Pennsylvania Programs

Government Grants & Incentives for Real Estate Investors in Philadelphia

Philadelphia's 10-year tax abatement for new construction and rehabilitation, combined with PHFA's LIHTC program and the city's Affordable Housing Trust Fund, create one of the most favorable investment environments on the East Coast.

73 designated tracts
Opportunity Zones
$1,302
Section 8 (2-BR)
LIHTC
Tax Credits Available
4
Local Programs

State Housing Finance Agency

Pennsylvania Housing Finance Agency (PHFA)

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Public Housing Authority

Philadelphia Housing Authority (PHA)

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Local Programs

Philadelphia Government Incentive Programs

These programs are available specifically to investors and developers in the Philadelphia, PA market.

Philadelphia 10-Year Tax Abatement

Full property tax abatement on the improvement value of new construction or substantial rehabilitation for 10 years.

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Philadelphia Housing Trust Fund

Dedicated housing trust fund providing gap financing for affordable housing development and preservation.

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PHFA LIHTC Program

Pennsylvania allocates LIHTC credits through PHFA, with Philadelphia receiving significant allocation due to housing needs.

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Philadelphia Land Bank

Transfers publicly owned vacant land to developers for affordable housing and community development at reduced cost.

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LIHTC Tax Credits in Pennsylvania

Low-Income Housing Tax Credits are the largest source of affordable housing financing in the U.S. In Pennsylvania, credits are allocated by PHFA.

How LIHTC Works

  • Dollar-for-dollar federal tax credit over 10 years
  • 9% competitive credits for new construction
  • 4% credits paired with tax-exempt bonds
  • 15-year compliance period for affordable rents

Pennsylvania Allocator

Credits are allocated by PHFA through their Qualified Allocation Plan (QAP), which outlines scoring criteria and priorities.

View PHFA LIHTC Program
Investor Tips

Why Invest in Philadelphia?

10-year tax abatement is one of the most generous in any major U.S. city

73 Opportunity Zones — one of the highest concentrations on the East Coast

Land Bank provides below-market acquisition of vacant properties

Affordable entry points compared to NYC, Boston, and DC

Finance Government-Incentivized Properties in Philadelphia

FundNow Capital provides DSCR loans, bridge financing, and portfolio loans that complement government incentive programs in Philadelphia.

DSCR Loans

Qualify using Section 8 rental income — government-backed rents strengthen your DSCR ratio.

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Bridge Loans

Short-term financing to acquire and stabilize properties before permanent LIHTC or agency financing.

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Portfolio Loans

Finance multiple properties in Philadelphia's Opportunity Zones under a single loan structure.

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Frequently Asked Questions

Get Financing for Investment Properties in Philadelphia

Tell us about your Philadelphia investment plans. We'll match you with the best financing options within 24 hours.

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