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Affordable housing

Affordable housing is an issue everywhere. But Pennsylvania has managed to confine an effective program to produce it to only those counties that have Marcellus Shale wells.

In 2010 the Legislature passed the Pennsylvania Housing Affordability and Rehabilitation Enhancement Act, making the state the 38th with a trust fund to help stimulate housing rehabilitation.PHARE initially had no impact, however, because the Legislature did not fund it. Then, in 2012, the Legislature passed a local impact fee under which natural gas drillers pay a flat fee per new well, and dedicated some of the proceeds to the housing program.According to the Pennsylvania Housing Alliance, the fund has received $26.2 million over the past three years, helping more than 2,900 families with rent, utilities, purchases, new construction and rehabilitation of existing properties.Because the money is derived from the local impact fee, which the state enacted instead of the far superior severance tax on gas extraction, the funds may be used only in counties that have at least one active Marcellus Shale well.That means that PHARE, as a practical matter, exists in only 37 of the state's 67 counties. Recognizing the program's success in those 37 counties, a bipartisan group of lawmakers has devised a sound plan to expand PHARE to all 67 counties, without adversely affecting the original program and without raising other taxes.The plan is to use the success of PHARE itself, along with a general rebound in the state's real estate markets, to increase the size of the fund and make the money available statewide through the Pennsylvania Housing Financing Agency.Under the proposal, PHARE would receive 40 percent of the increase in realty transfer tax collections, beyond the current amount collected, but no more than $25 million a year. That would be in addition to the existing revenue from the local impact fee or a severance tax, if one is adopted.The most severe housing problems, regarding blight and affordability, tend to be in urban counties. Although the Marcellus Shale gas field includes some urban areas, drilling is mostly in rural areas. The PHARE expansion plan is a good idea to stimulate housing improvements statewide without diminishing its success where it already exists.Lawmakers from northeastern Pennsylvania, where the program could be extremely helpful, should work to ensure its passage.Citizens' Voice