HB 570 — An Act providing for middle-income, low-income and very-low-income housing units in new residential development projects.

PRINTER'S NO.   574

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 570
                                                 Session of
                                                   2025

     INTRODUCED BY CARROLL, KHAN, HILL-EVANS, WAXMAN, SANCHEZ, GIRAL,
        FIEDLER, KENYATTA, MAYES, CEPEDA-FREYTIZ, BOYD, RIVERA,
        PROBST, KRAJEWSKI AND SMITH-WADE-EL, FEBRUARY 12, 2025

     REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
        FEBRUARY 12, 2025


                                      AN ACT
 1   Providing for middle-income, low-income and very-low-income
 2      housing units in new residential development projects.
 3      The General Assembly of the Commonwealth of Pennsylvania
 4   hereby enacts as follows:
 5   Section 1.   Short title.
 6      This act shall be known and may be cited as the Affordable
 7   Housing for Working Families Act.
 8   Section 2.   Definitions.
 9      The following words and phrases when used in this act shall
10   have the meanings given to them in this section unless the
11   context clearly indicates otherwise:
12      "Community center."      An indoor or outdoor building, space,
13   structure or improvement intended for active or passive
14   recreation, including parks, ball fields, meeting halls and
15   classrooms, that accommodate either organized or informal
16   activity and are oriented toward serving residents of the
17   municipality.
 1      "Developer."     A person or entity who engages in the
 2   development or rehabilitation of real estate for residential
 3   occupancy and is responsible for the development of the real
 4   estate, including acquisition, design, construction, repairing,
 5   leasing, sale, operation and financing.
 6      "Low-income housing."     Affordable housing that is reserved
 7   for occupancy by households with a gross household income that
 8   does not exceed 80% of the median gross household income for
 9   households of the same size within the housing region in which
10   the housing is located.
11      "Middle-income housing."     Affordable housing that is reserved
12   for occupancy by households with a gross household income equal
13   to more than 80% but less than 120% of the median gross
14   household income for households of the same size within the
15   housing region in which the housing is located.
16      "Project."     The development or rehabilitation of real estate,
17   including acquisition, construction, repairing, leasing, sale,
18   operation and financing.
19      "Very-low-income housing."     Affordable housing that is
20   reserved for occupancy by households with a gross household
21   income that does not exceed 50% of the median gross household
22   income for households of the same size within the housing region
23   in which the housing is located.
24   Section 3.     Housing development project requirement.
25      (a)   Eligibility.--This section shall apply to a developer of
26   a project with 30 or more residential units that:
27            (1)   Is approved by a municipal planning board or zoning
28      board to develop a project.
29            (2)   Is permissible under either a use variance, a
30      density variance increasing the permissible density at the

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 1      site, a rezoning permitting multiple residential units where
 2      not previously permitted, a new or amended redevelopment plan
 3      or a new or amended rehabilitation plan.
 4            (3)   Has a net density of six or more units per acre.
 5            (4)   Has an application for a construction permit that is
 6      submitted on or after the effective date of this paragraph.
 7      (b)   Reserve.--The developer shall reserve at least:
 8            (1)   Five percent of the residential units for very-low-
 9      income housing.
10            (2)   Ten percent of the residential units for low-income
11      housing.
12            (3)   Ten percent of the residential units for middle-
13      income housing.
14      (c)   Requirements.--A project under this section shall be
15   developed as follows:
16            (1)   If more than 25% of market-rate housing units are
17      completed, no less than 10% of very-low-income housing, low-
18      income housing and middle-income housing units shall be
19      completed.
20            (2)   If 50% or more of the market-rate housing units are
21      completed, no less than 50% of very-low-income housing, low-
22      income housing and middle-income housing units shall be
23      completed.
24            (3)   If 75% or more of the market-rate housing units are
25      completed, no less than 75% of very-low-income housing, low-
26      income housing and middle-income housing units shall be
27      completed.
28            (4)   If 90% or more of the market-rate housing units are
29      completed, no less than 100% of very-low-income housing, low-
30      income housing and middle-income housing units shall be

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 1      completed.
 2      (d)   Withholding of certificate of occupancy.--The
 3   municipality shall withhold a certificate of occupancy for
 4   market-rate units, at any stage of development, if the
 5   requirements of this section are not satisfied.
 6      (e)   Location of units.--The developer of a project subject
 7   to this section may develop the residential units reserved for
 8   very-low-income housing, low-income housing and middle-income
 9   housing onsite or offsite within the municipality in which the
10   project is located.
11      (f)   Contract provisions.--A municipal approval or agreement
12   entered into between a municipality and a developer concerning
13   the development of a project shall incorporate contractual
14   guarantees and procedures ensuring that a residential unit
15   reserved for very-low-income housing, low-income housing and
16   middle-income housing shall continue to be reserved for a period
17   of at least three years.
18      (g)   Unit requirements.--For a project that is not age-
19   restricted, at least 30% of all the very-low-income housing,
20   low-income housing and middle-income housing units required by
21   this section shall be two-bedroom units and at least 20% of all
22   the very-low-income housing, low-income housing and middle-
23   income housing units required by this section shall be three-
24   bedroom units.
25      (h)   Payment in lieu of construction.--
26            (1)   A municipality that is authorized to impose and
27      collect impact or development fees may, in its discretion and
28      in lieu of requiring the construction of very-low-income
29      housing, low-income housing and middle-income housing units
30      under this section, require a developer to pay an impact or

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 1      development fee in an amount equal to 30% of the total
 2      project cost, as determined by the municipal engineer or
 3      other qualified municipal official designated by ordinance.
 4      The amount of the fee that may be required under this
 5      subsection shall be 25% of the total project cost if the
 6      project achieves a silver rating according to the Leadership
 7      in Energy and Environmental Design Green Building Rating
 8      System as adopted by the United States Green Building
 9      Council.
10            (2)   A fee required under paragraph (1) shall be paid
11      prior to the issuance of a construction permit for the
12      project.
13            (3)   A municipality shall, by ordinance, either:
14                  (i)    deposit all fees collected under this subsection
15            into an affordable housing trust fund and spend the funds
16            on the development of very-low-income housing or low-
17            income housing within the municipality; or
18                  (ii)   deposit 50% of the fees collected under this
19            subsection into an affordable housing trust fund and
20            spend those funds on the development of very-low-income
21            housing or low-income housing within the municipality and
22            deposit the remaining 50% of the fee into a community
23            center trust fund and spend the funds on the development
24            of community centers.
25      (i)   Construction.--Nothing in this section shall be
26   construed to affect the obligation of a municipality to plan and
27   zone to provide through its land use regulations a realistic
28   opportunity for a fair share of its region's present and
29   prospective needs for very-low-income housing or low-income
30   housing. Nothing in this act shall be construed to alter the

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1   obligations of a developer or municipality to comply with the
2   terms of a court-approved agreement or fair share plan or to
3   prevent a municipality from creating or enforcing requirements
4   beyond the minimum requirements established in this section.
5   Section 4.   Effective date.
6      This act shall take effect in 90 days.




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