Pennsylvania HB 275: An Act providing for grants to subsidize home ownership; establishing the Pennsylvania Affordable Homeownership Subsidy Program; imposing duties on the Department of Community and Economic Development; and providing for report to General Assembly.

Bill Text

PRINTER'S NO. 219
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 275
Session of
2025
INTRODUCED BY POWELL, KHAN, SANCHEZ, HILL-EVANS, GIRAL, PROBST,
SCHLOSSBERG AND CEPEDA-FREYTIZ, JANUARY 22, 2025
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
JANUARY 22, 2025
AN ACT
Providing for grants to subsidize home ownership; establishing
the Pennsylvania Affordable Homeownership Subsidy Program;
imposing duties on the Department of Community and Economic
Development; and providing for report to General Assembly.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Pennsylvania
Affordable Homeownership Subsidy Program Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Affordable unit." A housing unit for which the monthly
mortgage payment does not exceed 28% of the gross monthly income
of an eligible household.
"County applicant." A nonprofit entity, government entity or
for-profit property developer that serves one or more counties.
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"Department." The Department of Community and Economic
Development of the Commonwealth.
"Eligible household." An individual or family that earns
between 60% and 120% of the area median income as determined by
the United States Department of Housing and Urban Development,
adjusted for family size.
"Grant." A grant awarded under section 3(c).
"Program." The Pennsylvania Affordable Homeownership Subsidy
Program established under section 3(a).
Section 3. Pennsylvania Affordable Homeownership Subsidy
Program.
(a) Establishment.--The Pennsylvania Affordable
Homeownership Subsidy Program is established within the
department for the purpose of subsidizing affordable
homeownership for households with annual household incomes
between 60% and 120% of the area median income in accordance
with this section.
(b) Application process.--The department shall establish an
application process for the distribution of grants to be awarded
under subsection (c) no later than 90 days after the effective
date of this section.
(c) Grants.--
(1) The department shall award grants to no more than
one county applicant for project types under subsection (d).
(2) A grant awarded under paragraph (1) shall be no more
than $125,000.
(3) This subsection shall not be construed to:
(i) prohibit the department from awarding more than
one grant to a county applicant to serve multiple
counties; or
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(ii) limit how much funding an applicant may
receive.
(d) Homeownership affordability project types.--The program
shall provide grants for the following project types:
(1) Acquisition of properties suitable to serve as
affordable units.
(2) Design, architecture and engineering services
necessary for the development of affordable units.
(3) Homebuyer assistance programs to aid individuals and
families in purchasing affordable units.
(4) Asset management and mapping to ensure efficient
utilization of resources and effective oversight of
subsidized properties.
(5) Social and environmental impact studies to assess
the broader implications of affordable housing initiatives.
(6) Homeownership education programs to provide
prospective homeowners with necessary knowledge and skills
for successful homeownership.
(7) Home repair programs to address maintenance and
repair needs of affordable housing units.
(8) Workforce housing programs to address the housing
needs of individuals and families within defined income
specifications.
(9) Acquisition of property by a land trust, provided
that a homeowner maintains at least 40% of the equity on the
property.
Section 4. Administration by department.
(a) Administration and oversight.--
(1) The department shall be responsible for the
administration and oversight of the program.
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(2) Of the money appropriated for the program, the
department may take an administrative fee of no more than 10%
for direct costs associated with the administration of the
program.
(b) Guidelines.--The department shall establish guidelines,
procedures and criteria for the implementation and
administration of the program, which the department shall
publish on its publicly accessible Internet website.
(c) Collaboration.--The department may collaborate with
other State agencies, local government entities, for-profit
developers and nonprofit organizations to effectively implement
the program.
Section 5. Reports.
(a) Department reporting.--No later than September 1
following the first fiscal year or any portion of the first
fiscal year in which the program is in effect and no later than
September 1 for all succeeding fiscal years in