THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY WATSON, PETRI, CALTAGIRONE, MILLER, BOYD, CLYMER, CREIGHTON, GEIST, GINGRICH, HARKINS, HENNESSEY, JOSEPHS, MURT, READSHAW, ROSS, SCAVELLO, SWANGER AND WAGNER, APRIL 25, 2011

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, APRIL 25, 2011  

AN ACT

Amending the act of December 3, 1959 (P.L.1688, No.621),

entitled, as amended, "An act to promote the health, safety

and welfare of the people of the Commonwealth by broadening

the market for housing for persons and families of low and

moderate income and alleviating shortages thereof, and by

assisting in the provision of housing for elderly persons

through the creation of the Pennsylvania Housing Finance

Agency as a public corporation and government

instrumentality; providing for the organization, membership

and administration of the agency, prescribing its general

powers and duties and the manner in which its funds are kept

and audited, empowering the agency to make housing loans to

qualified mortgagors upon the security of insured and

uninsured mortgages, defining qualified mortgagors and

providing for priorities among tenants in certain instances,

prescribing interest rates and other terms of housing loans,

permitting the agency to acquire real or personal property,

permitting the agency to make agreements with financial

institutions and Federal agencies, providing for the purchase

by persons of low and moderate income of housing units, and

approving the sale of housing units, permitting the agency to

sell housing loans, providing for the promulgation of

regulations and forms by the agency, prescribing penalties

for furnishing false information, empowering the agency to

borrow money upon its own credit by the issuance and sale of

bonds and notes and by giving security therefor, permitting

the refunding, redemption and purchase of such obligations by

the agency, prescribing remedies of holders of such bonds and

notes, exempting bonds and notes of the agency, the income

therefrom, and the income and revenues of the agency from

taxation, except transfer, death and gift taxes; making such

bonds and notes legal investments for certain purposes; and

indicating how the act shall become effective," establishing

an energy-efficient home assistance program.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of December 3, 1959 (P.L.1688, No.621),

known as the Housing Finance Agency Law, is amended by adding an

article to read:

ARTICLE IV.-E

ENERGY-EFFICIENT HOME ASSISTANCE PROGRAM

Section 401-E.  General Authority.--(a)  The agency shall

operate a pilot program commencing with July 1 of the first

fiscal year in which an appropriation for the pilot program is

expressly provided for by act of the General Assembly. The pilot

program shall award grants of up to five thousand ($5,000)

dollars to homebuyers to offset closing costs or down payment

assistance, including, but not limited to, the mortgage rate

buy-down, for homes that meet the following criteria for energy

efficiency or alternative energy systems, or both.

(b)  (1)  Two thousand five hundred ($2,500) dollars of a

grant issued under this article may be provided to the purchaser

of a home that exceeds the energy and water conservation

requirements set by the Statewide Uniform Construction Code and

achieves an Energy Star Label certified to by a Home Energy

Rating System rater.

(2)  An additional grant amount of two thousand five hundred

($2,500) dollars may be provided to the purchaser of a home that

incorporates an alternative energy generating system in its

design. These systems include, but are not limited to,

photovoltaic solar energy systems, solar hot water heater

systems, wind turbine energy systems, passive solar energy

systems or geothermal heat pump systems.

(3)  Evidence shall be provided by the grantee to document to

the agency that the alternative energy generating system was

properly designed and installed to maximize the energy output or

energy savings potential of the system.

(c)  The grant shall be a separate product attached to other

mortgage products to assist with offsetting the closing costs or

down payment assistance for the grant.

Section 402-E.  Grant Repayment.--(a)  A grant issued under

this article may not be required to be repaid to the agency if

the home is owned by the grantee for a minimum period of five

(5) years after the closing date on the home.

(b)  In the event the grantee relinquishes the home in less

than five years from the closing date on the home, the agency

shall be entitled to recapture one-fifth of the grant for each

succeeding year up to the five-year minimum.

Section 403-E.  Eligibility.--In order to be eligible for a

grant under this article:

(1)  The home must be the primary residence of the grantee.

(2)  The home must be new construction with no prior

occupants.

(3)  The maximum income of the grantee may not exceed one

hundred fifty (150) percent of Statewide median income for one-

member households or two hundred (200) percent of Statewide

median income for two or more member households.

Section 404-E.  Participating Lenders.--The agency shall

offer the grant through participating lenders of the agency as

well as other independent lending institutions.

Section 405-E.  Program Guidelines.--Within sixty (60) days

of the of the effective date of this section, the agency shall

adopt initial program guidelines for the implementation of this

article and may revise the guidelines whenever appropriate.

Section 406-E.  Report to General Assembly.--The agency

shall, within sixty (60) days of the conclusion of the pilot

program, submit a written report to the General Assembly on the

implementation of the program. The report shall include at a

minimum:

(1)  The number of new homebuyers assisted through this

program.

(2)  The number and type of financial assistance provided,

including a breakdown of the grants issued pursuant to section

401-E(b)(1) and (2).

(3)  The agency's overall assessment of the program and a

recommendation to continue the program, continue the program

with modifications or to discontinue the program.

Section 407-E.  Continued Operation of Program.--The agency

shall not be required to continue issuing grants under the

program for any fiscal year in which no appropriation for the

program is expressly provided for by act of the General

Assembly.

Section 2.  This act shall take effect in 60 days.