HB 2445 — 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
 1   Amending the act of June 27, 1996 (P.L.403, No.58), entitled "An
 2      act to enhance community and economic development in this
 3      Commonwealth by restructuring certain administrative
 4      functions and entities; changing the name of the Department
 5      of Commerce to the Department of Community and Economic
 6      Development; transferring functions of the Department of
 7      Community Affairs into the Department of Community and
 8      Economic Development and other agencies; providing for a
 9      Deputy Secretary for Community Affairs and Development in the
10      Department of Community and Economic Development;
11      establishing the Center for Local Government Services and the
12      Local Government Advisory Committee; establishing the Small
13      Business Advocacy Council; conferring powers and duties on
14      the Legislative Reference Bureau; and making repeals,"
15      providing for Office of Housing Opportunity.
16      The General Assembly of the Commonwealth of Pennsylvania
17   hereby enacts as follows:
18      Section 1.    The act of June 27, 1996 (P.L.403, No.58), known
19   as the Community and Economic Development Enhancement Act, is
20   amended by adding a chapter to read:
21                                   CHAPTER 17
22                       OFFICE OF HOUSING OPPORTUNITY
23   Section 1701.    Definitions.
 1      The following words and phrases when used in this chapter
 2   shall have the meanings given to them in this section unless the
 3   context clearly indicates otherwise:
 4      "Advisory committee."     The Housing Opportunity Advisory
 5   Committee established in section 1705.
 6      "Agency."     The Pennsylvania Housing Finance Agency.
 7      "Housing production targets."        The housing production targets
 8   under section 1706.
 9      "OTO."     The Pennsylvania Office of Transformation and
10   Opportunity established by Executive Order 2023-05.
11      "Office."     The Office of Housing Opportunity established
12   under section 1702.
13   Section 1702.    Office of Housing Opportunity.
14      The Office of Housing Opportunity is established in the
15   department.
16   Section 1703.    Deputy secretary.
17      The Governor shall appoint a Deputy Secretary for Housing
18   Opportunity, who shall be responsible for the administration of
19   the office.
20   Section 1704.    Powers and duties.
21      The office shall have the following powers and duties:
22          (1)     Administering the functions specified in section
23      301(a)(6), (9) and (14).
24          (2)     Chairing and making certain appointments to the
25      advisory committee as approved under section 1705.
26          (3)     Adopting and publishing housing production targets
27      every 10 years based on the recommendations of the advisory
28      committee and implementing policies to meet the housing
29      production targets.
30          (4)     Publishing an annual report detailing progress

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 1      toward the housing production targets.
 2            (5)   Collaborating with the OTO to meet housing
 3      production targets established under this chapter.
 4            (6)   Coordinating with the agency to ensure comprehensive
 5      delivery of housing financing assistance.
 6            (7)   Administering the Residential Economic Development
 7      District Grant Program under section 1709.
 8            (8)   Promulgating the rules and regulations necessary to
 9      carry out the provisions of this chapter.
10   Section 1705.        Advisory committee.
11      (a)   Establishment.--The Housing Opportunity Advisory
12   Committee is established within the office.
13      (b)   Membership.--The committee shall consist of the
14   following members:
15            (1)   The Deputy Secretary of Housing Opportunity or a
16      designee, who shall serve as chairperson of the committee.
17            (2)   The secretary or a designee.
18            (3)   The Secretary of Environmental Protection or a
19      designee.
20            (4)   The Secretary of Policy and Planning in the
21      Governor's Policy Office or a designee.
22            (5)   The Secretary of Health or a designee.
23            (6)   The Secretary of Labor and Industry or a designee.
24            (7)   Four members of the General Assembly, including:
25                  (i)     One member of the Senate, appointed by the
26            President pro tempore of the Senate.
27                  (ii)     One member of the Senate, appointed by the
28            Minority Leader of the Senate.
29                  (iii)     One member of the House of Representatives,
30            appointed by the Speaker of the House of Representatives.

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 1                  (iv)     One member of the House of Representatives,
 2            appointed by the Minority Leader of the House of
 3            Representatives.
 4            (8)   Four representatives of local government, appointed
 5      by the Deputy Secretary of Housing Opportunity, including:
 6                  (i)     One representative of county government
 7            representing rural communities.
 8                  (ii)     One representative of county government
 9            representing urban or suburban communities.
10                  (iii)     One representative of municipal government
11            representing rural communities.
12                  (iv)     One representative of municipal government
13            representing urban or suburban communities.
14            (9)   Nine members, appointed by the Deputy Secretary of
15      Housing Opportunity, who reside in this Commonwealth and have
16      extensive knowledge of at least one of the following areas:
17                  (i)     Residential real estate construction.
18                  (ii)     Residential real estate development or
19            financing.
20                  (iii)     Residential real estate ownership.
21                  (iv)     Local government planning and regulations.
22                  (v)     Local permitting and licensing.
23                  (vi)     Civil engineering.
24                  (vii)     Environmental engineering.
25                  (viii)     Historic preservation.
26                  (ix)     The housing needs of low-income individuals.
27      (c)   Terms.--A member of the advisory committee shall serve
28   for the duration of the term of the appointing authority. A
29   member may be removed for cause by the member's appointing
30   authority.

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 1      (d)   Compensation and expenses.--Members of the advisory
 2   committee shall receive no compensation for their services but
 3   shall receive reimbursement for necessary and proper expenses
 4   for attendance at meetings.
 5      (e)   Meetings and quorum.--
 6            (1)   The advisory committee shall meet at least quarterly
 7      and upon the call of the chairperson at other times as deemed
 8      necessary.
 9            (2)   Twelve members of the advisory committee shall
10      constitute a quorum.
11      (f)   Declared vacancies.--The Deputy Secretary of Housing
12   Opportunity shall declare a vacancy to exist on the advisory
13   committee whenever any member appointed by the Deputy Secretary
14   fails to attend three consecutive meetings without good cause. A
15   declared vacancy shall be filled for the unexpired term.
16      (g)   Staff.--The office shall provide staff for the advisory
17   committee.
18      (h)   Duties.--The advisory committee shall:
19            (1)   Study and make recommendations on ways that the
20      Commonwealth and local governments can improve housing supply
21      and housing affordability.
22            (2)   Identify and assess factors that impact housing
23      supply and housing affordability, including:
24                  (i)     Labor and material costs.
25                  (ii)     Taxes and fees.
26                  (iii)     Access to financing and capital investment.
27                  (iv)     Planning, zoning and land use regulations.
28                  (v)     State building code standards.
29                  (vi)     Appeals and other legal barriers.
30                  (vii)    State and local permitting and approval

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 1             processes.
 2                   (viii)       The availability of land for housing.
 3                   (ix)     Creating and financing affordable housing.
 4                   (x)    Infrastructure.
 5      (i)    Report.--On or before March 30, 2027, and every two
 6   years thereafter, the advisory committee shall report its
 7   findings and recommendations to the office. The office shall
 8   transmit the report to the OTO and to the chairperson and
 9   minority chairperson of the Urban Affairs and Housing Committee
10   of the Senate and the chairperson and minority chairperson of
11   the Housing and Community Development Committee of the House of
12   Representatives.
13   Section 1706.         Housing production targets.
14      (a)    Target report.--The office shall publish a report, on or
15   before July 1, 2027, and every 10 years thereafter, establishing
16   housing production targets. The following shall apply:
17             (1)   The housing production targets shall be established
18      for:
19                   (i)    The Commonwealth.
20                   (ii)     Each local jurisdiction, which shall include:
21                          (A)    Each county.
22                          (B)    Each municipality that exercises zoning or
23                   planning authority.
24             (2)   In establishing the housing production targets, the
25      office shall:
26                   (i)    Analyze data and forecasts related to:
27                          (A)    Employment demand.
28                          (B)    Housing demand.
29                          (C)    Population growth.
30                          (D)    The ratio of median household income wage

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 1                  growth to increases in home prices and rental costs,
 2                  which shall be treated as evidence of unmet housing
 3                  need and housing underproduction.
 4                         (E)   Any other related information.
 5                  (ii)    Utilize the data and consider the
 6            recommendations contained in each report issued by the
 7            advisory committee under section 1705 since the prior
 8            report required by this section.
 9                  (iii)    Consult with each local jurisdiction that may
10            have housing production targets.
11            (3)   The office shall transmit the report to the OTO and
12      to the chairperson and minority chairperson of the Urban
13      Affairs and Housing Committee of the Senate and the
14      chairperson and minority chairperson of the Housing and
15      Community Development Committee of the House of
16      Representatives.
17            (4)   The office shall publish the current housing
18      production targets on the department's publicly accessible
19      Internet website and notify each applicable local
20      jurisdiction of the housing production targets in a timely
21      manner.
22            (5)   The publication under paragraph (4) shall provide a
23      supporting basis for the housing production targets.
24      (b)   Progress report.--The office shall publish a report on
25   or before July 1, 2028, and on or before July 1 of each year
26   thereafter, detailing progress made toward the housing
27   production targets established under subsection (a). The
28   following shall apply:
29            (1)   The report shall:
30                  (i)     Identify the housing production targets for the

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 1        Commonwealth and each local jurisdiction.
 2              (ii)    Assess the progress of the Commonwealth and
 3        each local jurisdiction with meeting applicable housing
 4        production targets.
 5              (iii)    Provide a supporting basis for any alteration
 6        to an established housing production target.
 7              (iv)    Disaggregate housing production targets and
 8        outcomes by:
 9                     (A)   Income level, including extremely low-income
10              households at or below 30% of area median income.
11                     (B)   Housing stability risk, including
12              populations experiencing homelessness or at risk of
13              homelessness.
14                     (C)   Disability status.
15                     (D)   Fixed income.
16                     (E)   Number of housing units that are affordable
17              to extremely low-income households at or below 30% of
18              area median income.
19        (2)   The office may not consider housing production that
20    has been approved or similarly authorized but construction
21    has not commenced when determining the progress of the
22    Commonwealth or a local jurisdiction with meeting applicable
23    housing production targets under this section.
24        (3)   The report shall provide potential solutions to
25    assist the Commonwealth or a local jurisdiction with meeting
26    applicable housing production targets in the report required
27    under this section.
28        (4)   The office shall transmit the report to the OTO and
29    to the chairperson and minority chairperson of the Urban
30    Affairs and Housing Committee of the Senate and the

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 1      chairperson and minority chairperson of the Housing and
 2      Community Development Committee of the House of
 3      Representatives.
 4          (5)   The office shall not be required to provide a report
 5      under this section in the same year that a housing production
 6      target report is required under subsection (a).
 7   Section 1707.   Bureau of Housing Finance Liaison (Reserved).
 8   Section 1708.   Commonwealth Housing Ombudsman (Reserved).
 9   Section 1709.   Residential Economic Development District Grant
10                Program (Reserved).
11   Section 1710.   Residential Construction Workforce Training Grant
12                Program (Reserved).
13   Section 1711.   Residential construction permitting time frames
14                (Reserved).
15   Section 1712.   Municipal building permit review (Reserved).
16   Section 1713.   Preapproved housing permitting approval
17                (Reserved).
18      Section 2.   This act shall take effect immediately.




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