HB 43: Affordable Housing Trust Fund

H.B. 43, P.N. 45 (THOMAS). This would amend the Optional County Affordable Housing Funds Act No. 137 of 1992, P.L. 866.
This would create the Affordable Housing Trust Fund. Second or subsequent mortgage loans and grants would be provided to a homeowner with a median income under 115% of the county’s average median income, who has not owned property within the past three years, and who does not have sufficient financial resources to otherwise purchase the home. First mortgage and state-approved lenders would be eligible to participate in this program. A $10 surcharge on each deed, mortgage, and document recorded by the Recorder of Deeds would be charged with the funds used for this Fund. A Third Class City would be able to create an additional $1 surcharge on such recording fees for this Fund. The General Assembly could appropriate additional funds. The Fund would be able to use funds from interest and other payments, Fund investment income, and funds from the sale of property. The Fund would terminate on December 31, 2006 unless the General Assembly decides to continue it.
A Housing Insurance Fund would be created. The Fund would be funded by General Assembly appropriations, bond income, premiums, and investment income. Insurance would be offered to single family home owners. Homeownership by low income and moderate income homeowners who otherwise cannot obtain home insurance would be encouraged by this Fund. This Fund would expire on December 31, 2007 unless the General Assembly decides to continue it.