Home Ownership Choice Program (HCP)

An initiative of the Pennsylvania Housing Finance Agency (PHFA) to finance new, single-family home construction in blighted areas of the Commonwealth.

Uses:

The development of single family for-sale homes in neighborhoods that have lost residents and investment and which have been unused or underutilized sites. Must show some attempt to address negative urban environments; for example, unemployment, crime, and lack of green or open space.

Funding:

Varies

Eligibility:

A sponsoring partnership must exist of the municipal entity, a for-profit building/developer and a non-profit builder/developer.

Terms:

HCP funding must be matched by the sponsoring organization on at least a one-to-one basis. 50% of the match requirement being provided by the municipality. Development proposals must be submitted to PHFA by the deadlines set forth in the Request for Proposals.

Where to Apply:

PHFA issues Requests for Proposals on an annual basis. Check PHFA's website for RFP information at www.phfa.org/hsgresources/hcp.

FAQs:

HOMEOWNERSHIP CHOICE PROGRAMS

The HCP Initiatives provide funding for the development and / or rehabilitation of single family homes, for purchase, in urban communities and the rehabilitation of the upper floors of store fronts on the commercial corridors of urban neighborhoods and core communities to provide either rental or ownership housing opportunities. HCP development is required to be a part of a municipality’s comprehensive approach to increase the net investment in housing in urban areas while building mixed-income communities and encouraging diversity of homeownership.

The Homeownership Choice Programs (HCP) consist of three initiatives:

- The Homeownership Construction Initiative (HCI)
- The Neighborhood Revitalization Initiative (NRI)
- The Mixed Use Facility Financing Initiative (MUFFI)

Homeownership Construction Initiative (HCI)

The Homeownership Construction Initiative was the first of the HCP initiatives, beginning in 2000 and, as such, is still commonly referred to as the Homeownership Choice program. The initiative has helped many Pennsylvania municipalities transform blighted neighborhoods into attractive places to live and viable alternatives to suburban home ownership.

The HCI is designed to encourage and promote the development and construction of new single family homes, for purchase, in urban neighborhoods and core communities. It targets disinvested urban neighborhoods and requires that developments are to be of a scale to create an impact, encouraging additional investment.

This initiative requires a sponsoring partnership of a municipal entity, a for-profit builder / developer and a non-profit builder / developer. Funding must be matched by the sponsoring entity on at least a one to one basis, with 50% of the matching requirement being provided by the municipality.

The focus of the HCI is on the construction of new single family homes, including development of duplex and townhouse as well as detached units. The product mix is to be based upon the overall needs of the community.


Neighborhood Revitalization Initiative (NRI)

Recognizing that in many neighborhoods and core communities it can be difficult to amass the property required to build the number of new homes required for impact in the Homeownership Construction Initiative, PHFA has added to the Homeownership Choice Programs the Neighborhood Revitalization Initiative (NRI).

The NRI was added to the Homeownership Choice Programs in 2004. This initiative is designed to encourage and support neighborhood and community revitalization efforts by promoting the development and renovation of existing structures and construction of new in-fill single family homes, for purchase, in urban neighborhoods and core communities.

The guidelines and requirements of the NRI are similar to the HCI, however, there are some important differences. The intent of the NRI is to help a municipality revitalize its urban neighborhoods by renovation of vacant residential structures. The NRI also allows for in-fill construction on the vacant lots of urban residential neighborhoods. Unlike the HCI, the NRI does not impose a minimum number of homes to be built or renovated based upon a municipality’s population. The NRI is not intended to be a remodeling program for current homes owner, or used to create rental housing.

Mixed Use Facility Financing Initiative (MUFFI)

The Mixed Use Facility Financing Initiative (MUFFI) is designed to encourage the revitalization of commercial corridors throughout Pennsylvania by creating the funding mechanism to help bridge gaps that may exist between housing lending and commercial lending and that may negatively impact the availability of financing for mixed-use facilities.

Many properties located within commercial corridors throughout Pennsylvania consist of street level storefronts with residential apartment space in upper floors. Rehabilitation of these mixed use buildings offers a key means of stabilizing and revitalizing commercial corridors and surrounding residential neighborhoods by attracting and retaining businesses, providing increased housing opportunities for local residents, strengthening the income mix within a neighborhood, increasing local access to goods and services, and creating key anchors in visible corridors of Pennsylvania communities that stimulate additional investment.

For additional information, please contact PHFA at 1-800-635-4747.

Purpose of Funding:

• Housing