1. Ed Geiger Principal/Founder Edge Strategic Consulting

2. Location of Shale Formation Stretches from WV to NY 5,000 to 7,000 ft underground (1 – 1 1 / 3 miles) Technology: Hydrofracturing a.k.a “Fracking” or Unconventional Wells Water and chemicals injected at high pressure Drilling can occur horizontally, not just vertically Multiple wells drilled from same rig site

4. 2003: Drilling begins on first fracked well in Pennsylvania (Not confirmed until 2005) Gas Drilling Boom 2008 – 2010 Launches Fracking technology results in cost-effectively production of significant quantities of gas Pennsylvania has location advantage to primary Northeastern users of natural gas compared to other gas producing regions (TX, LA, AR) Pennsylvania does not impose an extraction tax Transportation, Environmental, Housing Impact

5. Housing Impact: 2011 Report and 2015 Update Housing Trust Fund (PHARE Fund) Solution Program Overview / Results

6. 2011 Rental Housing Findings: Shortage of Units with Low-Income most affected Rental prices increased Better quality units occupied by gas workers at very high rents Lower quality units available to local residents at increased rents Increased households doubling up and homelessness

7. 2015 Housing Report Update: Continued lack of availability but crisis lessened Rents previously doubled/tripled during crisis; since 2011 rents leveled off or declined, but not as much Low-income w/o subsidized housing, still rent overpriced units – homeless crisis lessened Declining quality of housing due to renting to gas workers reduced number of units acceptable for HUD housing authority voucher program. Positive Change: Increased senior housing development due to LIHTC and public funding

8. 2011 Homeownership Findings: Anticipated broad-based shortage

9. 2015 Homeownership Update Broad Shortage did not occur Price and availability varies by county Most significant gap exists for mid-priced or “starter” homes Older homes available at lower prices, but deemed undesirable because buyers lack skills, money, time for rehab/repair Lack of starter homes helps keep demand high for rental housing

10. 2010 – Establish State Trust Fund (PHARE Fund) No New $–Receive Nat’l Trust Fund–Authorizes Other $ 2011 – Governor Corbett Elected No New Taxes! Specifically not Marcellus Shale Gas 2012 – Act 13 Local Impact Fee Authorized Locally enacted fee – State Utility Commission collected Portion deposited into state housing trust fund (PHARE) $7.5 to $9.3 million annually (2012 through 2015) 2015 – New Legislation

12. PHARE Fund Allocated $33.4 million over 4 yrs Flexible Program Eligible Activities: All Housing Activities (includes predevelopment / not housing plans) Eligible Beneficiaries: Up to 200% of Median Income 30% of funds to serve below 50% Median Income 5% cap on administrative costs 10 year affordability period for rental units (new/preservation/rehab)

14. Other Significant Statistics (over 4 years) Eligible Applicants: Counties, and their Designees Applications Submitted: 180 Applications Approved: 148 Average Approved Grant: $225,973 Leverage: $221 million or $6.37 for each $1

15. 2015: Expansion of PHARE Fund 40% of Increase in Realty Transfer Tax (state share) Effective 2016-17 State Budget Capped at $25 million Estimated initial year: $4 million approximately Estimated at cap by 2019 Statewide Availability of Flexible Housing Cash

16. Melissa Raffensperger Email: mraffensperger@phfa.org Phone: (717) 780-3947 Bryce Maretzki Email: bmaretzki@phfa.org Phone: (717) 780-1867 Clay Lambert Email: clambert@phfa.org Phone: (717) 780-3924 Mailing Address: Pennsylvania Housing Finance Agency 211 North Front Street P.O. Box 8029 Harrisburg, PA 17105-8029