Harrisburg, PA – A new report released today by the Pennsylvania Housing Finance Agency (PHFA) highlights the significant impact of the Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) Fund on expanding access to affordable housing across the Commonwealth. The report, titled “Building Opportunity: PHARE funding trends and county profiles (2022-2024),” details how nearly $177 million in PHARE funding has been allocated to create or preserve an estimated 8,268 affordable housing units between 2022 and 2024.
The PHARE program, established in 2010, serves as a crucial mechanism for distributing state and federal funds, as well as leveraging other resources, to support affordable housing initiatives throughout Pennsylvania. This latest analysis demonstrates the program’s effectiveness in strengthening communities and providing stable housing options for families, according to PHFA Executive Director and CEO Robin Wiessmann. “The PHARE program continues to make a real difference for Pennsylvanians by strengthening communities and expanding access to affordable housing across the Commonwealth,” Wiessmann stated. “This new analysis demonstrates the program’s impact and how funds from PHARE assist families find stable housing and revitalize neighborhoods.”
The comprehensive report analyzes three years of PHARE application data, revealing key trends in funding requests, awards, and proposed impacts statewide. Individual county profiles, alongside multicounty and statewide reports, are now available for review at https://www.phfa.org/housingstudy/, offering stakeholders a detailed view of the program’s activity in their areas.
Leveraging Investment for Maximum Impact
Beyond the direct allocation of $177 million, the PHARE fund has proven remarkably effective at attracting additional investment. The report reveals that the state’s investment through PHARE leveraged approximately $1.8 billion in additional public and private funding, demonstrating its ability to amplify resources for affordable housing development. This multiplier effect is a key component of the program’s success, maximizing the impact of limited state funds.
Targeting Resources to Those Most in Need
A significant portion of PHARE funding is directed towards assisting households with the greatest need. Approximately $126 million of the $177 million awarded between 2022 and 2024 was specifically reserved for assisting households at or below 50% of the Area Median Income (AMI). This targeted approach ensures that resources are reaching those who are most vulnerable and struggling to find affordable housing options.
High Demand and Partial Funding
Despite its success, the PHARE program faces a persistent challenge: high demand. Requests for funding consistently outpace available resources by a factor of approximately 2.5. Over the study period, applications exceeded $435 million, while only $177 million was awarded. PHFA often provides partial funding to projects, stretching limited resources to support as many initiatives as possible. Between 2022 and 2024, only 27% of applicants received full funding, while 51% received partial awards and 27% remained unfunded.
A Long History of Supporting Pennsylvania Communities
Since its inception in 2010, the PHARE program has become an essential resource for communities across Pennsylvania. It supports a wide range of activities, from creating new affordable senior housing to providing utility assistance to families in need. The Pennsylvania Housing Finance Agency (PHFA), established in 1972, has generated over $20.1 billion in funding for more than 210,310 single-family home mortgage loans and helped fund the construction of over 113,200 rental units, according to agency data. PHFA’s operations are funded through the sale of securities and fees, not through public tax dollars.
Looking ahead, the demand for affordable housing in Pennsylvania is expected to remain high. The PHFA continues to explore innovative strategies to maximize the impact of the PHARE fund and address the ongoing housing challenges facing the Commonwealth. Further analysis and ongoing evaluation of the program will be crucial to ensuring its continued effectiveness in creating and preserving affordable housing opportunities for all Pennsylvanians.
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Disclaimer: This article provides informational content about the Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) Fund and should not be considered financial or housing advice. For personalized guidance, please consult with a qualified professional.
