THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WONDERLING, ROBBINS, STOUT, TOMLINSON, ORIE, LOGAN, FONTANA, KASUNIC, BOSCOLA, GORDNER, RAFFERTY, ALLOWAY, FERLO, ERICKSON, KITCHEN, MUSTO, O'PAKE, COSTA, GREENLEAF, BROWNE, WAUGH, M. WHITE, D. WHITE AND BAKER, MARCH 23, 2009

REFERRED TO URBAN AFFAIRS AND HOUSING, MARCH 23, 2009  

AN ACT

Amending the act of December 3, 1959 (P.L.1688, No.621),

entitled, as amended, "An act to promote the health, safety

and welfare of the people of the Commonwealth by broadening

the market for housing for persons and families of low and

moderate income and alleviating shortages thereof, and by

assisting in the provision of housing for elderly persons

through the creation of the Pennsylvania Housing Finance

Agency as a public corporation and government

instrumentality; providing for the organization, membership

and administration of the agency, prescribing its general

powers and duties and the manner in which its funds are kept

and audited, empowering the agency to make housing loans to

qualified mortgagors upon the security of insured and

uninsured mortgages, defining qualified mortgagors and

providing for priorities among tenants in certain instances,

prescribing interest rates and other terms of housing loans,

permitting the agency to acquire real or personal property,

permitting the agency to make agreements with financial

institutions and Federal agencies, providing for the purchase

by persons of low and moderate income of housing units, and

approving the sale of housing units, permitting the agency to

sell housing loans, providing for the promulgation of

regulations and forms by the agency, prescribing penalties

for furnishing false information, empowering the agency to

borrow money upon its own credit by the issuance and sale of

bonds and notes and by giving security therefor, permitting

the refunding, redemption and purchase of such obligations by

the agency, prescribing remedies of holders of such bonds and

notes, exempting bonds and notes of the agency, the income

therefrom, and the income and revenues of the agency from

taxation, except transfer, death and gift taxes; making such

bonds and notes legal investments for certain purposes; and

indicating how the act shall become effective," establishing

the Firefighter Mortgage Assistance Program.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of December 3, 1959 (P.L.1688, No.621),

known as the Housing Finance Agency Law, is amended by adding an

article to read:

ARTICLE IV-D

FIREFIGHTER MORTGAGE ASSISTANCE PROGRAM

Section 401-D.  Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Applicant."  A firefighter who applies for a grant or loan

under the Firefighters Mortgage Assistance Program established

in section 402-D for the purpose of financing the purchase of

residential property.

"Firefighter."  A person who provides services, without

receipt of remuneration for those services as either of the

following:

(1)  A volunteer member of a fire company, organized and

existing under the laws of this Commonwealth.

(2)  A volunteer member of any fire police unit, rescue

squad, ambulance corps or other like organization affiliated

with one or more fire companies.

The term includes a person who is a member of such a fire

company or affiliated organization and who participates in the

fire service without receipt of remuneration for that

participation.

"Participating municipality."  A city, township, borough or

incorporated town that, by resolution of its legislative body,

elects to participate in the Firefighter Mortgage Assistance

Program established in section 402-D.

"Program."  The Firefighter Mortgage Assistance Program

established under section 402-D.

"Residential property."  A single-family residence or unit

located in a participating municipality.

Section 402-D.  Establishment of program.

The agency shall develop and, in cooperation with

participating municipalities, administer a program, to be known

as the Firefighter Mortgage Assistance Program, to encourage

firefighters to purchase and live in residential property in the

municipalities in which they serve. Under the program, the

agency shall provide grants of up to $5,000 or low-interest

loans to firefighters for the purchase of residential property

in such municipalities, in accordance with the provisions of

this article. The agency shall provide not more than $10,000,000

for the program. With regard to a grant issued under the

program, after each year of service following the purchase of

the home, $1,000 will be credited towards the grant, whereby

after five years, the grant shall be forgiven.

Section 403-D.  Eligibility.

(a)  General rule.--Subject to the provisions of subsection

(b), an applicant who seeks assistance under this article must:

(1)  Be a firefighter.

(2)  Certify intent to use the grant or loan funds in

connection with the purchase of residential property located

in the municipality in which the applicant volunteers.

(3)  Certify intent to own and reside at the residential

property on a permanent and full-time basis for at least five

years.

(b)  Limitation.--No firefighter shall be eligible under this

article for more than one outstanding grant or mortgage loan at

a time, and no person shall be eligible to receive a second

grant or mortgage loan on a residential property already

mortgaged by the firefighter. Preference shall be given in

making grants and loans to volunteer firefighters who are

applying to acquire or construct a first residential property.

Section 404-D.  Enforcement of residency requirement.

The agency may enforce the five-year residency agreement set

forth in section 403-D(a)(3) through the use of restrictive

mortgage covenants, deed restrictions or other penalties deemed

appropriate by the agency to accomplish the legislative purpose

of encouraging firefighters to purchase a residential property

and reside in the municipality in which they volunteer.

Section 405-D.  Occupancy requirement.

(a)  General rule.--A firefighter who receives a grant or

loan under this article shall, within 120 days of the date on

which the grant or loan is made, occupy the residence as the

firefighter's principal dwelling place.

(b)  Effect of resignation and sale.--If a firefighter who

receives a grant resigns from employment, sells or ceases to

occupy the residence as the volunteer firefighter's principal

residence, the amount of the grant remaining unforgiven in

accordance with section 402-D shall be repaid to the agency on

the 120th day following that action.

Section 406-D.  Bonds and notes.

The agency shall borrow money for the operation and

administration of the program by the making of notes and by the

issuance of bonds in accordance with the provisions of Article

V.

Section 407-D.  Regulations.

The agency shall promulgate regulations to carry out the

provisions of this article.

Section 2.  This act shall take effect in 60 days.