By Brian Pedersen
bpedersen@cpbj.com
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This rendering for the Mt. Airy Arts Garage in
the Mt. Airy neighborhood of Philadelphia, is an example of a project funded
last year by the Pennsylvania Housing Finance Agency. The completed design is
for a mixed-use development with ground floor retail and art space and 6-8
units of upper floor residential. (Submitted)
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The Pennsylvania Housing Finance
Agency said it issued a request for proposals for new construction or the
rehabilitation of mixed-use projects seeking financial support. This year, its
focus is on smaller cities such as Bethlehem, Reading and Harrisburg.
Funding for these projects comes
from the state’s Community Revitalization Fund program, said Bryce Maretzki,
director of planning and policy at the PHFA.
The state government created the funding
program as part of the fiscal year 2017-18 budget.
The state offers a mixed-use
development tax credit of $3 million each year, Maretzki said.
“The agency takes bids on those
credits and sells those credits to investors and then uses the proceeds of the
sale of the credits to fund the program and ultimately, the projects that
apply,” Maretzki said.
The agency plans to fund five to six
projects this year.
Last year, it received nine
applications and funded seven of those projects, he said.
The agency funded $400,000 toward each
project. These projects typically have a total cost of $2 million to $8
million, he added.
This year, the agency will prioritize
smaller third-class cities, he said.
The projects can be either new
construction or mixed-use projects that combine residential and
retail/commercial space in the same building and often serve as a catalyst for
neighborhood revitalization, he said.
“We have funded anywhere from five
to 20 units on the residential side,” Maretzki said.
On the commercial/retail side, the
agency has funded projects in the range of 1,500 square feet to 5,000 square feet.
Examples of projects eligible for
funding include:
- Those that prepare for commercial
build-out and business lease space;
- Projects that design and convert
existing buildings;
- Those that provide additional units of housing by combining uses in a single newly constructed or renovated building.
Overall, the agency views the
program as a way to help revitalize areas with mixed-use projects, particularly
in urban areas.
“We think it really helps as cities
are looking to revitalize,” Maretzki said. “We think there’s more and more
interest in doing residential and more of that is affordable that has been
traditionally unused.
It’s another way communities can add
housing and revitalize their commercial business corridor.”
Traditionally, municipalities have
separated residential uses from commercial, but Maretzki sees that changing.
Across the Commonwealth, more areas
are seeing mixed-use projects with residential uses on the upper floors and
commercial/retail space below.
“More and more I think we are seeing
the two can work hand in hand,” Maretzki said.
The applicants can be for-profit
companies, nonprofits, governmental agencies and economic development
organizations, he added.
The deadline for submissions is 2
p.m. on Oct. 18.
