Venkat, Powell and Twardzik to introduce bipartisan legislation to protect homeowners
Would require proper disclosures to market Shared Appreciation Agreements
Rep. Arvind Venkat January 5, 2026 | 10:23 AM
HARRISBURG, Jan 5 – State Reps. Arvind Venkat and Lindsay Powell, both D-Allegheny, and Tim Twardzik, R-Schuylkill, have announced their intention to introduce legislation that would protect consumers entering into a Shared Appreciation Agreement.
Shared Appreciation Agreements, also known as Home Equity Sharing 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 would add Shared Appreciation Agreements to the Loan Interest and Protection Law (Usury Law), Act 6 of 1974, extending to homeowners the same statutory safeguards that apply to other home-secured financial products. These protections include disclosure requirements, foreclosure safeguards, and remedies for violations.
“Homeowners may enter into a Shared Appreciation Agreement believing it is a beneficial decision for their family’s future,” said Venkat. “However, unfair or deceptive marketing practices can lead to significant financial hardship down the road. This legislation would provide stronger protections for homeowners as they consider whether to proceed with a Shared Appreciation Agreement.”
Under a Shared Appreciation Agreement, the more a home appreciates, the more the homeowner must pay to satisfy the contract -- often far exceeding the amount originally received. Conversely, if the home depreciates, the homeowner may still be required to repay a share of the reduced value to the investor.
“It is crucial that homeowners understand the value of their home and how its value will grow in the future,” said Powell, co-chair of the bipartisan Pennsylvania Housing Caucus. “No one should have to struggle due to language that could be intentionally vague. We need greater transparency so that our neighbors know what goes into signing onto an agreement.”
“Homeowners deserve clear information and honest terms before signing any agreement that affects the future value of their home,” said Twardzik, co-chair of the bipartisan Pennsylvania Housing Caucus. “This legislation ensures families are not misled by complicated contracts and provides the attorney general with stronger tools to hold bad actors accountable.”
Passage of the legislation would extend existing homeowner protections under Act 6 to Shared Appreciation Agreements, placing them under the oversight of the Department of Banking and Securities and the Office of the Attorney General.
The representatives have circulated the legislation among their colleagues to seek co-sponsors and plan to formally introduce it later this month.