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        PRIOR PRINTER'S NO. 2544                      PRINTER'S NO. 2835

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1932 Session of 1989


        INTRODUCED BY HARPER, KUKOVICH, WAMBACH, DeWEESE, O'DONNELL,
           McCALL, ROBINSON, COHEN, COWELL, KOSINSKI, CORRIGAN,
           MICHLOVIC, PESCI, VEON, BELFANTI, WILLIAMS, MORRIS, DALEY,
           PISTELLA, CARN, J. L. WRIGHT, MELIO, JOSEPHS, R. C. WRIGHT,
           TIGUE, MRKONIC, McNALLY, COLAIZZO, RYBAK, ITKIN, FREEMAN,
           JAMES, VAN HORNE, BILLOW, LINTON, MAINE, NAHILL, BELARDI,
           GIGLIOTTI, BATTISTO, McHALE AND CAPPABIANCA, OCTOBER 10, 1989

        AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, DECEMBER 5, 1989

                                     AN ACT

     1  Amending the act of April 9, 1929 (P.L.177, No.175), entitled
     2     "An act providing for and reorganizing the conduct of the
     3     executive and administrative work of the Commonwealth by the
     4     Executive Department thereof and the administrative
     5     departments, boards, commissions, and officers thereof,
     6     including the boards of trustees of State Normal Schools, or
     7     Teachers Colleges; abolishing, creating, reorganizing or
     8     authorizing the reorganization of certain administrative
     9     departments, boards, and commissions; defining the powers and
    10     duties of the Governor and other executive and administrative
    11     officers, and of the several administrative departments,
    12     boards, commissions, and officers; fixing the salaries of the
    13     Governor, Lieutenant Governor, and certain other executive
    14     and administrative officers; providing for the appointment of
    15     certain administrative officers, and of all deputies and
    16     other assistants and employes in certain departments, boards,
    17     and commissions; and prescribing the manner in which the
    18     number and compensation of the deputies and all other
    19     assistants and employes of certain departments, boards and
    20     commissions shall be determined," establishing the Affordable
    21     Housing Trust Fund; establishing the Pennsylvania Housing
    22     Council and the Affordable Housing Trust Fund Board and
    23     providing for their powers and duties; providing for a ballot
    24     question; PROVIDING FOR A PENNSYLVANIA HOUSING EQUITY POOL;    <--
    25     and renaming the Department of Community Affairs.

    26     The General Assembly finds and declares as follows:


     1         (1)  That there exists throughout the entire
     2     Commonwealth, in urban, suburban and rural areas, a crisis
     3     resulting from the lack of decent and affordable housing and
     4     insufficient rental units for low-income and moderate-income
     5     people and families. This crisis manifests itself in the
     6     growing number of people and families who cannot afford to
     7     purchase or rent housing, the increasing portions of total
     8     income that low-income and moderate-income people and
     9     families must spend on housing, and the growing number of
    10     those low-income people and families in need of subsidized
    11     housing.
    12         (2)  That every citizen residing in this Commonwealth,
    13     for their own health, safety and welfare, should have the
    14     opportunity to obtain for rental or purchase decent and
    15     affordable housing. Therefore, it is hereby declared that the
    16     Department of Community Affairs shall be renamed the
    17     Department of Community Affairs and Housing with a Deputy
    18     Secretary of Housing to be named for the purpose of creating
    19     and developing housing programs for the Commonwealth. It is
    20     further declared that a Pennsylvania Housing Council shall be
    21     created for the purpose of reviewing policies and programs
    22     developed by the Department of Community Affairs and Housing.
    23         (3)  That funding for these programs shall include
    24     funding provided through the creation of the Pennsylvania
    25     Affordable Housing Trust Fund, which shall be administered by
    26     the Pennsylvania Housing Finance Agency at the direction of
    27     the Pennsylvania Affordable Housing Trust Fund Board. Funding
    28     for the trust fund may be obtained through the issuance of
    29     bonds for that purpose, with the approval of the qualified
    30     electors of this Commonwealth.
    19890H1932B2835                  - 2 -

     1     The General Assembly of the Commonwealth of Pennsylvania
     2  hereby enacts as follows:
     3     Section 1.  Section 201 of the act of April 9, 1929 (P.L.177,
     4  No.175), known as The Administrative Code of 1929, amended
     5  December 30, 1984 (P.L.1299, No.145) and repealed in part May
     6  26, 1988 (P.L.414, No.72), is amended to read:
     7     Section 201.  Executive Officers, Administrative Departments
     8  and Independent Administrative Boards and Commissions.--The
     9  executive and administrative work of this Commonwealth shall be
    10  performed by the Executive Department, consisting of the
    11  Governor, Lieutenant Governor, Secretary of the Commonwealth,
    12  Attorney General, Auditor General, State Treasurer, and
    13  Secretary of Education; by the Executive Board, and the
    14  Pennsylvania State Police; by the following administrative
    15  departments: Department of State, Office of Attorney General,
    16  Department of Corrections, Department of the Auditor General,
    17  Treasury Department, Department of Education, Department of
    18  Military Affairs, Insurance Department, Department of Banking,
    19  Department of Agriculture, Department of Transportation,
    20  Department of Health, Department of Labor and Industry,
    21  Department of Aging, Department of Public Welfare, Department of
    22  General Services, Department of Revenue, Department of Commerce,
    23  Department of Community Affairs and Housing and Department of
    24  Environmental Resources; and by the following independent
    25  administrative boards and commissions: Pennsylvania Game
    26  Commission, Pennsylvania Fish Commission, State Civil Service
    27  Commission, Pennsylvania Public Utility Commission and the
    28  Pennsylvania Securities Commission.
    29     All of the provisions of this act, which apply generally to
    30  administrative departments, or generally except to the
    19890H1932B2835                  - 3 -

     1  Department of the Auditor General, the Treasury Department and
     2  the Office of Attorney General, shall apply to the Executive
     3  Board and to the Pennsylvania State Police.
     4     Section 2.  Sections 206 and 207.1(d)(1) of the act, amended
     5  December 30, 1984 (P.L.1299, No.245), are amended to read:
     6     Section 206.  Department Heads.--Each administrative
     7  department shall have as its head an officer who shall, either
     8  personally, by deputy, or by the duly authorized agent or
     9  employe of the department, and subject at all times to the
    10  provisions of this act, exercise the powers and perform the
    11  duties by law vested in and imposed upon the department.
    12     The following officers shall be the heads of the
    13  administrative departments following their respective titles:
    14     Secretary of the Commonwealth, of the Department of State;
    15     Auditor General, of the Department of the Auditor General;
    16     State Treasurer, of the Treasury Department;
    17     Attorney General, of the Office of Attorney General;
    18     Secretary of Education, of the Department of Education;
    19     Adjutant General, of the Department of Military Affairs;
    20     Insurance Commissioner, of the Insurance Department;
    21     Secretary of Banking, of the Department of Banking;
    22     Secretary of Agriculture, of the Department of Agriculture;
    23     Secretary of Transportation, of the Department of
    24         Transportation;
    25     Secretary of Health, of the Department of Health;
    26     Secretary of Labor and Industry, of the Department of Labor
    27         and Industry;
    28     Secretary of Aging, of the Department of Aging;
    29     Secretary of Public Welfare, of the Department of Public
    30         Welfare;
    19890H1932B2835                  - 4 -

     1     Secretary of Revenue, of the Department of Revenue;
     2     Secretary of Commerce, of the Department of Commerce;
     3     Secretary of Community Affairs and Housing, of the
     4         Department of Community Affairs and Housing;
     5     Secretary of Environmental Resources, of the Department of
     6         Environmental Resources;
     7     Secretary of General Services, of the Department of General
     8         Services;
     9     Secretary of Corrections, of the Department of Corrections.
    10     Section 207.1.  Gubernatorial Appointments.--* * *
    11     (d)  The Governor shall nominate in accordance with the
    12  provisions of the Constitution of the Commonwealth of
    13  Pennsylvania and, by and with the advice and consent of a
    14  majority of the members elected to the Senate appoint persons to
    15  fill the following positions:
    16     (1)  The Secretary of Education, the Secretary of the
    17  Commonwealth, the Adjutant General, the Insurance Commissioner,
    18  the Secretary of Banking, the Secretary of Agriculture, the
    19  Secretary of Transportation, the Secretary of Health, the
    20  Commissioner of the State Police, the Secretary of Corrections,
    21  the Secretary of Labor and Industry, the Secretary of Aging, the
    22  Secretary of Public Welfare, the Secretary of General Services,
    23  the Secretary of Revenue, the Secretary of Commerce, the
    24  Secretary of Community Affairs and Housing and the Secretary of
    25  Environmental Resources.
    26     * * *
    27     Section 3.  The article heading of Article XXV-C of the act,
    28  added February 1, 1966 (1965 P.L.1849, No.582), is amended to
    29  read:
    30                           ARTICLE XXV-C
    19890H1932B2835                  - 5 -

     1               POWERS AND DUTIES OF THE DEPARTMENT OF
     2                 COMMUNITY AFFAIRS AND HOUSING, ITS
     3             DEPARTMENTAL BOARDS, BUREAUS AND AGENCIES
     4     Section 4.  Section 2501-C of the act, added February 1, 1966
     5  (1965 P.L.1849, No.582) and March 21, 1970 (P.L.198, No.78), is
     6  amended to read:
     7     Section 2501-C.  Powers and Duties in General.--The
     8  Department of Community Affairs and Housing shall have the
     9  power, and its duties shall be:
    10     (a)  To coordinate the many programs of grants and subsidies
    11  paid to political subdivisions by various agencies of State and
    12  Federal government.
    13     (a.1)  To designate a Deputy Secretary for Housing within the
    14  Department of Community Affairs and Housing, who will be
    15  responsible for developing and coordinating the Commonwealth's
    16  housing policy.
    17     (b)  Provide for a central clearing house for information
    18  concerning local government problems between local governments
    19  and the various State agencies; and to direct inquiries about
    20  specific problems of local government to the proper State
    21  agencies for solution.
    22     (c)  Maintain close contact with all local governments to
    23  help them improve their administrative methods and to foster
    24  better municipal government and development.
    25     (d)  To review State policy and Federal programs with respect
    26  to major local governmental, metropolitan and area problems,
    27  including housing; and to determine their impact on local units
    28  of government as they pertain to community affairs.
    29     (e)  To conduct general research for various units of local
    30  government on problems affecting community affairs in the field
    19890H1932B2835                  - 6 -

     1  of municipal administrative management, comprehensive planning,
     2  municipal forms of government, State-local relationships, fiscal
     3  procedures and generally to do any and all things necessary as
     4  an aid to better local and area government and community
     5  development, including rendering assistance in the development
     6  of local housing programs; and upon request of a specific
     7  political subdivision to conduct under contract mutually agreed
     8  upon, extensive and continuous research on general problems of
     9  local and urban government and analysis of specific problems of
    10  the political subdivision.
    11     (f)  Provide direct consultive services to political
    12  subdivisions upon requests and staff services to special
    13  commissions, or the Governor, or the Legislature as directed.
    14     (g)  Provide technical assistance and research to political
    15  subdivisions participating in various operational programs
    16  affecting political subdivisions in the State.
    17     (h)  To coordinate and wherever provided by law to supervise
    18  or administer the various programs of State and Federal
    19  assistance and grants, including but not limited to housing,
    20  redevelopment, urban renewal, urban planning assistance, Project
    21  70, area development, revitalization of central city cores, mass
    22  transportation, river basin studies, port development, air and
    23  water pollution, land and soil conservation, economic
    24  opportunity, and public works and community facilities and
    25  Appalachian assistance; and to furnish comprehensive planning
    26  and technical assistance on any program set forth in this
    27  subsection (h).
    28     (i)  To furnish assistance to political subdivisions in the
    29  preparation of and advice on enforcement of codes and
    30  ordinances.
    19890H1932B2835                  - 7 -

     1     (j)  To aid in the preparation of and to distribute
     2  handbooks, research, financial and other reports derived from
     3  the activities of the department.
     4     (k)  To generally do any and all things necessary to make
     5  this act effective.
     6     (l)  Subject to the limitations of this act and of law, the
     7  Secretary of Community Affairs and Housing shall, from time to
     8  time, establish, rules and regulations to better carry this act
     9  into effect.
    10     (m)  To make grants to any two or more counties, cities,
    11  boroughs, incorporated towns, townships, or any other similar
    12  general purpose unit of government which shall hereafter be
    13  created by the General Assembly, or to any body which is
    14  authorized to act in behalf of two or more units of government,
    15  for the purpose of assisting them in acting in concert in the
    16  performance of any local governmental function or functions, or
    17  for the purpose of conducting studies and investigations to
    18  determine the feasibility and desirability of acting in concert
    19  in the performance of local governmental functions.
    20     Section 5.  The act is amended by adding an article to read:
    21                           ARTICLE XXV-D
    22                              HOUSING
    23     Section 2501-D.  Definitions.--As used in this article:
    24     "Agency" means the Pennsylvania Housing Finance Agency.
    25     "Board" means the Affordable Housing Trust Fund Board.
    26     "Bonds" means the general obligation bonds of the
    27  Commonwealth.
    28     "Council" means the Pennsylvania Housing Council created
    29  under this article.
    30     "Department" means the Department of Community Affairs and
    19890H1932B2835                  - 8 -

     1  Housing.
     2     "Deputy secretary" means the Deputy Secretary for Housing of
     3  the Department of Community Affairs and Housing.
     4     "Low-income and moderate-income households" or "lower-income
     5  household" means a household having an income equal to or less
     6  than the lower-income limits established by the Department of
     7  Housing and Urban Development under section 8 of the Housing and
     8  Community Development Act of 1974 (42 U.S.C. § 5301 et seq.).
     9  The method for determining income under the section 8 Housing
    10  Assistance Payments program need not be used for this purpose.
    11     "Low-income household" means a household having an income
    12  equal to or less than the very low-income limit established by
    13  the Department of Housing and Urban Development under section 8
    14  of the Housing and Community Development Act of 1974 (42 U.S.C.
    15  § 5301 et seq.). The method for determining income under the
    16  section 8 Housing Assistance Payments program need not be used
    17  for this purpose.
    18     "Low-income persons or families" and "moderate-income persons
    19  or families" means persons and families who cannot afford to pay
    20  the amounts at which private enterprise, without the assistance
    21  of this act, is providing a substantial supply of decent, safe
    22  and sanitary housing. The income limits for the admission of
    23  such persons and families to projects shall be those established
    24  pursuant to the rules and regulations established by the
    25  Department of Community Affairs and Housing in conjunction with
    26  the Pennsylvania Housing Council.
    27     "Moderate income household" means a household having an
    28  income equal to or less than the section 8 lower-income limit
    29  and greater than the very low-income limit established by the
    30  Department of Housing and Urban Development under section 8 of
    19890H1932B2835                  - 9 -

     1  the Housing and Community Development Act of 1974 (42 U.S.C. §
     2  5301 et seq.). The method for determining income under the
     3  section 8 Housing Assistance Payments program need not be used
     4  for this purpose.
     5     "Qualified elector" means any person who shall possess all of
     6  the qualifications for voting now or hereafter prescribed by the
     7  Constitution of this Commonwealth, or who, being otherwise
     8  qualified by continued residence in his or her election
     9  district, shall obtain such qualifications before the next
    10  ensuing election.
    11     "Secretary" means the Secretary of Community Affairs and
    12  Housing.
    13     "Trust fund" means the Affordable Housing Trust Fund created
    14  under this article.
    15     Section 2502-D.  The Pennsylvania Housing Council.--(a)
    16  There is hereby established an advisory body to be known as the
    17  Pennsylvania Housing Council. This council shall consist of
    18  seventeen members as follows:
    19     (1)  Two members of the Senate, one appointed by the
    20  President pro tempore and the other by the Minority Leader.
    21     (2)  Two members of the House of Representatives, one
    22  appointed by the Speaker and the other by the Minority Leader.
    23     (3)  The remaining thirteen members shall be appointed by the
    24  Governor as follows:
    25     (i)  A for-profit home builder or developer;
    26     (ii)  A member of an independent non-profit organization
    27  involved in developing housing for low and moderate income
    28  people;
    29     (iii)  A member of a housing co-operative association;
    30     (iv)  A member of the Board of the Pennsylvania Housing
    19890H1932B2835                 - 10 -

     1  Finance Agency;
     2     (v)  A representative of a municipal housing or redevelopment
     3  authority;
     4     (vi)  A representative of the banking industry;
     5     (vii)  A representative of the savings and loan industry;
     6     (viii)  A member of a non-profit organization representing a
     7  group facing special barriers to decent and affordable housing,
     8  such as the elderly, victims of racial discrimination, the
     9  physically challenged, the mentally ill or mentally retarded;
    10     (ix)  A representative of owners of residential multi-family
    11  dwellings;
    12     (x)  A representative of an association of low-income and
    13  moderate-income tenants;
    14     (xi)  A representative of an organization of mobile home park
    15  owners;
    16     (xii)  A representative of an organization of mobile home
    17  park tenants; and
    18     (xiii)  A representative from organized labor.
    19     (4)  The United States Department of Housing and Urban
    20  Development shall be invited to send a representative to attend
    21  all council meetings.
    22     (b)  Gubernatorial appointments shall be made from a list
    23  supplied by each specified organization. It is incumbent upon
    24  each organization to consult with and provide a list which
    25  reflects the input of other equivalent organizations
    26  representing smaller interests. The Governor shall have the
    27  discretion to request additions to the list originally
    28  submitted. Additional names shall be provided no later than
    29  fifteen days after such request. Appointments shall be made by
    30  the Governor no later than ninety days after receipt of the
    19890H1932B2835                 - 11 -

     1  original list. If, for any reason, any specified organization
     2  supplying a list ceases to exist, the Governor shall specify a
     3  new equivalent organization to fulfill the responsibilities of
     4  this act.
     5     (c)  In making appointments to the council, the Governor, the
     6  President pro tempore and Minority Leader of the Senate and the
     7  Speaker and Minority Leader of the House of Representatives
     8  shall make every effort to ensure geographic and racial
     9  diversity among council members.
    10     (d)  The members shall annually elect, by a majority vote of
    11  the members, a chairperson of the council and other such
    12  officers as they deem appropriate from among the members of the
    13  council.
    14     (e)  Nine members shall constitute a quorum for the
    15  transaction of any business, and the act by the majority of
    16  members present at any meeting in which there is a quorum shall
    17  be deemed to be the act of the council.
    18     (f)  All meetings of the council shall be advertised and
    19  conducted pursuant to the act of July 3, 1986 (P.L.388, No.84),
    20  known as the "Sunshine Act," unless otherwise provided in this
    21  section.
    22     (g)  The council shall meet at least four times a year, or as
    23  necessary, and may provide for such special meetings as it deems
    24  necessary. Meeting dates shall be set by a majority vote of the
    25  members of the council or by the call of the chairperson, upon
    26  seven days' notice to all council members.
    27     (h)  All action taken by the council shall be taken in open
    28  public session, and action of the council shall not be taken
    29  except upon the affirmative vote of the majority of the members
    30  of the council present during meetings at which a quorum is
    19890H1932B2835                 - 12 -

     1  present.
     2     (i)  Only the members of the Senate and House of
     3  Representatives appointed to the council may designate other
     4  persons to attend council meetings in their places. Such
     5  designees shall be considered as council members for the
     6  purposes of establishing a quorum and voting. Any other council
     7  member who fails to attend three consecutive meetings shall
     8  forfeit his or her seat, unless the chairperson, upon written
     9  request of the member, finds that the member should be excused
    10  from attending a meeting because of illness or death of a family
    11  member.
    12     (j)  The council may adopt such bylaws, not inconsistent with
    13  this act, as it deems advisable.
    14     (k)  The members of the council shall not receive a salary or
    15  per diem allowance for serving as members of the council but
    16  shall be reimbursed for actual and necessary expenses incurred
    17  in the performance of their duties. Said expenses may include
    18  reimbursement of travel and living expenses while engaged in
    19  council business.
    20     (l)  Each council member shall serve at the pleasure of the
    21  appointing authority or until a successor is appointed.
    22  Vacancies on the council shall be filled in the same manner in
    23  which the original appointments were made.
    24     (m)  Within sixty days after the effective date of this
    25  section, each organization or individual required to submit a
    26  list of recommended persons to the Governor shall submit the
    27  list.
    28     (n)  Within ninety days of the effective date of this
    29  section, the Governor, the President pro tempore and the
    30  Minority Leader of the Senate and the Speaker and the Minority
    19890H1932B2835                 - 13 -

     1  Leader of the House of Representatives shall make all of the
     2  appointments called for in this section, and the council shall
     3  begin operations immediately following these appointments.
     4     (o)  Should any organization or individual fail to submit a
     5  list of recommended persons as required under this section
     6  within the time limits prescribed, the Governor shall appoint as
     7  many acting council members as required until such time as the
     8  list of recommended persons is submitted by the original
     9  organization.
    10     Section 2503-D.  Powers and Duties of Council.--(a)  The
    11  council shall review all the housing policies and programs of
    12  the Commonwealth and make appropriate recommendations for the
    13  revision, modification and codification thereof.
    14     (b)  The council shall consider, study and review the work of
    15  the department that pertains to housing, and for this purpose,
    16  the council shall have access to all books, papers, documents
    17  and records pertaining or belonging to the department.
    18     (c)  The council shall advise the department, on request, and
    19  shall make recommendations upon its initiative, for the
    20  improvement of work of the department relating to housing.
    21     (d)  The council shall develop recommendations on the role to
    22  be played by the private sector, both profit and nonprofit, in
    23  developing decent and affordable housing and what State
    24  assistance is needed to help the private sector reach this goal
    25  and, specifically, evaluate and make recommendations regarding
    26  the act of November 29, 1967 (P.L.636, No.292), known as the
    27  "Neighborhood Assistance Act."
    28     (e)  The council shall develop recommendations regarding the
    29  most effective means of meeting the housing needs of populations
    30  facing special barriers to decent and affordable housing, such
    19890H1932B2835                 - 14 -

     1  as the elderly, the handicapped, the developmentally disabled,
     2  victims of racial discrimination, the mentally ill and the
     3  mentally retarded.
     4     (f)  The council shall develop recommendations aimed at
     5  reconciling the need for affordable housing while protecting the
     6  need for communities to control land use.
     7     (g)  In developing recommendations, the council shall
     8  emphasize public-private, profit-nonprofit and Federal-State-
     9  local cooperative efforts.
    10     (h)  The council shall compile the proposed recommendations
    11  under subsections (a) through (g), and make them available to
    12  all interested parties, whose input the council shall solicit
    13  through public hearings and such other means as the council
    14  deems appropriate.
    15     (i)  The council shall have the power to employ and fix the
    16  compensation of such experts, stenographers and assistants as
    17  may be deemed necessary to carry out the work of the council,
    18  but due diligence shall be exercised by the council to enlist
    19  such voluntary assistance as may be available from citizens,
    20  research organizations, and other agencies in Pennsylvania or
    21  elsewhere, generally recognized as qualified to aid the council.
    22     (j)  Following receipt and consideration of public input on
    23  the proposed recommendations, the council shall draft and
    24  submit, annually, to the Governor and members of the General
    25  Assembly, a report setting out the council's findings and
    26  recommendations, along with any program designs, policy
    27  initiatives and legislative proposals the council deems
    28  appropriate.
    29     (k)  Following submission of the annual report, the council
    30  shall hold special sessions for members of the General Assembly
    19890H1932B2835                 - 15 -

     1  and the Governor's Office to present the findings and
     2  recommendations of the council. In addition, the council shall
     3  provide a forum where members of the General Assembly can
     4  jointly develop legislative proposals, and shall facilitate
     5  discussions between the members of the General Assembly and the
     6  Governor's Office on legislative and administrative proposals.
     7     (l)  The department shall provide administrative staff
     8  support to the council as required.
     9     Section 2504-D.  Affordable Housing Trust Fund.--(a)  The
    10  question of incurring indebtedness in the amount of fifty         <--
    11  million dollars ($50,000,000) ONE HUNDRED MILLION DOLLARS         <--
    12  ($100,000,000) for the purpose of providing low-interest loans
    13  for housing programs for the benefit of low-income and moderate-
    14  income persons and families, shall be submitted to the electors
    15  at the next municipal, primary or general election following
    16  enactment of this act. The Secretary of the Commonwealth shall
    17  certify the form of the question to the county boards of
    18  elections.
    19     (b)  In addition to proceeds from the issuance of bonds, the
    20  fund may also be the recipient of grants-in-aid, gifts,
    21  donations, legacies or usages of money made or extended by
    22  individuals, organizations, public or private corporations,
    23  departments or instrumentalities of the Federal Government or
    24  the Commonwealth.
    25     (c)  Interest on issued bonds and costs associated with
    26  mortgage defaults shall be paid from the Commonwealth General
    27  Fund. Repayment of principal and interest on home mortgages
    28  shall be utilized to satisfy principal payments on the bonds as
    29  well as incremental growth of the fund.
    30     Section 2505-D.  Affordable Housing Trust Fund Board.--The
    19890H1932B2835                 - 16 -

     1  Affordable Housing Trust Fund Board is created within the
     2  Housing Finance Agency. The board shall administer the
     3  Affordable Housing Trust Fund.
     4     Section 2506-D.  Board Membership.--(a)  The board shall
     5  consist of seventeen voting members as follows:
     6     (1)  The Secretary of Community Affairs and Housing.
     7     (2)  The Secretary of the Department of Public Welfare.
     8     (3)  One member appointed by the President pro tempore of the
     9  Senate.
    10     (4)  One member appointed by the Minority Leader of the
    11  Senate.
    12     (5)  One member appointed by the Speaker of the House of
    13  Representatives.
    14     (6)  One member appointed by the Minority Leader of the House
    15  of Representatives.
    16     (7)  The State Treasurer.
    17     (8)  The remaining ten members shall be appointed by the
    18  Governor as follows:
    19     (i)  A member of the Board of the Pennsylvania Housing
    20  Finance Agency;
    21     (ii)  A member of the Pennsylvania Builder's Association;
    22     (iii)  A representative of the savings and loan industry;
    23     (iv)  A representative of the commercial banking industry;
    24     (v)  A member of a housing co-operative association;
    25     (vi)  A representative from organized labor;
    26     (vii)  A representative of the Low-Income Housing Coalition;
    27     (viii)  A representative from Neighborhood Housing Services;
    28     (ix)  A representative from a redevelopment authority; and
    29     (x)  A representative of the Homeless Coalition.
    30     (9)  The United States Department of Housing and Urban
    19890H1932B2835                 - 17 -

     1  Development and the Federal Home Loan Bank Board shall each be
     2  invited to attend all board meetings.
     3     Section 2507-D.  Term of Office.--All appointed board members
     4  shall serve at the pleasure of the appointing authority or until
     5  a successor is named. Vacancies on the board shall be filled in
     6  the same manner in which the original appointments were made.
     7     Section 2508-D.  Officers and Rules.--The board shall elect a
     8  chairperson every two years from among the nongovernment members
     9  and may elect other officers and establish committees as it
    10  deems necessary and has provided for in the regulations it
    11  promulgates. Business transacted by the board shall be conducted
    12  in accordance with the act of July 3, 1986 (P.L.388, No.84),
    13  known as the "Sunshine Act."
    14     Section 2509-D.  Meetings.--The board shall meet not less
    15  than four times annually and as often as is necessary for the
    16  transaction of business.
    17     Section 2510-D.  Compensation.--Board members shall serve on
    18  the board without compensation or per diem allowance but shall
    19  be reimbursed for actual and reasonable expenses incurred in the
    20  performance of their official duties. Reimbursements shall be
    21  allocated from funds available from the trust fund under this
    22  act.
    23     Section 2511-D.  Powers and Duties of the Board.--(a)  The
    24  board has the following powers and duties:
    25     (1)  Develop a plan for the availability and coordination of
    26  programs and for the distribution of funds from the trust fund.
    27  This plan is to be developed in coordination with the efforts of
    28  the department, the council and the agency.
    29     (2)  Provide for the coordination and exchange of information
    30  on the establishment and maintenance of programs.
    19890H1932B2835                 - 18 -

     1     (3)  Promulgate regulations providing for the criteria and
     2  the terms for the lending of trust fund money to eligible
     3  programs and provide for publicizing such criteria and terms.
     4     (4)  Publicize programs in order to solicit funding from
     5  private sources.
     6     (5)  Make loans of trust fund money and, through the agency
     7  administer and monitor the expenditure of trust fund money by
     8  eligible programs.
     9     (6)  On or before March 1, the board shall draft and submit a
    10  comprehensive, detailed report on the activities of the previous
    11  year of the trust fund to the Governor, members of the General
    12  Assembly and members of the council.
    13     (7)  Accept grants-in-aid, gifts, donations, legacies or
    14  usages of money made or extended by individuals, organizations,
    15  public or private corporations, departments or instrumentalities
    16  of the Federal Government or this Commonwealth.
    17     (b)  (1)  The board shall endeavor to maintain the lowest
    18  possible mortgage interest rates in line with the concept of
    19  providing affordable mortgage to low-income and moderate-income
    20  persons and families.
    21     (2)  Nothing in this article shall preclude the board from     <--
    22  establishing THE BOARD SHALL ESTABLISH a program to aid low-      <--
    23  income and moderate-income persons and families with funds for
    24  down payments, closing costs and mortgage insurance.
    25     SECTION 2512-D.  PENNSYLVANIA HOUSING EQUITY POOL.--(A)  THE   <--
    26  AGENCY SHALL ESTABLISH A PENNSYLVANIA HOUSING EQUITY POOL.
    27     (B)  THE PURPOSE OF THE PENNSYLVANIA HOUSING EQUITY POOL
    28  SHALL BE TO OBTAIN COMMITMENTS TO PURCHASE BY ELIGIBLE
    29  CORPORATIONS ALL OR PORTIONS OF THE COMMONWEALTH'S ANNUAL
    30  ALLOCATION OF LOW-INCOME TAX CREDIT, AS AUTHORIZED BY SECTION 42
    19890H1932B2835                 - 19 -

     1  OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26
     2  U.S.C. § 42).
     3     Section 6.  This act shall take effect in 60 days.


















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