PRINTER'S NO. 3351
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2303
Session of
2020
INTRODUCED BY MIHALEK, READSHAW, LONGIETTI, PASHINSKI,
YOUNGBLOOD, BERNSTINE, WILLIAMS, REESE AND ROEBUCK,
FEBRUARY 24, 2020
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 24, 2020
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in realty transfer tax, further providing for
definitions and for excluded transactions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1101-C of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding definitions to read:
Section 1101-C. Definitions.--The following words when used
in this article shall have the meanings ascribed to them in this
section:
"Affordable housing." Housing that is rented to a low-income
household and is owned, operated or managed, developed, created,
acquired, owned or operated by an agency or instrumentality of
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the United States, the Commonwealth, a municipality, including a
housing authority, or an owner entity. The term shall not
include real estate transferred solely for the construction of
an administrative or maintenance building.
* * *
"Housing authority." A housing authority created under the
act of May 28, 1937 (P.L.955, No.265), referred to as the
Housing Authorities Law.
* * *
"Low-income household." A household with a total income at
or below eighty per cent of the area median income, adjusted for
household size, as determined annually by the Secretary of the
United States Department of Housing and Urban Development under
section 3(b)(2) of the United States Housing Act of 1937 (50
Stat. 888, 42 U.S.C. § 1437a(b)(2)).
* * *
"Owner entity." An entity that is owned or controlled by a
housing authority or an affiliate of a housing authority, or a
partnership or limited liability company in which the housing
authority or an affiliate of the housing authority has an
ownership interest and is receiving financial assistance from
the United States or the Commonwealth through or from:
(1) The United States Department of Housing and Urban
Development or a predecessor or successor agency of the United
States Department of Housing and Urban Development.
(2) A low-income housing tax credit under 26 U.S.C. § 42
(relating to low-income housing credit).
(3) The Housing Affordability and Rehabilitation Enhancement
Fund.
(4) The Rental Assistance Demonstration program administered
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by the United States Department of Housing and Urban Development
under the Consolidated and Further Continuing Appropriations
Act, 2012 (Public Law 112-55, 125 Stat. 552).
* * *
Section 2. Section 1102-C.3 of the act is amended by adding
a clause to read:
Section 1102-C.3. Excluded Transactions.--The tax imposed by
section 1102-C shall not be imposed upon:
* * *
(26) A transfer of real estate between a housing authority
and an owner entity which is utilizing the real estate for the
purpose of providing affordable housing. An exemption under this
clause may not be granted unless the conveyance document,
including a deed or lease, or a separately recorded restrictive
covenant contains a restrictive use provision of at least 20
years which requires the grantee or any successor in title from
using all or a portion of the real estate conveyed for providing
affordable housing and which provides for the exemption under
this clause to be revoked upon failure of the grantee or any
successor in title to comply with the restrictive use provision.
Section 3. This act shall take effect in 60 days.
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