On October 26, 2015, the Pennsylvania General Assembly presented to Governor Tom Wolf House Bill No. 792 amending the Housing Finance Agency Law to extend funding for the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund (PHARE). The funding for this local housing comes only from the Impact Fee.
The PA Housing Affordability and Rehabilitation Enhancement Fund is designed to provide housing support to low-income residents and is available to those who live in counties where unconventional natural gas production occurs.
This legislation is aimed at expanding this funding to all counties, including those that receive allocations from the Impact Fee, through additional resources that will be generated from the state Realty Transfer Tax. According to the bill, if the tax earned from the Realty Transfer Tax in 2015 is higher than it was in the 2014 fiscal year, 40% of the surplus will be allocated to the fund. It is specified, however, that the General Assembly has no intention to raise the rate of the Realty Transfer Tax.
Written by Chloe Marie - Research Fellow