Shapiro Administration Celebrates the Opening of New Affordable Townhomes in Harrisburg, Highlights the Need for Critical Infrastructure Funding for Housing

The five, three-bedroom townhomes, constructed as part of a 4th Street revitalization initiative, were supported with more than $366,000 in prior Commonwealth funding.

Governor Josh Shapiro recently unveiled the Commonwealth's first-ever Housing Action Plan to ensure every Pennsylvanian has access to safe, stable, and affordable housing.

The Governor's 2026-27 proposed budget calls for a $1 billion investment in housing and critical infrastructure to speed up new home construction across Pennsylvania and provide vital rehabilitation funding to maintain existing homes.

Harrisburg, PA - Today, Department of Community and Economic Development (DCED) Deputy Secretary Rick Vilello helped cut the ribbon on new, affordable townhomes in Harrisburg and highlighted the critical need for housing infrastructure investments across Pennsylvania.

Under current projections, Pennsylvania will face a shortage of roughly 185,000 homes by 2035 without further action. Housing costs continue to rise at a rate faster than wages, with over one million households in Pennsylvania spending more than 30 percent of their income on housing, and more than 50 percent of the Commonwealth's housing stock is over 50 years old - making it increasingly more expensive to maintain.

To address these issues, Governor Josh Shapiro created Pennsylvania's first ever Housing Action Plan, which will build and preserve more homes, modernize housing regulations and zoning rules, and break down barriers preventing people from finding stable housing - all to grow the Commonwealth's economy and improve Pennsylvanians' quality of life.

"The Shapiro Administration is committed to addressing housing needs with smart investments across the Commonwealth in order to ensure all Pennsylvanians have the stability and security they need to succeed," said Deputy Secretary Vilello. "Governor Shapiro's Housing Action Plan allows us to meaningfully address housing access, affordability, and supply through a comprehensive set of investments and policy reforms. Affordable housing results in stronger economies, stable communities, and improves the lives of all Pennsylvanians."

The five, three-bedroom townhomes were built on vacant lots acquired by Tri-County Housing from the Harrisburg Redevelopment Authority as part of a 4th Street revitalization initiative in Harrisburg, providing new affordable housing options for low and moderate-income homeowners.

The Commonwealth previously invested more than $366,000 in this project through the former Keystone Communities Grant program, which provided support for local revitalization initiatives, tailoring assistance for specific revitalization efforts including planning grants, revitalization, and public improvement projects.

The project was also supported through the Neighborhood Assistance Program, which provides tax credits to businesses that contribute to nonprofit organizations' efforts to revitalize communities.

Tri-County Housing is a nonprofit organization that works to revitalize neighborhoods and communities by acquiring and developing affordable housing solutions for low and moderate-income individuals in south central Pennsylvania including Cumberland, Dauphin, and Perry Counties.

"We are most appreciative of the Commonwealth's investment in this much needed affordable housing project," said Gary Lenker, Executive Director, Tri-County Housing. "DCED, under the leadership of Secretary Siger, most recently supported the project through the Neighborhood Assistance Program, which helps to improve communities."

Governor Shapiro's Housing Action Plan outlines the need for new affordable housing options and reform to meet the demand across the Commonwealth's urban, suburban, and rural housing markets. The plan sets a clear path to increase housing supply, improve affordability, and stabilize housing outcomes - directly affecting economic growth, workforce availability, public health, and community stability.

The Governor's proposed 2026-27 budget calls for targeted investments to support the Housing Action Plan by:

• Investing $1 billion through the Pennsylvania Program for Critical Infrastructure Investment to build and strengthen Pennsylvania's critical infrastructure.
• Launching a $1 million Investments in Health pilot program to expand stable housing options and reduce homelessness.
• Reducing barriers to residential development by modernizing local planning, zoning, and permitting processes.
• Protecting homeowners and communities from sudden cost increases of manufactured housing options.
• Strengthening housing leadership, coordination, and data sharing across the Commonwealth, increasing partnerships and collaboration at every level to address the critical housing need.

For more information about the Department of Community and Economic Development, visit DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, X, and LinkedIn.

MEDIA CONTACT: Justin Backover, [email protected]