PRINTER'S NO. 574
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.570
Session of
2025
INTRODUCED BY CARROLL, KHAN, HILL-EVANS, WAXMAN, SANCHEZ, GIRAL,
FIEDLER, KENYATTA, MAYES, CEPEDA-FREYTIZ, BOYD, RIVERA,
PROBST, KRAJEWSKI AND SMITH-WADE-EL, FEBRUARY 12, 2025
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
FEBRUARY 12, 2025
AN ACT
Providing for middle-income, low-income and very-low-income
housing units in new residential development projects.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Affordable
Housing for Working Families Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Community center." An indoor or outdoor building, space,
structure or improvement intended for active or passive
recreation, including parks, ball fields, meeting halls and
classrooms, that accommodate either organized or informal
activity and are oriented toward serving residents of the
municipality.
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17 "Developer." A person or entity who engages in the
development or rehabilitation of real estate for residential
occupancy and is responsible for the development of the real
estate, including acquisition, design, construction, repairing,
leasing, sale, operation and financing.
"Low-income housing." Affordable housing that is reserved
for occupancy by households with a gross household income that
does not exceed 80% of the median gross household income for
households of the same size within the housing region in which
the housing is located.
"Middle-income housing." Affordable housing that is reserved
for occupancy by households with a gross household income equal
to more than 80% but less than 120% of the median gross
household income for households of the same size within the
housing region in which the housing is located.
"Project." The development or rehabilitation of real estate,
including acquisition, construction, repairing, leasing, sale,
operation and financing.
"Very-low-income housing." Affordable housing that is
reserved for occupancy by households with a gross household
income that does not exceed 50% of the median gross household
income for households of the same size within the housing region
in which the housing is located.
Section 3. Housing development project requirement .
(a) Eligibility.--This section shall apply to a developer of
a project with 30 or more residential units that:
(1) Is approved by a municipal planning board or zoning
board to develop a project.
(2) Is permissible under either a use variance, a
density variance increasing the permissible density at the
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30 site, a rezoning permitting multiple residential units where
not previously permitted, a new or amended redevelopment plan
or a new or amended rehabilitation plan.
(3) Has a net density of six or more units per acre.
(4) Has an application for a construction permit that is
submitted on or after the effective date of this paragraph.
(b) Reserve.--The developer shall reserve at least:
(1) Five percent of the residential units for very-low-
income housing.
(2) Ten percent of the residential units for low-income
housing.
(3) Ten percent of the residential units for middle-
income housing.
(c) Requirements.--A project under this section shall be
developed as follows:
(1) If more than 25% of market-rate housing units are
completed, no less than 10% of very-low-income housing, low-
income housing and middle-income housing units shall be
completed.
(2) If 50% or more of the market-rate housing units are
completed, no less than 50% of very-low-income housing, low-
income housing and middle-income housing units shall be
completed.
(3) If 75% or more of the market-rate housing units are
completed, no less than 75% of very-low-income housing, low-
income housing and middle-income housing units shall be
completed.
(4) If 90% or more of the market-rate housing units are
completed, no less than 100% of very-low-income housing, low-
income housing and middle-income housing units shall be
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30 completed.
(d) Withholding of certificate of occupancy.--The
municipality shall withhold a certificate of occupancy for
market-rate units, at any stage of development, if the
requirements of this section are not satisfied.
(e) Location of units.--The developer of a project subject
to this section may develop the residential units reserved for
very-low-income housing, low-income housing and middle-income
housing onsite or offsite within the municipality in which the
project is located.
(f) Contract provisions.--A municipal approval or agreement
entered into between a municipality and a developer concerning
the development of a project shall incorporate contractual
guarantees and procedures ensuring that a residential unit
reserved for very-low-income housing, low-income housing and
middle-income housing shall continue to be reserved for a period
of at least three years.
(g) Unit requirements.--For a project that is not age-
restricted, at least 30% of all the very-low-income housing,
low-income housing and middle-income housing units required by
this section shall be two-bedroom units and at least 20% of all
the very-low-income housing, low-income housing and middle-
income housing units required by this section shall be three-
bedroom units.
(h) Payment in lieu of construction.--
(1) A municipality that is authorized to impose and
collect impact or development fees may, in its discretion and
in lieu of requiring the construction of very-low-income
housing, low-income housing and middle-income housing units
under this section, require a developer to pay an impact or
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30 development fee in an amount equal to 30% of the total
project cost, as determined by the municipal engineer or
other qualified municipal official designated by ordinance.
The amount of the fee that may be required under this
subsection shall be 25% of the total project cost if the
project achieves a silver rating according to the Leadership
in Energy and Environmental Design Green Building Rating
System as adopted by the United States Green Building
Council.
(2) A fee required under paragraph (1) shall be paid
prior to the issuance of a construction permit for the
project.
(3) A municipality shall, by ordinance, either:
(i) deposit all fees collected under this subsection
into an affordable housing trust fund and spend the funds
on the development of very-low-income housing or low-
income housing within the municipality; or
(ii) deposit 50% of the fees collected under this
subsection into an affordable housing trust fund and
spend those funds on the development of very-low-income
housing or low-income housing within the municipality and
deposit the remaining 50% of the fee into a community
center trust fund and spend the funds on the development
of community centers.
(i) Construction.--Nothing in this section shall be
construed to affect the obligation of a municipality to plan and
zone to provide through its land use regulations a realistic
opportunity for a fair share of its region's present and
prospective needs for very-low-income housing or low-income
housing. Nothing in this act shall be construed to alter the
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30 obligations of a developer or municipality to comply with the
terms of a court-approved agreement or fair share plan or to
prevent a municipality from creating or enforcing requirements
beyond the minimum requirements established in this section.
Section 4. Effective date.
This act shall take effect in 90 days.
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