Pennsylvania Governor Orders 5-Year Plan To Add Affordable Housing

Pennsylvania Gov. Josh Shapiro has signed an executive order directing state agencies to develop a housing action plan to increase affordable units in the commonwealth.

The governor tasked two state agencies with devising a strategy to address preserving and adding new housing within a year, according to the Pennsylvania Capital-Star. The governor believes Pennsylvania is falling behind others in addressing the growing need, with nearly 60% of the state's housing stock built before 1970. 

“States all across the country are grappling with it,” Shapiro said of the housing crisis during a news conference at Wynne Senior Residences in West Philadelphia last week. “But Pennsylvania, we are falling behind some of our fellow states, including some of our neighboring states.”

The Pennsylvania Department of Community and Economic Development and the Pennsylvania Department of Human Services will devise what Shapiro said will be a data-driven plan, one that must be a “coordinated, comprehensive, statewide housing solution.”

The economic department team could work with various stakeholders to formulate the plan, DCED Secretary Rick Siger said in an announcement of the order. 

“DCED is excited to work with colleagues inside and outside state government to create an action plan that will increase the supply of workforce housing, boost the supply of affordable housing, and provide critical support for people who are currently unhoused,” Siger said.

The agencies and others are being asked to recommend programs, investments and policies as part of a five-year plan. That plan must assess needs for housing across the commonwealth and in regions and identify goals that can have “measurable outcomes,” according to the order. Agencies’ existing housing programs and resources will go under review for their effectiveness. 

The cost of housing for renters and homeowners almost doubled over the last decade, with 48.5% of Pennsylvania renters and 20.3% of homeowners spending more than the recommended 30% of income on housing. According to the National Low Income Housing Coalition, Pennsylvania is short about 266,000 affordable housing units for extremely low-income renters.

Closer to home, Philadelphia Mayor Cherelle Parker ran on a platform of building 30,000 affordable housing units, though that has now has been revised somewhat to state that renovated units can be added to the count.

Shapiro proposed a housing affordability plan in the state legislature two years ago that did not pass. Since then, Vince Hughes, a Democratic state senator, has said the state’s budget surplus could go to housing.

Shapiro hedged on how funds might be used.

“So what we want to do is make sure that we are investing those dollars that the taxpayers send to the capital for their benefit, either by cutting their costs and putting more money in their pocket or by investing in critical areas that help lift them up,” Shapiro said. “And housing is one of those areas.”

The governor pointed to some previous wins on the housing front, including Delaware County’s expansion of a property tax and rent rebate. 

Since Shapiro took office, Pennsylvania has expanded tax credits for children and dependents, increased the cap on the Pennsylvania House Affordability and Rehabilitation Enhancement Fund, and invested in more legal representation for those facing eviction.