|Posted:||December 12, 2016 02:16 PM|
|From:||Senator John P. Blake|
|To:||All Senate members|
|Subject:||Statewide Housing Trust Fund – County Opt-In|
|In the near future, I will reintroduce Senate Bill 661 of the 2015-16 session. This proposal would fund our Statewide Housing Trust Fund, which was established under Act 105 of 2010, known as the “Pennsylvania Housing Affordability and Rehabilitation Enhancement Program.” Act 105 created the construct for a “fund” without funding. Under my proposal, counties may opt-in to the program by raising revenue from the recordation of writs in their respective Recorder of Deeds offices. The bill does NOT permit the increase of mortgage or deed recordation fees. Examples of these “other writs” are Easements - $11.50; Declaration of Plans - $11.50; Rights of Way - $10.00; etc. Over the last few years, the number of “other writs” recorded annually statewide remained fairly consistent, ranging between 800,000 and 900,000, illustrating the potential for significant funding from a reliable source. Counties may no-more-than double the current fee amounts.
Counties would be permitted to retain 25% for local affordable housing projects or to deposit local revenues into their already-established county-housing-trust funds via Act 137-turned-Act 49. The remaining 75% would be directed to the Pennsylvania Housing Finance Agency (PHFA) to meet debt service on a Statewide Housing Trust Fund bond issue, the proceeds of which would be distributed to affordable housing projects throughout the state, with preference given to counties that have opted in to participate in the Fund. PHFA has indicated that a dedicated $5 million a year funding stream, as noted above, could support a bond-issue in the current market of up to $70 Million for the Statewide Housing Trust Fund.
The establishment of the Housing Trust Fund and the original intent to appropriate funding for the program enjoyed great bi-partisan support prior to the recession of 2008. My legislation will have no impact on the General Fund Budget and provides counties with the option to control their own destiny by leveraging state investment for much-needed, local, affordable housing initiatives.
Adequate and affordable housing is an issue touching every corner of our state. As we continue to rebuild and strengthen our economy, we must acknowledge the substantial impact housing has on the state’s economic performance. An effectively managed Statewide Housing Trust Fund of the scale suggested in this legislation can put Pennsylvania carpenters, plumbers, electricians and masons to work improving our housing stock while reinvigorating the building materials supply chain. It is for this reason that I ask for your suggestions and your support, and, more specifically, for your co-sponsorship of this important initiative.
Last session’s co-sponsors included Senators Farnese, Fontana, Teplitz, Brewster, Smith, Gordner, Hughes, Yudichak, Costa, Boscola, Browne and Sabatina.
Introduced as SB470