September 2002
PENNSYLVANIA
HOUSING FACTS �
Overall,
home ownership is high in Pennsylvania, and three out of four homes are
owner occupied. Pennsylvania
has higher owner occupancy (70%) than the nation (64%).
Single-family homes continue to be the preferred housing style,
with 80% of household heads reporting that they live in a single-family
dwelling. �
About
45% of housing units in Pennsylvania were built prior to 1950, and 12%
were built between 1980 and 1990, according to the most recent
statistics availiable. In
comparison, nationally, 18% were built before 1940 and 20% were built
between 1980 and 1990. �
Pennsylvania
homeowners had an average household income of nearly double that of
renters. �
In
1995, there were 32,611 residential buildings permits issued statewide.
That number increased every year through 2001.
Last year 35,641 permits were issued. �
Construction
in the Commonwealth was highest in 1993 (41,741 units) and 1998 (41,616)
and lowest in 1991 (35,956). From
1995 though 1998, a total of 155,642 units were built. (Source:
Pennsylvania Builders Association, Director of PR/PA)
If you would like to sponsor a general
membership meeting contact Walt
Freidhoff at 535-8371. If
you would like to sponsor a Northern
Cambria meeting contact Al Lieb at 948-9897
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PROPOSED
TAX CREDIT LEGISLATION SHOULD HELP BUILDERS PRODUCE MORE AFFORDABLE
HOUSING
The United States desperately needs more affordable housing, yet
few builders can afford to build homes in low-income communities. Most find it virtually impossible to recapture development
costs - or earn profits - in areas where sales prices are very low. H.R. 5052 introduced recently in Congress will help to solve this dilemma by offering economic incentive for builders. By providing builders, developers and/or investors with a credit of up to 50% of the cost of constructing a new home or rehabilitating an existing property. 1.
A tax credit would be available to developers/investors that build
or substantially rehabilitate homes for sale to low-income buyers in
low-income areas. The credit
would generate equity investment sufficient to cover the gap between the
cost of development and the price at which the home can be sold to an
eligible buyer. 2.
The federal government would issue tax credits to states equal to
$1.75 for each person in the state. The
credits could be claimed over five years, starting when the homes are
sold. 3.
Tax credits are given to state housing finance agencies.
The agencies do studies to access their affordable
housing needs. They can only
allocate credits for housing production in areas where people meet
low-income requirements (households that earn up to 80% of the area or
state median income or up to 100% of the area median in
low-income/high-poverty census tracts). 4.
Developers apply for credits.
The maximum credit is 50% of construction. 5.
States award the credits.
(Source: NAHB, Business Management Department)
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