PRIOR PRINTER'S NO. 1630 PRINTER'S NO. 1704
No. 1426 Session of 1997
INTRODUCED BY J. TAYLOR, PETRONE, FARGO, FICHTER, GORDNER,
THOMAS, ROONEY, McCALL, E. Z. TAYLOR, LEDERER, DiGIROLAMO,
CARN, HALUSKA, SCRIMENTI, CORNELL, TIGUE, MANDERINO, KENNEY,
GRUITZA, YOUNGBLOOD, STURLA, OLASZ, SERAFINI, DeLUCA,
O'BRIEN, SAINATO, PRESTON, WOGAN, BELFANTI, TRICH, HENNESSEY,
MILLER, MELIO, L. I. COHEN, TRELLO AND TANGRETTI,
APRIL 29, 1997
AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, MAY 5, 1997
AN ACT
1 Amending the act of December 3, 1959 (P.L.1688, No.621),
2 entitled, as amended, "An act to promote the health, safety
3 and welfare of the people of the Commonwealth by broadening
4 the market for housing for persons and families of low and
5 moderate income and alleviating shortages thereof, and by
6 assisting in the provision of housing for elderly persons
7 through the creation of the Pennsylvania Housing Finance
8 Agency as a public corporation and government
9 instrumentality; providing for the organization, membership
10 and administration of the agency, prescribing its general
11 powers and duties and the manner in which its funds are kept
12 and audited, empowering the agency to make housing loans to
13 qualified mortgagors upon the security of insured and
14 uninsured mortgages, defining qualified mortgagors and
15 providing for priorities among tenants in certain instances,
16 prescribing interest rates and other terms of housing loans,
17 permitting the agency to acquire real or personal property,
18 permitting the agency to make agreements with financial
19 institutions and Federal agencies, providing for the purchase
20 by persons of low and moderate income of housing units, and
21 approving the sale of housing units, permitting the agency to
22 sell housing loans, providing for the promulgation of
23 regulations and forms by the agency, prescribing penalties
24 for furnishing false information, empowering the agency to
25 borrow money upon its own credit by the issuance and sale of
26 bonds and notes and by giving security therefor, permitting
27 the refunding, redemption and purchase of such obligations by
28 the agency, prescribing remedies of holders of such bonds and
1 notes, exempting bonds and notes of the agency, the income
2 therefrom, and the income and revenues of the agency from
3 taxation, except transfer, death and gift taxes; making such
4 bonds and notes legal investments for certain purposes; and
5 indicating how the act shall become effective," further
6 providing for homeowner's emergency assistance.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 401-C(a) of the act of December 3, 1959
10 (P.L.1688, No.621), known as the Housing Finance Agency Law,
11 amended May 31, 1984 (P.L.364, No.73) and December 18, 1992
12 (P.L.1652, No.182), is amended to read:
13 Section 401-C. General Authority.--(a) The Pennsylvania
14 Housing Finance Agency, hereinafter referred to as the "agency,"
15 may make loans secured by liens on residential real property
16 located in Pennsylvania to residents of Pennsylvania eligible
17 for such loans as described in this article. For the purpose of
18 this article, the term "mortgage" shall include any obligation
19 evidenced by a [security document] note or other debt instrument <--
20 and secured by a lien upon real property located within this
21 Commonwealth [including, but not limited to, a deed of trust and <--
22 land sale agreement]. The term shall also include an obligation <--
23 evidenced by a [security lien] note or other debt instrument and <--
24 secured by a lien on real property upon which an owner-occupied
25 mobile home is located. The provisions of this article shall not
26 be applicable if:
27 (1) The property securing the mortgage is not the principal
28 residence of the mortgagor.
29 (2) The property securing the mortgage is not a one or two-
30 family owner-occupied residence.
31 (3) The mortgage is insured by the Federal Housing
32 Administration under Title II of the National Housing Act (12
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1 U.S.C. §§ 1707-1715z-18).
2 (4) The mortgage on the property was given by a noncorporate
3 seller, unless the noncorporate seller elects, in writing, in
4 the mortgage or elsewhere to be covered by this article. For
5 purposes of this article "noncorporate seller" means any person
6 [giving] who is given a mortgage by a buyer to secure repayment
7 of the purchase price of real property who is not a bank, a
8 savings and loan association, a mortgage bank, a consumer
9 discount company or other entity in the mortgage lending
10 business.
11 (5) The mortgagor is more than [thirty-six (36)] twenty-four
12 (24) months delinquent or in default for more than [thirty-six
13 (36)] twenty-four (24) months, pursuant to the terms of
14 mortgagor's residential mortgage. This requirement shall mean
15 that if the mortgagor is more than [thirty-six (36)] twenty-four
16 (24) consecutive or nonconsecutive months in arrears on the
17 residential mortgage in question, no matter what the reason
18 therefor, the agency shall not be authorized to make any loans
19 hereunder to such mortgagor.
20 (6) The aggregate amount of arrearages due to a mortgagee
21 pursuant to the terms of the mortgage, without regard to any
22 acceleration under the mortgage including, but not limited to,
23 the amount of principal, interest, taxes, assessments, ground
24 rents, hazard insurance, any mortgage insurance or credit
25 insurance premiums, exceeds the sum of twenty-four thousand <--
26 dollars ($24,000) SIXTY THOUSAND DOLLARS ($60,000). <--
27 (7) If the property is encumbered by more than two
28 mortgages, other than a mortgage filed by the agency to secure
29 repayment of the mortgage assistance loans, or by other liens or
30 encumbrances which would unreasonably impair the security of the
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1 agency's mortgage.
2 * * *
3 Section 2. Section 402-C of the act is amended by adding a <--
4 subsection to read:
5 Section 402-C. Notice and Institution of Foreclosure
6 Proceedings.--* * *
7 (d) If notice is given pursuant to this section at least
8 thirty (30) days prior to taking any action specified in this
9 section and such notice contains all of the information
10 prescribed by the provisions of the act of January 30, 1974
11 (P.L.13, No.6), referred to as the Loan Interest and Protection
12 Law, then no additional notice shall be required pursuant to
13 section 403 of the Loan Interest and Protection Law.
14 Section 3. Section 403-C(a) and (f) of the act, amended or
15 added May 31, 1984 (P.L.364, No.73) and December 18, 1992
16 (P.L.1652, No.182), are amended and the section is amended by
17 adding a subsection to read:
18 Section 403-C. Notice Requirements.--(a) Any mortgagee who
19 desires to foreclose upon a mortgage shall send to such
20 mortgagor at his or her last known address the notice provided
21 in subsection (b): Provided, however, That such mortgagor shall
22 be at least sixty (60) days contractually delinquent in his
23 mortgage payments or be in violation of any other provision of
24 such mortgage. If notice is given pursuant to this section, at
25 least thirty (30) days prior to taking any action specified in
26 section 402-C, and such notice contains all of the information
27 prescribed by the provisions of the act of January 30, 1974
28 (P.L.13, No.6), referred to as the Loan Interest and Protection
29 Law, then no additional notice shall be required pursuant to
30 section 403 of the Loan Interest and Protection Law.
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1 * * *
2 SECTION 2. SECTION 403-C(F) OF THE ACT, ADDED DECEMBER 18, <--
3 1992 (P.L.1652, NO.182), IS AMENDED TO READ:
4 SECTION 403-C. NOTICE REQUIREMENTS.--* * *
5 (f) Notwithstanding any other provisions of this section, a
6 mortgagee shall not be required to send the uniform notice
7 provided in subsection [(b) to any mortgagor who is more than <--
8 [thirty-six (36)] TWENTY-FOUR (24) months delinquent or in <--
9 default for more than [thirty-six (36)] TWENTY-FOUR (24) months, <--
10 pursuant to the terms of mortgagor's residential mortgage with
11 mortgagee. This requirement shall mean that if the mortgagor is
12 more than [thirty-six (36)] (b): <--
13 (1) to any mortgagor who is more than twenty-four (24)
14 consecutive or nonconsecutive months in arrears on the
15 residential mortgage in question, no matter what the reason
16 therefor[, he shall be ineligible to receive the notice in <--
17 subsection (b).]; or <--
18 (2) where the aggregate amount of arrearages due to a
19 mortgagee pursuant to the terms of the mortgage, without regard
20 to any acceleration under the mortgage including, but not
21 limited to, the amount of principal, interest, taxes,
22 assessments, ground rents, hazard insurance, any mortgage
23 insurance or credit insurance premiums, exceeds the sum of
24 twenty-four thousand ($24,000) dollars.
25 (g) Notwithstanding any other provisions of this section, a
26 mortgagee shall not be required to send the uniform notice
27 provided in subsection (b) to any mortgagor who has already been
28 sent the uniform notice and:
29 (1) who did not apply for a mortgage assistance loan;
30 (2) who applied for a mortgage assistance loan but whose
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1 application was denied; or
2 (3) whose mortgage assistance disbursements were terminated
3 by the agency for any reason.
4 Unless the mortgagor has cured his or her mortgage delinquency,
5 by means of a mortgage assistance loan or otherwise, receipt of
6 partial payments of arrears from the mortgagor, subsequent to
7 the sending of the uniform notice, shall not mean that the
8 mortgagee must send a new uniform notice to the mortgagor prior
9 to legal action being taken to enforce the mortgage. A uniform
10 notice sent to the mortgagor, while the mortgagor was in
11 bankruptcy, shall be valid for the purpose of this act and no
12 new uniform notice need be provided as a result of any discharge
13 or dismissal of the bankruptcy petition or relief from the
14 automatic stay.
15 Section 4 3. Section 404-C(a) of the act, amended May 31, <--
16 1984 (P.L.364, No.73) and December 18, 1992 (P.L.1652, No.182),
17 is amended to read:
18 Section 404-C. Eligibility for Assistance.--(a) No
19 assistance may be made with respect to a mortgage or mortgagor
20 under this article unless all of the following are established:
21 (1) The property securing the mortgage, or other security
22 interest in the case of units in cooperative or condominium
23 projects, is a one-family residence, or two-family owner-
24 occupied residence including one-family units in a condominium
25 project or a membership interest and occupancy agreement in a
26 cooperative housing project, is the principal residence of the
27 mortgagor and is located in this Commonwealth.
28 (2) (i) Any mortgagee has indicated to the mortgagor its
29 intention to foreclose; and
30 (ii) payments under any mortgage have been contractually
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1 delinquent for at least sixty (60) days.
2 (3) The mortgage is not insured by the Federal Housing
3 Administration under Title II of the National Housing Act (12
4 U.S.C. §§ 1707-1715z-18).
5 (4) The mortgagor is a permanent resident of this
6 Commonwealth and is suffering financial hardship due to
7 circumstances beyond the mortgagor's control which render the
8 mortgagor unable to correct the delinquency or delinquencies
9 within a reasonable time and make full mortgage payments.
10 (5) The agency has determined that there is a reasonable
11 prospect that the mortgagor will be able to resume full mortgage
12 payments within [thirty-six (36)] twenty-four (24) months after
13 the beginning of the period for which assistance payments are
14 provided under this article and pay the mortgage or mortgages in
15 full by its maturity date or by a later date agreed to by the
16 mortgagee or mortgagees for completing mortgage payments.
17 (6) The mortgagor has applied to the agency for assistance
18 on an application form prescribed by the agency for this use
19 which includes a financial statement disclosing all assets and
20 liabilities of the mortgagor, whether singly or jointly held,
21 and all household income regardless of source. Any applicant who
22 intentionally misrepresents any financial information in
23 conjunction with the filing of an application for assistance
24 under this article may be denied assistance or required to
25 immediately repay any amount of assistance made as a result of
26 such misrepresentation, and the mortgagee may, at any time
27 thereafter, take any legal action to enforce the mortgage
28 without any further restrictions or requirements under this
29 article.
30 (7) The mortgagee is not prevented by law from foreclosing
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1 upon the mortgage.
2 (8) The agency has determined, based on the mortgagor's
3 financial statement, that the mortgagor has insufficient
4 household income or net worth to correct the delinquency or
5 delinquencies within a reasonable period of time and make full
6 mortgage payments.
7 (9) Except for the current delinquency, the mortgagor shall
8 have had a favorable residential mortgage credit history for the
9 previous five (5) years. This requirement shall mean that, if
10 the mortgagor has been more than three (3) consecutive months in
11 arrears on a residential mortgage within the previous five (5)
12 years, he shall be ineligible for assistance, unless the
13 mortgagor can demonstrate that the prior delinquency was the
14 result of financial hardship due to circumstances beyond his
15 control.
16 (10) For purposes of this section, in order to determine
17 whether the financial hardship is due to circumstances beyond
18 the mortgagor's control, the agency may consider information
19 regarding the mortgagor's employment record, credit history and
20 current income.
21 (11) The mortgagor meets any other procedural requirements
22 established by the agency.
23 (12) The mortgagor is not more than [thirty-six (36)]
24 twenty-four (24) months delinquent or in default for more than
25 [thirty-six (36)] twenty-four (24) months pursuant to the terms
26 of mortgagor's residential mortgage. This requirement shall mean
27 that if the mortgagor is more than [thirty-six (36)] twenty-four
28 (24) consecutive or nonconsecutive months in arrears on the
29 residential mortgage in question, no matter what the reason
30 therefor, he shall be ineligible for assistance.
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1 (13) The property is not encumbered by more than two
2 mortgages, other than a mortgage filed by the agency to secure
3 repayment of the mortgage assistance loan, or by other liens or
4 encumbrances which would unreasonably impair the security of the
5 agency's mortgage.
6 * * *
7 Section 5 4. Sections 405-C(a), (b), (f) and (g), 406-C and <--
8 408-C of the act, added December 23, 1983 (P.L.385, No.91), are
9 amended to read:
10 Section 405-C. Assistance Payments.--(a) If the agency
11 determines that a mortgagor is eligible for assistance under
12 this article, the agency shall pay directly to each mortgagee
13 secured by the mortgagor's real estate payments on behalf of the
14 mortgagor. The agency shall pay to each mortgagee the full
15 amount then due to that mortgagee pursuant to the terms of the
16 mortgage without regard to any acceleration under the mortgage,
17 or the full amount of any alternate mortgage payments agreed to
18 by the mortgagee and mortgagor. This amount shall include, but
19 not be limited to, the amount of principal, interest, taxes,
20 assessments, ground rents, hazard insurance, any mortgage
21 insurance or credit insurance premiums. The initial payment made
22 by the agency to each mortgagee shall be an amount which makes
23 each mortgage current and pays reasonable costs and reasonable
24 attorneys' fees already incurred by such mortgagee. However, in
25 no event shall the total payment exceed the sum equal to twenty-
26 four (24) consecutive or nonconsecutive months of arrears on any
27 residential mortgage.
28 (b) After the agency has paid any and all arrearages
29 pursuant to subsection (a) to each mortgagee, the mortgagor may
30 be entitled to monthly mortgage assistance payments pursuant to
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1 this article. A mortgagor on whose behalf the agency is making
2 mortgage assistance payments shall pay monthly payments to the
3 agency. Such payments shall be in an amount which will cause the
4 mortgagor's total housing expense not to exceed [thirty-five
5 (35)] forty-five (45) FORTY (40) percent of the mortgagor's net <--
6 effective income. This shall be the maximum amount the mortgagor
7 can be required to pay during the [thirty-six (36) months]
8 period a mortgagor is eligible for emergency mortgage
9 assistance[.]: Provided, however, That beginning July 1, 1997,
10 and continuing thereafter, any mortgagor approved for continuing
11 monthly mortgage assistance or whose continuing mortgage
12 assistance is approved after being recertified by the agency,
13 shall pay to the agency a minimum monthly payment of at least
14 twenty-five ($25) dollars for each mortgage being assisted. The
15 mortgagor shall make the above payment to the agency at least
16 [seven (7)] fifteen (15) days before each mortgage payment is
17 due to each mortgagee. Upon receipt of this payment from the
18 mortgagor, the agency or its duly authorized agent shall send
19 the total mortgage payment directly to each mortgagee. "Housing
20 expense" shall be defined as the sum of the mortgagor's monthly
21 [maintenance,] utility, hazard insurance expense, real estate
22 taxes and required mortgage payments, including escrows. "Net
23 effective income" shall be defined as gross household income
24 less city, State and Federal income and social security taxes.
25 "Gross household income" means the total income of [a husband,
26 wife] the applicant, all other owner-occupants of the residence,
27 any spouse and children residing in the same household as the
28 applicant and any other resident of the household declared by
29 the mortgagor as a dependent for Federal tax purposes. The
30 income of other unrelated individuals residing in the household
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1 shall be considered part of gross household income to the extent
2 that their income is made available in support of the household.
3 If the mortgagor is receiving emergency mortgage assistance
4 under a program other than that established in this article, the
5 amount of the payment he or she is required to make to the
6 agency under this article shall take into consideration the
7 amount of assistance he is receiving under such other programs.
8 * * *
9 (f) Payments under this article shall be provided for a
10 period not to exceed [thirty-six (36)] twenty-four (24) months,
11 either consecutively or nonconsecutively[.], whether such
12 payments are on account of arrears, continuing monthly
13 assistance or any combination thereof, and shall not exceed the
14 sum of twenty-four thousand ($24,000) SIXTY THOUSAND ($60,000) <--
15 dollars on behalf of any mortgagor. The agency shall establish
16 procedures for periodic review of the mortgagor's financial
17 circumstances for the purpose of determining the necessity for
18 continuation, termination or adjustment of the amount of the
19 payments. Payments shall be discontinued when the agency
20 determines that, because of the changes in the mortgagor's
21 financial circumstances, the payments are no longer necessary in
22 accordance with the standards set forth in section 404-C.
23 (F.1) THE TWENTY-FOUR (24) MONTH LIMIT ON ASSISTANCE <--
24 AVAILABLE UNDER THIS ACT ESTABLISHED IN SUBSECTION (F), AND
25 REFERENCED IN SECTIONS 401-C(A)(5), 403-C(F) AND 404-C(A)(5) AND
26 (12), SHALL INCREASE TO THIRTY-SIX (36) MONTHS IF DURING THE
27 MONTH THE HOMEOWNER SUBMITS AN APPLICATION FOR ASSISTANCE, THE
28 AVERAGE RATE OF TOTAL UNEMPLOYMENT IN THE COMMONWEALTH, AS
29 SEASONALLY ADJUSTED, FOR THE PERIOD CONSISTING OF THE MOST
30 RECENT THREE (3) MONTHS FOR WHICH SUCH DATA FOR THE COMMONWEALTH
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1 IS PUBLISHED BEFORE THE CLOSE OF SUCH MONTH EQUALS OR EXCEEDS
2 SIX AND ONE-HALF (6.5) PERCENT.
3 (F.2) THE GENERAL ASSEMBLY SHALL REVIEW THE LIMIT ON THE
4 TOTAL ASSISTANCE AVAILABLE UNDER THIS ACT ESTABLISHED IN
5 SUBSECTION (F) EVERY FIVE (5) YEARS, BEGINNING IN THE YEAR 2003.
6 THE GENERAL ASSEMBLY MAY RAISE THE LIMIT UPON A SHOWING THAT
7 INCREASES IN HOUSING COSTS REQUIRE HIGHER LOAN AMOUNTS IN ORDER
8 FOR THE ACT TO BE BENEFICIAL TO HOMEOWNERS IN ALL REGIONS OF THE
9 COMMONWEALTH.
10 (g) Repayment of amounts owed to the agency from a mortgagor
11 shall be secured by a mortgage lien on the property and by such
12 other obligation as the agency may require. The priority of any
13 lien obtained by the agency under this article shall be
14 determined in the same manner as the lien of a general secured
15 creditor of the mortgagor. The lien or other security interest
16 of the agency shall not be deemed to take priority over any
17 other secured lien or secured interest in effect against the
18 mortgagor's property on the date assistance payments begin. The
19 agency may allow subordination of the mortgage assistance lien
20 if such subordination is necessary to permit the mortgagor to
21 obtain a home improvement loan for repairs necessary to preserve
22 the property.
23 (h) In cases of joint mortgagors who are husband and wife,
24 where only one spouse who is an occupant of the mortgaged
25 premises makes application for and receives assistance under
26 this article, the lien to secure repayment as aforesaid shall be
27 a lien on the property of like force and effect as a mechanic's
28 lien.
29 Section 406-C. Repayment.--Upon approval of mortgage
30 assistance, the agency shall enter into an agreement with the
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1 mortgagor for repayment of all mortgage assistance made by the
2 agency plus interest as provided in paragraph (5). The agreement
3 shall provide for monthly payments by the mortgagor and be
4 subject to the following [forbearance] provisions:
5 (1) If the mortgagor's total housing expense as defined in
6 section 405-C is less than [thirty-five (35)] forty-five (45) <--
7 FORTY (40) percent of his or her net effective income, the <--
8 mortgagor shall pay to the agency the difference between
9 [thirty-five (35)] forty-five (45) FORTY (40) percent of the <--
10 mortgagor's net effective income and the mortgagor's total
11 housing expense unless otherwise determined by the agency after
12 examining the mortgagor's financial circumstances and ability to
13 contribute to repayment of the mortgage assistance.
14 (2) If the mortgagor's total housing expense is more than
15 [thirty-five (35)] forty-five (45) FORTY (40) percent of his or <--
16 her net effective income, repayment of the mortgage assistance
17 shall be deferred until the mortgagor's total housing expense is
18 less than [thirty-five (35)] forty-five (45) FORTY (40) percent <--
19 of his or her net effective income[.]: Provided, however, That
20 beginning July 1, 1997, and continuing thereafter, any mortgagor
21 who has received mortgage assistance shall pay to the agency a
22 minimum monthly repayment of at least twenty-five ($25) dollars
23 for each mortgage that was assisted. Such minimum monthly
24 repayment shall not result in the accrual of interest on the
25 mortgage assistance loan pursuant to paragraph (5).
26 (2.1) THE FORTY (40) PERCENT RATIO ESTABLISHED UNDER <--
27 SUBSECTIONS (1) AND (2) SHALL BE REDUCED TO THIRTY-FIVE (35)
28 PERCENT IF DURING THE MONTH THE HOMEOWNER SUBMITS AN APPLICATION
29 FOR ASSISTANCE THE AVERAGE RATE OF TOTAL UNEMPLOYMENT IN THE
30 COMMONWEALTH, AS SEASONALLY ADJUSTED, FOR THE PERIOD CONSISTING
19970H1426B1704 - 13 -
1 OF THE MOST RECENT THREE (3) MONTHS FOR WHICH SUCH DATA FOR THE
2 COMMONWEALTH IS PUBLISHED BEFORE THE CLOSE OF SUCH MONTH EQUALS
3 OR EXCEEDS SIX AND ONE-HALF (6.5) PERCENT.
4 (3) If repayment of mortgage assistance is not made by the
5 date any mortgage is paid, the mortgagor shall make mortgage
6 assistance repayments in an amount not less than the mortgage
7 payment until the mortgage assistance is repaid.
8 (4) The agency shall establish procedures for periodic
9 review of the mortgagor's financial circumstances to determine
10 the amounts of repayment required under this section.
11 Notwithstanding any other provision of this section, the agency
12 shall require full or partial repayment of the mortgage
13 assistance loan once the mortgagor has established credit to the
14 extent that there is sufficient equity in the property for the
15 mortgagor to be able to refinance their mortgage obligations at
16 reasonable rates and terms as determined by the agency.
17 (5) Interest shall accrue on all mortgage assistance made by
18 the agency [at the rate of nine (9) percent per annum.] at a <--
19 rate to be determined by the agency. The agency shall set the
20 interest rate annually and publish notice of the rate in the
21 Pennsylvania Bulletin prior to the beginning of each fiscal
22 year. In no event shall the rate be less than eight (8) percent
23 per annum or more than fifteen (15) percent per annum. Interest
24 shall start to accrue whenever the mortgagor begins to make
25 repayment under this section. Interest shall accrue only during
26 the period in which the mortgagor is required to make repayment
27 under this section. When any mortgage for which mortgage
28 assistance was made is paid, interest shall then accrue on all
29 mortgage assistance due and owing at the same rate and on the
30 same basis as the mortgage for which the mortgage assistance was
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1 made.
2 (6) All moneys received from mortgagors for repayment of
3 mortgage assistance shall be deposited in the State Homeowner's
4 Emergency Mortgage Assistance Fund established by the agency for
5 the sole purpose of implementing the provisions of this article.
6 Section 408-C. Homeowner's Emergency Mortgage Assistance
7 Fund.--The Homeowner's Emergency Mortgage Assistance Fund is
8 hereby created as a separate account within the agency for the
9 sole purpose of implementing the provisions of this article. No
10 other agency funds, moneys or interest earnings shall be
11 utilized for the purposes of this article. [The Homeowner's
12 Emergency Mortgage Assistance Fund shall only be utilized by the
13 agency whenever funds are specifically authorized and
14 appropriated by the General Assembly pursuant to section 410-C
15 of this article for the purposes provided for in this article.
16 All moneys paid by mortgagors to the agency to repay loans
17 provided by the agency shall be accounted for and lapsed into or
18 transferred back to the source from which the funds are
19 appropriated unless the funds cannot be lapsed or transferred
20 pursuant to any other act of the General Assembly: Provided,
21 however, That investment] Investment and interest earnings on
22 moneys from this fund may be used by the agency for the
23 administrative costs of the program. The Homeowner's Emergency
24 Mortgage Assistance Fund shall operate as a revolving loan fund
25 to which shall be credited all repayment of principal and
26 interest by mortgagors to the agency to repay loans provided by
27 the agency pursuant to this article, as well as grants or
28 donations from other sources and any funds that may be
29 appropriated by the General Assembly.
30 Section 6 5. Section 410-C of the act is repealed. <--
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1 Section 7 6. This act shall take effect in 60 days. <--
D29L64JS/19970H1426B1704 - 16 -