PRINTER'S NO. 183

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 162 Session of 2007


        INTRODUCED BY JAMES, YOUNGBLOOD, BUXTON, BISHOP, MANN, READSHAW,
           TANGRETTI, BLACKWELL, WOJNAROSKI, WALKO, DePASQUALE,
           W. KELLER, SOLOBAY, M. O'BRIEN, CARROLL, PRESTON, FABRIZIO,
           CALTAGIRONE, J. TAYLOR, BEYER, PARKER, MELIO, BOYD, MUNDY,
           JOSEPHS AND WILLIAMS, JANUARY 31, 2007

        REFERRED TO COMMITTEE ON COMMERCE, JANUARY 31, 2007

                                     AN ACT

     1  Allocating a percentage of the net proceeds from all unclaimed
     2     funds from sheriffs' sales of residential real property to
     3     the Pennsylvania Housing Finance Agency for the purpose of
     4     assisting potential homebuyers with the financing and
     5     purchase of homes at sheriffs' sales; and establishing the
     6     Sheriffs' Sales Homeownership Assistance Fund and the
     7     Sheriffs' Sales Homeownership Assistance Program.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10  Section 1.  Short title.
    11     This act shall be known and may be cited as the Sheriffs'
    12  Sales Homeownership Assistance Act.
    13  Section 2.  Declaration of purpose.
    14     The General Assembly declares the following to be the
    15  purposes of this act:
    16         (1)  To assist potential homeowners with the financing,
    17     purchase and improvement of a home.
    18         (2)  To recognize that homeownership is a privilege which
    19     should not be reserved solely for the wealthy but should be

     1     available to working and middle class families who seek the
     2     joy and comfort which come with homeownership.
     3         (3)  To enhance the programs of the Pennsylvania Housing
     4     Finance Agency which include assisting families with the
     5     purchase of homes.
     6  Section 3.  Definitions.
     7     The following words and phrases when used in this act shall
     8  have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     "Agency."  The Pennsylvania Housing Finance Agency of the
    11  Commonwealth.
    12     "Fund."  The Sheriffs' Sales Homeownership Assistance Fund
    13  established in section 4.
    14     "Program."  The Sheriffs' Sales Homeownership Assistance
    15  Program.
    16     "Unclaimed funds."  Funds acquired by a sheriff's sale of
    17  residential real property within this Commonwealth exceeding
    18  outstanding debt which is left unclaimed by the owner and that
    19  revert to the General Fund in accordance with Article XIII.1 of
    20  the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal
    21  Code.
    22  Section 4.  Sheriffs' Sales Homeownership Assistance Fund.
    23     Fifty percent of all unclaimed funds shall be deposited in
    24  the Sheriffs' Sales Homeownership Assistance Fund, which is
    25  hereby established as a separate fund in the State Treasury. The
    26  moneys of the fund shall be used by the agency for the purpose
    27  of assisting potential sheriffs' sale owner-occupied homebuyers
    28  with the financing, purchase and improvement of a home.
    29  Section 5.  Sheriffs' Sales Homeownership Program.
    30     The agency shall use moneys in the fund for the Sheriffs'
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     1  Sales Homeownership Program, which is hereby established. The
     2  program will consist of loan guarantees or other credit
     3  enhancement offered by the agency for the purpose of assisting
     4  families in this Commonwealth with the purchase and improvement
     5  of homes sold at sheriffs' sales. The agency may make advances
     6  or provide other means of guaranteed payment from the fund to
     7  qualified lenders for the purpose of guaranteeing, endorsing or
     8  acting as surety on mortgages and home improvement loans on such
     9  terms and conditions and according to regulations the agency
    10  shall prescribe consistent with the purposes of this act.
    11  Section 6.  Rules and procedures.
    12     (a)  Regulations.--The agency shall promulgate regulations to
    13  govern and administer mortgage and home improvement loan
    14  guarantees, credit enhancement or home improvement loans from
    15  the fund to qualified low-income or moderate-income buyers for
    16  the purchase of owner-occupied residential housing at sheriffs'
    17  sales or the improvement of owner-occupied residential real
    18  property purchased at sheriffs' sales.
    19     (b)  Distribution of funds.--The agency shall distribute the
    20  moneys in the fund in direct proportion to the county of their
    21  origin.
    22     (c)  Mortgage guarantees.--Mortgage guarantees administered
    23  under the auspices of the program may not exceed the lesser of
    24  actual purchase price or appraised value of the real property.
    25     (d)  Home improvement loans and loan guarantees.--
    26         (1)  Home improvement loans and loan guarantees
    27     administered under the program shall be used solely for
    28     improvements designed to assure compliance with United States
    29     Federal Housing Administration standards for safe dwellings
    30     or similar regulations promulgated by the agency.
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     1         (2)  Necessary improvements shall be determined through
     2     the inspection of the applicable residence by an inspector
     3     qualified by the agency to perform such inspections.
     4     (e)  Other agency programs.--The agency shall attempt, to the
     5  fullest extent possible, to integrate the program with its other
     6  homeownership programs to enhance the success of all
     7  homeownership efforts.
     8     (f)  Administrative expense.--Investment and interest
     9  earnings on moneys in the fund may be used by the agency to
    10  cover the administrative costs of the program.
    11  Section 7.  Applicability.
    12     This act shall apply to sheriffs' sales of residential real
    13  property conducted on or after July 1 of the calendar year
    14  following the effective date of this act.
    15  Section 20.  Effective date.
    16     This act shall take effect in 60 days.










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