Analyzing the Effectiveness of Federal Aid for Homeowners

Article IV-D: Pennsylvania Housing Affordability and Rehabilitation Enhancement Program

Section 401-D: This section provides definitions for specific terms used in the article. The definitions include:

• “Fund”: Refers to the Housing Affordability and Rehabilitation Enhancement Fund established in section 406-D.
• “Persons with disabilities”: Refers to individuals with physical, sensory, or mental impairments that significantly limit one or more major life activities.
• “Program”: Refers to the Pennsylvania Housing Affordability and Rehabilitation Enhancement Program established in section 402-D.
• “Program funds”: Encompasses all allocations and grants received by the Commonwealth from the United States Department of Housing and Urban Development as well as funds from sources other than the Commonwealth. It may also include funds specifically appropriated by the General Assembly for the program.

Section 402-D: Establishment

This section establishes the Pennsylvania Housing Affordability and Rehabilitation Enhancement Program, which will be administered by the agency. The program’s implementation is contingent upon the availability of program funds.

Section 403-D: Program

This section outlines the various types of projects for which the program may provide funding. These projects include:

1. Creating safe and sanitary dwellings for sale or rent to low-income and moderate-income individuals or families.
2. Increasing the availability or quality of housing for elderly persons.
3. Increasing the availability or quality of accessible housing for persons with disabilities.
4. Preventing or reducing homelessness.
5. Encouraging the development and rehabilitation of distressed neighborhoods.
6. Providing mortgage or rental assistance, housing counseling, foreclosure prevention, and refinancing products.
7. Offering loans, low-interest loans, or grants to low-income and moderate-income owner-occupants for home repairs and improvements.

The funds allocated for these projects can be used for various purposes such as predevelopment activities, acquisition and disposition of property, site preparation, construction, reconstruction, alteration and repair of structures, and infrastructure improvements.

Section 403-D also discusses additional aspects of the program, including matching funds for counties that have established affordable housing funds, limitations on fund usage to prevent supplanting of existing resources, preferences for specific project goals, geographical distribution considerations, and funding allocation for households with incomes less than 50% of the median area income.

Section 404-D: Plan

This section mandates that the agency must adopt an annual plan within a specified timeframe. The plan will establish priorities for the year and outline the method of distributing program funds. The proposed plan will be published for public comment, and a comment response document will be prepared, incorporating all written comments received.

Section 405-D: Reporting

The agency is required to issue an annual report within a specific timeframe. This report will include a financial statement, a detailed list of funded projects, and a description of other expenditures from the preceding calendar year. The report will be submitted to the Governor, the Auditor General, and relevant committees in the Senate and House of Representatives. It will also be published on the agency’s website and will be considered a public record.

Section 406-D: Fund

This section establishes the Housing Affordability and Rehabilitation Enhancement Fund within the State Treasury. All program funds allocated or appropriated to the program will be deposited into this fund. The interest and earnings of the fund will remain within it. Federal allocations received by the Commonwealth from the United States Department of Housing and Urban Development will also be deposited into the fund for administration by the Pennsylvania Housing Finance Agency.

Section 407-D: Funding

Implementation of the article is contingent upon sufficient program funds being deposited into the fund to fulfill the purposes of the program. If there are insufficient funds, either due to the failure of Congress to approve Federal funds or other reasons, the program will cease until adequate funds are available from Federal allocations, General Assembly appropriations, or other sources.

Section 2: Effective Date

This section specifies that the act will take effect 90 days after its approval on November 23, 2010, by Governor Edward G. Rendell.