PRINTER'S NO. 874
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 844
Session of
2025
INTRODUCED BY WEBSTER, SMITH-WADE-EL, SANCHEZ, PROKOPIAK, HILL-
EVANS, PIELLI, MADDEN, FREEMAN, HANBIDGE, SCHLOSSBERG,
BOROWSKI, CERRATO, MALAGARI AND KHAN, MARCH 10, 2025
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
MARCH 10, 2025
AN ACT
1 Amending the act of December 3, 1959 (P.L.1688, No.621),
2 entitled "An act to promote the health, safety and welfare of
3 the people of the Commonwealth by broadening the market for
4 housing for persons and families of low and moderate income
5 and alleviating shortages thereof, and by assisting in the
6 provision of housing for elderly persons through the creation
7 of the Pennsylvania Housing Finance Agency as a public
8 corporation and government instrumentality; providing for the
9 organization, membership and administration of the agency,
10 prescribing its general powers and duties and the manner in
11 which its funds are kept and audited, empowering the agency
12 to make housing loans to qualified mortgagors upon the
13 security of insured and uninsured mortgages, defining
14 qualified mortgagors and providing for priorities among
15 tenants in certain instances, prescribing interest rates and
16 other terms of housing loans, permitting the agency to
17 acquire real or personal property, permitting the agency to
18 make agreements with financial institutions and Federal
19 agencies, providing for the purchase by persons of low and
20 moderate income of housing units, and approving the sale of
21 housing units, permitting the agency to sell housing loans,
22 providing for the promulgation of regulations and forms by
23 the agency, prescribing penalties for furnishing false
24 information, empowering the agency to borrow money upon its
25 own credit by the issuance and sale of bonds and notes and by
26 giving security therefor, permitting the refunding,
27 redemption and purchase of such obligations by the agency,
28 prescribing remedies of holders of such bonds and notes,
29 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
32 bonds and notes legal investments for certain purposes; and
 1 indicating how the act shall become effective," establishing
2 the Housing Construction Loan Program and the Housing
3 Construction Loan Fund; and providing for duties of
4 Pennsylvania Housing Finance Agency.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. The act of December 3, 1959 (P.L.1688, No.621),
8 known as the Housing Finance Agency Law, is amended by adding an
9 article to read:
10 ARTICLE III-B
11 HOUSING CONSTRUCTION LOAN PROGRAM
12 Section 301-B. Definitions.
13 The following words and phrases when used in this article
14 shall have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Eligible builder." A builder that is engaged in the
17 construction of new housing units, has a primary place of
18 business located in this Commonwealth and has conducted business
19 in this Commonwealth for no less than three years.
20 "Fund." The Housing Construction Loan Fund established under
21 section 304-B(a).
22 "Program." The Housing Construction Loan Program established
23 under section 302-B(a).
24 Section 302-B. Establishment and administration of Housing
25 Construction Loan Program.
26 (a) Establishment.--The Housing Construction Loan Program is
27 established within the agency for the purposes specified in this
28 article. An eligible builder or low-income persons or families
29 and moderate income persons or families may apply for a loan
30 under the program in accordance with the rules and regulations
31 promulgated by the agency.
32 (b) Administration.--
20250HB0844PN0874 - 2 -
 1 (1) The agency may issue loans under the program to any
2 of the following in accordance with the agency's rules and
3 regulations:
4 (i) An eligible builder for the construction of new
5 housing units for sale to low-income persons or families
6 and moderate-income persons or families.
7 (ii) Low-income persons or families and moderate-
8 income persons or families for the long-term financing of
9 new housing units constructed by an eligible builder.
10 (2) The agency may not issue a loan under the program
11 in excess of 100% of the total project cost.
12 (3) When a loan under the program is outstanding, the
13 agency shall, prior to the approval of sale by the eligible
14 builder or subsequent resale, ensure that the sale or resale
15 is to low-income persons or families and moderate-income
16 persons or families.
17 (4) The agency may set the interest rate for a loan
18 issued under the program in a manner consistent with the
19 agency's cost of borrowing money, cost of operation and the
20 agency's duty to the agency's bondholders. Regarding the
21 issuance of a loan under the program and the commitments of
22 the loan, in addition to the interest authorized under this
23 paragraph, the agency may impose and collect fees and charges
24 for the reimbursement of the agency's financing costs,
25 service charges, insurance premiums and mortgage insurance
26 premiums as the agency determines to be reasonable.
27 Section 303-B. Loan terms under program.
28 (a) Length of loans.--The agency may not issue a loan under
29 the program for a period of more than 15 years.
30 (b) Limitation on loans.--The agency may not issue a loan
20250HB0844PN0874 - 3 -
 1 under the program in excess of 80% of the median sale price of
2 housing for the previous calendar year in the county where the
3 housing unit is to be constructed. The agency shall promulgate
4 rules and regulations to establish the loan limits on an annual
5 basis for each county in accordance with this subsection.
6 (c) Limitation on borrowing.--The agency may set a limit on
7 the maximum borrowing under the program at the discretion of the
8 agency based on perceived need and creditworthiness of the
9 eligible builder or the low-income persons or families and
10 moderate-income persons or families.
11 Section 304-B. Housing Construction Loan Fund.
12 (a) Establishment.--The Housing Construction Loan Fund is
13 established in the State Treasury.
14 (b) Deposits.--The State Treasurer shall deposit all of the
15 following into the fund:
16 (1) Money appropriated by the General Assembly for the
17 program.
18 (2) Money from other grant sources to the agency for the
19 program.
20 (3) Money from the repayment of principal and interest
21 on loans made under the program.
22 Section 2. This act shall take effect in 60 days.
20250HB0844PN0874 - 4 -


Statutes/Laws affected:
Printer's No. 0874: P.L.1688, No.621