Regular Session 2017-2018 House Bill 2107 P.N. 3053

PRINTER'S NO. 3053

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2107

Session of

2018

INTRODUCED BY WHEATLEY, FEBRUARY 28, 2018

REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 28, 2018

AN ACT

Amending the act of December 3, 1959 (P.L.1688, No.621),

entitled "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 Student Loan Home Buy Program; and establishing the

Student Loan Home Buy 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-E

STUDENT LOAN HOME BUY PROGRAM

Section 401-E. 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 Student Loan Home Buy Fund established in

section 404-E.

"Program." The Student Loan Home Buy Program established in

section 402-E.

Section 402-E. Establishment.

There is established the Student Loan Home Buy Program to be

administered by the agency. The program shall be dependent on

the availability of money allocated or appropriated to the

program.

Section 403-E. Program.

(a) Authorization.--The agency may make, participate in

making and undertake a commitment for financial assistance under

the program to a homeowner and make payments on the homeowner's

student loan debt in conjunction with the homeowner obtaining

separate financial assistance from a source other than the

agency for purchasing the homeowner's primary residence.

(b) Financial assistance.--

(1) Financial assistance for the homeowner's student

loan debt under the program shall be:

20180HB2107PN3053 - 2 -

(i) Available for homeowners with a student loan

debt which shall not be less than $1,000 and which shall

not exceed 15% of the home purchase price.

(ii) Provided in the form of a 0% loan that is

forgiven at a rate of 20% annually for five years. If the

homeowner sells or refinances within the first five years

of receiving financial assistance under the program, the

homeowner shall pay the remaining balance of the

financial assistance back to the agency.

(2) The board shall determine the terms and

qualifications for financial assistance under the program.

Section 404-E. Fund.

(a) Establishment.--The Student Loan Home Buy Fund is

established in the State Treasury.

(b) Earnings.--Interest and any other earnings in the fund

shall remain in the fund.

program and revenue earned through the sale of property under

subsection (d) shall be deposited into the fund.

(d) Sale of residential property.--To provide financial

assistance under the program, the agency shall sell residential

property that is included in the agency's real estate portfolio.

(e) Appropriations.--Program money in the fund and the

interest accruing on the fund are hereby appropriated to the

agency on a continuing basis to carry out the provisions of this

article.

Section 2. This act shall take effect in 60 days.

20180HB2107PN3053 - 3 -