Governor Shapiro Makes $10 Million Investment to Build More Affordable Housing Across Pennsylvania Through New Mixed-Use Pilot Program

This funding, through the Pennsylvania Mixed-Use Housing Development Pilot Program, will invest in seven projects that will create more than 1,400 new homes and apartments.

The Pilot Program, created following Governor Shapiro’s Executive Order mandating a Housing Action Plan, received 104 applications, requesting more than $469 million in funding.

Governor Shapiro’s 2026-27 proposed budget calls for a $1 billion investment in housing and critical infrastructure to accelerate the construction of new homes across Pennsylvania and provide critical rehabilitation funding to preserve existing homes.

Harrisburg, PA – Today, Governor Josh Shapiro announced that his Administration is investing $10 million in seven projects through the PA Mixed-Use Housing Development Pilot Program to support the creation of more than 1,400 new homes and apartments across Pennsylvania. These projects will development or convert buildings or land for mixed-use, requiring a portion of the project be used to create new residential homes.

“Pennsylvanians deserve safe, affordable places to live, and the sheer number of applications my Administration received for this pilot program shows that demand is there,” said Governor Shapiro. “Through this pilot program, my Administration is taking action to begin meeting that need by investing in projects that will bring new housing, revitalize communities, and create opportunity across our Commonwealth. But we need to do more, and my proposed $1 billion investment in housing and infrastructure will help us build on our momentum to tackle our Commonwealth’s housing shortage, support working families, and ensure Pennsylvania continues to grow and compete.”

Following Governor Shapiro’s signing of Executive Order 2024-03, the launch of the Pilot Program saw significant demand — receiving 104 applications which requested more than $469 million in total funding.

“This pilot program will help communities transform unused and blighted properties into much-needed affordable housing that can support a growing workforce and give more Pennsylvanians a safe, affordable place to call home,” said DCED Secretary Siger. “For this program alone, we received over 100 applications requesting more than $469 million ― underscoring the need across Pennsylvania to create more housing. Governor Shapiro’s Housing Action Plan will help fuel our economy, strengthen our communities, and give every Pennsylvanian the foundation of opportunity, security, and dignity.”

Grant funding is also being provided to the following recipients:

• Allegheny County – $1,000,000 to Black River Real Estate Development, LLC to construct the Horace Mann Village project located in Pittsburgh. The project includes 182 residential units, a parking facility, public park, and workforce development center.
• Berks County – $1,000,000 to CG Broadcasting, LLC to create a 103-acre mixed-use development that includes a grocery store, a mix of local and national dining options, a hotel, a public library, and a new EMS Building. The residential component will provide 775 new residential units consisting of multifamily apartments, townhomes, and single-family detached homes.
• Bucks County – $2,000,000 to the County of Bucks to preserve a historical landmark, the Almshouse, by integrating affordable housing with a mix of commercial spaces, office facilities, retail, hospitality, services, and restaurants. The project will include at least 175 housing units.
• Lancaster County – $1,000,000 to Benchmark Construction Company, Inc. to construct a mixed-use development on 20 acres located in Penn Township. The project includes 88 townhome units, 72 apartments, and 18,000 square feet of commercial space.
• Northampton County – $2,300,000 to the City of Easton to complete site work and demolition to support the redevelopment of the 14-acre brownfield known as “The Foundry” into a mixed-used site located in Easton City. The project will include 200 rental units and 20,000 square feet of commercial space.
• Philadelphia County – $1,116,438 to Frankford Community Development Corporation to acquire land, demolish an existing structure, and construct 132 new rental units, a supermarket, and a health center near the Frankford Transportation Center in Philadelphia. The project includes 132 housing units.
• York County – $1,583,562 to the Redevelopment Authority of the City of York to rehabilitate, convert, and construct a mixed-use development on the vacant 17.31817.3-acre Dentsply complex located at 550-570 West College Avenue in York. Phase one of the project will create 81 apartments as well as retail, office, and a makerspace.

Leaders in York noted how this funding from the Commonwealth will help to build more affordable housing and create opportunity for residents – showing what’s possible when all levels of government work together towards a common goal.

“Governor Shapiro, thank you for your leadership and your commitment to communities like ours. Programs like the Pennsylvania Mixed-Use Housing Development Program are exactly what communities across the Commonwealth need to turn long-standing challenges into real opportunity, and to meet the urgent demand for housing,” said Mayor Sandie Walker, City of York. “This grant is critical. Investment from our Commonwealth unlocks significant private investment, bringing projects like this to life and moving us closer to the kind of housing our workforce and our families need. And it sends a clear message—that this site matters, and that this neighborhood is worth investing in.”

“On behalf of the York City Redevelopment Authority, I want to thank Governor Shapiro, Secretary Siger, and the Department of Community and Economic Development for this important investment in our city,” said Chairman Michael Black, Redevelopment Authority of the City of York. “This project is exactly why the Redevelopment Authority exists. We take on the properties that others can’t, sites that are complex, costly, and require real partnership to bring back to life. Redevelopment is about more than removing blight, it’s about creating lasting value for residents, for neighborhoods, and for the future of York.”

The Pennsylvania Mixed-Use Housing Development Pilot Program, administered by DCED, dedicated $10 million in PA SITES (Pennsylvania Strategic Investments to Enhance Sites Program) funding to the development of mixed-use projects across the Commonwealth that had to include a residential housing component.

Grant funding was available through the program to eligible applicants for site development for a multi-use building as well as conversion or rehabilitation of existing structures for mixed-use development. A portion of the project must have been devoted to development of both rental and owner-occupied residential units.

Eligible applicants included municipalities, economic development organizations, redevelopment authorities, municipal authorities, industrial development agencies and for-profit organizations.

Pennsylvania’s First Housing Action Plan

Earlier this year, Governor Shapiro unveiled Pennsylvania’s first-ever Housing Action Plan, which will build and preserve more homes, modernize housing regulations and zoning rules, and break down barriers preventing people from finding stable housing — all to grow the Commonwealth’s economy and improve Pennsylvanians’ quality of life.

The Governor’s Housing Action Plan was spearheaded by an executive committee of cabinet officials and senior leaders from DCED, the Pennsylvania Department of Human Services, the Governor’s Office of Policy and Planning, Legislative Affairs, and Budget Office; and the Pennsylvania Housing Finance Agency.

For over a year, the Shapiro Administration engaged thousands of residents, local leaders, developers, and housing advocates from every corner of the Commonwealth:

• Hosting 18 Regional Roundtables with Pennsylvanians in each of the Commonwealth’s five regions.
• Attending Statewide Housing Conferences to receive feedback from housing developers, property managers, and other professional attendees.
• Conducting Statewide Surveys which collected nearly 2,500 survey responses from each of Pennsylvania’s 67 counties.

The Five Core Goals of the Governor’s Housing Action Plan

The Housing Action Plan sets a shared vision to make Pennsylvania a national leader in housing access and affordability by 2035. The plan is organized around five interconnected goals:

• Build and Preserve Pennsylvania’s Housing Stock. Pennsylvania needs more homes for today and tomorrow, but we must also protect the ones that have long anchored our neighborhoods. By building new houses at a pace that keeps up with our economy and safeguarding the homes we already have, we can ensure that safe, stable, and affordable housing is available to residents for generations to come.
• Expand Housing Opportunity for All Pennsylvanians. A dignified, secure home should never be out of reach. By breaking down barriers, expanding homeownership opportunities, and strengthening tenant protections, we can build a Commonwealth where every resident has the security of a safe, stable, and attainable home.
• Provide Pathways to Housing Stabilization and Sustainability. A strong system supports those residents who are most vulnerable. By connecting Pennsylvanians to resources that prevent displacement and by supporting households during times of crisis, we can reduce housing insecurity — giving our residents the stability they need to grow and our communities the resiliency they need to thrive.
• Modernize Pennsylvania’s Housing Development Regulation. Outdated rules and unnecessary delays drive up costs and slow down progress. By modernizing regulations, cutting red tape, and streamlining development, we can make it easier and more affordable to build homes across the Commonwealth — encouraging investment and helping to ensure that housing is developed where it is needed most.
• Improve coordination and accountability. Pennsylvania’s housing systems work best when they work together. By aligning local and state efforts, sharing data, and coordinating across agencies, we can deliver results efficiently and stay accountable to the residents we serve.

Implementing the Housing Action Plan

Governor Shapiro’s 2026-27 Proposed Budget takes the first steps to implement this plan, calling for investments and reforms to expand housing access, protect renters and homeowners, and strengthen coordination across state agencies to further strengthen his Housing Action Plan. The Governor’s budget proposal includes:

• Establishing Critical Infrastructure Investment Fund: One of the best ways to lower the cost of housing is to build more homes. The Governor’s budget proposal creates a new $1 billion initiative supported through the issuance of general obligation bonds, with proceeds deposited into the Capital Facilities Fund. This initiative would provide flexible funding for major infrastructure projects across the Commonwealth, including building and preserving more housing, bringing new energy generation onto the grid, and upgrading school and municipal facilities.
• Protecting Renters and Promoting Housing Stability: Establishes a statewide cap on rental application fees tied to the actual cost of screening and prohibits fees before a property is viewed; affirms a tenant’s right to terminate a lease due to domestic violence without financial penalty; seals eviction records for individuals who were not actually evicted; and advances fair-chance housing reforms to regulate when and how criminal history may be considered in rental decisions; and invests $1 million in an Investments in Health pilot, leveraging federal funding to total $2.5 million to connect Pennsylvanians experiencing homelessness or housing instability with housing-related supports.
• Supporting Manufactured Homeowners: Limits annual lot rent increases in manufactured home communities and requires advance notice of increases, protecting residents — many of whom own their homes but rent the land beneath them — from sudden and unaffordable cost spikes.
• Addressing Tangled Titles and Preserving Generational Wealth: Authorizes transfer-on-death deeds for primary residences, providing a streamlined way for homeowners to pass property to heirs, avoid costly probate, access home repair programs, and reduce blight in communities across the Commonwealth.
• Strengthening Housing Coordination and Accountability: Creates a Deputy Secretary for Housing at DCED to coordinate housing policy and oversee implementation of the Housing Action Plan.
• Modernizing Local Planning and Permitting: Updates the Municipalities Planning Code to reduce regulatory barriers to residential development, improve permitting processes, and incentivize county and regional planning that reflects the diverse housing needs of Pennsylvania’s communities.

Building on Three Years of Progress

Since taking office, the Shapiro Administration has laid a strong foundation helping address the Commonwealth’s housing needs while protecting renters and homeowners:

• In 2024, Governor Shapiro secured a $10 million annual increase until 2027 for the Pennsylvania Housing Affordability and Enhancement (PHARE) Fund, raising the cap to $100 million by 2027 — PHARE has funded over 1,000 projects to build or repair more than 8,200 housing units since 2023.
• Under Governor Shapiro’s leadership, DCED has awarded over $120.3 million through the Whole-Home Repairs program to the 64 counties who joined the program, helping low and moderate income homeowners and landlords repair, adapt, and weatherize their homes.
• In his FY 2024-25 budget, Governor Shapiro secured a $5 million increase for the Homeless Assistance Program (HAP) to strengthen county-level homelessness prevention, emergency shelter, and rapid rehousing efforts across Pennsylvania.
• The Shapiro Administration also invested $2.5 million in Emergency Housing Support for local governments, providing municipalities with flexible resources to respond quickly to urgent housing needs and help stabilize families at risk of displacement.

Governor Shapiro remains committed to ensuring every Pennsylvanian has the dignity and security that comes with a safe, affordable place to call home.

Learn more about the Shapiro Administration’s efforts to support Pennsylvania’s workers and businesses and spur the economy, to build a stronger, more competitive economy for all Pennsylvanians.

For more information about the Department of Community and Economic Development, visit DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, X, and LinkedIn.

MEDIA CONTACT:
Governor’s Press Office, ra-gvgovpress@pa.gov

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