U.S. Department of Housing and Urban Development
Office of Community Planning and Development
CITIZEN'S SUMMARY
Action Plan
The Commonwealth of Pennsylvania will establish a split program year for the U.S.
Department of Housing and Urban Development (HUD) programs covered by the
Consolidated Plan. The Community Development Block Grant (CDBG), HOME Investment
Partnerships (HOME) Program, and the Emergency Shelter Grant (ESG) Program will operate
on a January 1 through December 31 program year, while the Housing Opportunities for
Persons with AIDS (HOPWA) Program will follow a July 1 through June 30 program year.
The Commonwealth anticipates receiving $61.2 million for CDBG, $21.5 million for HOME,
$2.7 million for ESG, and $1.3 million for HOPWA.
Citizen Participation
The Department of Community Affairs (DCA) developed the Consolidated Plan using an
open process that involved no less than nine different advisory committees and four public
meetings/hearings. At least 191 people contributed to the document by participating on an
advisory committee, attending a public meeting or hearing, or submitting written comments
to the department.
COMMUNITY PROFILE
Pennsylvania's total population experienced minimal growth during the 1980s: only
one-tenth of 1 percent. However, this scant increase of 16,892 people among
11,881,643 masks some extremely large changes which took place during that decade.
These changes and other findings from the 1990 Census reflect the diversity of needs
within the Commonwealth. These 1990 Census findings are outlined below:
Large Growth and Huge Losses: Three counties in western Pennsylvania had population
declines between 1980 and 1990 of greater than 10 percent (Cambria, Cameron, and
Lawrence), while nine counties in eastern and central Pennsylvania experienced growth of
greater than 10 percent.
Racial and Ethnic Changes: While Pennsylvania's White population declined by a little over
1 percent in 10 years, the number of persons of Hispanic origin grew by over 50 percent
and the number of Native Americans grew nearly as much. The state's Asian and Pacific
Islander population more than doubled during the 1980s.
Elderly Population Grew, Number of School Children Shrank: The elderly population age 65
and older grew by nearly 20 percent since 1980, with those 85 years or more increasing in
number by more than 32 percent. Conversely, the number of children who were school
age (5 through 17) shrank by nearly 16 percent in the same period.
Poverty: The number of persons below the poverty line grew by 6 percent. In 1979, 10.5
percent of Pennsylvanians were below poverty, 11.1 percent in 1989 -- nearly 1.3 million
persons below the poverty line.
Urban, Suburban, Rural, or All of the Above: Pennsylvania can be described as either
urban, suburban, or rural. It can be considered rural because Pennsylvania has the largest
rural population of any state in the country. Pennsylvania can be categorized as an urban
state because its population density is more than four times greater than the national
average. Finally, Pennsylvania can be considered suburban because suburbs have 42
percent of all residents, compared to 24 percent in central cities and 34 percent in rural
areas and small towns.
Household Types: The number of traditional families (married couples with or without
children) dropped by almost 4 percent, while nontraditional families (single parent) and
nonfamily households grew. Persons living with single-mother families grew 16 percent
and with single-father families by 36 percent. Nonfamily households grew by 25 percent.
Educational Attainment: Pennsylvanians became more educated in the 1980s. The
percentage of persons age 25 and over with at least a high school degree climbed from 65
to 75 percent. Even the percentage of persons with at least a college degree increased
from 14 percent to 18 percent.
Employment Trends: Although Pennsylvania lost roughly 24 percent of its employment in
manufacturing positions, these firms remain as the second largest employer in the state. In
contrast to these losses, growth in the construction trades (38 percent) and finance
positions (37 percent) grew faster in the Commonwealth than nationally.
HOUSING AND COMMUNITY
DEVELOPMENT NEEDS
Conditions
Pennsylvania lacks adequate data to analyze the quality of the housing stock. The 1990
Census data falls far short of the information needed to quantify the problem of
substandard housing. The only information on structural conditions that is available
through the decennial Census is lack of kitchen or bath. Only about 1 percent of all
housing units in the Commonwealth lacked these facilities.
Of course, homes with complete kitchens and baths may still have major structural
problems such as faulty roofs, bad wiring, plumbing problems, or defective heating/cooling
systems. Further, more than 2.2 million housing units in Pennsylvania, or 45 percent of all
units, were built before 1940. This may be the best information about the deficient
structural condition of Pennsylvania's housing stock from the 1990 Census, and it is only a
proxy for identifying the true conditions or needs. Housing professionals serving on the
Regional Housing Advisory Committees (RHACs) have consistently identified the poor
quality of the housing stock as a significant problem for Pennsylvania.
Housing Needs
The Consolidated Plan examines the number of households with housing problems from the
1990 Census. Those housing problems included homes and apartments that lack a
complete kitchen or bathroom, were overcrowded, or cost more than 30 percent of one's
income. This data showed that 887,000 households had housing problems.
Moreover, there were three important findings revealed by the 1990 Census data:
- Lower The Income, Greater The Problems: Not surprisingly, the problems get worse
as income levels fall. For example, among all middle-income households only 16
percent had housing problems, while 75 percent of all extremely low-income
households had one of the three housing problems mentioned above.
- Extremely Low-Income, Large Family Renters: The category showing the highest
percentage of housing problems was renters with large families (five or more
persons) and with extremely low incomes (at or below 30 percent of median family
income). Among these households, 87 percent had housing problems. In total, 56
percent of low- and moderate-income large family renters had housing problems,
more than all other household types.
- Renters Fare Worse Than Owners: In general, renters of the same household type
and income level fared worse than homeowners. Between 17 and 22 percent of the
low- and moderate-income homeowners had housing problems, while the
percentages of renters ranged between 36 and 56 percent.
Housing Market Conditions
Housing values and rental costs in Pennsylvania in 1990 were lower than national
averages. However, home values in the Commonwealth increased faster during the 1980s
than they did nationally. Also, the state's median home values and rent rose faster than
the rate of inflation during the same time period.
Pennsylvania's housing stock is predominantly owner-occupied housing. A total of 71
percent of the occupied housing stock in 1990 was owner-occupied. Homeownership
rates climbed slightly (69.9 to 70.6 percent), compared to a small decline nationally.
Manufactured housing, often referred to as mobile homes or trailers, surged in numbers
during the 1980s. The 1990 Census showed a 44 percent increase in this form of housing
from 1980. Manufactured housing has become a significant portion of the housing stock in
several rural counties in Pennsylvania. In 1990, manufactured housing units composed
more than one-fifth of the housing stock in two counties and between 17.5 and 20 percent
in eight other counties.
Statewide data on the housing stock can be deceiving. Housing is a very local activity.
Opportunities for and impediments to housing developments are very localized as well.
Consequently, data on a statewide level is never adequate to identify specific opportunities
or problems in developing affordable housing. Local planning documents are more suited to
examine this information.
Homeless Needs
The Consolidated Plan reviewed the housing and support service needs of the homeless.
While there is limited data on the number of homeless families and individuals in
Pennsylvania, the best estimates come from the 1990 Census and a 1989 study completed
by the Coalition on Homelessness. That study estimated that during 1987 between
57,000 and 61,000 persons experienced homelessness during some portion of the year.
This estimate was based on a finding of 6,800 to 7,000 homeless persons in shelters in
Pennsylvania on the night of January 28, 1988. The Census conducted its Shelter and
Street Night (S-Night) count on March 20, 1990. There were 8,237 persons counted in
emergency shelters for the homeless in Pennsylvania. The street count was considered far
less reliable.
Between January 1987 and June 1994, Pennsylvania created or expanded programs to
prevent homelessness, aid the homeless, and help homeless individuals and families
achieve self-sufficiency. At least 38 programs administered by eight different state
agencies were identified as having resources available to serve the homeless or those at
risk of homelessness. As a whole, these programs represented more than $180 million in
federal and state funds.
The 38 programs comprise a continuum of services available to confront homelessness and
the risk of homelessness. They offer prevention, emergency services, transitional housing,
supportive services, stabilization services, and permanent housing. Collectively, they
address many of the causes of homelessness, such as a lack of income, lack of housing,
alcohol and drug abuse, and mental illness.
The weak link in this continuum is the lack of stabilization services. Once homeless people
are off the streets and have help for problems like drug and alcohol addiction or domestic
violence, the homeless need opportunities to "stabilize" their lives through employment and
income supports. Pennsylvania's state agencies provide a variety of employment, training,
and community development programs which could address the needs to stabilize the
homeless. These include programs like the New Directions program, Customized Job
Training, and the Community Development Block Grant.
However, these programs serve diverse client groups, not just the homeless. There are no
stabilization programs designed specifically for homeless families or individuals. While the
homeless can be assisted by the existing stabilization programs, the homeless have
difficulty enrolling in or benefiting from these programs.
Public and Assisted Housing Needs
Pennsylvania's inventory of assisted rental housing includes 186,000 housing units
assisted by public housing authorities, the U.S. Department of Housing and Urban
Development, the Farmers Home Administration, Department of Community Affairs, and
the Pennsylvania Housing Finance Agency. These units have been assisted through
government programs which helped pay the cost of developing those units. In some cases,
these units continue to receive assistance to cover ongoing rental costs. Additionally,
there are nearly 51,000 rental units which are subsidized through Section 8 rental
certificates and vouchers. These units receive ongoing rental assistance which covers all
or a portion of the rental costs for those units, making them affordable for low- and very
low-income households.
Based on a survey conducted in August 1993, there are over 40,000 households on
waiting lists for public housing units and nearly 63,000 households on waiting lists for the
Section 8 program. Pennsylvania would need 22 percent more public housing units and
more than double the current level of certificates and vouchers to meet these needs.
The Commonwealth of Pennsylvania has 84 Public Housing Authorities (PHAs) with roughly
80,000 public housing units. PHAs are also responsible for administering HUD's Section 8
Program in Pennsylvania; a program which provides rental assistance (certificates and
vouchers) to an additional 51,000 households. The following observations can be made
concerning the current status of the public housing program in Pennsylvania:
- The average age of Pennsylvania public housing is at least 40 years. As a result, a
significant portion of the state's existing housing resources for its low-income
residents is suffering from either obsolescence or advanced deterioration, despite
the best efforts of PHAs;
- Between 1980 and 1990 less than 3,000 units of new public housing were
completed in the state. As a result, there is more pressure on the existing stock
which cannot keep pace with growing demand; and
- The average length of tenancy in Pennsylvania public housing exceeds 13 years.
Despite declining quality of housing, public housing residents are staying longer.
The Pennsylvania Housing Finance Agency (PHFA) has analyzed the potential loss of low-income rental properties due to expiring use restrictions when owners prepay their publicly-subsidized mortgages. While the threat exists for a reduction in the number of low-income
rental housing units available in the state, this risk seems to be minimal compared to other
states.
PHFA has identified 107 projects in Pennsylvania which could convert to private use at
some point in the future. To date, 26 projects have given notice of intent to convert. Of
the 26 projects, two have filed a second notice of intent. However, none of these projects
have converted.
Barriers to Affordable Housing
Despite the strong tradition of local control in Pennsylvania, the Commonwealth has
developed a strategy which identifies relevant public policies which could be modified with
appropriate state and local action steps. Below is a brief list of the categories of all
regulations and policies which can raise concerns for developers of affordable housing in
Pennsylvania:
- Regulation of Land Development
- Meeting Environmental Regulations
- Building Codes
- Prevailing Wage Requirements
- Tax Policy
- Landlord-Tenant Law
- Historic Preservation
- Coordination of Funding
Fair Housing
The Commonwealth's Consolidated Plan gives priority to projects that benefit very low-income households and, under certain conditions, projects which promote the diversity of
local communities. This priority is just one step the Commonwealth has taken to further
fair housing in Pennsylvania.
The Commonwealth has a strong network of state and local fair housing enforcement
agencies and local advocacy agencies. These organizations are described in the Resources
section of the Consolidated Plan. Additionally, the Commonwealth anticipates that the
following activities will affirmatively further fair housing during the five-year period of the
Consolidated Plan:
- Update Fair Housing Analyses
- Enforce Fair Housing Laws
- Encourage Collaborative Efforts to Address Community Problems
- Provide Training and Technical Assistance
- Improve Regulation of Land Development
- Support Legislation to Use State Funds
as an Incentive to Promote Fair Housing
Lead-Based Paint
In Pennsylvania, there are an estimated 1.2 million very low- and low-income households
living in units containing lead-based paint. The estimated number of housing units which
are likely to contain lead-based paint was attained by applying the national estimates of the
percentage of housing units having lead hazards according the specific time period they
were constructed.
It should be noted that simply because a structure is older or contains lead-based paint,
does not mean it poses an immediate hazard. The lead paint becomes a hazard when it is
chewed, begins to peel, chip or flake or turn to dust due to abrasion or the hazardous
material becomes exposed and/or airborne.
Among the 1.2 million very low- and low-income residents in pre-1980 housing at risk of
having lead-based paint problems, 52 percent own the dwelling in which they reside.
Renters account for 48 percent of those occupying at-risk housing. These figures show a
nearly equal proportion of very low- and low-income renters and owners may need
assistance. Other studies have shown that the very low- and low-income populations
generally occupy a greater percentage of the older housing stock, thus placing them more
at risk for lead poisoning.
Other Issues
Regional Housing Needs: The Consolidated Plan examined housing needs on a regional
basis through the input of six Regional Housing Advisory Committees (RHACs). The
following list summarizes the common needs and problems most often mentioned by the
RHACs:
- Need for Capacity Building
- Need for More Resources
- Lack of Quality Housing Stock
- Demand for Support Services
- Need for Consumer Education
- Rental Housing Needs
- Lack of Infrastructure
- Upfront Costs of Homeownership
The following list summarizes the distinctly different regional needs and problems
recognized by the respective RHACs:
- Southeast Region:
- Lack of a Continuum of Housing Options
- Need for Fair Housing
- Confronting NIMBYism
- Too Narrow Definition of Homelessness
- Need for Energy Efficiency and Affordability
- Northeast Region:
- Problems Facing Very Low-Income, Large Families
- Coping with Growth and Development
- Southcentral Region:
- Problems of Working Poor Families
- Problematic Economic Issues
- Northcentral Region:
- Needs of Very Low-Income, Single Parent, Small Families
- Southwest Region:
- Linkage with Community Development
- Inflexibility of Regulations
- Northwest Region:
- Stagnant Market
- Program Proliferation
Housing for Special Needs Groups: The housing needs of special needs groups have been
characterized by one of the RHAC members as like "a sleeping giant." The Consolidated
Plan estimated the size, needs, and trends affecting supportive housing needs of special
needs groups in Pennsylvania.
While there are estimates of each population group, the methodologies available and
duplicate counting problems limit the accuracy of those numbers. Roughly, between
675,000 and 1 million individuals were estimated to need supportive housing. These
groups include the elderly, persons with severe mental illness, developmental disabilities,
physical disabilities, alcohol/drug addictions, AIDS and related diseases, migrant/seasonal
farmworkers, victims of domestic violence, children and youth, and community correction
inmates.
One of the significant trends affecting special needs groups is the effort to provide
integrated housing opportunities. Many of these groups, particularly those with disabilities,
want housing options in the community which bring support services to their homes
regardless of where they live. For those which do not need support services, physically
accessible construction and its costs are major concerns. Also, several special needs
populations need more affordable housing for persons leaving institutions, including mental
hospitals, foster care/juvenile facilities, and prisons.
Community Development Needs
The Consolidated Plan estimated the nonhousing community development needs by using
three-year plans prepared by all state-CDBG recipients. These three-year plans cover all
areas of the state that are eligible to participate in the state-administered CDBG program.
(HUD provides CDBG funds directly to 12 counties and 30 cities, boroughs, and townships;
the rest of the state receives CDBG-funds through DCA.) The three-year plan information
for 1995 and 1996 were combined with the data from CDBG competitive applications for
1992 and 1993.
Using these data sources, DCA estimated that the need for nonhousing community
development funds totals more than $96.9 million. The most significant community
development needs, based on the proportion of funds they would consume, were sewer
improvements, road/street improvements, water improvements, public facilities, and
economic development. Each of the individual community development activities included
under the "all other needs" category was less than 3 percent.
Coordination
The Pennsylvania Housing Advisory Committee (PHAC), the Housing and Supportive
Services Task Force, the DPW Homeless Advisory Committee, and the Interagency Council
on the Homeless are the institutional structures the Commonwealth has established to
provide intergovernmental cooperation among state agencies and local governments.
These organizations also provide opportunities for state agencies to coordinate their efforts
with nonprofit organizations and the private sector. Implementation of activities from the
CHAS since FFY 1992 has strengthened the relationships among state agencies which
administer housing and supportive services.
State agencies cooperate on the implementation of programs outside of formal committee
structures as well. State agencies have considerable experience in developing programs
jointly to address housing and service needs at the local level. The Commonwealth gives
substantial responsibilities to local governments, nonprofit organizations, and private sector
groups to implement and coordinate housing and community development activities
outlined in the Consolidated Plan.
HOUSING AND COMMUNITY
DEVELOPMENT STRATEGY
Vision for Change
Because of limited resources, the Commonwealth has chosen priorities which will use its
resources for those in the greatest need. The priorities will provide a greater share of
housing funds for the lowest income groups and the most serious community development
needs.
Housing and Community Development Objectives and Priorities
The Commonwealth's Consolidated Plan provides direction in the form of goals and
anticipated action steps to be pursued during the five-year period. The housing goals and
action steps are summarized below:
- Maintain and Improve the Quality of Housing: The age of Pennsylvania's housing
stock and the experiences of housing professionals indicate that the Commonwealth
needs to address the relatively poor structural quality of housing across the state.
- Build Capacity of Local Governments and Housing Organizations: Local
governments and local housing organizations often lack experience and skills needed
to develop, manage, and maintain affordable housing. In certain cases, the private
sector also needs to improve its capacity to work with local housing organizations
and government assistance programs.
- Link Housing and Supportive Services: Housing will not remain affordable or in
decent quality unless families and individuals living in assisted housing are
connected with and receive appropriate supportive services. Securing affordable
and decent housing is an important step for individuals and families moving from
welfare dependency toward self-sufficiency. This linkage is a critical element of the
Commonwealth's Anti-Poverty Strategy and action steps to improve the Institutional
Structure.
- Improve Rental Housing Opportunities: The 1990 Census data showed that renters
had more housing problems than homeowners. Also, nearly all regions of the state,
but especially rural areas, expressed concerns about the need for more rental
housing and/or the need for ongoing rental subsidies.
- Assist Families and Individuals to Become First-time Home Buyers: Increasing
homeownership helps to revitalize housing conditions and create financially-sound
local governments. Homeowners generally contribute more than renters to the tax
base of a local government. Also, in some areas, once the down payment and
closing costs are covered, homeownership can be more affordable than renting.
- Address the Economic, Social, and Health Problems of the Homeless: The driving
forces behind homelessness are usually economic, social, or health problems.
Subsidies and assistance for housing development programs can help. However, for
homeless Pennsylvanians with little to no income, physical or mental health
problems, and a variety of addiction problems, housing may often be a secondary
issue.
- Minimize Regulatory Barriers to Affordable Housing: There are a variety of state and
local regulatory and policy barriers which limit the availability of affordable housing.
These include local land use policies, environmental regulations, prevailing wage
requirements, tax policies, historic preservation, and funding procedures.
- Further Fair Housing and Address Community Opposition: Fair housing is a growing
concern across most regions of the Commonwealth. The Commonwealth's housing
priority provides some assistance to promote fair housing, but other actions steps
are anticipated including updates of local fair housing analyses, preparation of a
statewide analysis, and promoting collaborative efforts to address community
opposition.
- Improve Lead-Based Paint Hazard Reduction Efforts and Link Reduction Efforts to
Health Prevention Programs: It is estimated that 1.2 million low- and moderate-income Pennsylvania households live in dwellings that may contain lead-based paint.
To create an effective system to deliver hazard reduction and/or abatement
services, state agencies need to coordinate their activities, including linkage to
health prevention programs.
The Commonwealth's goals and action steps for community development are summarized
below:
- Promote Local Community Development Strategies: The most important step to
promote effective community development is to develop sound local strategies. The
state can use its financial and technical resources to effectively assist in such
efforts.
- Improve Coordination of Funding for Community Development: Given the extensive
needs for community development in the Commonwealth and the number of state
and federal programs available, the state and local agencies need to improve efforts
to coordinate the use of funds to meet those needs.
- Develop Economic Opportunities: This goal contains a two-pronged approach.
First, the Commonwealth should assure that workers are adequately prepared for
the jobs which are available. Second, economic development efforts need to assist
and attract firms which hire residents from the local low- and moderate-income
community.
Housing Priorities
The Commonwealth will give priority to housing projects that serve low-income households
(up to 50 percent of median family income for the area). If an applicant can demonstrate
that the housing needs of low-income households are currently being substantively
addressed within the community, the Commonwealth's priority will be considered to have
been met for proposed projects that:
- promote diversity within a community, including but not limited to, diversity of race,
ethnicity, income level, and disability status; or
- are an integral part of an overall community development strategy which addresses
and directs resources toward community needs such as housing, transportation,
employment, and infrastructure.
Community Development Priorities
The Department of Community Affairs (DCA) will give priority to serious and resolvable
community development problems in allocating CDBG funds competitively. DCA allocates
13 percent of its funds competitively and 85 percent using a state-legislated distribution
formula. This community development priority will not alter the distribution of funds
allocated under the state law (Act 179).
Serious problems can be defined as those affecting public health, welfare, and safety. This
level of seriousness is often manifested in water and sewer infrastructure problems. These
problems often occur in communities that either lack a public water/sewer system or have
a substantially deteriorated facility. Other projects such as flood control and stormwater
projects can also demonstrate comparable seriousness.
Anti-Poverty Strategy
As of 1990, there are 1.3 million Pennsylvanians who live below the federal poverty level,
an increase of six percent since 1980. The CHAS priority to assist very low-income
households and projects that promote economic diversity supports the focus of this Anti-Poverty Strategy -- to target state and federal resources that will enable low-income people
to move from poverty toward self-sufficiency.
The Commonwealth's Anti-Poverty Strategy promotes economic self-sufficiency for low-income families and individuals as a means to reduce poverty. It is comprised of four
general elements: assessment of needs and goals; creating economic opportunities;
providing supportive services that create stable households; and creating safe, decent, and
affordable housing opportunities. DCA will continue its efforts to encourage other
departments to incorporate these elements into all relevant policies and programs.
DCA and other state agencies have several activities currently underway and will evaluate
the effectiveness of these programs to reduce the number of people in poverty. These
evaluations will be used to identify program and policy changes and, if necessary, to
develop new programs consistent with the four elements which promote self-sufficiency.
These activities include:
- Pathways to Independence
- Pennsylvania Partnership for Housing
- PHFA Demonstration Projects
- Case Management Demonstration Project
- Building Job Skills
- Family Centers
Housing and Community Development Resources
The list of housing and community development resources available through the
Commonwealth includes at least 36 housing programs and 50 community development
programs. A total of 38 homeless programs (some duplication exists here) are available for
homeless families and individuals.
For housing programs for FFY 1995, the Commonwealth anticipates receiving $100.7
million in federal funds. The Commonwealth also anticipates that the state programs which
can be used to match those funds will total $38.5 million. The Commonwealth anticipates
receiving $61.2 million for community development through the CDBG program.
Coordination of Strategic Plan
The Commonwealth's greatest strength in its institutional structure for housing and support
services also presents its greatest weakness. Pennsylvania has a strong network of public,
nonprofit, and private organizations to fulfill housing and support service needs.
However, the institutional structure cannot meet all housing and supportive service needs
because the needs are great and resources are limited. Also, the complexity of programs
and state government's structure can sometimes inhibit solutions for these needs.
Although Pennsylvania established formal institutions for coordination and
intergovernmental cooperation (PHAC, Housing and Supportive Services Task Force, DPW
Homeless Advisory Committee, and Interagency Council on the Homeless), the work of
these groups needs to continue.
Pennsylvania has roughly 2,600 municipal governments which range from those who are
very experienced with housing issues and programs to those who lack both the capacity
and interest in Promoting self-sufficiency by incorporating the four elements of this Anti-Poverty Strategy into policies and programs will contribute to reducing poverty. Building
partnerships among state agencies, local housing organizations, and supportive service
providers is key to the success of this strategy.
The Commonwealth has identified several action steps to overcome gaps in its institutional
structure and improve coordination. These action steps include:
- Training and Technical Assistance
- Coordinate Training
- Training for Rural Areas
- CHDO Technical Assistance
- Private Sector Training
- Continue and Clarify ECC Housing Capacity
- Improve Communication
- Continue the Housing and Supportive Services Task Force
- Continue the PHAC and RHACs
- Analyze PHFA Demonstration Efforts
- Allocate HOME and State Funds for Multifamily Housing to PHFA
- Technical Assistance for Rental Projects
The Low-Income Housing Tax Credit is coordinated with the Consolidated Plan through the
annual allocation plan to distribute these federal tax credits. To develop this allocation plan,
PHFA has assembled a special advisory committee comprised of for-profit and nonprofit
developers, representatives of local community organizations, and the Secretary of the
Department of Community Affairs (DCA). The allocation plan's selection criteria targets
proposals which assist very low-income persons and which link housing to supportive
services. This selection criteria is consistent with the Consolidated Plan's housing priority
to assist those of very low income. It is also consistent with the Consolidated Plan's Link
Housing and Supportive Services goal.
Additionally, the transfer of HOME and state funds for rental housing to PHFA will facilitate
coordination of the tax credit with other programs. Virtually all the state's rental housing
resources will be administered by PHFA.
ONE-YEAR ACTION PLAN
Description of Key Projects
CDBG Program: DCA will administer the CDBG program by allocating 85 percent of the
funds through a formula established by state Act 179. Another 13 percent will be
allocated through a competitive process. The balance of the funds will be used for
administrative costs.
HOME Program: DCA will administer the HOME Program but will transfer 30 percent of the
funds to the Pennsylvania Housing Finance Agency (PHFA) as a subrecipient. PHFA's
funds will be dedicated to rental housing construction and development. An additional $1
million will be reserved for PHFA to support a home buyer program in conjunction with the
state's mortgage revenue bond program. The balance of the funds will be administered
through a competitive application process. No more than 10 percent of the funds may be
used for administrative costs. DCA will retain 4 percent for state administration and allow
a maximum of 6 percent for local administrative costs. DCA estimates that after
excluding administration 48 percent will be used for single-family rehabilitation, 31 percent
for rental construction and rehabilitation, 1 percent for rental assistance, 16 percent for
home buyer assistance, and 4 percent for Community Housing Development Organization
(CHDO) operating and other costs.
ESG Program: DCA will administer the ESG Program through a competitive applications
process. DCA estimates at least 50 percent of the funds will be used for rehabilitation
costs, about 18 percent for essential services, approximately 23 percent for operating
costs, and about 7 percent for homeless prevention. DCA anticipates that only 3 percent
will be used for administration. While up to 5 percent can be used for administrative costs,
no more 2.5 percent will be retained by DCA and a similar limit will be imposed on local
grantees.
HOPWA Program: The Department of Health, Bureau of HIV/AIDS, will administer the
HOPWA Program by allocating these funds on a formula basis to six of the seven regional
HIV Planning Coalitions. (The Philadelphia region receives a separate allocation directly
from HUD.) The formula to allocate these funds will be based on the number of persons
living with AIDS in each region. Although a detailed program plan will be submitted to
HUD outlining specific uses of 1996 funds by May 1996, the department estimates that
funds will be spent as follows (based on the use of grant funds in prior years): 49 percent
will be spent on rental assistance; 25 percent on support services; and 26 percent on
operating and other costs.
Locations
The Commonwealth generally does not specify locations to target its funds. The one
exception is the preference given to fund nonparticipating jurisdictions under the HOME
program. Local governments not funded directly by HUD are given preference and will be
funded before local governments receiving their own funding directly from HUD.
Lead Agencies
The Department of Community Affairs is the lead agency for three of the four HUD
entitlement programs -- CDBG, HOME, and ESG. The Department of Health is the lead
agency for the HOPWA Program.
Housing Goals
The Commonwealth's goals for assisting households/persons with housing during 1995 are
summarized below. (See "benefit with housing" in Definitions of Terms in Appendix J.)
Single-Family Rehabilitation 1,474 Households
Rental Housing 1,928 Households
Home Buyer Assistance 155 Households
Housing for Homeless 2,584 Households/Persons
Housing for Special Needs Groups 133 Households
Total 6,274 Households
Of the 6,274 total households, 3,554 will meet Section 215 goals for affordability.
(Section 215 goals are described in Appendix J.) Only the following federal programs were
covered by these goals: CDBG; HOME; ESG; HOPWA; the Low-Income Housing Tax
Credit; and Projects for Assistance in Transition from Homelessness (PATH).
To comment on the State of Pennsylvania's Consolidated Plan, please contact:
Ed Geiger
Senior Policy Analyst
Office of Policy & Development
PHONE NUMBER: 717-787-8169
Return to Pennsylvania's Consolidated Plans.