State mixed-use development tax credits up for bid

The Pennsylvania Housing Finance Agency is now accepting bids for $3 million in mixed-use development credits.

Companies, organizations or individuals can use the tax credits to reduce their state tax liability.

The funds collected from bidders will be used for the construction or rehabilitation of mixed-use developments in the state.

By putting the credits out to bid the agency hopes to raise as much funding as possible to provide investment in community revitalization projects, which will be selected during a competitive Request for Proposal process.

“We have had good success over the past few years with the mixed-use developments we’ve funded,” said PHFA Executive Director and CEO Robin Wiessmann. “The retail and commercial portion of each project brings economic activity to the community where it’s located, and of course the affordable housing provided is always in great demand. Mixed-use projects bring a positive energy that is always appreciated in their communities.”

The program was created as part of Pennsylvania’s fiscal year 2016/2017 budget. PHFA was authorized to sell these tax credits through directed or negotiated sale to any qualified taxpayer. It is expected that the tax credit awards will be made within 90 days after bidding closes on July 16.

The credit awards will be made in 2021, but they are not effective for utilization until 2022 against a 2021 tax liability.