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Hearing: DCED proposes $50M housing preservation, $10M closing-cost pilot and planning support for local zoning

Pennsylvania House Appropriations Committee ยท February 18, 2024
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Summary

Secretary Seager told lawmakers the proposed budget includes a $50M housing stock preservation program expected to serve roughly 2,500 households annually, a $10M pilot for first-time homebuyer closing-cost assistance (with a likely $5,000 base award), and $1M for state planning support to help municipalities update codes and zoning.

Housing โ€” both preservation and homeownership โ€” was a recurring theme at the Appropriations hearing.

Secretary Seager described a new housing-stock-preservation concept ("housing stock reservation") focused on whole-home repairs and helping Pennsylvanians remain in their existing homes. He estimated the $50 million request could serve about 2,500 households per year and said the average whole-home repair cost from past programs has been roughly $18,750.

On homeownership, lawmakers asked about a proposed $10 million program to help first-time buyers with closing costs. Seager said a likely structure would be a $5,000 base award per household with targeted plus-ups for areas with population decline or other priorities; he noted closing costs often exceed that base award and welcomed legislative feedback on eligibility and alternative measures such as realty-transfer-tax exemptions.

Seager also told the committee he wants a $1 million investment to support the State Planning Board and provide model codes and technical assistance to municipalities so local land-use barriers can be addressed while preserving municipal control.

Next steps: DCED plans fuller housing plan materials later this year and said legislation could be discussed but these programs could move forward through regular budget appropriation if the legislature prefers.