Pennsylvania is putting new money behind the effort to transform aging commercial corridors and underused buildings into places where people can live, work, and do business.

The Pennsylvania Housing Finance Agency announced Monday that it has opened a new Community Revitalization Fund Program funding round, creating an opportunity for communities and developers across the Commonwealth to receive financial support for mixed-use development projects. The program is designed to encourage the redevelopment of commercial corridors while adding housing and strengthening local economies.

$4.5 Million Available for New Projects

This year's program is backed by $4.5 million in state tax credits. PHFA will sell the credits and use the proceeds to provide grants for eligible mixed-use developments.

The funding can support projects that combine residential and commercial space, including the rehabilitation of older or underused buildings, commercial build-outs, building conversions, and the addition of housing within newly constructed or renovated properties.

For communities with vacant storefronts, aging buildings, and limited housing options, that flexibility could make a significant difference.

Smaller Cities Get Priority

One of the most important aspects of this year's funding round is the emphasis on third-class cities.

PHFA said proposals from third-class cities will receive higher priority during the evaluation process. The approach is intended to help communities that may have fewer resources available for large redevelopment projects but still have significant opportunities to revive their downtowns and commercial districts.

That could mean more investment flowing into older downtown areas where vacant buildings and underused properties have become obstacles to economic growth.

Turning Older Buildings Into New Opportunities

A major goal of the program is to make better use of buildings and commercial spaces that already exist.

Instead of leaving older properties vacant or allowing them to deteriorate, developers can use the funding to help convert, renovate, and reposition existing buildings for new uses.

A former commercial building, for example, could potentially be transformed into a combination of apartments and storefronts. A vacant upper floor could become housing, while the ground floor remains available for a restaurant, retailer, office, or community business.

That type of development can help communities add housing without relying entirely on new construction.

Housing and Economic Development Come Together

The program also reflects a larger shift in how Pennsylvania is approaching its housing shortage.

Housing is increasingly being treated as part of the state's economic-development strategy. Communities need homes for workers, businesses need customers and employees, and downtown districts need enough activity to support restaurants, retailers, and services.

Mixed-use development can connect all of those needs in one project.

PHFA Executive Director and CEO Robin Wiessmann said the program is intended to provide a boost to community development and help projects attract additional investment.

Applications Are Now Open

Eligible applicants include local governments, redevelopment authorities, for-profit companies, nonprofit organizations, and economic-development organizations.

The deadline for proposals is 2 p.m. on October 30, 2026.

The funding will not solve Pennsylvania's housing shortage on its own, but it gives communities another tool to move projects forward that might otherwise struggle to secure financing.

For Pennsylvania's older downtowns, the opportunity is about more than adding apartments or renovating buildings. It is about bringing people back into commercial districts and creating places where housing, businesses, and community life can grow together.

As communities across the Commonwealth search for ways to attract investment while expanding housing opportunities, this new funding round could help turn some of Pennsylvania's most underused properties into productive parts of the local economy once again.