SENATE AMENDED

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, D. COSTA, STURLA, M. SMITH, MICCARELLI, WAGNER, BRADFORD, BARBIN, FARRY AND SANTARSIERO, JANUARY 30, 2009

SENATOR YAW, URBAN AFFAIRS AND HOUSING, IN SENATE, AS AMENDED, JUNE 23, 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

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:

"Fund."  The Housing Affordability and Rehabilitation

Enhancement Fund established in section 406-D.

"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.

"Program funds."  The term shall include all allocations

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distributed to and grants received by the 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), and funds from sources other than the

Commonwealth that are provided for the program established under

this article. The term may also include funds specifically

appropriated by the General Assembly for the program established

under this article.

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

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fund shall be dependent on the availability of program funds.

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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 

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Program funds may be used for a set-aside for matching funds for

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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 Program

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funds shall not supplant existing resources dedicated to

affordable housing activities. Funds appropriated to the program 

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Program funds may be used to support, expand and enhance other

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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 program funds

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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 program funds appropriated available under

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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 program funds

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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.  Fund.

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

Treasury the Housing Affordability and Rehabilitation

Enhancement Fund. Interest and any other earnings in the fund 

shall remain in the fund. All moneys allocated program funds

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allocated or appropriated to the program shall be deposited in

the fund. Moneys Program funds in the fund and the interest

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accruing thereon are hereby appropriated to the agency on a

continuing basis to 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.  Funding.

 Implementation of this article is contingent upon sufficient

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funds being received from the Federal Government that are

subsequently deposited in the fund in accordance with section

406-D(b) shall be contingent upon sufficient program funds being

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deposited in the fund in accordance with section 406-D to carry

out the purposes of this article. No Commonwealth funds shall be

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used to implement the purposes of this article. In a year in

which Congress fails to approve Federal funds or there are

insufficient Federal program funds deposited into the fund for

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the purposes outlined in this article, the program shall cease

until sufficient Federal funds are appropriated allocated to the

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Commonwealth, funds are specifically appropriated by the General

Assembly or funds are provided by a source other than the

Commonwealth.

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