HB 844 — An Act amending the act of December 3, 1959 (P.L.1688, No.621), known as the Housing Finance Agency Law, establishing the Housing Construction Loan Program and the Housing Construction Loan Fund; and providing for duties of Pennsylvania Housing Finance Agency.

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
 1   Amending the act of December 3, 1959 (P.L.1688, No.621),
 2      entitled "An act to promote the health, safety and welfare of
 3      the people of the Commonwealth by broadening the market for
 4      housing for persons and families of low and moderate income
 5      and alleviating shortages thereof, and by assisting in the
 6      provision of housing for elderly persons through the creation
 7      of the Pennsylvania Housing Finance Agency as a public
 8      corporation and government instrumentality; providing for the
 9      organization, membership and administration of the agency,
10      prescribing its general powers and duties and the manner in
11      which its funds are kept and audited, empowering the agency
12      to make housing loans to qualified mortgagors upon the
13      security of insured and uninsured mortgages, defining
14      qualified mortgagors and providing for priorities among
15      tenants in certain instances, prescribing interest rates and
16      other terms of housing loans, permitting the agency to
17      acquire real or personal property, permitting the agency to
18      make agreements with financial institutions and Federal
19      agencies, providing for the purchase by persons of low and
20      moderate income of housing units, and approving the sale of
21      housing units, permitting the agency to sell housing loans,
22      providing for the promulgation of regulations and forms by
23      the agency, prescribing penalties for furnishing false
24      information, empowering the agency to borrow money upon its
25      own credit by the issuance and sale of bonds and notes and by
26      giving security therefor, permitting the refunding,
27      redemption and purchase of such obligations by the agency,
28      prescribing remedies of holders of such bonds and notes,
29      exempting bonds and notes of the agency, the income
30      therefrom, and the income and revenues of the agency from
31      taxation, except transfer, death and gift taxes; making such
32      bonds and notes legal investments for certain purposes; and
 1      indicating how the act shall become effective," establishing
 2      the Housing Construction Loan Program and the Housing
 3      Construction Loan Fund; and providing for duties of
 4      Pennsylvania Housing Finance Agency.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.    The act of December 3, 1959 (P.L.1688, No.621),
 8   known as the Housing Finance Agency Law, is amended by adding an
 9   article to read:
10                                ARTICLE III-B
11                    HOUSING CONSTRUCTION LOAN PROGRAM
12   Section 301-B.     Definitions.
13      The following words and phrases when used in this article
14   shall have the meanings given to them in this section unless the
15   context clearly indicates otherwise:
16      "Eligible builder."     A builder that is engaged in the
17   construction of new housing units, has a primary place of
18   business located in this Commonwealth and has conducted business
19   in this Commonwealth for no less than three years.
20      "Fund."   The Housing Construction Loan Fund established under
21   section 304-B(a).
22      "Program."    The Housing Construction Loan Program established
23   under section 302-B(a).
24   Section 302-B.   Establishment and administration of Housing
25                Construction Loan Program.
26      (a)   Establishment.--The Housing Construction Loan Program is
27   established within the agency for the purposes specified in this
28   article. An eligible builder or low-income persons or families
29   and moderate income persons or families may apply for a loan
30   under the program in accordance with the rules and regulations
31   promulgated by the agency.
32      (b)   Administration.--

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 1            (1)   The agency may issue loans under the program to any
 2      of the following in accordance with the agency's rules and
 3      regulations:
 4                  (i)    An eligible builder for the construction of new
 5            housing units for sale to low-income persons or families
 6            and moderate-income persons or families.
 7                  (ii)    Low-income persons or families and moderate-
 8            income persons or families for the long-term financing of
 9            new housing units constructed by an eligible builder.
10            (2)   The agency may not issue a loan under the program
11      in excess of 100% of the total project cost.
12            (3)   When a loan under the program is outstanding, the
13      agency shall, prior to the approval of sale by the eligible
14      builder or subsequent resale, ensure that the sale or resale
15      is to low-income persons or families and moderate-income
16      persons or families.
17            (4)   The agency may set the interest rate for a loan
18      issued under the program in a manner consistent with the
19      agency's cost of borrowing money, cost of operation and the
20      agency's duty to the agency's bondholders. Regarding the
21      issuance of a loan under the program and the commitments of
22      the loan, in addition to the interest authorized under this
23      paragraph, the agency may impose and collect fees and charges
24      for the reimbursement of the agency's financing costs,
25      service charges, insurance premiums and mortgage insurance
26      premiums as the agency determines to be reasonable.
27   Section 303-B.        Loan terms under program.
28      (a)   Length of loans.--The agency may not issue a loan under
29   the program for a period of more than 15 years.
30      (b)   Limitation on loans.--The agency may not issue a loan

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 1   under the program in excess of 80% of the median sale price of
 2   housing for the previous calendar year in the county where the
 3   housing unit is to be constructed. The agency shall promulgate
 4   rules and regulations to establish the loan limits on an annual
 5   basis for each county in accordance with this subsection.
 6      (c)   Limitation on borrowing.--The agency may set a limit on
 7   the maximum borrowing under the program at the discretion of the
 8   agency based on perceived need and creditworthiness of the
 9   eligible builder or the low-income persons or families and
10   moderate-income persons or families.
11   Section 304-B.    Housing Construction Loan Fund.
12      (a)   Establishment.--The Housing Construction Loan Fund is
13   established in the State Treasury.
14      (b)   Deposits.--The State Treasurer shall deposit all of the
15   following into the fund:
16            (1)   Money appropriated by the General Assembly for the
17      program.
18            (2)   Money from other grant sources to the agency for the
19      program.
20            (3)   Money from the repayment of principal and interest
21      on loans made under the program.
22      Section 2.    This act shall take effect in 60 days.




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