EASTON, Pa. - State Rep. Bob Freeman wants to make it easier for renters to become homeowners. He says he got the idea for his new affordable housing legislation from someone you may be familiar with in Easton.
"Who doesn't want to own their home, right? So, there's a lot of reasons why people can't or don't," said Jeff Porter, a real estate investor.
Among those reasons are skyrocketing rent prices, bidding wars for houses and now, inflation.
Porter, also of Easton's Porter's Pub, says helping people become homeowners is important to him.
"It stabilizes the neighborhood," said Porter. "It gives the owner tax advantages. It helps them grow wealth and equity."
It's why he's been offering his tenants a lease-to-purchase option for years.
"It's just a simple lease addendum that goes on to their regular old lease, and it's a certain amount of money per month that gets credited back, if and when they purchase the house," said Porter.
It was Porter's concept that inspired Freeman to introduce legislation that would formalize this concept at the state level, adding safeguards for tenants and landlords.
"A certain portion of the rent money every month would go into an escrow account, and when that escrow account builds to the point where the tenant can afford to pay for down payment costs, closing costs and get a mortgage, then they agree to get mortgage," said Freeman.
He worked on House Bill 2701 with the Pennsylvania Housing Finance Agency, which would oversee the program.
"For those landlords who don't want to be long-term landlords, for those individuals of modest means who might not feel comfortable utilizing the services of a financial institution, like a bank or a mortgage company, it can be a seamless process," said Freeman.
"The lease to purchase idea is not a new idea. but a lot of people might not know about it," said Porter.
The bill was last referred to the House Urban Affairs Committee. Freeman says he's looking for additional feedback from the housing alliance and other stakeholders as he works to move the legislation forward.
