Selected Harrisburg developers will receive a total of $8 million to build or enhance affordable housing in the city under a program announced Monday by Harrisburg Mayor Wanda Williams.
The deadline is fast approaching: Applicants have 18 business days to submit an “existing fully-developed plan.”
Williams said the said applications will be reviewed by an “independent committee” but said that only one committee member has been confirmed so far.
Williams did not take any questions at the press conference but Samuel Sulkosky, the city’s interim business administrator, said that this funding was “not a secret” and was talked about in city council meetings “many, many times” so developers “should be well along the lines of getting something done.”
The decision to use these funds for affordable housing was made more than two years ago, but it’s unclear why officials chose to use these funds now.
“Well, it takes a lot to start the administration of that,” Sulkosky said. “Eight million dollars is a lot of money.”
Where the money came from
During the COVID-19 pandemic, the city received just over $47 million in federal American Rescue Plan Act (ARPA) funds. It used some of the money to backfill lost revenue, pay for emergency HVAC repairs in the city’s public safety building and provide one-time bonuses to firefighters and police.
In July 2023, Harrisburg’s city council voted to move the remaining $31.4 million into the city’s general fund for a variety of projects, including affordable housing, home repairs and helping residents with their trash bills. Transferring the money reduces reporting requirements that typically come with federal taxpayer dollars, a point city solicitor, Neil Grover, acknowledged that year.
One of the initiatives from that city fund was the $8 million for affordable housing.
Affordable housing in Harrisburg has long been a pressing issue. In 2023, 12% of Pennsylvania residents lived below the poverty line.
Afforable housing has been a goal of the mayor, and was a priority in her campaign for office in 2021, and in her campaign for reelection in the Democratic primary.
The mayor’s latest initiative is the 2025 Affordable Housing Grant Fund.
The ‘independent committee’ and its scoring process
A three-person committee appointed by the mayor will help select developers to receive portions of the $8 million.
Doug Hill, president of the Capital Area Greenbelt Association, will serve on the comittee. He is also chairman of the Intergovernmental Cooperation Authority, which advises the city, General Assembly and the governor on fiscal issues. He also formerly served as executive director of the County Commissioners Association for more than three decades.
As of now, he oversees the “Tunnels to Towers Veterans Village,” an 8.5 acre lot near PennDOT, which is expected to house over 80 veterans later this year.
Williams said the other two committee picks have not yet been confirmed and will be announced in the “next few days.”
Committee members will score applicants in six categories, with the greatest weight given to past development experience. For example, applicants with more than five years of development experience receive 10 additional points in the evaluation. The applicant must also “demonstrate a record” of property development in Harrisburg and have completed at least one affordable housing project or a phase of one.
Criteria used by the committee includes types of projects, proof of insurance and audits, whether the project plan contains clearly defined roles and staffing hours, and past track record of community collaboration. Applicants must receive an average score of at least 70 points from the three board members to be considered for funding.
The application asks developers to identify their “target population.” When PennLive asked whether developers who aren’t building affordable housing could apply for and receive these funds, Sulkosky said the board would make that determination.
Although the committee scores the applications, the city retains sole authority over how the money is given out. A city notice reads that it “retains exclusive discretion” of selecting applicants and approving or denying funding requests.
The city will send award letters and grant agreements to selected applicants on Sept. 15. These documents will outline the funding schedule, frequency, and whether it will be “project-specific or milestone-based.”
Developers who receive money must submit quarterly reports to the city, along with start and completion reports. The projects must be completed by Sept. 15, 2028.
“Only the strongest, most viable projects, those that truly align with our vision for Harrisburg will move forward,” Williams said Monday at the 10 a.m. city press conference.
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