Pennsylvania HB 818: An Act providing for the establishment of first-time homebuyer savings accounts for first-time homebuyers in this Commonwealth; establishing the First-time Homebuyer Savings Account Program and the First-time Homebuyer Savings Account Fund; and imposing duties on the Treasury Department.

Bill Text

PRIOR PRINTER'S NOS. 848, 1296 PRINTER'S NO. 1656
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 818
Session of
2025
INTRODUCED BY BIZZARRO, GIRAL, PIELLI, CONKLIN, KHAN, SANCHEZ,
T. DAVIS, HILL-EVANS, POWELL, SCHLOSSBERG, DONAHUE, HADDOCK,
NEILSON, MERSKI, CIRESI, FREEMAN, OTTEN, HOHENSTEIN, DEASY,
O'MARA, STEELE, GREEN, MADDEN AND WEBSTER, MARCH 5, 2025
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
MAY 7, 2025
AN ACT
Providing for the establishment of first-time homebuyer savings
accounts for first-time homebuyers in this Commonwealth;
establishing the First-time Homebuyer Savings Account Program
and the First-time Homebuyer Savings Account Fund; and
imposing duties on the Treasury Department.
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 First-Time
Homebuyer Savings Account 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:
"Account." A first-time homebuyer savings account
established under section 5 4.
"Account holder." An individual who establishes,
individually or jointly, an account.
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"Allowable closing costs." A disbursement listed on a
settlement statement for the purchase of a single-family
residence in this Commonwealth by a qualified beneficiary.
"Department." The Treasury Department of the Commonwealth.
"Eligible costs." A down payment and allowable closing costs
for the purchase of a single-family residence in this
Commonwealth by a qualified beneficiary. The term does not
include costs incurred prior to the establishment of an account.
"Financial institution." A bank, trust company, savings
institution, credit union, broker-dealer, insurance company or
mutual fund or similar entity authorized to do business in this
Commonwealth.
"First-time homebuyer." An individual who resides in this
Commonwealth and has not owned or purchased directly or through
a trust, limited liability company, partnership or other legal
entity, either individually or jointly, a single-family
residence in this Commonwealth or another state.
"Fund." The First-time Homebuyer Savings Account Fund
established under section 4(c) 3(C).
"INELIGIBLE USE." THE SALE OR LEASE OF A SINGLE-FAMILY
RESIDENCE WITHIN THREE YEARS OF THE SETTLEMENT DATE.
"Program." The First-time Homebuyer Savings Account Program
established under section 4 3.
"Qualified beneficiary." A first-time homebuyer who is
designated as a qualified beneficiary by the account holder of
an account.
"SETTLEMENT DATE." THE DATE ON WHICH A SELLER IN A REAL
ESTATE TRANSACTION EXECUTES A DEED OR SIGNS A SETTLEMENT
STATEMENT, WHICHEVER OCCURS LATER, TO CONVEY TITLE TO A
PURCHASER.
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"Settlement statement." A statement of receipts and
disbursements from a real estate transaction, including a
statement prescribed under 12 U.S.C. Ch. 27 (relating to real
estate settlement procedures).
"Single-family residence." A single-family residence owned
and occupied by a qualified beneficiary as the qualified
beneficiary's principal residence, which may include a
manufactured home, trailer, mobile home or unit in a
condominium, cooperative or planned community.
"Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
Section 3. First-time Homebuyer Savings Account Bureau.
The First-time Homebuyer Savings Account Bureau is
established within the department for the purpose of
administering the program.
Section 4 3. First-time Homebuyer Savings Account Program.
(a) Establishment.--The First-time Homebuyer Savings Account
Program is established in the department.
(b) Application.--The application for the program shall be
on a form and in a manner prescribed by the department which
shall be available on the department's publicly accessible
Internet website.
(c) Administration.--The department may utilize the
administrative and investment structures of the Tuition Account
Investment Program established by the act of April 3, 1992
(P.L.28, No.11), known as the Tuition Account Programs and
College Savings Bond Act, or the Pennsylvania ABLE Savings
Program established by the act of April 18, 2016 (P.L.128,
No.17), known as the Pennsylvania ABLE Act, without separately
soliciting proposals for assistance in the management of all or
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part of the program.
(d) Investment manager, program manager and trustee.--The
department may contract with one or more persons or legal
entities to serve as investment managers, program managers and
trustees on behalf of the program. If the department contracts
with investment