PRINTER'S NO. 4112
No. 2725 Session of 2004
INTRODUCED BY BUNT, SAYLOR, McCALL, PAYNE, ALLEN, BASTIAN,
BELFANTI, BROWNE, CAPPELLI, CAUSER, COY, CREIGHTON, CURRY,
DALEY, DALLY, DeLUCA, DeWEESE, FICHTER, FLEAGLE, GEIST,
GERGELY, GILLESPIE, GOODMAN, GRUCELA, HERMAN, HERSHEY,
HORSEY, JAMES, KILLION, KOTIK, LAUGHLIN, LEACH, LEH,
LEVDANSKY, LEWIS, MARKOSEK, McILHATTAN, MICOZZIE, R. MILLER,
MUSTIO, PETRARCA, PHILLIPS, RAYMOND, READSHAW, SCAVELLO,
SCHRODER, SCRIMENTI, B. SMITH, SOLOBAY, R. STEVENSON, SURRA,
TANGRETTI, E. Z. TAYLOR, THOMAS, WALKO, WASHINGTON, WATSON,
WEBER, WILT, WOJNAROSKI AND YOUNGBLOOD, JUNE 17, 2004
REFERRED TO COMMITTEE ON COMMERCE, JUNE 17, 2004
AN ACT
1 Amending the act of December 3, 1959 (P.L.1688, No.621),
2 entitled, as amended, "An act to promote the health, safety
3 and welfare of the people of the Commonwealth by broadening
4 the market for housing for persons and families of low and
5 moderate income and alleviating shortages thereof, and by
6 assisting in the provision of housing for elderly persons
7 through the creation of the Pennsylvania Housing Finance
8 Agency as a public corporation and government
9 instrumentality; providing for the organization, membership
10 and administration of the agency, prescribing its general
11 powers and duties and the manner in which its funds are kept
12 and audited, empowering the agency to make housing loans to
13 qualified mortgagors upon the security of insured and
14 uninsured mortgages, defining qualified mortgagors and
15 providing for priorities among tenants in certain instances,
16 prescribing interest rates and other terms of housing loans,
17 permitting the agency to acquire real or personal property,
18 permitting the agency to make agreements with financial
19 institutions and Federal agencies, providing for the purchase
20 by persons of low and moderate income of housing units, and
21 approving the sale of housing units, permitting the agency to
22 sell housing loans, providing for the promulgation of
23 regulations and forms by the agency, prescribing penalties
24 for furnishing false information, empowering the agency to
25 borrow money upon its own credit by the issuance and sale of
26 bonds and notes and by giving security therefor, permitting
1 the refunding, redemption and purchase of such obligations by
2 the agency, prescribing remedies of holders of such bonds and
3 notes, exempting bonds and notes of the agency, the income
4 therefrom, and the income and revenues of the agency from
5 taxation, except transfer, death and gift taxes; making such
6 bonds and notes legal investments for certain purposes; and
7 indicating how the act shall become effective," establishing
8 the Firefighter Mortgage Assistance Program.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. The act of December 3, 1959 (P.L.1688, No.621),
12 known as the Housing Finance Agency Law, is amended by adding an
13 article to read:
14 ARTICLE IV-D
15 FIREFIGHTER MORTGAGE ASSISTANCE PROGRAM
16 Section 401-D. Definitions.
17 The following words and phrases when used in this article
18 shall have the meanings given to them in this section unless the
19 context clearly indicates otherwise:
20 "Applicant." A firefighter who applies for a loan under the
21 Firefighters Mortgage Assistance Program established in section
22 402-D for the purpose of financing the purchase of residential
23 property.
24 "Firefighter." A person who provides services, without
25 receipt of remuneration for those services as either of the
26 following:
27 (1) A volunteer member of a fire company, organized and
28 existing under the laws of this Commonwealth.
29 (2) A volunteer member of any fire police unit, rescue
30 squad, ambulance corps or other like organization affiliated
31 with one or more fire companies.
32 The term includes a person who is a member of such a fire
33 company or affiliated organization and who participates in the
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1 fire service without receipt of remuneration for that
2 participation.
3 "Participating municipality." A city, township, borough or
4 incorporated town that, by resolution of its legislative body,
5 elects to participate in the Firefighter Mortgage Assistance
6 Program established in section 402-D.
7 "Program." The Firefighter Mortgage Assistance Program
8 established under section 402-D.
9 "Residential property." A one-family, two-family or three-
10 family residence located in a participating municipality.
11 Section 402-D. Establishment of program.
12 The agency shall develop and, in cooperation with
13 participating municipalities, administer a program, to be known
14 as the Firefighter Mortgage Assistance Program, to encourage
15 firefighters to purchase and live in residential property in the
16 municipalities in which they serve. Under the program, the
17 agency shall provide low-interest loans to firefighters for the
18 purchase of residential property in such municipalities, in
19 accordance with the provisions of this article. The agency shall
20 provide not more than $10,000,000 for the program. Each year of
21 service following the purchase of the home, $1,000 will be
22 credited towards the grant, whereby after five years, the grant
23 shall be forgiven.
24 Section 403-D. Eligibility.
25 (a) General rule.--Subject to the provisions of subsection
26 (b), an applicant who seeks assistance under this article must:
27 (1) Be a firefighter.
28 (2) Certify intent to use the loan funds in connection
29 with the purchase of residential property located in the
30 municipality in which the applicant volunteers.
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1 (3) Certify intent to own and reside at the residential
2 property on a permanent and full-time basis for at least five
3 years.
4 (b) Limitation.--No firefighter shall be eligible under this
5 article for more than one outstanding mortgage loan at a time
6 and no person shall be eligible to receive a second mortgage
7 loan on a residential property already mortgaged by the
8 firefighter. Preference shall be given in making grants to
9 volunteer firefighters who are applying to acquire or construct
10 a first principal place of residence.
11 Section 404-D. Enforcement of residency requirement.
12 The agency may enforce the five-year residency agreement set
13 forth in section 403-D(a)(3) through the use of restrictive
14 mortgages covenants, deed restrictions or other penalties deemed
15 appropriate by the agency to accomplish the legislative purpose
16 of encouraging firefighters to purchase a residential property
17 and reside in the municipality in which they volunteer.
18 Section 405-D. Occupancy requirement.
19 (a) General rule.--A firefighter who receives a grant under
20 this article shall, within 120 days of the date on which the
21 grant is made, occupy the residence as the firefighter's
22 principal dwelling place.
23 (b) Effect of resignation and sale.--If a firefighter who
24 receives a grant resigns from employment, sells or ceases to
25 occupy the residence as the volunteer firefighter's principal
26 residence, the amount of the grant, in accordance with section
27 402-D shall be due and payable on the 120th day following that
28 action.
29 Section 406-D. Bonds and notes.
30 The agency shall borrow money for the operation and
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1 administration of the program by the making of notes and by the
2 issuance of bonds in accordance with the provisions of Article
3 V.
4 Section 407-D. Regulations.
5 The agency shall promulgate regulations to carry out the
6 provisions of this article.
7 Section 2. This act shall take effect in 60 days.
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