Regular Session 2023-2024 House Bill 1257 P.N. 1367

PRINTER'S NO. 1367

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1257

Session of

2023

INTRODUCED BY KINSEY, KHAN, MADDEN, PROBST, SANCHEZ, KAZEEM,

HILL-EVANS, INNAMORATO AND O'MARA, MAY 24, 2023

REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,

MAY 24, 2023

AN ACT

Providing for middle-income, low-income and very-low-income

housing units in new residential development projects.

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 Affordable

Housing for Working Families 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:

"Community center." An indoor or outdoor building, space,

structure or improvement intended for active or passive

recreation, including parks, ball fields, meeting halls and

classrooms, that accommodate either organized or informal

activity and are oriented toward serving residents of the

municipality.

"Developer." A person or entity who engages in the

development or rehabilitation of real estate for residential

occupancy and is responsible for the development of the real

estate, including acquisition, design, construction, repairing,

leasing, sale, operation and financing.

"Low-income housing." Affordable housing that is reserved

for occupancy by households with a gross household income that

does not exceed 80% of the median gross household income for

households of the same size within the housing region in which

the housing is located.

"Middle-income housing." Affordable housing that is reserved

for occupancy by households with a gross household income equal

to more than 80% but less than 120% of the median gross

household income for households of the same size within the

housing region in which the housing is located.

"Project." The development or rehabilitation of real estate,

including acquisition, construction, repairing, leasing, sale,

operation and financing.

"Very-low-income housing." Affordable housing that is

reserved for occupancy by households with a gross household

income that does not exceed 50% of the median gross household

income for households of the same size within the housing region

in which the housing is located.

Section 3. Housing development project requirement.

(a) Eligibility.--This section shall apply to a developer of

a project with 30 or more residential units that:

(1) Is approved by a municipal planning board or zoning

board to develop a project.

(2) Is permissible under either a use variance, a

density variance increasing the permissible density at the

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site, a rezoning permitting multiple residential units where

not previously permitted, a new or amended redevelopment plan

or a new or amended rehabilitation plan.

(3) Has a net density of six or more units per acre.

(4) Has an application for a construction permit that is

submitted on or after the effective date of this paragraph.

(b) General rule.--The developer shall reserve at least:

(1) Five percent of the residential units for very-low-

income housing.

(2) Ten percent of the residential units for low-income

housing.

(3) Ten percent of the residential units for middle-

income housing.

developed as follows:

(1) If more than 25% of market-rate housing units are

completed, no less than 10% of very-low-income housing, low-

income housing and middle-income housing units shall be

completed.

(2) If 50% or more of the market-rate housing units are

completed, no less than 50% of very-low-income housing, low-

income housing and middle-income housing units shall be

completed.

(3) If 75% or more of the market-rate housing units are

completed, no less than 75% of very-low-income housing, low-

income housing and middle-income housing units shall be

completed.

(4) If 90% or more of the market-rate housing units are

completed, no less than 100% of very-low-income housing, low-

income housing and middle-income housing units shall be

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completed.

(d) Withholding of certificate of occupancy.--The

municipality shall withhold a certificate of occupancy for

market-rate units, at any stage of development, if the

requirements of this section are not satisfied.

(e) Location of units.--The developer of a project subject

to this section may develop the residential units reserved for

very-low-income housing, low-income housing and middle-income

housing onsite or offsite within the municipality in which the

project is located.

(f) Contract provisions.--A municipal approval or agreement

entered into between a municipality and a developer concerning

the development of a project shall incorporate contractual

guarantees and procedures ensuring that a residential unit

reserved for very-low-income housing, low-income housing and

middle-income housing shall continue to be reserved for a period

of at least three years.

(g) Unit requirements.--For a project that is not age-

restricted, at least 30% of all the very-low-income housing,

low-income housing and middle-income housing units required by

this section shall be two-bedroom units and at least 20% of all

the very-low-income housing, low-income housing and middle-

income housing units required by this section shall be three-

bedroom units.

(h) Payment in lieu of construction.--

(1) A municipality that is authorized to impose and

collect impact or development fees may, in its discretion and

in lieu of requiring the construction of very-low-income

housing, low-income housing and middle-income housing units

under this section, require a developer to pay an impact or

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development fee in an amount equal to 30% of the total

project cost, as determined by the municipal engineer or

other qualified municipal official designated by ordinance.

The amount of the fee that may be required under this

subsection shall be 25% of the total project cost if the

project achieves a silver rating according to the Leadership

in Energy and Environmental Design Green Building Rating

System as adopted by the United States Green Building

Council.

(2) A fee required under paragraph (1) shall be paid

prior to the issuance of a construction permit for the

project.

(3) A municipality shall, by ordinance, either:

(i) deposit all fees collected under this subsection

into an affordable housing trust fund and spend the funds

on the development of very-low-income housing or low-

income housing within the municipality; or

(ii) deposit 50% of the fees collected under this

subsection into an affordable housing trust fund and

spend those funds on the development of very-low-income

housing or low-income housing within the municipality and

deposit the remaining 50% of the fee into a community

center trust fund and spend the funds on the development

of community centers.

(i) Construction.--Nothing in this section shall be

construed to affect the obligation of a municipality to plan and

zone to provide through its land use regulations a realistic

opportunity for a fair share of its region's present and

prospective needs for very-low-income housing or low-income

housing. Nothing in this act shall be construed to alter the

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obligations of a developer or municipality to comply with the

terms of a court-approved agreement or fair share plan or to

prevent a municipality from creating or enforcing requirements

beyond the minimum requirements established in this section.

Section 4. Effective date.

This act shall take effect in 90 days.

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