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Pennsylvania Marcellus Shale Development and Housing Funds

Pennsylvania Marcellus Shale Development and Housing Funds. Eagle Ford Consortium Conference April 22, 2014 Bryce Maretzki, PHFA. The Shale Gas Boom. Source: Pennsylvania Department of Environmental Protection. Stages of Shale Gas Development Relating to the Local Housing Market.

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Pennsylvania Marcellus Shale Development and Housing Funds

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  1. Pennsylvania Marcellus Shale Development and Housing Funds Eagle Ford Consortium Conference April 22, 2014 Bryce Maretzki, PHFA

  2. The Shale Gas Boom Source: Pennsylvania Department of Environmental Protection

  3. Stages of Shale Gas Development Relating to the Local Housing Market Source: Ohio State University, Michael Farren

  4. Analysis Region Source: U.S. Census Bureau, 2000 Decennial Census and 2011 American Community Survey 5-Year Estimates.

  5. Results Summary • A 1% increase in shale development employment share is associated with a 0.5% increase in county population. 2) The number of single-unit residential building permits approved showed strong and consistent correlations across all specifications. • Each shale gas well drilled was associated with ~2.5 additional housing permits approved. Source: Ohio State University, Michael Farren

  6. Act 13 (2012) – How it Works • “Impact Fee” on natural gas wells • $224 million in 2014 - $630 million since 2012 • Levied on price of gas (on market exchange) and age of well - 15yrs • Revenue shared – counties, municipalities, state agencies • 60% for Counties – many uses including affordable housing • 40% Marcellus Shale Legacy Fund

  7. Funds for Housing • Comes from “Impact Fee” (Act 13, 2012) • $8.7 million (2013), $7.9 million (2012) • Base allocation: $5 million annually • Surplus Allocation from six counties • Address housing needs in impacted counties • Deposited into Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) Fund – aka “State Housing Trust Fund” • At least 50% of funds must go to “rural” counties

  8. State Housing Trust Fund Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) Fund • Act 105, 2010 • No funding stream • Requires at least 30% of funds for households below 50% of median area income • Wide range of housing activities • Annual plan and reporting

  9. Principles of Investment • Maximize resource leveraging • Address greatest need • Foster partnerships • Effective and efficient • Equitable and Transparent • Comprehensive Approach

  10. Impact • 59 projects funded (78 applied) • $16.7 Million awarded ($32M requested) • $160 Million in leveraged funds • 484 new rental units • 490 rehab, repair homes • 518 households w/rental assistance • 272 homes for future development (acquisition/demolition) • 42 new single family homes

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