PRINTER'S NO. 3421
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2454
Session of
2024
INTRODUCED BY POWELL, GIRAL, HILL-EVANS, SCHLOSSBERG, MAYES,
KHAN, SANCHEZ, CEPEDA-FREYTIZ, HOWARD, D. WILLIAMS, BOYD,
CURRY AND DALEY, JUNE 26, 2024
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
JUNE 26, 2024
AN ACT
1 Providing for grants to subsidize home ownership; establishing
2 the Pennsylvania Affordable Homeownership Subsidy Program;
3 imposing duties on the Department of Community and Economic
4 Development; submitting a report; and making an
5 appropriation.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Pennsylvania
10 Affordable Homeownership Subsidy Program Act.
11 Section 2. Definitions.
12 The following words and phrases when used in this act shall
13 have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Affordable unit." A housing unit for which the monthly
16 mortgage payment does not exceed 28% of the gross monthly income
17 of an eligible household.
18 "County applicant." A nonprofit entity, government entity or
1 for-profit property developer that serves one or more counties.
2 "Department." The Department of Community and Economic
3 Development of the Commonwealth.
4 "Eligible household." An individual or family that earns
5 between 60% and 120% of the area median income as determined by
6 the United States Department of Housing and Urban Development,
7 adjusted for family size.
8 "Grant." A grant awarded under section 3(c).
9 "Program." The Pennsylvania Affordable Homeownership Subsidy
10 Program established under section 3(a).
11 Section 3. Pennsylvania Affordable Homeownership Subsidy
12 Program.
13 (a) Establishment.--The Pennsylvania Affordable
14 Homeownership Subsidy Program is established within the
15 department for the purpose of subsidizing affordable
16 homeownership for households with annual household incomes
17 between 60% and 120% of the area median income in accordance
18 with this section.
19 (b) Application process.--The department shall establish an
20 application process for the distribution of grants to be awarded
21 under subsection (c) no later than 90 days after the effective
22 date of this section.
23 (c) Grants.--The following shall apply:
24 (1) The department shall award grants to no more than
25 one county applicant for project types under subsection (d).
26 (2) A grant awarded under paragraph (1) shall be no more
27 than $125,000.
28 (3) This subsection shall not be construed to:
29 (i) prohibit the department from awarding more than
30 one grant to a county applicant to serve multiple
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1 counties; or
2 (ii) limit how much funding an applicant may
3 receive.
4 (d) Homeownership affordability project types.--The program
5 shall provide grants for the following project types:
6 (1) Acquisition of properties suitable to serve as
7 affordable units.
8 (2) Design, architecture and engineering services
9 necessary for the development of affordable units.
10 (3) Homebuyer assistance programs to aid individuals and
11 families in purchasing affordable units.
12 (4) Asset management and mapping to ensure efficient
13 utilization of resources and effective oversight of
14 subsidized properties.
15 (5) Social and environmental impact studies to assess
16 the broader implications of affordable housing initiatives.
17 (6) Homeownership education programs to provide
18 prospective homeowners with necessary knowledge and skills
19 for successful homeownership.
20 (7) Home repair programs to address maintenance and
21 repair needs of affordable housing units.
22 (8) Workforce housing programs to address the housing
23 needs of individuals and families within defined income
24 specifications.
25 (9) Acquisition of property by a land trust, provided
26 that a homeowner maintains at least 40% of the equity on the
27 property.
28 Section 4. Administration by department.
29 (a) Administration and oversight.--The following shall
30 apply:
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1 (1) The department shall be responsible for the
2 administration and oversight of the program.
3 (2) Of the money appropriated for the program, the
4 department may take an administrative fee of no more than 10%
5 for direct costs associated with the administration of the
6 program.
7 (b) Guidelines.--The department shall establish guidelines,
8 procedures and criteria for the implementation and
9 administration of the program, which the department shall
10 publish on its publicly accessible Internet website.
11 (c) Collaboration.--The department may collaborate with
12 other State agencies, local government entities, for-profit
13 developers and nonprofit organizations to effectively implement
14 the program.
15 Section 5. Reports.
16 (a) Department reporting.--No later than September 1
17 following the first fiscal year or any portion of the first
18 fiscal year in which the program is in effect and no later than
19 September 1 for all succeeding fiscal years in which the program
20 is in effect, the department shall prepare a report on program
21 outcomes and submit the report to the following:
22 (1) The chairperson and minority chairperson of the
23 Appropriations Committee of the Senate.
24 (2) The chairperson and minority chairperson of the
25 Appropriations Committee of the House of Representatives.
26 (3) The chairperson and minority chairperson of the
27 Urban Affairs and Housing Committee of the Senate.
28 (4) The chairperson and minority chairperson of the
29 Housing and Community Development Committee of the House of
30 Representatives.
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1 (b) Publishing of report.--The department shall publish the
2 report submitted under subsection (a) on the department's
3 publicly accessible Internet website.
4 (c) County reporting.--The department may require county
5 applicants awarded grants under the program to submit reports,
6 on a form and in a manner prescribed by the department,
7 containing information necessary for the department to comply
8 with the reporting requirements under subsection (a).
9 Section 6. Funding.
10 The General Assembly shall appropriate funds to the
11 department from the General Fund for the purpose of
12 administering the program.
13 Section 7. Effective date.
14 This act shall take effect in 180 days.
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