Pennsylvania Mixed-Use Housing Development Pilot Program

The Pennsylvania Mixed-Use Housing Development (PA MHD) Pilot Program provides grants for developing or repurposing buildings or land into mixed-use developments. These projects must include both residential and non-residential components, such as retail, office, or other commercial spaces. Established under Pennsylvania’s Fiscal Code, this program is administered by the Department of Community and Economic Development (DCED) and is aimed at improving community infrastructure, enhancing local economies, and expanding housing options. Eligible applicants for the program include municipalities, economic development organizations, redevelopment authorities, municipal authorities, industrial development agencies, and for-profit organizations. Projects that qualify for funding include site preparation for future development, repurposing existing structures, and rehabilitating vacant or underutilized buildings. Projects must include residential units, either for rental or owner-occupancy, and may combine multiple types of development, such as converting a commercial building into a mixed-use facility that incorporates housing. Funds can be used for various purposes, including land acquisition, site clearing, and building rehabilitation. They can also support the installation of critical infrastructure like stormwater systems, energy infrastructure, sewage treatment, and water supply systems. Additionally, funds may be used for transportation improvements such as roadways, parking, and sidewalks, as well as environmental assessments and remediation. However, expenses such as tenant improvements for recently occupied properties, interest on loans, and pre-existing debts are not eligible. The program does not have a fixed limit on grant amounts, but applicants must demonstrate the necessity of the requested funds and provide evidence that the project will be feasible with the grant. Priority is given to projects that ensure housing affordability for households earning up to 150% of the area’s average median income (AMI). Additional factors influencing grant approval include the percentage of residential units in the development, the project’s impact on local employment, and the alignment of the project with local or regional economic development plans. Applicants must provide matching funds and demonstrate site control through deeds, sales agreements, or letters of intent. The application process consists of two stages: an initial application followed by a more detailed submission for the most competitive proposals. Applications for the initial stage must be submitted between October 23, 2024, and December 6, 2024. Projects are evaluated based on need, feasibility, matching funds, and the projected community benefits, such as job creation and the provision of affordable housing. Once awarded, grantees must comply with various program requirements, including non-discrimination clauses, conflict of interest disclosures, and compliance with Pennsylvania’s Prevailing Wage Act for construction projects over $25,000. Grantees must also submit biannual progress reports and final expenditure certifications. Payments will be processed within 45 days, following submission of payment requests and accompanying documentation. For further inquiries, applicants are directed to the DCED’s Center for Business Finance and Workforce Development. This grant program aims to revitalize Pennsylvania’s urban areas through thoughtful mixed-use development that meets both economic and housing needs.