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)

 

2002 GENERAL MEMBERSHIP SPONSORS
January   
February    
March 
April 
May 
June 
September
October
November
December 
 none
Nextel
 PBA Benefits Trust
McClure - Johnston
84 Lumber
none
Somerset Trust
The Long Barn
Lowe's
Christmas Party

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

 

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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