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                                                       PRINTER'S NO. 613



No. 543 Session of 2007

           MARCH 6, 2007

           MARCH 6, 2007

                                     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
    29     notes, exempting bonds and notes of the agency, the income
    30     therefrom, and the income and revenues of the agency from

     1     taxation, except transfer, death and gift taxes; making such
     2     bonds and notes legal investments for certain purposes; and
     3     indicating how the act shall become effective," establishing
     4     an energy-efficient home assistance program.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  The act of December 3, 1959 (P.L.1688, No.621),
     8  known as the Housing Finance Agency Law, is amended by adding an
     9  article to read:
    10                           ARTICLE IV.-D
    12     Section 401-D.  General Authority.--(a)  (1)  The agency
    13  shall operate a pilot program for two (2) years commencing with
    14  the effective date of this section, which program shall award
    15  grants of up to five thousand ($5,000) dollars to homebuyers to
    16  offset closing costs or down payment assistance, including, but
    17  not limited to, the mortgage rate buy-down, for homes that meet
    18  the following criteria for energy efficiency or alternative
    19  energy systems, or both.
    20     (2)  After the conclusion of the pilot program the agency
    21  may, in its sole discretion, continue to make such grants in
    22  accordance with this article, based on availability of funding.
    23     (b)  (1)  Two thousand five hundred ($2,500) dollars of a
    24  grant issued under this article may be provided to the purchaser
    25  of a home that exceeds the energy and water conservation
    26  requirements set by the Statewide Uniform Construction Code and
    27  achieves an Energy Star Label certified to by a Home Energy
    28  Rating System rater.
    29     (2)  An additional grant amount of two thousand five hundred
    30  ($2,500) dollars may be provided to the purchaser of a home that
    31  incorporates an alternative energy generating system in its

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     1  design. These systems include, but are not limited to,
     2  photovoltaic solar energy systems, solar hot water heater
     3  systems, wind turbine energy systems or passive solar energy
     4  systems.
     5     (3)  Evidence shall be provided by the grantee to document to
     6  the agency that the alternative energy generating system was
     7  properly designed and installed to maximize the energy output or
     8  energy savings potential of the system.
     9     (c)  The grant shall be a separate product attached to other
    10  mortgage products to assist with offsetting the closing costs or
    11  down payment assistance for the grant.
    12     Section 402-D.  Grant Repayment.--(a)  A grant issued under
    13  this article may not be required to be repaid to the agency if
    14  the home is owned by the grantee for a minimum period of five
    15  (5) years after the closing date on the home.
    16     (b)  In the event the grantee relinquishes the home in less
    17  than five years from the closing date on the home, the agency
    18  shall be entitled to recapture one-fifth of the grant for each
    19  succeeding year up to the five-year minimum.
    20     Section 403-D.  Eligibility.--In order to be eligible for a
    21  grant under this article:
    22     (1)  The home must be the primary residence of the grantee.
    23     (2)  The home must be new construction with no prior
    24  occupants.
    25     (3)  The maximum income of the grantee may not exceed one
    26  hundred fifty (150) percent of Statewide median income.
    27     Section 404-D.  Participating Lenders.--The agency shall
    28  offer the grant through participating lenders of the agency as
    29  well as other independent lending institutions.
    30     Section 405-D.  Program Guidelines.--Within sixty (60) days
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     1  of the of the effective date of this section, the agency shall
     2  adopt initial program guidelines for the implementation of this
     3  article and may revise the guidelines whenever appropriate.
     4     Section 406-D.  Report to General Assembly.--The agency
     5  shall, within sixty (60) days of the conclusion of the pilot
     6  program, submit a written report to the General Assembly on the
     7  implementation of the program.
     8     Section 2.  This act shall take effect in 60 days.

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