An Act amending the act of June 27, 1996 (P.L.403, No.58), known as the Community and Economic Development Enhancement Act, providing for Office of Housing Opportunity.

PRINTER'S NO. 3255
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2445
Session of
2026
INTRODUCED BY SOLOMON, HOGAN, MAJOR, KHAN, BURGOS, HILL-EVANS,
SANCHEZ, K. HARRIS, WAXMAN, MADDEN, MADSEN, GALLAGHER,
CERRATO, SHUSTERMAN, SMITH-WADE-EL AND CIRESI, APRIL 21, 2026
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
APRIL 22, 2026
AN ACT
Amending the act of June 27, 1996 (P.L.403, No.58), entitled "An
act to enhance community and economic development in this
Commonwealth by restructuring certain administrative
functions and entities; changing the name of the Department
of Commerce to the Department of Community and Economic
Development; transferring functions of the Department of
Community Affairs into the Department of Community and
Economic Development and other agencies; providing for a
Deputy Secretary for Community Affairs and Development in the
Department of Community and Economic Development;
establishing the Center for Local Government Services and the
Local Government Advisory Committee; establishing the Small
Business Advocacy Council; conferring powers and duties on
the Legislative Reference Bureau; and making repeals,"
providing for Office of Housing Opportunity.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of June 27, 1996 (P.L.403, No.58), known
as the Community and Economic Development Enhancement Act, is
amended by adding a chapter to read:
CHAPTER 17
OFFICE OF HOUSING OPPORTUNITY
Section 1701. Definitions.
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The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advisory committee." The Housing Opportunity Advisory
Committee established in section 1705.
"Agency." The Pennsylvania Housing Finance Agency.
"Housing production targets." The housing production targets
under section 1706.
"OTO." The Pennsylvania Office of Transformation and
Opportunity established by Executive Order 2023-05.
"Office." The Office of Housing Opportunity established
under section 1702.
Section 1702. Office of Housing Opportunity.
The Office of Housing Opportunity is established in the
department.
Section 1703. Deputy secretary.
The Governor shall appoint a Deputy Secretary for Housing
Opportunity, who shall be responsible for the administration of
the office.
Section 1704. Powers and duties.
The office shall have the following powers and duties:
(1) Administering the functions specified in section
301(a)(6), (9) and (14).
(2) Chairing and making certain appointments to the
advisory committee as approved under section 1705.
(3) Adopting and publishing housing production targets
every 10 years based on the recommendations of the advisory
committee and implementing policies to meet the housing
production targets.
(4) Publishing an annual report detailing progress
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toward the housing production targets.
(5) Collaborating with the OTO to meet housing
production targets established under this chapter.
(6) Coordinating with the agency to ensure comprehensive
delivery of housing financing assistance.
(7) Administering the Residential Economic Development
District Grant Program under section 1709.
(8) Promulgating the rules and regulations necessary to
carry out the provisions of this chapter.
Section 1705. Advisory committee.
(a) Establishment.--The Housing Opportunity Advisory
Committee is established within the office.
(b) Membership.--The committee shall consist of the
following members:
(1) The Deputy Secretary of Housing Opportunity or a
designee, who shall serve as chairperson of the committee.
(2) The secretary or a designee.
(3) The Secretary of Environmental Protection or a
designee.
(4) The Secretary of Policy and Planning in the
Governor's Policy Office or a designee.
(5) The Secretary of Health or a designee.
(6) The Secretary of Labor and Industry or a designee.
(7) Four members of the General Assembly, including:
(i) One member of the Senate, appointed by the
President pro tempore of the Senate.
(ii) One member of the Senate, appointed by the
Minority Leader of the Senate.
(iii) One member of the House of Representatives,
appointed by the Speaker of the House of Representatives.
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(iv) One member of the House of Representatives,
appointed by the Minority Leader of the House of
Representatives.
(8) Four representatives of local government, appointed
by the Deputy Secretary of Housing Opportunity, including:
(i) One representative of county government
representing rural communities.
(ii) One representative of county government
representing urban or suburban communities.
(iii) One representative of municipal government
representing rural communities.
(iv) One representative of municipal government
representing urban or suburban communities.
(9) Nine members, appointed by the Deputy Secretary of
Housing Opportunity, who reside in this Commonwealth and have
extensive knowledge of at least one of the following areas:
(i) Residential real estate construction.
(ii) Residential real estate development or
financing.
(iii) Residential real estate ownership.
(iv) Local government planning and regulations.
(v) Local permitting and licensing.
(vi) Civil engineering.
(vii) Environmental engineering.
(viii) Historic preservation.
(ix) The housing needs of low-income individuals.
(c) Terms.--A member of the advisory committee shall serve
for the duration of the term of the appointing authority. A
member may be removed for cause by the member's appointing
authority.
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(d) Compensation and expenses.--Members of the advisory
committee shall receive no compensation for their services but
shall receive reimbursement for necessary and proper expenses
for attendance at meetings.
(e) Meetings and quorum.--
(1) The advisory committee shall meet at least quarterly
and upon the call of the chairperson at other times as deemed
necessary.
(2) Twelve members of the advisory committee shall
constitute a quorum.
(f) Declared vacancies.--The Deputy Secretary of Housing
Opportunity shall declare a vacancy to exist on the advisory
committee whenever any member appointed by the Deputy Secretary
fails to attend three consecutive meetings without good cause. A
declared vacancy shall be filled for the unexpired term.
(g) Staff.--The office shall provide staff for the advisory
committee.
(h) Duties.--The advisory committee shall:
(1) Study and make recommendations on ways that the
Commonwealth and local governments can improve housing supply
and housing affordability.
(2) Identify and assess factors that impact housing
supply and housing affordability, including:
(i) Labor and material costs.
(ii) Taxes and fees.
(iii) Access to financing and capital investment.
(iv) Planning, zoning and land use regulations.
(v) State building code standards.
(vi) Appeals and other legal barriers.
(vii) State and local permitting and approval
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processes.
(viii) The availability of land for housing.
(ix) Creating and financing affordable housing.
(x) Infrastructure.
(i) Report.--On or before March 30, 2027, and every two
years thereafter, the advisory committee shall report its
findings and recommendations to the office. The office shall
transmit the report to the OTO and to the chairperson and
minority chairperson of the Urban Affairs and Housing Committee
of the Senate and the chairperson and minority chairperson of
the Housing and Community Development Committee of the House of
Representatives.
Section 1706. Housing production targets.
(a) Target report.--The office shall publish a report, on or
before July 1, 2027, and every 10 years thereafter, establishing
housing production targets. The following shall apply:
(1) The housing production targets shall be established
for:
(i) The Commonwealth.
(ii) Each local jurisdiction, which shall include:
(A) Each county.
(B) Each municipality that exercises zoning or
planning authority.
(2) In establishing the housing production targets, the
office shall:
(i) Analyze data and forecasts related to:
(A) Employment demand.
(B) Housing demand.
(C) Population growth.
(D) The ratio of median household income wage
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growth to increases in home prices and rental costs,
which shall be treated as evidence of unmet housing
need and housing underproduction.
(E) Any other related information.
(ii) Utilize the data and consider the
recommendations contained in each report issued by the
advisory committee under section 1705 since the prior
report required by this section.
(iii) Consult with each local jurisdiction that may
have housing production targets.
(3) The office shall transmit the report to the OTO and
to the chairperson and minority chairperson of the Urban
Affairs and Housing Committee of the Senate and the
chairperson and minority chairperson of the Housing and
Community Development Committee of the House of
Representatives.
(4) The office shall publish the current housing
production targets on the department's publicly accessible
Internet website and notify each applicable local
jurisdiction of the housing production targets in a timely
manner.
(5) The publication under paragraph (4) shall provide a
supporting basis for the housing production targets.
(b) Progress report.--The office shall publish a report on
or before July 1, 2028, and on or before July 1 of each year
thereafter, detailing progress made toward the housing
production targets established under subsection (a). The
following shall apply:
(1) The report shall:
(i) Identify the housing production targets for the
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Commonwealth and each local jurisdiction.
(ii) Assess the progress of the Commonwealth and
each local jurisdiction with meeting applicable housing
production targets.
(iii) Provide a supporting basis for any alteration
to an established housing production target.
(iv) Disaggregate housing production targets and
outcomes by:
(A) Income level, including extremely low-income
households at or below 30% of area median income.
(B) Housing stability risk, including
populations experiencing homelessness or at risk of
homelessness.
(C) Disability status.
(D) Fixed income.
(E) Number of housing units that are affordable
to extremely low-income households at or below 30% of
area median income.
(2) The office may not consider housing production that
has been approved or similarly authorized but construction
has not commenced when determining the progress of the
Commonwealth or a local jurisdiction with meeting applicable
housing production targets under this section.
(3) The report shall provide potential solutions to
assist the Commonwealth or a local jurisdiction with meeting
applicable housing production targets in the report required
under this section.
(4) The office shall transmit the report to the OTO and
to the chairperson and minority chairperson of the Urban
Affairs and Housing Committee of the Senate and the
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chairperson and minority chairperson of the Housing and
Community Development Committee of the House of
Representatives.
(5) The office shall not be required to provide a report
under this section in the same year that a housing production
target report is required under subsection (a).
Section 1707. Bureau of Housing Finance Liaison (Reserved).
Section 1708. Commonwealth Housing Ombudsman (Reserved).
Section 1709. Residential Economic Development District Grant
Program (Reserved).
Section 1710. Residential Construction Workforce Training Grant
Program (Reserved).
Section 1711. Residential construction permitting time frames
(Reserved).
Section 1712. Municipal building permit review (Reserved).
Section 1713. Preapproved housing permitting approval
(Reserved).
Section 2. This act shall take effect immediately.
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