PRIOR PRINTER'S NOS. 1474, 1790
PRINTER'S NO. 1854
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1135
Session of
2022
INTRODUCED BY SAVAL, FONTANA, KANE, KEARNEY, MUTH, CAPPELLETTI,
COSTA, HUGHES, COMITTA, STREET, TARTAGLIONE, HAYWOOD,
COLLETT, BREWSTER, SCHWANK, L. WILLIAMS, SANTARSIERO, FLYNN,
A. WILLIAMS, BOSCOLA, BROWNE, ARGALL, LAUGHLIN, VOGEL AND
SCAVELLO, MARCH 7, 2022
SENATOR BROWNE, APPROPRIATIONS, RE-REPORTED AS AMENDED,
JULY 7, 2022
AN ACT
Providing for funding to address habitability concerns in owner-
occupied and rental units, measures to improve energy or
water efficiency and make units accessible for individuals
with disabilities, and removing barriers to affordability of
homeownership; establishing the Whole-Home Repairs and
Homeownership Affordability Program, the Student Housing
Repurpose Program, the Whole-Home Repairs and Homeownership
Affordability Fund and the Housing Stabilization Initiative
Fund; and imposing duties on the Department of Community and
Economic Development and the Commonwealth Financing
Authority.
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 Housing
Stabilization Initiative 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:
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"Affordable units." Units where rents are affordable to
tenants at or below 60% of area median income, adjusted for
household size, as defined annually by the Pennsylvania Housing
Finance Agency's PennHOMES County-wide Limits.
"Authority." The Commonwealth Financing Authority.
"Board." The board of the Commonwealth Financing Authority.
"Code." A building, housing, property maintenance, fire,
health or other public safety ordinance, related to the use or
maintenance of real property, enacted by a municipality. The
term does not include a subdivision and land development
ordinance or a zoning ordinance enacted by a municipality.
"Corporation." A corporation or joint stock association
organized under the laws of this Commonwealth, the United States
or any other state, territory or foreign country or dependency.
"County applicant." A nonprofit or governmental entity that
serves one or more counties.
"Court." The appropriate court of common pleas.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Disabilities." As the term "handicap or disability" is
defined in section 4 of the act of October 27, 1955 (P.L.744,
No.222), known as the Pennsylvania Human Relations Act.
"Existing home repair programs." Programs administered by
nonprofit organizations, governmental entities and public
utilities, or the contractors and assignees of such entities,
that provide services to repair residential housing that are
funded in accordance with or through, but not exclusively
limited to, the following programs:
(1) The weatherization assistance programs administered
as a part of the programs authorized under the Low-Income
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Home Energy Assistance Act of 1981 (Public Law 97-35, 42
U.S.C. § 8621 et seq.) or the Energy Conservation in Existing
Buildings Act of 1976 (Public Law 94-385, 42 U.S.C. § 6851 et
seq.).
(2) The Community Development Block Grant Program under
Title I of the Housing and Community Development Act of 1974
(Public Law 93-383, 88 Stat. 633), as amended.
(3) The HOME program under the act of December 18, 1992
(P.L.1376, No.172), known as the Pennsylvania Affordable
Housing Act.
(4) The Medical Assistance Community HealthChoices
Program.
(5) The Pennsylvania Housing Affordability and
Rehabilitation Enhancement Program under Article IV-D of the
act of December 3, 1959 (P.L.1688, No.621), known as the
Housing Finance Agency Law.
(6) The Keystone Communities Program administered by the
department.
(7) Low-income usage reduction programs established
under 52 Pa. Code Ch. 58 (relating to residential low income
usage reduction programs).
(8) The Energy Efficiency and Conservation Program
established under 66 Pa.C.S. § 2806.1(b)(1)(i)(G) (relating
to energy efficiency and conservation program).
"Fund." The Whole-Home Repairs and Homeownership
Affordability Fund established under section 5.
"Habitability concerns." Home repairs that are required to
ensure residential units are any of the following:
(1) Fit for human habitation.
(2) Free from defective conditions or health and safety
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hazards, including asbestos, mold, pests or lead.
(3) Free of conditions preventing installation of
measures to improve energy or water efficiency and lower
utility costs.
"Homeowner." A person who is any of the following:
(1) An owner of record evidenced by a publicly recorded
deed.
(2) An owner-occupant of a manufactured home who leases
a space in a manufactured home community.
(3) An equitable owner who can demonstrate an ownership
interest in a property as provided by law, including:
(i) A person who has inherited an interest in a
property.
(ii) A person who has entered a contract to purchase
a property.
(iii) A person who was the owner of record before a
fraudulent conveyance of the property.
(iv) A person who is a trust beneficiary and a
person holding a partial ownership interest in a property
such as tenancy by the entirety, joint tenancy, tenancy
in common and life estate.
"Matching funds." Cash or other investments from funding
sources other than the Whole-Home Repairs and Homeownership
Affordability Fund established under section 5.
"Program." The Whole-Home Repairs and Homeownership
Affordability Program established under section 3.
"Serious violation." A violation of a State law or code that
poses an imminent threat to the health and safety of a dwelling
occupant, occupants in surrounding structures or passersby.
"Small landlords." A person, who is a landlord, who has an
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ownership stake in no more than five properties and no more than
15 rental units and rents those properties or units for use as a
primary residence for a fee, regardless of the length or form of
the lease.
"State law." A statute of the Commonwealth or a regulation
of an agency charged with the administration and enforcement of
Commonwealth laws.
"Substantial step." An affirmative action as determined by a
property code official or officer of the court on the part of a
small landlord or property managing agent to remedy a serious
violation of a State law or code, including physical
improvements or repairs to the property, which affirmative
action is subject to appeal in accordance with applicable law.
Section 3. Establishment.
The Whole-Home Repairs and Homeownership Affordability
Program is established within the department and shall be
administered by the department.
Section 4. Administration of program.
(a) Applications.--The department shall make available an
application for a county applicant to apply for funding under
the program. The application may be accepted electronically.
(b) Awarding of grants.--The department shall award grants
to no more than one county applicant per county for project
types under subsection (c) to be used for purposes under
subsection (d). The department shall award grants to no more
than one county applicant per county for project types under
subsection (e) to be used for the purposes under subsection (f).
This subsection shall not be construed to prohibit the
department from awarding more than one grant to a county
applicant to serve multiple counties.
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(c) Home repair project types.--The program shall provide
funding for the following:
(1) To ensure owner-occupied and rental units are free
of habitability concerns.
(2) To improve coordination across existing home repair
programs.
(3) To increase retention in workforce development
programs.
(d) Purposes of money for home repair projects.--Money for
projects under subsection (c) shall be used for all of the
following:
(1) Grants and loans not to exceed $50,000 per unit to
address habitability concerns, to improve energy or water
efficiency, and, where requested, to make units accessible
for individuals with disabilities through the provision of:
(i) Grants for homeowners whose household income
does not exceed 80% of the area median income.
(ii) Loans to small landlords renting affordable
units that are recorded against a residential property in
a mortgage security. Loans awarded under this
subparagraph shall comply with the following conditions:
(A) Loans made to small landlords who have
maintained compliance with each of the following
shall be forgiven:
(I) The small landlord offered to extend by
three years the lease of the tenant occupying the
unit when the funds were accepted.
(II) Annual increases in monthly rent have
not exceeded 3% of the base rent or the unit has
been occupied by a tenant participating in the
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Housing Choice Voucher Program for a period of no
less than 15 years.
(III) In the prior 15 years, the small
landlord has not committed a serious violation
with regard to the small landlord's rental
property for which the small landlord has taken
no substantial steps to correct the serious
violation within six months following
notification of the serious violation and for
which no fines or other penalties or a judgment
to abate or correct were imposed by a magisterial
district judge or municipal court, nor a judgment
at law or in equity was imposed by a court. The
condition under this subclause may be met if the
property subject to the judgment, order or decree
is subject to a stay or supersedeas by an order
of a court of competent jurisdiction or
automatically allowed by statute or rule of court
until the stay or supersedeas is lifted by the
court or a higher court or the stay or
supersedeas expires as otherwise provided by law.
Where a stay or supersedeas is in effect, the
small landlord shall so advise the county
applicant.
(IV) The small landlord has maintained
ownership of the unit for a period of no less
than 15 years.
(B) Loans made to small landlords who have not
maintained compliance with each of the conditions in
clause (A) shall be recaptured by county applicants.
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(iii) Where possible, county applicants shall
prioritize the use of existing home repair programs'
funds to address habitability concerns, measures to
improve energy or water efficiency and, where requested,
to make units accessible for individuals with
disabilities.
(2) The county applicant's administration of the program
for project types under subsection (c), including staff,
implementation systems and data management tools designed to
maximize enrollment in all existing home repair programs and
use of the fund through the provision and enhancement of all
of the following:
(i) Technical assistance and case management
services for homeowners, renters and small landlords.
(ii) A universal program application process
evidenced by a single point of contact for homeowners,
renters or small landlords.
(iii) Coordination across waitlists for existing
home repair programs.
(iv) Program and policy analysis, outcomes reporting
and program evaluation.
(v) Referrals, where appropriate, to legal aid,
social service providers specializing in mental,
developmental and physical health conditions, and other
relevant community-based services.
(3) Investments by the county applicant for project
types under subsection (c) in workforce development programs
that will connect trainees to jobs through committed employer
partnerships related to improving the habitability and
performance of homes, including any of the following:
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(i) Cash stipends for trainees.
(ii) Costs related to the design and implementation
of preapprenticeship, apprenticeship and publicly funded
on-the-job training programs.
(e) Homeownership affordability project types.--The program
shall provide funding to assist individuals residing in this
Commonwealth in enhancing the affordability of becoming a
homeowner.
(f) Purposes of money for homeownership affordability
projects.--Money for projects under subsection (e) shall be used
for grants not to exceed $125,000 per housing unit to include:
(1) New construction of multifamily housing units.
(2) New construction of housing units on nonadjacent
sites.
(3) Rehabilitation of housing units on nonadjacent
sites.
(4) Acquisition of structures and vacant land.
(g) Limitations.--The following shall apply:
(1) Program funds for project types under subsection (c)
shall not supplant existing resources dedicated to existing
home repair programs, but may be sued to support, expand and
enhance existing home repair programs as provided under this
section.
(2) The department may not award funding to more than
one county applicant per county for project types under
subsection (c) to be used for purposes under subsection (d).
The department may not award funding to more than one county
applicant per county for project types under subsection (e)
to be used for the purposes under subsection (f). The
department may award funding to separate county applicants in
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a single county for administering project types under
subsections (c) and (e). This paragraph shall not be
construed to prohibit the department from awarding funding to
county applicants to serve other counties.
(3) Housing units constructed, acquired or rehabilitated
through projects under subsection (e) shall be limited to
acquisition by prospective homeowners whose household income
does not exceed 80% of the area median income.
(h) Matching funds.--The following shall apply:
(1) Each grant issued under subsection (f) shall require
matching funds from a corporation equal to the amount of the
grant as a condition for approval of the award of the grant.
(2) Applicants for grants issued under subsection (f)
shall provide documentation of the approval of or access to
the matching funds required under paragraph (1).
Section 5. Whole-Home Repairs and Homeownership Affordability
Fund.
(a) Establishment.--The Whole-Home Repairs and Homeownership
Affordability Fund is established as a special fund in the State
Treasury.
(b) Contributions to the fund.--The following shall be
deposited into the fund:
(1) Appropriations from the General Assembly.
(2) Any allocations received by the Commonwealth from
the Federal Government made available for purposes of funding
the program.
(3) Any gift, donation, legacies or other revenues.
(1) THE SUM OF $125,000,000 IN FEDERAL MONEY IS
TRANSFERRED TO THE FUND FROM THE COVID-19 RESPONSE RESTRICTED
ACCOUNT.
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(2) THE FOLLOWING SHALL BE DEPOSITED INTO THE FUND:
(I) APPROPRIATIONS FROM THE GENERAL ASSEMBLY.
(II) ANY ALLOCATIONS RECEIVED BY THE COMMONWEALTH
FROM THE FEDERAL GOVERNMENT MADE AVAILABLE FOR PURPOSES
OF FUNDING THE PROGRAM.
(III) ANY GIFT, DONATION, LEGACIES OR OTHER
REVENUES.
(c) Interest.--Any interest that accrues from money in the
fund shall remain in the fund.
(d) Use of funds.--Money in the fund is appropriated to the
department on a continuing basis to carry out the provisions of
this act. The appropriation shall not lapse at the end of any
fiscal year.
Section 6. Administration by the department.
(a) Costs.--The department shall be reimbursed by the fund
for its administrative costs in carrying out the provisions of
this act.
(b) Guidelines.--The department may develop and publish
program guidelines for the implementation and administration of
the program.
Section 7. Reports.
(a) Department reporting.--No later than September 1
following the first fiscal year or any portion of the first
fiscal year in which the program is in effect and no later than
September 1 for all succeeding fiscal years in which the program
is in effect, the department shall prepare a report on the
program and submit it to the chairperson and minority
chairperson of the Appropriations Committee of the Senate, the
chairperson and minority chairperson of the Appropriations
Committee of the House of Representatives, the chairperson and
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minority chairperson of the Urban Affairs and Housing Committee
of the Senate and the chairperson and minority chairperson of
the Urban Affairs Committee of the House of Representatives. The
department shall post the report on the department's publicly
accessible Internet website. The report shall include all of the
following information for the prior year:
(1) On program funds utilized under section 4(d)(1):
(i) The total number of units, and the average cost
per unit, for which homeowners addressed habitability
concerns, installed energy efficiency measures and made
accessible for individuals with disabilities as a result
of program funds awarded under this act.
(ii) The total number of units, and the average cost
per unit, for which small landlords addressed
habitability concerns, installed energy efficiency
measures and made accessible for individuals with
disabilities as a result of program funds awarded under
this act.
(iii) The total amount of program funds invested in
addressing habitability concerns, installing energy
efficiency measures and making units accessible for
individuals with disabilities.
(iv) The total number of grant and loan applications
that were received, approved and denied.
(v) A summary of the most common reasons for denial
of applications.
(vi) The income and demographic information for
households assisted under the program.
(2) On program funds utilized under section 4(d)(2):
(i) A summary of the most common referrals as
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described under section 4(d)(2)(v).
(ii) The number of new staff hired to fulfill the
services described under section 4(d)(2).
(iii) A summary of systems improvements to fulfill
the services described under section 4(d)(2).
(3) On program funds utilized under section 4(d)(3):
(i) The total amount of program funds invested in
workforce development programs.
(ii) The total number and average amount of cash
stipends provided to trainees.
(iii) The income and demographic information for
individuals assisted by funds utilized under section 4(d)
(3).
(4) On program funds utilized under section 4(f)(1):
(i) The total number of units and the average cost
per unit for which prospective homeowners were
successfully assisted in becoming a homeowner as a result
of program funds awarded under this act.
(ii) The total amount of program funds invested in
addressing homeownership affordability.
(iii) The total number of grant applications that
were received, approved and denied.
(iv) A summary of the most common reasons for denial
of applications.
(v) The income and demographic information for
households assisted under the program.
(b) County reporting.--The department may require county
applicants awarded grants under the program to submit reports,
on a form and in a manner prescribed by the department,
containing information necessary for the department to comply
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with subsection (a).
Section 8. Funding.
The department's implementation of the program shall be
contingent upon sufficient program funds being deposited into
the fund in accordance with section 5 to carry out the purposes
of this act. In a year in which there are insufficient program
funds deposited into the fund for the purposes outlined in this
act, the program shall cease until sufficient Federal funds are
allocated to the Commonwealth, funds are specifically
appropriated by the General Assembly or funds are provided by a
source other than the Commonwealth.
Section 9. Student Housing Repurpose Program.
(a) Establishment.--The Student Housing Repurpose Program is
established. The Student Housing Repurpose Program shall allow
guarantees to repurpose, use or demolish existing student
housing in this Commonwealth.
(b) Eligible applicants.--A nonprofit or governmental entity
that serves one or more counties shall be eligible to apply
under the Student Housing Repurpose Program established under
subsection (a).
(c) Eligible projects.--Student housing located in host
communities for schools within the State System of Higher
Education shall be eligible for repurposing under the Student
Housing Repurpose Program established in subsection (a).
(d) Eligible use of grant funding.--Money for projects may
include:
(1) New construction of multifamily housing units.
(2) New construction of housing units on nonadjacent
sites.
(3) Rehabilitation or demolition of housing units on
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nonadjacent sites.
(4) Acquisition of structures and vacant land.
(e) Applications for grants.--An applicant may submit an
application to the authority requesting a grant for the type of
project eligible under subsection (c). The application shall be
on a form required by the board and shall include all of the
following information:
(1) The applicant's name and address.
(2) The location of the project.
(3) A description of the project.
(4) An estimate of the costs associated with the project
and the goal to be achieved by carrying out the proposed
activities of the project.
(5) Any other information required by the authority.
(f) Review and approval of applications.--
(1) The authority shall review and evaluate an
application based on the following criteria:
(i) Whether the project can be replicated for use
across this Commonwealth.
(ii) Whether the project includes a strategic plan
for implementation.
(iii) The inclusion of an itemized budget of all
costs.
(2) The authority may develop additional evaluation
criteria for each type of project eligible under subsection
(c).
(3) Grants shall be awarded to the extent that funds are
available.
(g) Approval of project financing applications.--Upon
satisfaction that all requirements have been met, the board may
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approve the application, and, if approved, the authority shall
award a grant to be used for costs of the project. A combined
loan and project grant may be awarded only if the board finds
that the value of the proposed collateral and the financial
resources offered by the applicant are not sufficient to repay a
loan in the amount of the total project cost.
(h) Housing Stabilization Initiative Fund.--The Housing
Stabilization Initiative Fund is established. The following
apply to the Housing Stabilization Initiative Fund:
(1) The following shall be deposited into the Housing
Stabilization Initiative Fund:
(i) Appropriations from the General Assembly.
(ii) Any allocations received by the Commonwealth
from the Federal Government made available for purposes
of funding the Student Housing Repurpose Program.
(iii) Any gift, donation, legacies or other
revenues.
(2) Any interest that accrues from money in the Housing
Stabilization Initiative Fund shall remain in the Housing
Stabilization Initiative Fund.
(3) Money in the Housing Stabilization Initiative Fund
is appropriated to the authority on a continuing basis to
carry out the provisions of this section. The appropriation
shall not lapse at the end of a fiscal year.
Section 10. Effective date.
This act shall take effect in 180 days.
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