PRINTER'S NO. 518
No. 474 Session of 2007
INTRODUCED BY WONDERLING, PIPPY, WAUGH, FONTANA, D. WHITE,
BOSCOLA, KITCHEN, ROBBINS, C. WILLIAMS, STOUT, ERICKSON,
RAFFERTY, TOMLINSON, FERLO, COSTA, GREENLEAF, MUSTO, REGOLA,
ORIE, GORDNER, EARLL, RHOADES, O'PAKE AND LOGAN,
MARCH 15, 2007
REFERRED TO URBAN AFFAIRS AND HOUSING, MARCH 15, 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
31 taxation, except transfer, death and gift taxes; making such
1 bonds and notes legal investments for certain purposes; and
2 indicating how the act shall become effective," establishing
3 the Firefighter Mortgage Assistance Program.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. The act of December 3, 1959 (P.L.1688, No.621),
7 known as the Housing Finance Agency Law, is amended by adding an
8 article to read:
9 ARTICLE IV-D
10 FIREFIGHTER MORTGAGE ASSISTANCE PROGRAM
11 Section 401-D. Definitions.
12 The following words and phrases when used in this article
13 shall have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Applicant." A firefighter who applies for a grant or loan
16 under the Firefighters Mortgage Assistance Program established
17 in section 402-D for the purpose of financing the purchase of
18 residential property.
19 "Firefighter." A person who provides services, without
20 receipt of remuneration for those services as either of the
21 following:
22 (1) A volunteer member of a fire company, organized and
23 existing under the laws of this Commonwealth.
24 (2) A volunteer member of any fire police unit, rescue
25 squad, ambulance corps or other like organization affiliated
26 with one or more fire companies.
27 The term includes a person who is a member of such a fire
28 company or affiliated organization and who participates in the
29 fire service without receipt of remuneration for that
30 participation.
31 "Participating municipality." A city, township, borough or
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1 incorporated town that, by resolution of its legislative body,
2 elects to participate in the Firefighter Mortgage Assistance
3 Program established in section 402-D.
4 "Program." The Firefighter Mortgage Assistance Program
5 established under section 402-D.
6 "Residential property." A single-family residence or unit
7 located in a participating municipality.
8 Section 402-D. Establishment of program.
9 The agency shall develop and, in cooperation with
10 participating municipalities, administer a program, to be known
11 as the Firefighter Mortgage Assistance Program, to encourage
12 firefighters to purchase and live in residential property in the
13 municipalities in which they serve. Under the program, the
14 agency shall provide grants of up to $5,000 or low-interest
15 loans to firefighters for the purchase of residential property
16 in such municipalities, in accordance with the provisions of
17 this article. The agency shall provide not more than $10,000,000
18 for the program. With regard to a grant issued under the
19 program, after each year of service following the purchase of
20 the home, $1,000 will be credited towards the grant, whereby
21 after five years, the grant shall be forgiven.
22 Section 403-D. Eligibility.
23 (a) General rule.--Subject to the provisions of subsection
24 (b), an applicant who seeks assistance under this article must:
25 (1) Be a firefighter.
26 (2) Certify intent to use the grant or loan funds in
27 connection with the purchase of residential property located
28 in the municipality in which the applicant volunteers.
29 (3) Certify intent to own and reside at the residential
30 property on a permanent and full-time basis for at least five
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1 years.
2 (b) Limitation.--No firefighter shall be eligible under this
3 article for more than one outstanding grant or mortgage loan at
4 a time, and no person shall be eligible to receive a second
5 grant or mortgage loan on a residential property already
6 mortgaged by the firefighter. Preference shall be given in
7 making grants and loans to volunteer firefighters who are
8 applying to acquire or construct a first residential property.
9 Section 404-D. Enforcement of residency requirement.
10 The agency may enforce the five-year residency agreement set
11 forth in section 403-D(a)(3) through the use of restrictive
12 mortgage covenants, deed restrictions or other penalties deemed
13 appropriate by the agency to accomplish the legislative purpose
14 of encouraging firefighters to purchase a residential property
15 and reside in the municipality in which they volunteer.
16 Section 405-D. Occupancy requirement.
17 (a) General rule.--A firefighter who receives a grant or
18 loan under this article shall, within 120 days of the date on
19 which the grant or loan is made, occupy the residence as the
20 firefighter's principal dwelling place.
21 (b) Effect of resignation and sale.--If a firefighter who
22 receives a grant resigns from employment, sells or ceases to
23 occupy the residence as the volunteer firefighter's principal
24 residence, the amount of the grant remaining unforgiven in
25 accordance with section 402-D shall be repaid to the agency on
26 the 120th day following that action.
27 Section 406-D. Bonds and notes.
28 The agency shall borrow money for the operation and
29 administration of the program by the making of notes and by the
30 issuance of bonds in accordance with the provisions of Article
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1 V.
2 Section 407-D. Regulations.
3 The agency shall promulgate regulations to carry out the
4 provisions of this article.
5 Section 2. This act shall take effect in 60 days.
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