HB 275 — An Act providing for grants to subsidize home ownership; establishing the Pennsylvania Affordable Homeownership Subsidy Program; imposing duties on the Department of Community and Economic Development; and providing for report to General Assembly.

PRINTER'S NO.   219

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       HOUSE BILL
                       No. 275
                                                 Session of
                                                   2025

     INTRODUCED BY POWELL, KHAN, SANCHEZ, HILL-EVANS, GIRAL, PROBST,
        SCHLOSSBERG AND CEPEDA-FREYTIZ, JANUARY 22, 2025

     REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
        JANUARY 22, 2025


                                      AN ACT
 1   Providing for grants to subsidize home ownership; establishing
 2      the Pennsylvania Affordable Homeownership Subsidy Program;
 3      imposing duties on the Department of Community and Economic
 4      Development; and providing for report to General Assembly.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7   Section 1.   Short title.
 8      This act shall be known and may be cited as the Pennsylvania
 9   Affordable Homeownership Subsidy Program Act.
10   Section 2.   Definitions.
11      The following words and phrases when used in this act shall
12   have the meanings given to them in this section unless the
13   context clearly indicates otherwise:
14      "Affordable unit."    A housing unit for which the monthly
15   mortgage payment does not exceed 28% of the gross monthly income
16   of an eligible household.
17      "County applicant."      A nonprofit entity, government entity or
18   for-profit property developer that serves one or more counties.
 1      "Department."       The Department of Community and Economic
 2   Development of the Commonwealth.
 3      "Eligible household."       An individual or family that earns
 4   between 60% and 120% of the area median income as determined by
 5   the United States Department of Housing and Urban Development,
 6   adjusted for family size.
 7      "Grant."     A grant awarded under section 3(c).
 8      "Program."        The Pennsylvania Affordable Homeownership Subsidy
 9   Program established under section 3(a).
10   Section 3.     Pennsylvania Affordable Homeownership Subsidy
11                  Program.
12      (a)   Establishment.--The Pennsylvania Affordable
13   Homeownership Subsidy Program is established within the
14   department for the purpose of subsidizing affordable
15   homeownership for households with annual household incomes
16   between 60% and 120% of the area median income in accordance
17   with this section.
18      (b)   Application process.--The department shall establish an
19   application process for the distribution of grants to be awarded
20   under subsection (c) no later than 90 days after the effective
21   date of this section.
22      (c)   Grants.--
23            (1)   The department shall award grants to no more than
24      one county applicant for project types under subsection (d).
25            (2)   A grant awarded under paragraph (1) shall be no more
26      than $125,000.
27            (3)   This subsection shall not be construed to:
28                  (i)    prohibit the department from awarding more than
29            one grant to a county applicant to serve multiple
30            counties; or

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 1                  (ii)   limit how much funding an applicant may
 2            receive.
 3      (d)   Homeownership affordability project types.--The program
 4   shall provide grants for the following project types:
 5            (1)   Acquisition of properties suitable to serve as
 6      affordable units.
 7            (2)   Design, architecture and engineering services
 8      necessary for the development of affordable units.
 9            (3)   Homebuyer assistance programs to aid individuals and
10      families in purchasing affordable units.
11            (4)   Asset management and mapping to ensure efficient
12      utilization of resources and effective oversight of
13      subsidized properties.
14            (5)   Social and environmental impact studies to assess
15      the broader implications of affordable housing initiatives.
16            (6)   Homeownership education programs to provide
17      prospective homeowners with necessary knowledge and skills
18      for successful homeownership.
19            (7)   Home repair programs to address maintenance and
20      repair needs of affordable housing units.
21            (8)   Workforce housing programs to address the housing
22      needs of individuals and families within defined income
23      specifications.
24            (9)   Acquisition of property by a land trust, provided
25      that a homeowner maintains at least 40% of the equity on the
26      property.
27   Section 4.     Administration by department.
28      (a)   Administration and oversight.--
29            (1)   The department shall be responsible for the
30      administration and oversight of the program.

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 1            (2)   Of the money appropriated for the program, the
 2      department may take an administrative fee of no more than 10%
 3      for direct costs associated with the administration of the
 4      program.
 5      (b)   Guidelines.--The department shall establish guidelines,
 6   procedures and criteria for the implementation and
 7   administration of the program, which the department shall
 8   publish on its publicly accessible Internet website.
 9      (c)   Collaboration.--The department may collaborate with
10   other State agencies, local government entities, for-profit
11   developers and nonprofit organizations to effectively implement
12   the program.
13   Section 5.     Reports.
14      (a)   Department reporting.--No later than September 1
15   following the first fiscal year or any portion of the first
16   fiscal year in which the program is in effect and no later than
17   September 1 for all succeeding fiscal years in which the program
18   is in effect, the department shall prepare a report on program
19   outcomes and submit the report to the following:
20            (1)   The chairperson and minority chairperson of the
21      Appropriations Committee of the Senate.
22            (2)   The chairperson and minority chairperson of the
23      Appropriations Committee of the House of Representatives.
24            (3)   The chairperson and minority chairperson of the
25      Urban Affairs and Housing Committee of the Senate.
26            (4)   The chairperson and minority chairperson of the
27      Housing and Community Development Committee of the House of
28      Representatives.
29      (b)   Publishing of report.--The department shall publish the
30   report submitted under subsection (a) on the department's

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 1   publicly accessible Internet website.
 2      (c)   County reporting.--The department may require county
 3   applicants awarded grants under the program to submit reports,
 4   on a form and in a manner prescribed by the department,
 5   containing information necessary for the department to comply
 6   with the reporting requirements under subsection (a).
 7   Section 6.   Funding.
 8      The department's implementation of the program shall be
 9   contingent upon sufficient funding being appropriated or
10   provided for the purpose of administering the program. In a year
11   in which there is insufficient funding appropriated or provided
12   for the administration of the program, the program shall be
13   suspended until sufficient Federal or State money is
14   appropriated by the General Assembly or other money is provided
15   to the department for the program.
16   Section 7.   Effective date.
17      This act shall take effect in 180 days.




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