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Philadelphia Housing Development Corp. moves LIHTC gap funding to rolling
The year round change took effect June 1 and is designed to produce shovel ready projects at award, helping PHDC support more affordable units.
Philadelphia Housing Development Corp. has changed how it allocates low income housing tax credit gap financing, replacing a tight summer deadline for 4% LIHTC applications with a year round rolling process that began June 1, according to Bisnow.
The shift is intended to improve the quality of submissions and align PHDC’s approach with the Pennsylvania Housing Finance Authority, which administers federal LIHTC funds statewide, with Philadelphia city buy in supported through the PHDC gap financing mechanism.
PHDC also added a per unit component to its allocation formula to increase the volume of new housing it supports. Bisnow reports PHDC could award up to $85 million of Philadelphia Department of Planning and Development funds to LIHTC projects in the form of gap financing in 2026.
Bisnow says the group has seen delays when developers file incomplete applications because entitlements or capital stacks are not ready. PHDC CEO David Thomas attributed the problem to a historically annual request for proposals with a deadline that can shift year to year, leading developers to rush submissions out of fear they would have to wait another year.