Habitat for Humanity Philadelphia received a $200,000 grant from the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund (PHARE) for down payment and closing cost assistance for first-time homebuyers purchasing homes built by Habitat.
“We are grateful for the PHARE program and the opportunity to further support the families we work alongside throughout their homeownership journey,” says Corinne O’Connell, CEO of Habitat for Humanity Philadelphia. “Down payment and closing costs are often the biggest hurdle to affordable homeownership, averaging more that $10,000. This grant will help ease the financial burden of closing on a new home, making homeownership even more accessible for Philadelphia families.”
The funding will also help fill the gap between the cost of building housing units and an affordable sales price for the homebuyer. More families will be able to afford safe, well-built homes in a rapidly improving area of the city, and Habitat Philadelphia can reinvest capital into future construction, expanding its capacity to serve more households in the city.
PHARE is administered by the Pennsylvania Housing Finance Agency (PHFA). In 2024, the PHARE budget increased from $60 million to $100 million, with the funding cap set to rise by $10 million annually until 2027 when it reaches its $100 million cap. This legislation was made possible through the advocacy efforts of Habitat Philadelphia and several local affordable housing organizations.
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