Regular Session 2017-2018 House Bill 1223 P.N. 1451

PRINTER'S NO. 1451

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1223

Session of

2017

INTRODUCED BY DAWKINS, YOUNGBLOOD, DAVIS, KINSEY, DRISCOLL,

SOLOMON, D. COSTA, V. BROWN, ROEBUCK AND McCLINTON,

APRIL 17, 2017

REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 17, 2017

AN ACT

Establishing the First Home Grants for Grads Program; and

imposing powers and duties on the Pennsylvania Housing

Finance Agency.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the First Home

Grants for Grads Program Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Agency." The Pennsylvania Housing Finance Agency.

"First home" or "home." The first residential real property

located in this Commonwealth to be purchased by a recipient who

has not owned or had an ownership interest in a principal

residence in the three years prior to the purchase.

"Graduate." An individual who has graduated from an

institution of higher education and who is eligible under this

act to apply for a grant, financial assistance or down payment

assistance awarded under the program.

"Institution of higher education." A State-related

university, a university within the State System of Higher

Education and a community college operating under Article XIX-A

of the act of March 10, 1949 (P.L.30, No.14), known as the

Public School Code of 1949.

"Program." The First Home Grants for Grads Program

established under this act.

"Recipient." An individual who has been awarded a grant or

has received financial assistance or down payment assistance

under the program.

"Resident." Any of the following:

(1) An individual who was a resident of this

Commonwealth at the time of the individual's graduation from

high school in this Commonwealth and who is a resident of

this Commonwealth at the time of applying for the program.

(2) An individual who was a resident of this

Commonwealth at the time of completing, through the twelfth-

grade level, a home-study program approved by the State Board

of Education and who is a resident of this Commonwealth at

the time of applying for the program.

(3) An individual whose parent was a resident of this

Commonwealth at the time of the individual's graduation from

high school and who graduated from:

(i) an out-of-State high school that was accredited

by a regional accrediting organization recognized by the

United States Department of Education and met standards

at least equivalent to those adopted by the State Board

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of Education for approval of private schools in this

Commonwealth; or

(ii) a high school approved by the United States

Department of Defense.

Section 3. First Home Grants for Grads Program.

(a) Establishment.--The First Home Grants for Grads Program

is established for the purpose of providing grants or other

financial assistance or down payment assistance to residents who

have received an associate, baccalaureate, master's, doctoral or

other postgraduate degree. The grants or assistance shall be

used by a recipient to pay for the down payment or closing costs

on the purchase of a first home.

(b) Administration.--The program shall be administered by

the agency using money available to it.

(1) A graduate is eligible to participate in the program

if the graduate:

(i) Is a resident who has received an associate,

baccalaureate, master's, doctoral or other postgraduate

degree from an institution of higher education within the

18 months immediately preceding the date of application

for the program.

(ii) Is able to provide to the agency evidence

documenting the graduate's residency and documenting

graduation from a high school and an institution of

higher education.

(iii) Intends to live and work in this Commonwealth

for at least five years after the graduate's graduation

or completion of a degree described in this section.

(iv) Intends to purchase a first home in this

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Commonwealth.

(2) A graduate who is married to an individual who has

previously received a grant or financial assistance or down

payment assistance under the program is ineligible to apply

for a grant or assistance under this section.

(d) Ineligibility.--A graduate who has been found by the

Commonwealth to be delinquent in the payment of individual

income taxes is ineligible to receive a grant or other

assistance under the program.

(e) Form of assistance.--

(1) A graduate who is eligible for the program shall

receive down payment assistance and a reduction in the

interest rate of the mortgage offered by the agency.

(2) The down payment assistance shall be provided to the

recipient when the recipient obtains a qualifying mortgage

loan through a lender approved by the agency.

Section 4. Down payment lien.

(a) General rule.--At the time a first home is purchased

under the program, the agency shall secure the amount of the

down payment assistance by a lien on the home for a period of

five years. The lien shall attach, and may be perfected,

collected and enforced in the same manner as a mortgage lien on

the home, and shall otherwise have the same force and effect as

a mortgage lien, except that it shall be subordinate to a

mortgage lien securing money loaned by a financial institution

for the purchase of the home.

(b) Enforcement.--If the agency finds that a recipient

failed to comply with requirements of the program or otherwise

used fraudulent information to obtain down payment assistance,

the agency shall enforce the lien.

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(1) If a recipient becomes a resident of another state

and does not reside at least five years in a first home

purchased with down payment assistance awarded under the

program, the amount of the lien under this section that may

be collected shall be determined as follows:

Months resided in

first home

Collectable amount as percent of

down payment assistance

Less than 12 months 100%

12 months and a day

to 24 months

80%

24 months and a day

to 36 months

60%

36 months and a day

to 48 months

40%

48 months and a day

to 60 months

20%

(2) The lien created under this section shall be

extinguished upon collection under this act.

(3) A lien created under this section shall be

extinguished if the recipient, within the five-year period,

moves to another residence located in this Commonwealth.

Section 5. Regulations.

The agency shall promulgate regulations to administer this

act.

Section 6. Effective date.

This act shall take effect in 60 days.

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