Pennsylvania Gov. Josh Shapiro Pitches $1 Billion Fund for Housing and Infrastructure

Pennsylvania Gov. Josh Shapiro wants to start a $1 billion bond fund to support housing development and other projects in the state.

The Democratic governor unveiled the idea in the state's upcoming two-year budget, arguing that the state needs to expand the financial resources it puts toward housing development and renovation. The state faces a shortage of more than 100,000 housing units. That'll grow to 185,000 units by 2035 if nothing changes.

The bond-supported Critical Infrastructure Fund would go toward housing and infrastructure to support it, Shapiro said in a Harrisburg speech. Pennsylvania's Legislature, including a Democrat-controlled House and a Republican-controlled Senate, must weigh in on the plan.

That's not a given. State Senate Majority Leader Joe Pittman said the 2026–27 budget "spends too much money without protecting Pennsylvania’s future fiscal stability.

“As we begin our work on this year’s budget, looking for more government efficiencies and respecting taxpayers by controlling the growth of state spending are key priorities of our Senate Republican caucus,” Pittman said.

The state-by-state housing affordability report card from Realtor.com® gives Pennsylvania a C. The state joins Maryland, Utah, Florida, and Indiana in formulating housing policy aimed at building more homes.

Shapiro last year expanded the Pennsylvania Housing Affordability and Rehabilitation Enhancement fund for housing investment. That fund, administered by the Pennsylvania Housing Finance Agency, has funded 1,000 projects since its inception in 2012.

Shapiro touted a 55% increase in PHARE-funded housing projects. The program has supported building and repairing 8,200 units, and Shapiro expanded its annual funding to $85 million in the fall.

Pennsylvania's underbuilding has resulted in an aging housing stock that's becoming more expensive to repair. Half of the homes in the state are more than 50 years old.

Standardizing Pennsylvania's rules

But Pennsylvania also needs to curtail regulations and ease the process for homebuilding. Shapiro said the rules across the state's 2,560 municipalities differ widely. And the state will build a catalog of local zoning and land laws.

"We need to make one, so that we can help local governments understand what works best to build more affordable housing," Shapiro said. "That also means working with local communities to modernize the Municipalities Planning Code to build where it makes sense. And to cut red tape where it’s unnecessary."

Shapiro promised more standards that facilitate denser housing. That includes a process to streamline mixed-use development and transit-oriented development along major commercial corridors. It also means creating standards for accessory dwelling units.

The budget also creates a deputy secretary for Housing at the Department of Community and Economic Development to form a statewide action plan and coordinate housing resources. They will be able to offer assistance to local governments on housing policy reform.

That accompanies an update to the Municipalities Planning Code aimed at reducing regulatory barriers to housing development.

Cutting fees

Shapiro also pitched a statewide cap on rental application fees, while preventing landlords from charging fees before a property is viewed. The budget also limits annual lot rent increases for manufactured homes and requires notifications of fee increases.

"Right now, landlords are allowed to charge exorbitantly high fees just to submit a rental application," Shapiro said. "Those fees are meant to cover the cost of a background check. But too oftentimes, landlords are charging two, three, four times the cost."

It's one of a few other fair-housing reform ideas he put forth, including sealing eviction records when proceedings initiated against a person don't result in their being evicted.

And, Pennsylvania wants to allow transfer-on-death deeds for primary residences. Shapiro said that could reduce the legal entanglements of passing a property on to other family members in an estate.