Greater Harrisburg's Community Magazine

Harrisburg to offer financial boost to affordable housing development

Harrisburg’s City Hall

Harrisburg plans to lend support to developers providing housing to lower-income residents.

The city announced on Thursday that it would launch an $8 million Affordable Housing Development Fund to financially assist developers and to expand housing options in the city.

“We are taking bold action to support the kind of housing development that meets the real needs of our community,” said Mayor Wanda Williams, in a statement. “This is about putting resources where they will have the greatest impact—on the people who call Harrisburg home.”

The Affordable Housing Development Fund is open to qualified developers with experience building or expanding affordable housing within the city. Developers may apply for funds for new construction, expansion of existing units or enhancements. Applications will be reviewed and scored by an independent committee appointed by the mayor.

The money for the initiative came out of the city’s grants fund, but was made possible through the federal American Rescue Plan Act (ARPA) program. Harrisburg opted to put $31.4 million of its total $47 million share of ARPA money into its general fund to replace revenue lost during the pandemic. That money then went to pay for regular budget items, such as salaries, therefore freeing up money that usually paid for those things to be allocated to special projects, such as the affordable housing program, said Business Administrator Sam Sulkosky.

City Council, in July 2023, approved moving that money into the general fund, but designated certain projects that the money should fund. One of those was the $8 million for affordable housing, in addition to other projects, such as $8 million to replace the Hall Manor pool.

Applications for the affordable housing funds will open following a press conference at City Hall on Monday, Aug. 11 at 10 a.m. and will be due by Sept. 5.

Application guidelines and more information will be available on the city’s website.

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