THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GORDNER, PILEGGI, COSTA, BROWNE, WAUGH, ERICKSON, RAFFERTY, FONTANA, BAKER, ALLOWAY, VANCE, STACK, YUDICHAK, FERLO, PIPPY, GREENLEAF, SCHWANK, WOZNIAK, BLAKE, BREWSTER, ARGALL, ORIE, LEACH, VOGEL, DINNIMAN, BOSCOLA AND MENSCH, MARCH 6, 2012

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, MAY 8, 2012   

AN ACT

Providing for the Homeowner Assistance Settlement Act;

establishing a fund for the purpose of funding the

Homeowner's Emergency Mortgage Assistance Program; and

providing for an appropriation.

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 Homeowner

Assistance Settlement 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:

"Fund."  The Homeowner Assistance Settlement Fund established

in section 3(a).

"Homeowner Assistance Settlement Agreement."  The settlement

agreement and related documents entered into on February 9,

2012, by the Attorney General of the Commonwealth and the

leading United States mortgage servicing companies.

Section 3.  Establishment of special fund, distribution of

moneys and limitation on annual appropriation.

(a)  Homeowner Assistance Settlement Fund.--There is

established a special fund known as the Homeowner Assistance

Settlement Fund. All payments received by the Commonwealth

pursuant to the Homeowner Assistance Settlement Agreement shall

be deposited by the Treasury Department into the fund.

(b)  Distribution of funds.--Subject to an appropriation each

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fiscal year by the General Assembly, the The moneys in the fund

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shall be distributed proportionally each fiscal year no later

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than July 1, by the State Treasurer, subject to the following

limitations:

(1)  No less than 90% of the funds distributed shall be

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appropriated Ninety percent shall be distributed to the

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Pennsylvania Housing Finance Agency for the purpose of

funding the Homeowner's Emergency Mortgage Assistance

Program.

(2)  No more than 10% of the funds distributed shall be

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appropriated Five percent shall be distributed to the Office

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of Attorney General for the purpose of funding housing

consumer protection programs.

(3)  Five percent shall be distributed to the Access to

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Justice Account established under 42 Pa.C.S. § 4904 (relating

to establishment of Access to Justice Account) for civil

legal assistance related to housing issues.

(c)  Limitation on annual appropriation distribution.--The

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annual appropriation distribution of funds under subsection (b)

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shall not exceed $12,000,000 annually.

Section 4.  Supplemental appropriation.

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In addition to the appropriation provided for under section

236 of the act of June 30, 2011 (P.L.633, No.1A), known as the

General Appropriation Act of 2011, the sum of $6,000,000 is

hereby appropriated from the fund to the Pennsylvania Housing

Finance Agency for the purpose of a supplemental appropriation

for the Homeowner's Emergency Mortgage Assistance Program for

the fiscal period beginning July 1, 2011, to June 30, 2012.

Section 4.  Initial distribution.

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The sum of $6,000,000 is hereby distributed from the fund to

the Pennsylvania Housing Finance Agency for the Homeowner's

Emergency Mortgage Assistance Program.

Section 5.  Effective date.

This act shall take effect immediately.