The ongoing development of our communities and neighborhoods requires investment from many stakeholders—developers, businesses, nonprofits, and states each have a role to play. While growing uncertainty in the funding landscape is creating challenges for advocates of economic and community development across the United States, state-level funding programs remain a critical lifeline for local development initiatives. In Pennsylvania, the Shapiro administration has prioritized economic development through its recent budget proposals, with the Governor noting in his 2025-26 budget address that the state has “attracted over 3 billion in private sector dollars and become the top state in the Northeast for regional economic competitiveness.”
Over the past few budget cycles, the Commonwealth and its departments—especially the Department for Community and Economic Development (DCED)—have tested, refined, and reinvested in grant and tax credit programs. At the forefront of its community development portfolio is the Neighborhood Assistance Program (NAP) grant program, for which available tax credits doubled last year from $36 million to $72 million annually, with increased tax credit percentages across all program components. For organizations seeking to fund affordable housing, community services, or a range of other projects, NAP represents a significant opportunity to leverage private investment for the good of the community.
At ESI, we regularly support clients navigating state grant and tax credits opportunities, helping them navigate program requirements, develop compelling applications, and secure funding. Through our work with community-focused organizations across Pennsylvania, we’ve seen firsthand how these funding sources can transform visions into reality and what organizations should consider when deciding to pursue them. In this article, we’ll examine NAP funding in detail and showcase PlayaRaya, a radically accessible recreational campus being developed for individuals with cognitive and physical disabilities in Bucks County.
Understanding the Neighborhood Assistance Program
Through NAP, the Commonwealth of Pennsylvania looks to encourage businesses to invest in distressed areas and underserved populations through tax incentives. The program enables eligible businesses to receive tax credits for financial contributions to qualifying community-based organizations implementing projects in low-income areas.
The program features four key components with varying tax credit benefits:
- Neighborhood Assistance Program (NAP): Up to 65% tax credit for one-year commitments addressing community problems in low-income areas
- Special Program Priorities (SPP): Up to 90% tax credit for projects demonstrating significant impact on specific community needs, including programs for vulnerable populations
- Charitable Food Program (CFP): Up to 65% tax credit for food security initiatives (cash or in-kind food donations)
- Neighborhood Partnership Program (NPP): 90-95% tax credit for businesses contributing at least $50,000 annually for 5+ years
For the 2025-26 fiscal year, DCED is prioritizing applications that align with the Commonwealth’s Housing Action Plan & Economic Development Strategy, specifically focusing on:
- Affordable Housing Development
- Affordable Housing Support Services
- Blight Elimination
- Community Economic Development
- Workforce Development & Job Training
The NAP tax credits benefit businesses by offsetting the costs of their community contributions. These credits are flexible – they can be used immediately, carried forward for five years, sold, or passed through to shareholders, members, or partners.
When Is NAP (or other State Funding Opportunities) a Good Fit?
Before pursuing NAP or other state funding opportunities, an organization should carefully weigh whether this path aligns with its capabilities and project needs. While these programs can provide the critical financial support that makes a project pencil out, they also require significant organizational commitment.
Opportunities:
- Governor Shapiro’s administration has prioritized funding for NAP and a number of other programs, so in a time of broader funding uncertainties, this an opportune time to pursue these resources
- Alignment with local priorities and comprehensive plans—often a requirement for state grants—opens up opportunities for support, engagement, and additional funding by local stakeholders
- The tax credit structure (up to 65-95%) creates powerful incentives for businesses to invest in their communities, fostering long-term public-private partnerships that can sustain community development beyond one-time grants
Challenges:
- Application requirements and processes can be time consuming and complex, requiring detailed articulation of place, problem, project details, and measurable outcomes, and often requiring nuanced understanding of what the department is looking for
- Specific to NAP, unlike grants that provide direct funding, this program requires organizations to secure business contributions first, then apply for tax credits to incentivize those donors
- Post-award compliance can require substantial administrative effort, varying based on the program and type of award—RACP (Redevelopment Assistance Capital Program), for example, is a prominent program to support development projects with requiring substantial post-award administrative effort
- The timeline and financial needs of a project may vary in flexibility, but funding is often strict and requires adherence to activity and contribution periods within the state fiscal year, which is a factor for NAP specifically.
NAP is particularly valuable for nonprofits with established business relationships. While demanding less compliance oversight than programs like RACP, NAP requires more upfront work soliciting business contributions. Organizations should consider whether they can dedicate the necessary resources before committing to this funding opportunity.
Success Story: PlayaRaya Recreation Campus
PlayaRaya represents a visionary approach to inclusive recreation, redeveloping a former swim club in Northampton Township, Bucks County to serve individuals with cognitive and physical disabilities through an ultra-inclusive recreational space that addresses a critical accessibility gap in the region. The current phase of this ambitious project focuses on development of an accessible swimming pool, which has received NAP support through the Special Program Priorities component. With the support of NAP funding, the facility aims to open for summer camp programming by June 2025.
The need for such a facility is substantial. Within Bucks County alone, approximately 79,000 disabled individuals lack sufficient access to inviting, enriching, and accessible outdoor spaces. More broadly, over 50 percent of Pennsylvania’s 1.9 million people reporting a disability reside in the Greater Philadelphia and Lehigh Valley regions, creating a significant demand for inclusive recreational opportunities. PlayaRaya is positioned to become a treasured community asset not only for Bucks County but also for visitors from across Pennsylvania. Given that this need exists across the state and throughout the country, PlayaRaya is intended to be a prototype, with a vision of developing similar ultra-accessible recreational campuses in other Pennsylvania counties and beyond.
The complete vision for PlayaRaya extends beyond the pool to include accessible playgrounds, walking trails, fitness stations, sports facilities, and even equine therapy—all designed from the ground up with the needs of individuals with disabilities in mind. As construction progresses through planned phases over the next 3-4 years, PlayaRaya will create an unprecedented recreational campus that enriches the physical and social development of disabled individuals while supporting many burdened families and caretakers.
Through NAP’s tax credit mechanism, local businesses have committed to funding this vital community resource, demonstrating how public-private partnerships can address significant community needs while creating lasting impact.
Applying for NAP Funding
For the current cycle, NAP applications are due by May 30, 2025. Organizations interested in applying should:
- Consult with the appropriate DCED Regional Office before submission
- Secure commitment letters from business contributors
- Ensure those contributors complete the Electronic Clearance Form for Tax Credits
- Prepare a detailed project narrative addressing place, problem, project, and proposed outcomes
- Develop a comprehensive budget justification with supporting documentation
How ESI Can Support Organizations Seeking Funding
ESI has extensive experience advising about and supporting successful state funding applications like NAP. Organizations interested in pursuing such funding are encouraged to reach out so we can discuss how ESI can support through:
- Developing compelling project narratives that align with NAP priorities
- Identifying target areas and document community needs with data-driven analysis
- Creating detailed budget justifications and financial projections
- Preparing supporting documentation for all application requirements
- Coordinating with DCED to ensure applications are competitive and complete
As state funding remains a vital resource for community development, programs like NAP offer strategic opportunities to address critical needs in Pennsylvania’s distressed communities. With proper planning and support, organizations can successfully leverage these resources to create meaningful impact.
For more information about NAP or to discuss how ESI can support NAP and other applications, reach out to Cameron at [email protected].
Cameron Miller, Associate Director | [email protected]
Cameron Miller is an associate director at ESI. He has a history of working across the public sector, having held positions in city government, higher education, and nonprofit organizations. Prior to joining the firm, Cameron served as the Director of Operations for the City of Philadelphia’s Rebuild Initiative, a mayoral program funded by the Philadelphia Beverage Tax investing $500 million in parks, playgrounds, recreation centers, and libraries in underserved Philadelphia neighborhoods.