developers were invited to submit a brief preliminary application before Nov. 5, 2010, after which the agency’s staff conducted site visits to help determine which projects would be eligible under the 2011 allocation plan that was approved by the PHFA’s board of directors. The PHFA newsletter said that: “Based on the level of interest in these programs, the agency anticipates the receipt of more applications for funding than in previous years.”
Developments that meet the requirements and “demonstrate significant market demand” are invited to submit a supplementation application in March 2011. To get to this point, the PHFA says that properties must: have a significant community and economic impact on the neighborhood; use green building design and materials; have accessible design features; provide supportive services to residents; and be affordable to people at or below 50 percent of the area median income.