THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DALEY, HESS, THOMAS, LONGIETTI, SIPTROTH, ADOLPH, BEAR, BELFANTI, BEYER, BISHOP, BRENNAN, BUXTON, CALTAGIRONE, CARROLL, CONKLIN, P. COSTA, DEASY, DePASQUALE, DERMODY, DONATUCCI, FABRIZIO, FRANKEL, FREEMAN, GEIST, GEORGE, GIBBONS, GOODMAN, GRUCELA, HALUSKA, HARKINS, HELM, HENNESSEY, HORNAMAN, JOSEPHS, KIRKLAND, KORTZ, KULA, LENTZ, MANDERINO, MANN, MARSHALL, McCALL, MELIO, MICOZZIE, MILLER, M. O'BRIEN, PASHINSKI, PAYTON, PRESTON, READSHAW, REICHLEY, ROSS, SANTONI, SCAVELLO, SOLOBAY, STABACK, WALKO, WHITE, YUDICHAK, MUNDY, PHILLIPS, DeLUCA, KILLION, JOHNSON, HARHAI, PETRARCA, GINGRICH, QUINN, MATZIE, PARKER, K. SMITH, MAHONEY, BRIGGS, CLYMER, MURT, HOUGHTON, WANSACZ, DeWEESE, McGEEHAN, MIRABITO, SAMUELSON, HARHART AND D. COSTA, JANUARY 30, 2009

AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, JANUARY 25, 2010   

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," providing for

the Pennsylvania Housing Affordability and Rehabilitation

Enhancement Program; and establishing the Housing

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Affordability and Rehabilitation Enhancement Fund.

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

PENNSYLVANIA HOUSING AFFORDABILITY AND REHABILITATION

ENHANCEMENT 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:

"Account Fund."  The Housing Affordability and Rehabilitation

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Enhancement Account Fund established in section 406-D.

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"Persons with disabilities."  Individuals with physical,

sensory or mental impairment that substantially limits one or

more major life activities.

"Program."  The Pennsylvania Housing Affordability and

Rehabilitation Enhancement Program established in section 402-D.

Section 402-D.  Establishment.

There is established the Pennsylvania Housing Affordability

and Rehabilitation Enhancement Program to be administered by the

agency. The program is dependent upon funds available in the

account fund.

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Section 403-D.  Program.

(a)  Project types.--The program may provide funding for the

following:

(1)  Projects to provide safe and sanitary dwellings for

sale or rent to low-income and moderate-income individuals or

families.

(2)  Projects to increase the availability or quality of

housing for elderly persons.

(3)  Projects to increase the availability or quality of

accessible housing for persons with disabilities.

(4)  Projects to prevent or reduce homelessness.

(5)  Projects to encourage the development and

rehabilitation of distressed neighborhoods.

(6)  Projects to provide mortgage or rental assistance,

including housing counseling, foreclosure prevention and

refinancing products.

(7)  Projects to provide loans, low-interest loans or

grants to low-income and moderate-income individuals or

families who are owner-occupants for repairs and improvement

to sustain or increase the conditions of the home.

(b)  Purposes.--Money for projects under subsection (a) may

be used for the following:

(1)  Predevelopment activities, including title searches,

market studies, project planning, architectural services,

legal and engineering studies and related fees.

(2)  Acquisition and disposition of real or personal

property.

(3)  Site preparation, including demolition of existing

structures and remediation of environmental conditions.

(4)  Construction, reconstruction, alteration and repair

of existing structures, improvements and infrastructure.

(c)  Matching funds.--Funds appropriated to the program may

be used for a set-aside for matching funds for counties that

have established optional county affordable housing funds under

53 Pa.C.S. Ch. 60 (relating to optional affordable housing

funding). In order to receive matching funds under this

subsection, a county must annually report detailed information

as required by the agency on the use of the funds for county

projects. The information shall be included in the agency's

report under section 405-D.

(d)  Limitation.--Funds appropriated to the program shall not

supplant existing resources dedicated to affordable housing

activities. Funds appropriated to the program may be used to

support, expand and enhance other programs administered by the

agency.

(e)  Preferences.--The agency may adopt written policies to

give preference to projects that meet specific goals, such as

energy efficiency, green building standards and comprehensive

design strategies, or that target identified needs.

(f)  Considerations.--The agency shall take into

consideration geographical distribution of funds appropriated to

the program to ensure that all areas of this Commonwealth

participate to the greatest extent possible.

(g)  Funding for housing program.--The agency shall make

available 30% of the funds appropriated under this article for

housing programs benefiting households with household incomes

which are less than 50% of the median area income.

Section 404-D.  Plan.

(a)  General rule.--Within 90 days of the effective date of

this section and by March 15 of each year thereafter, the agency

shall adopt a plan which establishes the agency's priorities for

that year and sets forth the method in which the funds will be

distributed that year.

(b)  Publication.--The proposed plan, including a comment

response document, shall be submitted to the chair and minority

chair of the Urban Affairs and Housing Committee in the Senate

and the chair and minority chair of the Commerce Committee in

the House of Representatives, published in the Pennsylvania

Bulletin and published on the agency's Internet website for

public comment no later than 45 days prior to its adoption under

subsection (a). All comments submitted to the agency in writing

shall be public records and shall be incorporated into the

comment response document.

Section 405-D.  Reporting.

Within 90 days following the close of the first calendar year

after the effective date of this article and by July 1 of every

year thereafter, the agency shall issue a report containing a

financial statement, an itemized list of projects funded and a

description of other expenditures in the preceding calendar

year. The report shall be submitted to the Governor, the Auditor

General and the chair and minority chair of the Urban Affairs

and Housing Committee in the Senate and the chair and minority

chair of the Commerce Committee in the House of Representatives

and published on the agency's Internet website. The report shall

be a public record.

Section 406-D.  Account Fund.

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(a)  Establishment.--There is established in the State

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Treasury a restricted receipt account known as the Housing

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Affordability and Rehabilitation Enhancement Account Fund.

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Interest and any other earnings in the account fund shall remain

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in the account fund. All appropriations and other funds

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allocated to the program shall be deposited in the account and

shall be moneys allocated to the program shall be deposited in

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the fund. Moneys in the fund and the interest accruing thereon

are hereby appropriated to the agency on a continuing basis to

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carry out the provisions of this article.

(b)  Federal allocations.--All allocations distributed to and

grants received by this Commonwealth from the United States

Department of Housing and Urban Development pursuant to the

Housing Trust Fund, established in section 1338 of the Housing

and Economic Recovery Act of 2008 (Public Law 110-289, 122 Stat.

2654), are deposited to the fund to be administered by the

Pennsylvania Housing Finance Agency consistent with this article

and applicable Federal law.

Section 407-D.  (Reserved). Funding.

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Implementation of this article is contingent upon sufficient

funds being appropriated by the General Assembly or being

received from the Federal Government to carry out the purposes

of this article.

Section 2.  This act shall take effect in 90 days.