Pennsylvania HB 1696: An Act amending the act of December 3, 1959 (P.L.1688, No.621), known as the Housing Finance Agency Law, establishing the Pennsylvania Lease with Guaranteed Purchase Option Home Ownership Program and the Pennsylvania Lease with Guaranteed Purchase Option Home Ownership Program Fund.

Bill Text

PRINTER'S NO. 2086
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1696
Session of
2025
INTRODUCED BY FREEMAN, SAMUELSON, HILL-EVANS, GIRAL, KENYATTA,
CEPEDA-FREYTIZ, PARKER, SANCHEZ, DALEY, BOYD, GREEN,
SHUSTERMAN AND BURGOS, JULY 2, 2025
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
JULY 7, 2025
AN ACT
Amending the act of December 3, 1959 (P.L.1688, No.621),
entitled "An act to promote the health, safety and welfare of
the people of the Commonwealth by broadening the market for
housing for persons and families of low and moderate income
and alleviating shortages thereof, and by assisting in the
provision of housing for elderly persons through the creation
of the Pennsylvania Housing Finance Agency as a public
corporation and government instrumentality; providing for the
organization, membership and administration of the agency,
prescribing its general powers and duties and the manner in
which its funds are kept and audited, empowering the agency
to make housing loans to qualified mortgagors upon the
security of insured and uninsured mortgages, defining
qualified mortgagors and providing for priorities among
tenants in certain instances, prescribing interest rates and
other terms of housing loans, permitting the agency to
acquire real or personal property, permitting the agency to
make agreements with financial institutions and Federal
agencies, providing for the purchase by persons of low and
moderate income of housing units, and approving the sale of
housing units, permitting the agency to sell housing loans,
providing for the promulgation of regulations and forms by
the agency, prescribing penalties for furnishing false
information, empowering the agency to borrow money upon its
own credit by the issuance and sale of bonds and notes and by
giving security therefor, permitting the refunding,
redemption and purchase of such obligations by the agency,
prescribing remedies of holders of such bonds and notes,
exempting bonds and notes of the agency, the income
therefrom, and the income and revenues of the agency from
taxation, except transfer, death and gift taxes; making such
bonds and notes legal investments for certain purposes; and
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indicating how the act shall become effective," establishing
the Pennsylvania Lease with Guaranteed Purchase Option Home
Ownership Program and the Pennsylvania Lease with Guaranteed
Purchase Option Home Ownership Program Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of December 3, 1959 (P.L.1688, No.621),
known as the Housing Finance Agency Law, is amended by adding an
article to read:
ARTICLE IV-E
PENNSYLVANIA LEASE WITH GUARANTEED PURCHASE OPTION HOME
OWNERSHIP PROGRAM
Section 401-E. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advertisement." A written, visual or oral communication
made to a lessee or prospective lessee by means of personal
representation, newspaper, magazine, circular, billboard, direct
mailing, sign, radio, television, telephone or other means of
communication that aids, promotes or assists, directly or
indirectly, a lease with guaranteed purchase option agreement.
"Escrow account." A bank account or other financial account
administered by the agency or its designee in which all funds
paid by lessees toward the closing costs and down payment to
purchase the subject premises and any and all matching program
funds are deposited and maintained unless paid directly to the
title company at closing.
"Fund." The Pennsylvania Lease with Guaranteed Purchase
Option Home Ownership Program Fund established in section 406-E.
"Lease with g uaranteed purchase option agreement" or
"agreement." An agreement for the use of real property by an
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individual primarily for personal, family or household purposes
for an initial period of not less than one year that is
automatically renewable for successive one-year periods and that
provides for a guaranteed option for the lessee to purchase the
property. The term does not include an agreement for
agricultural, business or commercial purposes or an agreement in
which the individual that will use the property is an
organization.
"Lessee." An individual who leases real property in
accordance with a lease with guaranteed purchase option
agreement.
"Lessor." A person or entity that owns residential property:
(1) constructed or rehabilitated under the program; and
(2) to be leased with a guaranteed option to purchase to
an eligible lessee.
"Monthly payment." The total amount due under a lease with
guaranteed purchase option agreement that is attributable to
rent and an amount escrowed for the purchase of the property,
and which agreeme