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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
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 Housing Construction Loan Program and the Housing
Construction Loan Fund; and providing for duties of
Pennsylvania Housing Finance Agency.
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 III-B
HOUSING CONSTRUCTION LOAN PROGRAM
Section 301-B. 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:
"Eligible builder." A builder that is engaged in the
construction of new housing units, has a primary place of
business located in this Commonwealth and has conducted business
in this Commonwealth for no less than three years.
"Fund." The Housing Construction Loan Fund established under
section 304-B(a).
"Program." The Housing Construction Loan Program established
under section 302-B(a).
Section 302-B. Establishment and administration of Housing
Construction Loan Program .
(a) Establishment.--The Housing Construction Loan Program is
established within the agency for the purposes specified in this
article. An eligible builder or l ow-income persons or families
and moderate income persons or families may apply for a loan
under the program in accordance with the rules and regulations
promulgated by the agency.
(b) Administration.--
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(1) The agency may issue loans under the program to any
of the following in accordance with the agency's rules and
regulations:
(i) An eligible builder for the construction of new
housing units for sale to low-income persons or families
and moderate-income persons or families .
(ii) L ow-income persons or families and moderate-
income persons or families for the long-term financing of
new housing units constructed by an eligible builder.
(2) The agency may not issue a loan under the program
in excess of 100% of the total project cost.
(3) When a loan under the program is outstanding, the
agency shall, prior to the approval of sale by the eligible
builder or subsequent resale, ensure that the sale or resale
is to low-income persons or families and moderate-income
persons or families.
(4) The agency may set the interest rate for a loan
issued under the program in a manner consistent with the
agency's cost of borrowing money, cost of operation and the
agency's duty to the agency's bondholders. Regarding the
issuance of a loan under the program and the commitments of
the loan, in addition to the interest authorized under this
paragraph, the agency may impose and collect fees and charges
for the reimbursement of the agency's financing costs,
service charges, insurance premiums and mortgage insurance
premiums as the agency determines to be reasonable.
Section 303-B. Loan terms under program.
(a) Length of loans.--The agency may not issue a loan under
the program for a period of more than 15 years.
(b) Limitation on loans.--The agency may not issue a loan
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under the program in excess of 80% of the median sale price of
housing for the previous calendar year in the county where the
housing unit is to be constructed. The agency shall promulgate
rules and regulations to establish the loan limits on an annual
basis for each county in accordance with this subsection.
(c) Limitation on borrowing.--The agency may set a limit on
the maximum borrowing under the program at the discretion of the
agency based on perceived need and creditworthiness of the
eligible builder or the low-income persons or families and
moderate-income persons or families .
Section 304-B. Housing Construction Loan Fund.
(a) Establishment.--The Housing Construction Loan Fund is
established in the State Treasury.
(b) Deposits.--The State Treasurer shall deposit all of the
following into the fund:
(1) Money appropriated by the General Assembly for the
program.
(2) Money from other grant sources to the agency for the
program.
(3) Money from the r epayment of principal and interest
on loans made under the program.
Section 2. This act shall take effect in 60 days.
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