Corman: State budget addresses local need for affordable housing

Severe supply disruptions, skyrocketing building costs and eviction moratoriums have created extremely difficult circumstances for low-income families searching for a new place to call home. As lawmakers and the governor worked to create the 2021-22 state budget, there was an acknowledgment from all sides that we needed to address the unique problems that were brought on by the pandemic — including the growing demand for affordable housing.

The budget directly addresses those challenges by dedicating $10 million to the Pennsylvania Low Income Housing Tax Credit Program, which was created by lawmakers last year to stimulate investment in affordable housing. The program not only tackles housing needs, but also helps create jobs in the construction industry to rebuild our economy after the devastation of COVID-19.

Several local projects have received funding through this program already, including Cherry Lane Apartments and Stonebridge in State College, as well as Westminster Place at Huntingdon. These three projects alone have added more than 110 units of affordable housing in our local community.

Going forward, the funding will support projects like Evergreen Heights in State College, which is a new project designed to offer senior housing that is close to public transportation and medical care. The hope is the availability of these new tax credits will encourage the development of similar projects throughout the region and the commonwealth.

In addition, the budget addresses one of the biggest threats to low-income housing development — the increasing cost of building materials. The National Association of Homebuilders recently reported that the cost of lumber increased by more than 300% during the pandemic, adding $36,000 to the cost of the average single-family home. The additional costs to developers for low-income, multi-family housing projects are likely much, much greater.

Lawmakers addressed this problem by providing $50 million in federal stimulus dollars in the state budget to low-income housing developers to offset the increase in construction costs so these critical projects can continue to move forward.

Many of the other highlights of this year’s budget will grab headlines: $300 million more for K-12 education, $279 million more for road and bridge projects, and $280 million more to support nursing homes and long-term care facilities. However, the additional funding to support new housing options for community residents is likely to have just as big of an impact as any provision in the state budget in the years to come.