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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | March 3, 2023 10:14 AM |
|---|---|
| From: | Senator Jay Costa and Sen. Michele Brooks |
| To: | All Senate members |
| Subject: | Mixed-Use Development Tax Credit (MUDTC) Program Increase |
| In the near future, we will be introducing legislation to amend the Tax Reform Code to increase the cap on the amount of available tax credits under the Mixed-Use Development Tax Credit (MUDTC) Program from $4.5 million to $15 million. The MUDTC Program was established as part of the FY 16-17 budget and was capped at $2 million. The program experienced immediate success, resulting in the cap being increased twice; to $3 million in 2019 and $4.5 million in 2021. The program is administered by the Pennsylvania Housing Finance Agency (PHFA) to fund the development of projects in targeted areas of the Commonwealth that are often underserved and have significant need. The intent of this investment is to provide capital and support to developers and organizations that are committed to increasing affordable housing and commercial corridor development through the rehabilitation or creation of mixed-use developments. For the past several funding rounds, the Agency has been successful in prioritizing applications from third class cities and smaller communities often lacking access to needed redevelopment resources. Funding is generated through the sale of MUDTC’s through open bidding to qualified Pennsylvania taxpayers. PHFA has documented the increased interest in the program for both the sale of the credits and available projects to justify the increase in the cap to $15 million. PHFA provides an annual report on the program. The last report was issued on July 1, 2022, on the success of the program to date and can be found here: https://www.phfa.org/forms/mudtc/annual_reports/2021_mudtc_legislative_report.pdf Please join us in cosponsoring this legislation. |
Introduced as SB679