The Pennsylvania Senate’s Urban Affairs and Housing Committee advanced Tuesday Senate Bill 1185, which would create a state housing tax credit to incentivize private investment in affordable housing.
Sen. Tom McGarrigle (R-26), chairman of the committee, became the first co-sponsor of the bill, which is sponsored by Sen. Tom Killion (R-9).
“Strong families are the key to stable, healthy neighborhoods, and the lack of affordable housing undermines both families and communities,” McGarrigle said. “Senator Killion’s state housing tax credit will not only help senior citizens, individuals with disabilities and families, it will spur economic development and replace blighted properties with new and refurbished housing.”
The new tax credit is modeled after the federal Low Income Housing Tax Credit (LIHTC) and would apply to both new and existing housing. The Housing Alliance of Pennsylvania supported the bill.
“There is an affordable housing crisis in our state,” Killion said. “We need to do everything we can to help provide homes for families who are facing economic challenges. I am grateful that Senator McGarrigle is helping to make this affordable housing tax credit a reality.”
For every 100 low-income households in Pennsylvania, there are only 66 affordable rental units available, and for every 100 very low-income households, there are only 38 affordable units.