Subchapter C. POLICY STATEMENT ON HOME ENERGY
EFFICIENCY LOAN PROGRAM
(R & R ENERGY)
Sec.
31.301. Definitions.
31.302. Eligible loan uses.
31.303. Loan terms and conditions.
31.304. Borrower eligibility.
31.305. Borrower application process.
31.306. Contractor eligibility.
31.307. Contractor application process.
31.308. Contractor approval.
31.309. Other program requirements.
Source
The provisions of this Subchapter C adopted October 3, 2008, effective October 4, 2008, 38 Pa.B. 5449; corrected March 12, 2009, effective October 4, 2008, 39 Pa.B. 1306, unless otherwise noted.
§ 31.301. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Act—The Alternative Energy Investment Act, Act 1, Special Session No. 1 (2007-2008).
Agency—The Pennsylvania Housing Finance Agency.
Approved contractor—A contractor approved by the Agency to participate in the R & R Energy Program.
Borrower—A homeowner or homebuyer who obtains or is seeking to obtain financing under the R & R Energy Program.
Contractor—A person who owns or operates an energy efficiency service-related or home improvement contracting business or who undertakes, offers to undertake or agrees to perform any work under the R & R Energy Program.
LPA—Local program administrator—
(i) A local housing organization, municipality or lender who originates loans on behalf of the Agency under this Program and also acts as the construction manager.
(ii) The term includes but is not limited to, the following:
(A) County housing authorities (HA).
(B) Housing and redevelopment authorities (HRA and RDA).
(C) Community action agencies (CAA).
(D) Community development corporations (CDC).
(E) Housing development corporations (HDC).
(F) Municipalities.
(G) Lenders.
(H) Other nonprofit organizations with related housing experience.
R & R Energy Program—The Keystone Renovate Repair Program.
§ 31.302. Eligible loan uses.
The proceeds of the R&R Energy loan are to be used only to finance the purchase and installation of any of the following:
(1) Air sealing, insulation and duct work.
(2) Energy efficient windows and doors.
(3) Repair or replacement of energy efficient heating or cooling systems such as the purchase of furnaces, boilers, ceiling fans, central air conditioners or hot water heaters with the Energy Star® label, programmable thermostats, geothermal heating systems, and the like.
(4) Roofing repair, replacement or improvements.
§ 31.303. Loan terms and conditions.
(a) Loans must be fully amortized over a period of up to 10 years.
(b) The maximum loan amount is $10,000. The minimum loan amount is $1,000.
(c) The interest rate is set by the Agency and will be updated and published on the Agency’s web site (www.phfa.org).
(d) The mortgage for the R&R Energy loan is recorded as a lien against the property.
(e) All property owners shall sign the mortgage.
(f) Each note shall be executed by the homeowners responsible for the debt.
(g) In accordance with the provisions of the note, loans must be paid in full upon the sale or transfer of any borrower’s interest in the property, but not earlier than 6 months from loan closing.
(h) Loans may not be assumed by third parties.
(i) There are no penalties in the event of an early payoff.
(j) Borrowers will be charged a satisfaction recording fee, when they pay off their R & R Energy loan.
(k) The mortgage and note shall be executed on the forms provided or approved by the Agency.
§ 31.304. Borrower eligibility.
(a) The borrower must reside in the subject home as a primary, principal residence or have the intent to if purchasing the subject property.
(b) The total combined household adjusted gross income, as determined by the most current Federal tax returns of all adult household members, may not exceed 150% of the greater of the current Statewide or area median income as established by the United States Department of Housing and Urban Development (HUD) for the county in which the home is located. (Information regarding HUD income limits applicable to the R&R Energy Program is available at the Agency’s web site at www.phfa.org.) An adult is defined as any person 18 years of age or older who resides in the home as a principal residence and who is not a full-time (12 credits or more) undergraduate student.
(c) Borrowers shall also meet general mortgage underwriting guidelines as established by the Agency with regard to their credit and employment history, debt to income ratio, assets, and the like.
(d) Borrowers may need to pay for or finance certain costs and fees in connection with obtaining an R & R Energy Loan. These will be disclosed in accordance with State and Federal requirements.
§ 31.305. Borrower application process.
(a) An individual may submit an application to the Agency or to an LPA acting on the Agency’s behalf on the form required by the Agency which includes:
(1) The borrower’s name and address
(2) The identity of the approved contractor who will complete the energy efficiency project.
(3) A description of the energy efficiency project and estimate of cost.
(4) The amount of the loan sought.
(5) A statement authorizing the Agency to conduct a credit history check.
(6) Other information required by the Agency.
(b) The Agency or its LPA will review the application to determine if the following requirements are met:
(1) The project is eligible for financing under this program.
(2) The borrower is eligible to receive a loan under this program.
(3) The value of the proposed collateral and the financial resources of the borrower are sufficient to repay the loan.
(4) The statement of the estimated cost of the project is accurate and reasonable.
(5) The borrower complied with all other criteria as established by the Agency.
(6) The work will be performed by an approved contractor.
(c) Once the application is deemed complete, the Agency or its LPA may approve it. The Agency will have complete discretion in determining whether a proposed energy efficiency project is eligible for a loan.
§ 31.306. Contractor eligibility.
A contractor who undertakes, offers to undertake or agrees to perform any work under the R & R Energy Program shall be approved by the Agency and listed on the R & R Energy Program Approved Contractor List posted on the Agency’s web site. Contractors may apply for approval through the Agency directly or through an approved LPA, who will then forward the information to the Agency for inclusion in the Approved Contractor Listing.
§ 31.307. Contractor application process.
A contractor may apply to become an approved contractor by filing an application with the Agency using the required form, which includes or demonstrates the following information:
(1) For an individual contractor, the name, home address and telephone number, driver’s license identification number or that of an identification card issued by the Department of Transportation, as well as the individual’s business name, address and phone number and all prior business names and addresses of home improvement businesses.
(2) For a contractor consisting of a business partnership, the name, home address and telephone number, and driver’s license identification number of each partner as well as the partnership name, address and telephone number.
(3) For a contractor consisting of a corporation, limited liability company or limited partnership, the name, home address and telephone number, and driver’s license identification number of each officer, director or individual holding greater than a 5% stake in the business, as well as the entity’s business name, address and telephone number.
(4) For an out-of-State corporation, limited liability company or limited partnership, the name and address of the entity’s resident agent or registered office provider within this Commonwealth and any registration number or license number issued to the entity by its home state or political subdivision of the other state, if applicable.
(5) For a joint venture applicant, the name, address and telephone number of the joint venture, as well as the name, address and telephone number of each party to the joint venture. If the parties include business entities, the information required from the entities shall also be provided.
(6) A complete description of the nature of the contracting business of the contractor, including a statement defining the service area of the business, any specialized work the contractor is qualified for and years of operation.
(7) A statement whether any of the following apply:
(i) The individuals applying, even if doing so as part of a business entity application, have ever been convicted of a criminal offense related to a home improvement transaction, fraud, theft, a crime of deception or a crime involving fraudulent business practices.
(ii) The applicant has ever filed a petition in bankruptcy or, within the last 10 years, received a final civil judgment entered against the applicant or businesses in which the applicant held an interest that was related to a home improvement transaction.
(iii) The contractor’s certificate or the certificate of a business with which the person applying held an interest has ever been revoked or suspended under an order issued by a court of competent jurisdiction in this Commonwealth or any other state or political subdivision thereof and, if so, the current status of the certificate.
(iv) The contractor is not current in all applicable Federal, State and local tax filings.
(8) Whether within the last 10 years the contractor has been suspended or debarred from participating in any Federal, State or local program through which public funding or other assistance is provided to consumers for home improvements.
(9) Proof of liability insurance covering personal injury and covering property damage in amounts and with carriers acceptable to the Agency.
§ 31.308. Contractor approval.
Upon being satisfied that all requirements have been met, the Agency may approve the contractor’s application. The Agency will not approve a contractor’s application if any of the following conditions exist:
(1) The individuals applying, even if doing so as part of a business entity, have been convicted of a criminal offense related to a home improvement transaction, fraud, theft, a crime of deception or a crime involving fraudulent business practices.
(2) The contractor has been suspended or debarred from participating in any Federal, State or local program through which public funding or other assistance is provided to consumers for home improvements.
§ 31.309. Other program requirements.
Additional processing and application requirements will be applicable to this Program and the Agency reserves the right to provide additional guidance to borrowers, contractors and Program LPAs on its web site from time to time. The Agency may also implement additional program criteria such as the allowance of pre- and postconstruction/installation energy audits to quantify energy savings as a result of the energy efficiency contracting work performed through the Program.
Cross References
This section cited in 10 Pa. Code § 59.15 (relating to additional notices).
APPENDIX A
All paragraphs contained within the body of the notice shall appear in
12 point font.
Date:
Act 91 Notice* (24 point font, bold)
La Notificaci[oacute]n de Acto 91* (14 point font, bold)
Save Your Home From Foreclosure
This is an official Act 91 Notice. You are receiving this notice because Pennsylvania law requires mortgage lenders to send it to homeowners facing foreclosure. This notice contains important legal information about your rights and how you can save your home. YOU MAY BE ELIGIBLE FOR STATE FUNDED ASSISTANCE from the Homeowner’s Emergency Mortgage Assistance Program (HEMAP), a program of the Pennsylvania Housing Finance Agency (PHFA).
CALL A COUNSELING AGENCY FOR A MEETING.
APPLYING FOR HEMAP MAY TEMPORARILY STOP A FORECLOSURE ACTION.
To apply, you must have a face-to-face meeting with a HEMAP-approved Consumer Credit Counseling Agency within 33 days of the date of this notice. This meeting is free and is the only way to apply for HEMAP. A list of approved Counseling Agencies is attached. A list is also available at http://www.phfa.org/counseling/hemap.aspx. If after speaking with a Counseling Agency you have further questions about HEMAP, please call 1 (800) 342-2397. Individuals with hearing impairment may call 711 (RELAY).
To make sure you meet the deadline, please call a Counseling Agency immediately to schedule a face-to-face meeting. Keep this entire Act 91 Notice, including the attached Account Summary, and have it available for your face-to-face meeting, whether done in person or remotely. A counselor can:
• Help you apply for HEMAP and explain how the program works.
• Talk with your lender about a loan modification or other repayment plan.
• Explain possible options to avoid foreclosure such as loss mitigation, refinancing your loan, selling or transferring your property to a third party or having a third party cure the delinquency on your behalf through a short sale or assumption of mortgage.
• Provide referrals for other assistance, programs or services.
• Explain other rights you may have, including your right to assert the non-existence of the debt and any other defenses you may have.
Even if you miss the deadline, you may still apply for HEMAP, but a late HEMAP application will not stop your lender from foreclosing. However, if your application is approved, a HEMAP assistance loan will bring your mortgage current and stop the foreclosure. HEMAP may also temporarily help you make future mortgage payments.
Alternatively, you may save your home from foreclosure by curing your default. That means paying your lender all amounts currently due, including reasonable late charges, attorney fees and other costs and by otherwise fulfilling your mortgage obligations. You may cure the default at any time up to one hour before a Sheriff’s Sale, up to three times in any calendar year.
If you have filed a petition in bankruptcy, this notice is provided for informational purposes only and is not an attempt to collect a debt. If you are protected by a bankruptcy filing you may still apply for HEMAP assistance.
*CONSULTE AL DORSO LA TRADUCCI[Oacute]N DE ESTA NOTIFICACI[Oacute]N IMPORTANTE, O LLAME AL 1.800.342.2397.
ACT 91 NOTICE PAGE 1
Fecha:
Notificaci[oacute]n sobre la Ley 91**
Act 91 Notice**
Salve a su Hogar de la Ejecuci[oacute]n Hipotecaria
La presente es una notificaci[oacute]n official sobre la Ley 91. Usted est[aacute] recibiendo esta notificaci[oacute]n porque la ley de Pennsylvania requiere que los prestamistas hipotecarios la env[iacute]en a los propietarios de viviendas que se encuentren enfrentando una ejecuci[oacute]n hipotecaria. Este aviso contiene informaci[oacute]n legal importante acerca de sus derechos y de lo que puede hacer para salvar su hogar. ES POSIBLE QUE SEA ELEGIBLE PARA OBTENER AYUDA CON FONDOS ESTATALES del Programa de Asistencia de Emergencia Hipotecaria para Due[ntilde]os de Hogares (HEMAP, por sus siglas en inglés), un programa de la Agencia de Financiamiento de Hogares de Pennsylvania (PHFA, por sus siglas en inglés).
LLAME A UNA AGENCIA DE ASESORAMIENTO PARA CONCERTAR UNA REUNI[Oacute]N. LA SOLICITUD PARA EL HEMAP PUEDE DETENER DE FORMA TEMPORARIA LA EJECUCI[Oacute]N DE UNA HIPOTECA.
Para presentar su solicitud, debe celebrar una reuni[oacute]n presencial con una Agenc[iacute]a de Asesor[iacute]a Crediticia para el Consumidor aprobada por el HEMAP, antes de que transcurran 33 d[iacute]as, a partir de la fecha de esta notificaci[oacute]n. Esta reuni[oacute]n es gratuita y es la [uacute]nica manera de solicitar el HEMAP. Se adjunta una lista de Agencias de Asesor[iacute]a aprobadas. También puede encontrar una lista en http://www.phfa.org/counseling/hemap.aspx. Si luego de hablar con una Agencia de Asesor[iacute]a tiene alguna pregunta sobre el HEMAP, por favor llame al 1 (800) 342-2397. Las personas con discapacidades auditivas pueden llamar al 711 (REL[Eacute]).
Con el fin de asegurar que cumpla con el plazo, por favor llame a una Agencia de Asesor[iacute]a y programe una reuni[oacute]n presencial de inmediato. Conserve esta Notificaci[oacute]n sobre la Ley 91, con el Resumen de Cuenta adjunto, y téngalo disponible para su reuni[oacute]n presencial, ya sea en persona o de forma remota. Un asesor puede:
• Ayudarlo a presentar su solicitud al HEMAP y explicarle c[oacute]mo funciona el programa.
• Hablar con su prestamista acerca de una modificaci[oacute]n del préstamo u otro plan de pago.
• Explicarle las opciones posibles para evitar la ejecuci[oacute]n de la hipoteca, como la mitigaci[oacute]n de pérdidas, la refinanciaci[oacute]n del préstamo, la venta o transferencia de su propiedad a un tercero, o que un tercero pague el atraso en su nombre, a través de una venta al descubierto o asumiendo la hipoteca.
• Derivarlo a otro tipo de asistencia, programa o servicio.
• Explicarle otros derechos que pueda tener, incluido su derecho de reivindicar la no existencia de la deuda y cualquier otra defensa que tenga.
Incluso si no cumple con el plazo, es posible presentar su solicitud para el HEMAP, pero la solicitud tard[iacute]a al HEMAP no impedir[aacute] que su prestamista ejecute la hipoteca. Sin embargo, si se aprueba su solicitud, el préstamo de ayuda del HEMAP pondr[aacute] su hipoteca al d[iacute]a y detendr[aacute] la ejecuci[oacute]n. El HEMAP también puede ayudarlo, de manera temporal, a realizar los pagos de hipoteca futuros.
También puede optar por la alternativa de subsanar el incumplimiento para salvar a su hogar de la ejecuci[oacute]n hipotecaria. Eso significa pagarle a su prestamista todos los montos adeudados a la actualidad, incluidos los cargos moratorios, los honorarios de abogados y otros costos razonables, y cumplir con sus obligaciones hipotecarias. Puede subsanar el incumplimiento en cualquier momento, hasta una hora antes de la subasta judicial, un m[aacute]ximo de tres veces por cada a[ntilde]o calendario.
Si usted ha presentado una solicitud de quiebra, esta notificaci[oacute]n se proporciona solo con fines informativos y no es un intento de cobrar una deuda. Usted puede solicitar la ayuda del HEMAP, incluso si est[aacute] protegido por una declaraci[oacute]n de quiebra.
*SEE REVERSE SIDE FOR TRANSLATION OF THIS IMPORTANT NOTICE OR CALL 1.800.342.2397. (10 POINT FONT)
ACT 91 NOTICE PAGE 2
Fecha:
ACT 91 NOTICE (12 point font, bold)
Account Summary (12 point font, bold)
Your Loan Details: (16 Point Font, Bold)1
| Name(s) on Account: (12 Point Font)2 | [Name(s)] The name(s) of the homeowner(s) and any other name appearing on the account; if the notice is being provided to additional parties not appearing on the account, the names of the additional parties shall be included under the names of the homeowner and other names appearing on the account.
(12 Point Font)3 |
| Address of Mortgaged Property: | [Address] The address of the mortgaged property.
[Address] |
| Account Number: | [Account Number] The account number used by the mortgagee to reference the homeowner’s account.
|
1 All Table headings shall appear in 16 poit font, bold.
2 All Field headings shall appear in 12 point font.
3 All account information shall appear in 12 point font unless otherwise indicated.
How to Contact Your Lender:
| Current Lender or Servicer: | [Lender or Servicer Name] The name of the current Lender/Servicer for the account. |
| Lender or Servicer Address: | [Address] The address of the current Lender/Servicer
[Address] for the account. |
| Lender or Servicer Phone Number: | [Phone Number] The general phone number for the Lender/Servicer (i.e., a 1(800) number). |
| Contact Person: | [Name] The name of a contact person at Lender/Servicer for the account. |
| Phone Number: | [Phone Number] The direct phone number for the contact person for the account. |
| Fax Number: | [Fax Number] The fax number for the contact person for the account. |
| Email: | [Email Address] The email address for the contact person for the account.
|
Default Information:
| Monthly Payments Missed: | [Months missed e.g., Jan. 2014-August 2014] |
| Total Amount Past Due: | $[amount(s)]4; itemize and describe; *Please be aware that fees and costs may continue to accrue through the duration of the delinquency. An itemization of
all amounts necessary to cure the delinquency, including fees and costs. Language regarding the continued accrual of fees should appear at the end of the itemization.
|
ACT 91 NOTICE PAGE 3
4 All amounts listed in this field shall appear in 12 point font, bold. The itemization and description of the amounts shall not appear in bold.
How to Cure the Default:
| Within 30 Days of the Date on This Notice: | Pay $[amount]5, plus any payment and other charges that have become due to your lender or servicer by cash, cashier’s check, certified check or other means acceptable to both parties. |
| Send Payment and Make Payable to: | [Lender or Servicer Name]Lender/Servicer name and [Address]address where the Lender/Servicer receives [Address]payment. |
| To Cure ‘‘Other Default’’: | [describe]Action homeowner must take to remedy a default other than a financial default. |
| Is the Mortgage Assumable? | Language indicating whether the mortgage is assumable. If the mortgage is assumable, the text in this box should read, ‘‘Yes, you may sell or transfer your home to a buyer or transferee who will assume the mortgage debt, if all the outstanding payments, charges and attorneys fees and costs are paid prior to or at the sale and if the other requirements of the mortgage are satisfied.’’ If the mortgage is not assumable, the text in this box should read ‘‘No’’ only. If the mortgage is not assumable under the terms of the contract, but the Lender is willing to discuss the possibility of allowing an assumption of the mortgage, the text in this box should read ‘‘No, but please contact your Lender to discuss
your options.’’
|
ACT 91 NOTICE PAGE 4
5 All amounts listed in this field shall appear in 12 point font, bold.
Source
The provisions of this Appendix A amended through June 13, 1986, effective June 14, 1986, 16 Pa.B. 2126; amended July 1, 1994, effective July 2, 1994, 24 Pa.B. 3224; amended June 4, 1999, effective July 1, 1999, 29 Pa.B. 2859; amended August 29, 2008, effective for notices issued on or after January 1, 2009, 38 Pa.B. 4859; amended April 29, 2016, effective April 30, 2016, 46 Pa.B. 2171; amended April 2, 2021, effective April 3, 2021, 51 Pa.B. 1824. Immediately preceding text appears at serial pages (380319) to (380323).
Cross References
This appendix cited in 12 Pa. Code § 31.201 (relating to definitions); 12 Pa. Code § 31.202 (relating to eligibility for mortgage loan assistance); and 12 Pa. Code § 31.203 (relating to procedures).
APPENDIX B
Consumer Credit Counseling Agency
Notification of Face-to-Face Meeting
Date:
Mortgagee Name & Address
In accordance with the Pennsylvania Housing Finance Agency’s Homeowner’s Emergency Mortgage Assistance Program (PHFA-HEMAP) (Act 91 of 1983), this is to inform you that we have been approached for mortgage counseling assistance by:
(Name and Address of Applicant)
Mortgage Loan Number
This counseling agency has had a face-to-face meeting with the above-named applicant on
, who indicated that they are more than sixty (60) days delinquent on their mortgage payments and have received an Act 91 Notice of Intention to Foreclose dated
from:
Name and Address of Mortgagee
In accordance with the Homeowner’s Emergency Mortgage Assistance Program, this is to inform you that:
1. Within 30 days from the date of this notice, we intend to forward an application to the Pennsylvania Housing Finance Agency, Homeowner’s Emergency Mortgage Assistance Program on behalf of the above-mentioned applicant(s).
2. By a copy of this Notice, we are notifying any other mortgagees, identified by the applicant(s) as also having a mortgage on the property identified above.
| 3. No legal action to enforce the mortgage may occur if a timely application is filed. The homeowner(s) must have a face-to-face meeting with a Consumer Credit Counseling Agency within 33 days from the date of the Act 91 Notice and an application must be received by PHFA-HEMAP within 30 days of the face-to-face meeting in order to be protected by this forbearance period. |
|
Name of Counseling Agency:
Address:
Telephone Number:
Source
The provisions of this Appendix B amended December 13, 1985, effective December 14, 1985, 15 Pa.B. 4435; amended July 1, 1994, effective July 2, 1994, 24 Pa.B. 3224; amended June 4, 1999, effective July 1, 1999, 29 Pa.B. 2859; amended August 29, 2008, effective September 6, 2008, 38 Pa.B. 4859. Immediately preceding text appears at serial pages (256063) to (256064).
Cross References
This appendix cited in 12 Pa. Code § 31.203 (relating to procedures).
APPENDIX C
Source
The provisions of this Appendix C adopted December 13, 1985, effective December 14, 1985, 15 Pa.B. 4435; amended July 1, 1994, effective July 2, 1994, 24 Pa.B. 3224; amended June 4, 1999, effective July 1, 1999, 29 Pa.B. 2859; amended November 2, 2001, effective January 1, 2002, 31 Pa.B. 6106; amended August 29, 2008, effective September 6, 2008, 38 Pa.B. 4859. Immediately preceding text appears at serial pages (284783) to (284811).
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