Affordable mixed-use neighborhoods get state boost

(The Center Square) – A pilot program announced this week will expand affordable housing by providing grants for mixed-use development.

The $10 million funding comes from PA SITES, a $400 million new program created to spur development and draw businesses to Pennsylvania.

“The PA Mixed-Use Housing Development pilot program is a strong first step towards boosting the availability of affordable housing, increasing housing for our growing workforce, and providing crucial support for Pennsylvanians struggling to obtain housing,” said Rick Siger, secretary of the Department of Community and Economic Development.

The housing crisis in Pennsylvania is multilayered. Home ownership has been declining since 2010. Private corporations buy single-family homes, pushing prices more out-of-reach for young adults and families.  On average, rent totals 30% of residents’ income.

Though homelessness has been on the decline across the state, certain areas have seen significant upticks in recent years. Philadelphia is home to over a third of the approximate 12,000 to 15,000 people without housing in the commonwealth on any given day.

It’s not a static group, with over 40,000 children experiencing homelessness served by the state in the 2021-22 school year.

Mixed-use construction allows for spaces that contain both housing and commercial spaces. In downtown areas, the projects can be used to create affordable housing with walkable access to both jobs and businesses. For those hoping to address homelessness, it’s a way to create spaces where individuals can get back on their feet.

The development strategy is also being employed to create walkable downtown areas in many of the state’s sprawling, congested suburbs. While urban areas always had mixed-use spaces, developing them in rural and suburban areas that have grown up around single-family homes can be expensive, putting the cost of living in them at a premium.

Developers can apply the grants to both new constructions and renovation and rehabilitation projects for existing structures. Though the grant does require the projects to include both rental and owner-occupied spaces, it does not dictate a threshold for rental costs. Both municipalities and for-profit developers can apply for the grants, and there is no limit to the amount they can request in their applications.

The administration wants to leverage public and private funding to quickly expand the quantity and appeal of the state’s available residential and commercial space. They’re looking to see downstream effects like lowering the population age and reducing the workforce staffing shortage by attracting more people to the state.

“This program and others developed under Governor Shapiro’s Housing Action Plan will improve access to safe, affordable housing which is essential for Pennsylvania’s economic growth and critical to the well-being of families and individuals throughout the commonwealth,” said Stiger.