1Establishing the Veterans' Homeownership Assistance Program; and
2providing for financial assistance to a veteran or veteran's
3spouse to purchase a home.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Short title.

7This act shall be known and may be cited as the Veterans'
8Homeownership Assistance Act.

9Section 2. Definitions.

10The following words and phrases when used in this act shall
11have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13"Agency." The Pennsylvania Housing Financing Agency.

14"Applicant." A veteran or a veteran's spouse.

15"Department." The Department of Military and Veterans
16Affairs of the Commonwealth.

17"Financial assistance." Down payment or closing costs
18assistance authorized under section 3.

1"Primary residence." A dwelling that is used as the primary
2domicile of the owner.

3"Veteran." A person who served on active duty in the United
4States Armed Forces, including any of the following:

5(1) A reservist or member of the National Guard who was
6discharged or released from the service under honorable
7conditions.

8(2) A reservist or member of the National Guard who
9completed an initial term of enlistment or qualifying period
10of service.

11(3) A reservist or member of the National Guard who was
12disabled in the line of duty during training.

13"Veteran's spouse." The unmarried surviving spouse of a
14veteran who was killed in action while on active duty in the
15United States Armed Forces.

16Section 3. Veterans' Homeownership Assistance Program.

17(a) Establishment.--There is established a Veterans'
18Homeownership Assistance Program which shall be administered by
19the agency in coordination with the department.

20(b) Award.--The agency may award financial assistance to an
21applicant who is a first-time homebuyer under this subsection.
22Financial assistance must be in one of following the forms:

23(1) Down payment assistance on the purchase of a primary
24residence. Down payment assistance shall equal the lesser of
25the following:

26(i) Twenty percent of the sale price of the home.

27(ii) Ten thousand dollars.

28(2) Closing costs assistance on the purchase of a
29primary residence, which shall equal 5% of the sale price of
30the home and may not exceed the lesser of the following:

1(i) The total amount of closing costs due.

2(ii) Ten thousand dollars.

3(c) Types.--The agency may award financial assistance in any
4of the following forms and manners based on a review of the
5applicant's personal finances:

6(1) A grant.

7(2) A no-interest, forgivable loan. A loan awarded under
8this paragraph shall be reduced by 20% per year over five
9years beginning on the date of closing. A veteran who sells
10the home prior to the expiration of five years or who ceases
11to use the home as the veteran's primary residence prior to
12the expiration of the five-year forgiveness period shall
13repay any remaining principal amount of the loan to the
14agency in a time and manner determined by the agency.

15(3) A deferred loan repayable upon the sale of the
16property. A loan awarded under this paragraph must be repaid
17upon the sale of the home by the veteran. The amount of the
18repayment shall equal 105% of the total amount of the loan
19awarded and shall be payable to the agency in a time and
20manner determined by the agency.

21(d) Application.--A veteran may apply for financial
22assistance by submitting an application in the form and manner
23prescribed by the agency. The applicant shall state in the
24application whether the applicant is seeking financial
25assistance in the form of down payment assistance or closing
26costs assistance.

27(e) Review.--Prior to awarding financial assistance under
28this act, the agency shall review the application under
29subsection (d) to determine whether the applicant is eligible to
30receive financial assistance. The following shall apply:

1(1) The agency may not impose a means test or make any
2determination of need on an applicant.

3(2) An applicant's financial circumstances may only be
4used to assess the type of financial assistance to be awarded
5to the applicant.

6Section 4. Duties of department.

7The department shall work in conjunction with the agency to
8verify the status and eligibility of every individual submitting
9an application for financial assistance under this act.

10Section 5. Guidelines.

11The agency, in consultation with the department, shall
12promulgate guidelines governing the Veterans' Homeownership
13Assistance Program.

14Section 6. Appropriation.

15(a) Amount.--The amount of $2,500,000 is appropriated from
16the General Fund to the agency for the period of July 1, 2014,
17to June 30, 2015, to provide financial assistance to eligible
18veterans and administer the agency's responsibilities under this
19act.

20(b) Administrative costs.--No more than $250,000 of the
21funds appropriated under subsection (a) may be used for
22administrative costs incurred by the agency and the department
23to administer this act.

24Section 20. Effective date.

25This act shall take effect in 60 days.