Transcript Slide 1

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