Affordable Housing and the Impact Fee in Pennsylvania: Policy Goals, Financing Mechanisms, and Distorted Outcomes

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2018
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Bryn Mawr College. Department of Growth and Structure of Cities
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Award
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eng
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Open Access
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Abstract
In 2012, Pennsylvania passed Act 13, a law that imposed an impact fee upon drillers of wells for the extraction of natural gas through hydraulic fracturing. The law allocated a portion of the receipts from the impact fee to fund affordable housing. However, that funding is only available in the counties in which drilling takes place. Although Act 13 provides just a small portion of Pennsylvania’s affordable housing funding, its geographic restriction has disrupted the state’s larger system for allocating those funds: the Low Income Housing Tax Credit program. This paper makes two central claims about the results of Act 13. First, Act 13 has enabled a substantial shift in the geographic distribution of affordable housing funding in Pennsylvania, above and beyond the funds that the act itself allocates towards affordable housing. And second, this shift has come at the expense of regions of the state that are most in need of affordable housing.
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