The Pennsylvania Housing Finance Agency (PHFA) announced Monday that it would be accepting bids for the purchase of $3 million in mixed-use development tax credits.
The funds collected from successful bidders will be used to construct or rehabilitate mixed-used developments throughout Pennsylvania. The winning bidders can use the tax credits to reduce their state tax liability. Bidders can be companies, organizations, or individuals. The PHFA intends to raise as much money as possible from the sale of the tax credits to invest in community revitalization projects. Projects receiving funding would be selected through a competitive Request for Proposals later this year.
Created in 2016 as part of the Commonwealth’s fiscal year 2016/2017 budget, the program allows PHFA to sell the tax credits to any qualified taxpayer. The tax credit awards will be made within 90 days of the bid deadline – 2 p.m. on Friday, July 16. Credits may be used in 2022 against the winning bidders’ 2021 tax liability.
“We have had good success over the past few years with the mixed-use developments we’ve funded,” said PHFA Executive Director and CEO Robin Wiessmann. “The retail and commercial portion of each project brings economic activity to the community where it’s located, and of course, the affordable housing provided is always in great demand. Mixed-use projects bring a positive energy that is always appreciated in their communities.”
Program guidelines and bid criteria are posted on PHFA’s website, along with annual reports on tax credits made in previous years.