PA House passes bipartisan bill to protect homeowners
Would require proper disclosures for novel home lending product
Pennsylvania House Democratic Caucus June 2, 2026 | 2:46 PM
HARRISBURG, June 2 – The Pennsylvania State House has passed bipartisan legislation, 190-11, in favor of regulating shared equity agreements, a novel home lending product, according to the bill’s co-prime sponsors, state Reps. Arvind Venkat and Lindsay Powell, both D-Allegheny, and Tim Twardzik, R-Schuylkill.
Shared Appreciation Agreements are contracts in which a homeowner receives funds in exchange for granting a third party a future interest in the appreciation, equity, or value of their home. The legislation, H.B. 2120, would add Shared Equity Agreements to current laws that provide statutory safeguards for other home-secured financial products, such as residential mortgages.
“For most Pennsylvanians, their home is their most valuable asset,” Venkat said. “Homeowners may enter into these agreements believing they are making a beneficial decision for their family’s future, but when marketing is unfair or deceptive, they could face significant financial hardship down the road.
“Given the importance of homes and their value to so many Pennsylvanians, we must expeditiously bring shared equity agreements into a regulatory framework similar to that of mortgages so that Pennsylvanians can be assured of transparency and protection against predatory lending practices in these products.”
The legislation would require shared equity agreements to meet disclosure requirements, foreclosure protections, and remedies for violations. Under a shared equity agreement, the more a home appreciates, the more the homeowner must pay to satisfy the contract -- often far exceeding the amount originally received.
“This bill will ensure that homeowners understand the value of their home and how that value will grow over time,” said Powell, co-chair of the bipartisan Pennsylvania Housing Caucus. “Intentionally vague language can cost Pennsylvanians a great deal of money in the future just for a short-term gain. We need greater transparency so that our neighbors know what goes into signing onto one of these agreements.”
“As co-chair of the bipartisan Pennsylvania Housing Caucus, I supported this legislation because Pennsylvanians deserve clear, straightforward information when entering complex financial agreements tied to their homes,” said Twardzik. “This bill strengthens transparency and establishes important safeguards to protect homeowners while still allowing responsible innovation in the housing finance market.”
The passage of this legislation comes after Point, a company that markets Shared Equity Agreements, solicited customer feedback against the legislation with the promise of $50 Amazon gift cards in the lead up to a House Commerce Committee hearing on the bill. This came without notice to the committee or any PA House members.
House Bill 2120 will now move to the state Senate for consideration.