The lack of affordable housing has become a critical issue in Pennsylvania, prompting lawmakers and the administration of Governor Josh Shapiro to propose a variety of legislative solutions. The state is estimated to have a shortage of nearly 100,000 housing units, a deficit that needs to be addressed for Pennsylvania to achieve its goals around economic competitiveness and education.
Governor Shapiro's budget proposal includes an $80 million allocation towards public legal defense against evictions, anti-homelessness initiatives, and the revival of a popular home repair grant program. The proposal also includes changes to the funding formula for the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund, which provides grants to local governments, nonprofits, and developers to build affordable housing, provide rental assistance, and pay for home repairs.
Under Shapiro's proposal, the fund's current funding formula, which is tied to revenues from a state tax on real estate transactions, would be replaced with a guaranteed amount each year. This allocation would increase to $70 million in the next fiscal year and rise to $100 million over the next four fiscal years.
Shapiro also proposes directing $50 million to a state program that helps homeowners pay for essential repairs. The money can also be used to make units accessible for people with disabilities, improve energy efficiency, and provide construction-related workforce training. However, this program, known as the Whole-Homes Repair program, has faced overwhelming demand, leading to short application windows and long waitlists.
In addition to these measures, Shapiro is proposing an extra $10 million for a program that addresses homelessness, an increase of more than 50%. The governor's budget proposal would also direct $5 million towards a new program that would rehouse people after natural disasters and other emergencies when other forms of state and federal aid might not be immediately available.
While these policy changes are not guaranteed to pass, the size and scope of the state’s housing shortfall makes inaction unpalatable for lawmakers in both major parties. However, lawmakers who support these changes will likely face opposition from the lobbies representing municipal governments and landlords.
The affordable housing crisis is a growing concern not just in Pennsylvania, but across the country. As lawmakers and the administration work towards solutions, the need for affordable housing remains a pressing issue for many Pennsylvanians.