LANCASTER, Pa. (Oct. 10, 2025) – The Pennsylvania Housing Finance Agency awarded HDC MidAtlantic (HDC) Low-Income Housing Tax Credits (LIHTC), which will generate more than $31 million in combined equity to support the development of two new affordable housing communities in Lancaster and Berks counties.

“These dollars will support more than bricks and sticks – they will support livelihoods and brighter futures for our neighbors,” said Dana Hanchin, President and CEO of HDC.

The Apartments at College Avenue Phase II -Lancaster County

More than $14 million in equity from LIHTC credits will support the second phase of a three-phase development for The Apartments at College Avenue, an adaptive-reuse development transforming the vacant Delp Pavilion of the former St. Joseph’s Hospital into a vibrant affordable housing community in Lancaster’s West End. The project is part of PHFA’s Health for Housing initiative and was made possible through a $1.3 million grant from Penn Medicine Lancaster General Health.

“Safe, stable housing is foundational to good health. At Penn Medicine Lancaster General Health, we believe that supporting affordable housing is not just a community investment, it’s a crucial part of helping the community we serve grow and thrive,” said Neal Salerno, chair of the Penn Medicine Lancaster General Health Board of Trustees. “We are proud to work alongside our community partners to tackle the housing challenges that impact families across Lancaster.”

Phase II builds on the success of Phase I, which was completed in 2025 and created 64 affordable apartments across the street. Washington Place Equities is also advancing market-rate housing and commercial development to help revitalize the former hospital campus.

“This development is about more than creating apartments—it’s about restoring a community anchor and making sure our neighbors in Lancaster have a safe, affordable place to call home,” said Kim Krauter, Senior Vice President of Real Estate Development at HDC.

She continued, “By pairing housing with supportive services, we are creating stability and opening doors to opportunity for those who need it most."

College Avenue Phase II will create 49 high-quality affordable apartments on the third and fourth floors of the Delp Pavilion, including 20 efficiency units, 27 one-bedroom units and two two-bedroom units. Thirteen apartments will be reserved as permanent supportive housing for households experiencing or at risk of homelessness. HDC will provide on-site supportive services for all residents and will partner with Tenfold to deliver wraparound services through Tenfold’s Pathways program.

The development targets households earning between 20 and 60 percent of the area median income, with one-third of the apartments reserved for those earning up to 50 percent of the median. Milagro House will redevelop the second floor of the Delp Pavilion to create up to 20 suites dedicated to mothers pursuing educational advancement. 

The development’s capital stack includes support from more than 13 funding sources, including Lancaster General Health, The High Foundation, the Steinman Foundation and the city and county of Lancaster.

Cornerstone at 6th & Chestnut - Berks County

$17 million in equity from LIHTC credits will also support construction of Cornerstone at 6th & Chestnut in downtown Reading. In partnership with Landis Quality Living, HDC will convert a long-term vacant building into an affordable housing community for seniors aged 62 and older.

“In Reading, the need for affordable homes for seniors is overwhelming. Cornerstone at 6th & Chestnut will give older adults not only a place to live, but a place to thrive—with support, dignity, and connection in the heart of the city. This is exactly the kind of impact HDC strives to deliver,” Krauter said.

The community will offer 46 apartments—one- and two-bedrooms—with income restrictions to ensure long-term affordability. Every apartment in the community will be reserved for individuals earning between 30% and 60% of the area median income.

Resident amenities will include a community room with kitchenette, on-site management and maintenance offices, and dedicated staff such as a resident services coordinator and a Landis care navigator to coordinate care, host activities and connect residents with outside services.

“This funding represents a significant milestone in our shared mission to provide high-quality, affordable housing for seniors,” said Evon Bergey, Executive Director of Landis Quality Living. 

“We’re excited to continue our partnership with HDC MidAtlantic to expand housing options that support aging with dignity. We are excited to continue creating communities where older adults of all income levels can thrive—physically, emotionally, and spiritually,” she said.

The Reading development draws on more than 11 funding sources in addition to the LIHTC award, including $500,000 from Santander Bank, N.A. Charitable Giving Program and the City of Reading. In 2024, HDC received a $1 million Local Share Account (LSA) award from the Pennsylvania Department of Community and Economic Development to support the project. 

The City of Reading played a key role, since LSA funds—sourced from statewide gaming revenues—must be awarded through a municipality. With $1.5 million in City HOME funding and $1 million in LSA funds, strong backing from State Senator Schwank, State Representative Guzman, and the City of Reading, this development has powerful momentum. 

“I’m thrilled that HDC MidAtlantic and Landis Quality Living have been awarded this federal Low-Income Housing Tax Credit, which will help transform the long-blighted property into safe, accessible, and affordable homes for seniors in Reading. As housing costs continue to rise across Pennsylvania, projects like this are vital to ensure our neighbors can comfortably age in place with dignity. I'm proud to support this project and to advocate for the federal resources that make community investments in Reading and across PA-06 possible," said Representative Chrissy Houlahan.

HDC is especially grateful to Funk Construction, Arthur Funk & Sons, Inc. for serving as an instrumental partner in the development.

Cornerstone at 6th & Chestnut will help provide much needed housing and revitalize a long-term vacant building.

HDC currently operates 25 communities in Lancaster County, offering 1,335 apartments for families and seniors. In Berks County, the organization operates seven communities with a total of 349 apartments.