PRIOR PRINTER'S NO. 340 PRINTER'S NO. 1323
No. 337 Session of 1995
INTRODUCED BY JAMES, BATTISTO, PRESTON, KING, SERAFINI, MELIO,
WILLIAMS, JOSEPHS, CARN, STURLA, LAUGHLIN, PETRONE, RIEGER,
DONATUCCI, OLIVER, THOMAS, BISHOP, M. COHEN, RICHARDSON,
ROBINSON, McGEEHAN, COLAIZZO, TRELLO, BELFANTI, KIRKLAND,
LEDERER, COY, CIVERA, BUXTON, STABACK, ROONEY, KUKOVICH,
ITKIN, WASHINGTON, EVANS, J. TAYLOR, PESCI, TIGUE, CURRY,
TRICH, YOUNGBLOOD, MIHALICH, RAMOS AND HORSEY,
JANUARY 26, 1995
AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 15, 1995
AN ACT
1 Allocating a percentage of the net proceeds from all unclaimed
2 funds from sheriffs' sales of residential real property to
3 the Pennsylvania Housing Finance Agency for the purpose of
4 assisting potential home buyers with the financing and
5 purchase of homes at sheriffs' sales.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Sheriffs'
10 Sales Homeownership Assistance Act.
11 Section 2. Declaration of purpose.
12 The General Assembly declares the following to be the
13 purposes of this act:
14 (1) To assist potential homeowners with the financing,
15 purchase and improvement of a home.
16 (2) To recognize that homeownership is a privilege which
1 should not be reserved solely for the wealthy but should be
2 available to working and middle class families who seek the
3 joy and comfort which come with homeownership.
4 (3) To enhance the programs of the Pennsylvania Housing
5 Finance Agency which are geared to WHICH INCLUDE assisting <--
6 families with the purchase of homes.
7 Section 3. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Agency." The Pennsylvania Housing Finance Agency of the
12 Commonwealth.
13 "Fund." The Sheriffs' Sales Homeownership Assistance Fund.
14 "Program." The Sheriffs' Sales Homeownership Assistance
15 Program.
16 "Unclaimed funds." Funds acquired by a sheriff's sale of
17 real property within this Commonwealth exceeding outstanding
18 debt which is left unclaimed by the owner and reverting to the
19 General Fund in accordance with section 1301 et seq. of the act
20 of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.
21 Section 4. Sheriffs' Sales Homeownership Assistance Fund.
22 Fifty percent of all unclaimed funds from the sale of
23 residential real property by sheriffs in this Commonwealth shall
24 be deposited in the Sheriffs' Sales Homeownership Assistance
25 Fund, which is hereby created. Moneys in the fund shall be held
26 in a separate account in the State Treasury and shall be used by
27 the agency for the purpose of assisting potential sheriffs' sale
28 owner-occupied home buyers with the financing, purchase and
29 improvement of a home.
30 Section 5. Sheriffs' Sales Homeownership Program.
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1 The agency shall use moneys in the fund for the Sheriffs'
2 Sales Homeownership Program, which is hereby created. The
3 program will consist of loan guarantees OR OTHER CREDIT <--
4 ENHANCEMENT offered by the agency for the purpose of assisting
5 families in this Commonwealth with the purchase and improvement
6 of homes SOLD at sheriffs' sales. The agency may make advances <--
7 or provide other means of guaranteed payment from the fund to
8 qualified loan organizations LENDERS for the purpose of <--
9 guaranteeing, endorsing or acting as surety on mortgages and
10 home improvement loans on such terms and conditions and
11 according to such regulations as the agency shall prescribe
12 consistent with the purposes of this act.
13 Section 6. Rules and procedures.
14 (a) Regulations.--The agency shall have the authority to
15 promulgate regulations to govern and administer mortgage and
16 home improvement loan guarantees, CREDIT ENHANCEMENT OR HOME <--
17 IMPROVEMENT LOANS from the fund to qualified low-income or
18 moderate-income buyers for the purchase of owner-occupied
19 residential housing at sheriffs' sales or the improvement of
20 owner-occupied residential real property purchased at sheriffs'
21 sales.
22 (b) Distribution of funds.--The agency shall distribute the
23 moneys in the fund in direct proportion to the county of their
24 origin.
25 (c) Mortgage guarantees.--Mortgage guarantees administered
26 under the auspices of the program may not exceed the lesser of
27 actual purchase price or appraised value of the real property.
28 (d) Home improvement LOANS AND loan guarantees.-- <--
29 (1) Home improvement LOANS AND loan guarantees <--
30 administered under the auspices of this program shall be used
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1 solely for structural improvements designed to assure <--
2 compliance with United States Federal Housing Administration
3 standards for safe dwellings or similar regulations
4 promulgated by the agency.
5 (2) Necessary structural improvements shall be <--
6 determined through the inspection of the applicable residence
7 by an inspector qualified by the agency to perform such
8 inspections.
9 (3) Home improvement loan guarantees administered under <--
10 the auspices of this program may not exceed the lesser of at
11 least two competitive bids for structural improvements as
12 determined in paragraph (2).
13 (E) OTHER AGENCY PROGRAMS.--THE AGENCY SHALL ATTEMPT, TO THE <--
14 FULLEST EXTENT POSSIBLE, TO INTEGRATE THIS PROGRAM WITH ITS
15 OTHER HOMEOWNERSHIP PROGRAMS TO ENHANCE THE SUCCESS OF ALL
16 HOMEOWNERSHIP EFFORTS.
17 (F) ADMINISTRATIVE EXPENSE.--INVESTMENT AND INTEREST
18 EARNINGS ON MONEYS IN THE FUND MAY BE USED BY THE AGENCY TO
19 COVER THE ADMINISTRATIVE COSTS OF THE PROGRAM.
20 Section 7. Applicability.
21 This act shall apply to sheriffs' sales of residential real
22 property conducted on or after July 1 of the calendar year
23 following the effective date of this act.
24 Section 8. Effective date.
25 This act shall take effect in 60 days.
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