HB 818 — An Act providing for the establishment of first-time homebuyer savings accounts for first-time homebuyers in this Commonwealth; establishing the First-time Homebuyer Savings Account Program and the First-time Homebuyer Savings Account Fund; and imposing duties on the Treasury Department.

PRIOR PRINTER'S NO.

848 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1296 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

DAVIS, HILL-EVANS, POWELL, SCHLOSSBERG, DONAHUE, HADDOCK, NEILSON, MERSKI, CIRESI, FREEMAN, OTTEN, HOHENSTEIN, DEASY, O'MARA, STEELE,STEELE GREEN AND MADDEN,GREEN, MARCH 5, 2025 ASREFERRED REPORTEDTO FROM COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT, HOUSEMARCH OF5, REPRESENTATIVES, AS AMENDED, APRIL 8, 2025 AN ACT Providing for the establishment of first-time homebuyer savings accounts for first-time homebuyers in this Commonwealth;

"Bureau." The First-time Homebuyer Savings Account Bureau <-- established under section 3.

"First-time homebuyer." An individual who resides in this Commonwealth and has not owned or purchased directly or through a trust, limited liability company, partnership or other legal entity, either individually or jointly, a single-family residence during the three-year period prior to the purchase <-- date of a single-family residence.

IN THIS COMMONWEALTH OR <-- ANOTHER STATE.

"Settlement statement." A statement of receipts and disbursements from a real estate transaction, including a 20250HB0818PN1296 - 2 - statement prescribed under 12 U.S.C.

27 (relating to real 20250HB0818PN0848 - 2 - estate settlement procedures).

(a) Establishment.--The First-time Homebuyer Savings Account Program is established in the bureaubureau. DEPARTMENT.

<-- (b) Application.--The application for the program shall be on a form and in a manner prescribed by the department which shall be available on the department's publicly accessible Internet website.

(C)(c) ADMINISTRATION.--THEFund.-- DEPARTMENT(1) MAYThe UTILIZEFirst-time THEHomebuyer <--Savings ADMINISTRATIVEAccount ANDFund INVESTMENTis STRUCTURESestablished OFin THEthe TUITIONState ACCOUNTTreasury. INVESTMENT PROGRAM ESTABLISHED BY THE ACT OF APRIL 3, 1992 (P.L.28, NO.11), KNOWN AS THE TUITION ACCOUNT PROGRAMS AND COLLEGE SAVINGS BOND ACT, OR THE PENNSYLVANIA ABLE SAVINGS PROGRAM ESTABLISHED BY THE ACT OF APRIL 18, 2016 (P.L.128, NO.17), KNOWN AS THE PENNSYLVANIA ABLE ACT, WITHOUT SEPARATELY SOLICITING PROPOSALS FOR ASSISTANCE IN THE MANAGEMENT OF ALL OR PART OF THE PROGRAM.

(D) INVESTMENT MANAGER, PROGRAM MANAGER AND TRUSTEE.--THE 20250HB0818PN1296 - 3 - DEPARTMENT MAY CONTRACT WITH ONE OR MORE PERSONS OR LEGAL ENTITIES TO SERVE AS INVESTMENT MANAGERS, PROGRAM MANAGERS AND TRUSTEES ON BEHALF OF THE PROGRAM.

IF THE DEPARTMENT CONTRACTS WITH INVESTMENT MANAGERS, PROGRAM MANAGERS OR TRUSTEES TO FULFILL THE OBJECTIVES OF THE PROGRAM, THE INVESTMENT MANAGERS, PROGRAM MANAGERS AND TRUSTEES SHALL WORK WITH THE DEPARTMENT TO PROVIDE A PROGRAM TO DEVELOP INVESTMENT PORTFOLIOS AND TO SUPERVISE INVESTMENTS AND INVESTMENT PROGRAMS.

(E) POWERS AND DUTIES OF DEPARTMENT.--THE DEPARTMENT SHALL HAVE THE POWERS NECESSARY OR CONVENIENT TO CARRY OUT THIS ACT, INCLUDING THE POWER TO:

(1) ADMINISTER THE PROGRAM AND THE FUND, INCLUDING THE USE OF INVESTMENT MANAGERS, PROGRAM MANAGERS AND TRUSTEES TO ASSIST IN ESTABLISHING AND ADMINISTERING THE PROGRAM AND FUND.

(2) ENTER INTO CONTRACTS WITH INDIVIDUALS FOR THE ESTABLISHMENT OF ACCOUNTS.

(3) CONTRACT FOR GOODS AND SERVICES, AND ENGAGE AND EMPLOY PERSONNEL, INCLUDING, BUT NOT LIMITED TO, THE SERVICES OF PRIVATE CONSULTANTS, ACTUARIES, MANAGERS, LEGAL COUNSEL AND AUDITORS FOR RENDERING PROFESSIONAL, MANAGERIAL AND TECHNICAL ASSISTANCE AND ADVICE.

(4) CHARGE AND COLLECT ADMINISTRATIVE FEES AND CHARGES IN CONNECTION WITH ANY TRANSACTION, INCLUDING CONTINUED PARTICIPATION IN THE PROGRAM.

(5) CLOSE AN ACCOUNT AND RETURN ANY BALANCE IN THE ACCOUNT, MINUS ANY FEE, TO THE ACCOUNT HOLDER.

(6) CONTRACT FOR INSURANCE, LETTERS OF CREDIT AND COLLATERAL AGREEMENTS.

(7) ADJUST THE TERMS OF CONTRACTS WITH ACCOUNT HOLDERS.

20250HB0818PN1296 - 4 - (8) PROMULGATE REGULATIONS TO IMPLEMENT THIS ACT.

(9) TAKE OTHER ACTION NECESSARY TO CARRY OUT THE PURPOSE OF THIS ACT AND INCIDENTAL TO THE DUTIES IMPOSED ON THE DEPARTMENT.

(c) (F) Fund.-- <-- (1) The First-time Homebuyer Savings Account Fund is established in the State Treasury.

(3) The department shall annually submit to the General 20250HB0818PN0848 - 3 - Assembly a budget request outlining the operating and administrative expenses of the program.

Upon appropriation by <-- the General Assembly, expenses incurred by the department and the bureau shall be paid from the fees, charges and investment earnings of money in the fund.

The repayment must occur <-- within a 10-year period commencing on September 1, 2030.

The department THEmay REPAYMENTnot SHALLpledge OCCURthe WHENcredit THEREor AREtaxing ENOUGHpowers <--of ASSETSthe SUFFICIENTCommonwealth. TO DEFRAY THE COSTS OF THE PROGRAM, AS DETERMINED BY THE DEPARTMENT.

20250HB0818PN1296 - 5 - (6) THE DEPARTMENT may not pledge the credit or taxing powers of the Commonwealth.

(6) (7) The policies governing the investment of the <-- fund shall be directed to obtaining sufficient income to meet the fund's obligations under this act, maintaining necessary reserves and covering operating expenses.

(a) Approval.--Upon approval from the bureau DEPARTMENT into <-- the 20250HB0818PN0848 - 4 - program, an individual may establish a first-time homebuyer savings account.

(b) Designation of qualified beneficiary.--An account holder <-- shall designate no more than one first-time homebuyer as the qualified beneficiary of an account.

The account holder shall declare the qualified beneficiary on the annual personal income tax return required under the Tax Reform Code of 1971 for the tax year in which the account is established and for any year in which the qualified beneficiary 20250HB0818PN1296 - 6 - is changed.

(B) DESIGNATION AND CHANGE OF QUALIFIED BENEFICIARY.-- <-- (1) AN ACCOUNT HOLDER SHALL DESIGNATE NO MORE THAN ONE FIRST-TIME HOMEBUYER AS THE QUALIFIED BENEFICIARY OF THE ACCOUNT.

THE ACCOUNT HOLDER MAY, AT ANY TIME, DESIGNATE THE ACCOUNT HOLDER AS THE QUALIFIED BENEFICIARY OR CHANGE THE DESIGNATED QUALIFIED BENEFICIARY.

(2) THE ACCOUNT HOLDER MUST DESIGNATE AN INDIVIDUAL AS THE QUALIFIED BENEFICIARY UNDER PARAGRAPH (1) BY CERTIFYING THAT THE QUALIFIED BENEFICIARY IS ELIGIBLE UNDER THIS ACT IN A FORM AND MANNER DETERMINED BY THE DEPARTMENT.

(3) IF THE QUALIFIED BENEFICIARY BECOMES INELIGIBLE UNDER THIS ACT, THE ACCOUNT HOLDER MUST NOTIFY THE DEPARTMENT IN A FORM AND MANNER DETERMINED BY THE DEPARTMENT AND CHANGE THE DESIGNATED QUALIFIED BENEFICIARY.

IF THE ACCOUNT HOLDER FAILS TO CHANGE THE DESIGNATED QUALIFIED BENEFICIARY UNDER THIS PARAGRAPH, THE DEPARTMENT SHALL CLOSE THE ACCOUNT AND DISTRIBUTE THE MONEY IN THE ACCOUNT TO THE ACCOUNT HOLDER UNDER SECTION 8.

(f) Contributions to account.-- 20250HB0818PN1296 - 7 - (1) Subject to the limitations under section 6(d), an individual other than the account holder may contribute to an account.