PRINTER'S NO. 3966

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2602 Session of 2008


        INTRODUCED BY SIPTROTH, THOMAS, DALEY, SCAVELLO, McGEEHAN,
           ADOLPH, BELFANTI, BENNINGTON, BEYER, BISHOP, BRENNAN, BUXTON,
           CALTAGIRONE, CARROLL, COHEN, COSTA, DeLUCA, DePASQUALE,
           DERMODY, FABRIZIO, FRANKEL, GEORGE, GIBBONS, GOODMAN,
           GRUCELA, HALUSKA, HARHAI, HARHART, HARKINS, HELM, HENNESSEY,
           HORNAMAN, JAMES, JOSEPHS, KILLION, KORTZ, KOTIK, KULA, LENTZ,
           LEVDANSKY, LONGIETTI, MAHONEY, MANDERINO, MARKOSEK, McCALL,
           MELIO, MOYER, MURT, M. O'BRIEN, PARKER, PASHINSKI, PAYNE,
           PAYTON, PETRONE, PHILLIPS, PRESTON, RAMALEY, READSHAW,
           SANTONI, SAYLOR, SEIP, SHIMKUS, SOLOBAY, STABACK, J. TAYLOR,
           WALKO, J. WHITE, WOJNAROSKI, YOUNGBLOOD AND YUDICHAK,
           JUNE 17, 2008

        REFERRED TO COMMITTEE ON COMMERCE, JUNE 17, 2008

                                     AN ACT

     1  Amending the act of December 3, 1959 (P.L.1688, No.621),
     2     entitled, as amended, "An act to promote the health, safety
     3     and welfare of the people of the Commonwealth by broadening
     4     the market for housing for persons and families of low and
     5     moderate income and alleviating shortages thereof, and by
     6     assisting in the provision of housing for elderly persons
     7     through the creation of the Pennsylvania Housing Finance
     8     Agency as a public corporation and government
     9     instrumentality; providing for the organization, membership
    10     and administration of the agency, prescribing its general
    11     powers and duties and the manner in which its funds are kept
    12     and audited, empowering the agency to make housing loans to
    13     qualified mortgagors upon the security of insured and
    14     uninsured mortgages, defining qualified mortgagors and
    15     providing for priorities among tenants in certain instances,
    16     prescribing interest rates and other terms of housing loans,
    17     permitting the agency to acquire real or personal property,
    18     permitting the agency to make agreements with financial
    19     institutions and Federal agencies, providing for the purchase
    20     by persons of low and moderate income of housing units, and
    21     approving the sale of housing units, permitting the agency to
    22     sell housing loans, providing for the promulgation of
    23     regulations and forms by the agency, prescribing penalties
    24     for furnishing false information, empowering the agency to


     1     borrow money upon its own credit by the issuance and sale of
     2     bonds and notes and by giving security therefor, permitting
     3     the refunding, redemption and purchase of such obligations by
     4     the agency, prescribing remedies of holders of such bonds and
     5     notes, exempting bonds and notes of the agency, the income
     6     therefrom, and the income and revenues of the agency from
     7     taxation, except transfer, death and gift taxes; making such
     8     bonds and notes legal investments for certain purposes; and
     9     indicating how the act shall become effective," establishing
    10     a foreclosure prevention program; and making an
    11     appropriation.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  The act of December 3, 1959 (P.L.1688, No.621),
    15  known as the Housing Finance Agency Law, is amended by adding an
    16  article to read:
    17                            ARTICLE IV-D
    18                HOME MORTGAGE FORECLOSURE PREVENTION
    19  Section 401-D.  Definitions.
    20     The following words and phrases when used in this article
    21  shall have the meanings given to them in this section unless the
    22  context clearly indicates otherwise:
    23     "Foreclosure Prevention Fund."  The fund created by the
    24  agency to make grants to qualified homeowners in accordance with
    25  the provisions of this article.
    26  Section 402-D.  Home Mortgage Foreclosure Prevention Program.
    27     (a)  Purpose.--The Home Mortgage Foreclosure Prevention
    28  Program is hereby established to enable eligible homeowners to
    29  remove themselves from unaffordable mortgage situations by
    30  either refinancing their mortgage debt with a new mortgage
    31  financed by the agency or arranging an alternative mortgage
    32  repayment plan with the assistance of the agency.
    33     (b)  Refinancing assistance grants.--The agency is authorized
    34  to use funds appropriated for the purposes set forth in this
    35  article to make grants of up to $2,500 to help defray the
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     1  closing costs associated with refinancing a high or adjustable
     2  rate mortgage to a new fixed rate mortgage that is affordable to
     3  the homeowner.
     4     (c)  Eligibility requirements.--The following eligibility
     5  requirements must be met by an applicant in order to be approved
     6  by the agency to participate in the program created in this
     7  article:
     8         (1)  The applicant's current annual household income must
     9     not exceed the income limits of the agency's Keystone Home
    10     Loan Program.
    11         (2)  The home must be located in this Commonwealth and be
    12     a one-family or two-family, owner-occupied structure and the
    13     domicile of the applicants defined in section 13 of the act
    14     of December 31, 1965 (P.L.1257, No.511), known as the Local
    15     Tax Enabling Act.
    16         (3)  The loan being refinanced or which is being assisted
    17     must not have been incurred primarily for business or
    18     commercial purposes.
    19  Section 403-D.  Agency guidelines.
    20     The agency shall publish guidelines in the Pennsylvania
    21  Bulletin to administer the provisions of this article within 90
    22  days of the effective date of this section.
    23  Section 404-D.  Appropriation.
    24     The following shall apply:
    25         (1)  The sum of $10,000,000 is hereby appropriated to the
    26     Pennsylvania Housing Finance Agency from the General Fund for
    27     the purposes set forth in this article. A portion of the
    28     funds appropriated may be used to pay the costs of the
    29     administration of this article, not to exceed 5% of the total
    30     amount appropriated.
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     1         (2)  Any appropriated funds under paragraph (1) not
     2     pledged or expended in accordance with this act by January 1,
     3     2010, shall be transferred to the Pennsylvania Housing
     4     Affordability and Rehabilitation Enhancement Program.
     5     Section 2.  This act shall take effect immediately.

















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