Pennsylvania Marcellus Shale Development and Housing Funds
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Transcript of Pennsylvania Marcellus Shale Development and Housing Funds
Pennsylvania Marcellus Shale Development and Housing Funds
Eagle Ford Consortium ConferenceApril 22, 2014
Bryce Maretzki, PHFA
Source: Pennsylvania Department of Environmental Protection
The Shale Gas Boom
Stages of Shale Gas Development Relating to the Local Housing Market
Initial influx of energy industry workers
• Effects:
Increases county population and demand for temporary housing (mostly hotels if available)
Full-scale drilling
operations begin
• Effects:
Further increases population and demand shifts to include medium-term rental housing
Mature well field
management and
maintenance
• Effects:
Demand shifts to include long-term residential housing for energy industry workers moving their families to the area in addition to potential new housing demand from the now-established local workforce
Source: Ohio State University, Michael Farren
Source: U.S. Census Bureau, 2000 Decennial Census and 2011 American Community Survey 5-Year Estimates.
Analysis Region
Results Summary
1) 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
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
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
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
Principles of Investment
• Maximize resource leveraging• Address greatest need• Foster partnerships• Effective and efficient • Equitable and Transparent• Comprehensive Approach
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