PRINTER'S NO. 346
No. 300 Session of 2003
INTRODUCED BY DIVEN, FEBRUARY 18, 2003
REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 18, 2003
AN ACT 1 Providing for the remediation of blighted properties in cities 2 of the first and second class. 3 The General Assembly of the Commonwealth of Pennsylvania 4 hereby enacts as follows: 5 Section 1. Short title. 6 This act shall be known and may be cited as the Blight 7 Remediation Board Act. 8 Section 2. Legislative intent. 9 The purpose of this act is to establish a blight remediation 10 program that would provide affordable housing, improve the 11 quality of life in urban neighborhoods and increase annual 12 reoccurring revenue for school districts and cities of the first 13 and second class without the commitment of future State tax 14 dollars. 15 Section 3. Definitions. 16 The following words and phrases when used in this act shall 17 have the meanings given to them in this section unless the
1 context clearly indicates otherwise: 2 "Blighted property." Includes any of the following: 3 (1) Any premises which, because of physical condition or 4 use, is regarded as a public nuisance at common law or has 5 been declared a public nuisance in accordance with the local 6 housing, building, plumbing, fire and related codes. 7 (2) Any dwelling which, because it is dilapidated, 8 unsanitary, unsafe, vermin-infested or lacking in the 9 facilities and equipment required by the housing code of the 10 municipality, has been designated by the local agency 11 responsible for enforcement of the code as unfit for human 12 habitation. 13 (3) Any structure which is a fire hazard or is otherwise 14 dangerous to the safety of persons or property. 15 (4) Any structure from which the utilities, plumbing, 16 heating, sewerage or other facilities have been disconnected, 17 destroyed, removed or rendered ineffective so that the 18 property is unfit for its intended use. 19 (5) Any vacant or unimproved lot or parcel of ground in 20 a predominantly built-up neighborhood which by reason of 21 neglect or lack of maintenance has become a place for 22 accumulation of trash and debris or a haven for rodents or 23 other vermin. 24 (6) Any property which has been tax delinquent for a 25 period of two years. 26 "Board." The Blight Remediation Board established by this 27 act. 28 "Department." The Department of Community and Economic 29 Development of the Commonwealth. 30 "Fund." The Blight Remediation Fund established by this act. 20030H0300B0346 - 2 -
1 "Program." The Blight Remediation Program established by 2 this act. 3 Section 4. Program. 4 (a) Establishment.--The Blight Remediation Program is hereby 5 established within the department. 6 (b) Transfer of capital budget moneys.--Immediately 7 following the deposit of capital budget moneys into the fund 8 pursuant to section 8, $75,000,000 of the moneys shall be 9 transferred to the city of the first class and $35,000,000 of 10 the moneys shall be transferred to the city of the second class 11 for expenditure pursuant to the purposes set forth in subsection 12 (c). 13 (c) Use of transferred moneys.--The city of the first class 14 and the city of the second class shall utilize the transferred 15 moneys to purchase blighted property within their respective 16 jurisdictions for inclusion in the program. Purchase may be 17 effected by outright purchase, eminent domain, purchase at tax 18 sale or by any other means available. Moneys may be utilized to 19 defray all costs and expenses associated with obtaining good 20 marketable title to the blighted properties, including, but not 21 limited to, the satisfaction of liens and other claims, attorney 22 fees and all other costs incurred to acquire such properties. 23 (d) Conveyance of purchased property to department.--Within 24 nine months of the effective date of this act, the city of the 25 first class and the city of the second class shall each submit a 26 list of properties acquired pursuant to subsection (c) to the 27 board. Such list shall also include information specifying the 28 amount expended to purchase and clear title to each property, 29 the exact location of each property and such other information 30 deemed warranted by the board. Following board review of these 20030H0300B0346 - 3 -
1 lists and the accompanying information pursuant to section 6, 2 all properties on the list that have been approved by the board 3 for program inclusion shall be conveyed by each city in fee 4 simple to the Commonwealth. 5 (e) Development of conveyed property.--Capital budget moneys 6 in the amount of $25,000,000 with respect to the city of the 7 first class and $15,000,000 with respect to the city of the 8 second class shall be utilized by the board in site preparation 9 of the conveyed properties. These moneys may be used to cover 10 costs in razing and clearing dilapidated buildings and in the 11 installation of necessary infrastructure, including sewer, water 12 and other utilities. 13 (f) Tax abatement programs.--Properties qualifying for this 14 program are not eligible for any tax abatement program. 15 Section 5. Board. 16 (a) Establishment.--The Blight Remediation Board is hereby 17 established with the department and shall administer the 18 program. 19 (b) Composition.--The board shall be composed of a governing 20 board composed of three members appointed by the Governor; one 21 shall have expertise in the area of real estate appraisal and 22 finance, one shall have expertise in the area of urban 23 redevelopment and economic development, and one shall have 24 expertise in general business practices and marketing. 25 (c) Term; vacancies.--The term of a board member shall begin 26 on the date of appointment. A member's term shall be coterminous 27 with that of his or her appointing authority, provided that the 28 member's term shall continue until his or her replacement is 29 appointed. Board members shall serve at the pleasure of the 30 appointing authority. Whenever a vacancy occurs on the board, 20030H0300B0346 - 4 -
1 whether prior to or on the expiration of a term, the appointing 2 authority who originally appointed the board member whose seat 3 has become vacant shall appoint a successor member within 30 4 days of the vacancy. A member appointed to fill a vacancy 5 occurring prior to the expiration of a term shall serve the 6 unexpired term. 7 (d) Meetings.--The board shall meet as frequently as it 8 deems appropriate but at least once during each quarter of the 9 fiscal year. In addition, a meeting of the board shall be called 10 by the chairperson if a request for a meeting is submitted to 11 the chairperson by at least two members of the board. A majority 12 of the board shall constitute a quorum for the purpose of 13 conducting the business of the board and for all other purposes. 14 All actions of the board shall be taken by a majority of the 15 board unless specific provisions of this act require that action 16 be taken by a qualified majority. The provisions of 65 Pa.C.S. 17 Ch. 7 (relating to open meetings) shall apply to the board. 18 (e) Expenses.--A member shall not receive compensation or 19 remuneration, but shall be entitled to reimbursement for all 20 reasonable and necessary actual expenses. 21 (f) Public officials and party officers.--Members of the 22 board shall not seek or hold a position as any other public 23 official within this Commonwealth or as a party officer while in 24 service. Members of the board shall not seek election as public 25 officials or party officers for one year after their service on 26 the board. Members of the board may serve as appointive public 27 officials any time after their periods of service on the board. 28 Section 6. Powers and duties of board. 29 (a) Review of property lists.--Upon receipt of the lists of 30 blighted properties purchased by the first and second class 20030H0300B0346 - 5 -
1 cities pursuant to section 4(d), the board shall review the 2 lists to ascertain that each property is in a position to be 3 conveyed to the Commonwealth with a good marketable title and 4 free of all liens and claims. No property shall be approved for 5 conveyance and program inclusion if it is determined that there 6 exists a title problem of any sort or any environmental or other 7 type of site problem that carries the potential for owner 8 liability. The Commonwealth shall be held harmless for any title 9 problem or environmental problem. These are the sole 10 responsibility of the city. 11 (b) Acceptance of conveyed property.--Once the board has 12 conducted the review prescribed in subsection (a), it shall 13 notify each city of the properties the board will accept for 14 program inclusion. The conveyance from the cities shall then 15 occur. 16 (c) Agreement.--At the time of conveyance, each city and the 17 board shall execute a separate agreement that sets forth the 18 responsibilities and duties of each party under the program. In 19 such agreements, the board shall obligate itself to undertake 20 site demolition and clearing work and the installation of 21 necessary infrastructure and to ultimately convey the property 22 to other entities, including private developers, for 23 development. Each city, county and school district shall agree 24 to repay the capital budget moneys forwarded pursuant to this 25 program by dedicating 50% of the amount of city, county and 26 school district real estate taxes levied from these properties 27 to the repayment effort. 28 (d) Site development on conveyed property.--The board, 29 utilizing $25,000,000 in capital budget moneys in the case of 30 the first class city and $15,000,000 in the case of the second 20030H0300B0346 - 6 -
1 class city, shall perform the work as stated in subsection (c). 2 (e) Request for proposals.--Simultaneously with the 3 undertaking of the preliminary site development called for in 4 subsection (d), the board shall advertise for development 5 proposals from public and private development entities, 6 including, but not limited to, redevelopment authorities, 7 housing authorities and private developers. The board shall 8 promulgate regulations regarding the criteria to be used in 9 reviewing the proposals received. The promulgation of these 10 regulations shall not be subject to the provisions of the act of 11 June 25, 1982 (P.L.633, No.181), known as the Regulatory Review 12 Act. 13 (f) Selection of developers.--Upon review of the proposals 14 received pursuant to subsection (e), the board is authorized to 15 convey a property or groups of properties to a given developer 16 for development. The conveyances shall occur for the 17 consideration of $1 per property. Simultaneously with the 18 conveyance, a separate agreement shall be executed in which the 19 developer agrees to develop the property within a given period 20 of time and pursuant to the specific development standards, all 21 of which shall be detailed in regulations promulgated by the 22 department. Promulgation of the regulations shall not be subject 23 to the provisions of the Regulatory Review Act. Among other 24 things, the regulations shall provide for reversion of title to 25 the Commonwealth in the event the contract terms are breached by 26 the developer. 27 Section 7. Fund. 28 (a) Establishment.--The Blight Remediation Fund is hereby 29 established in the State Treasury. All money in the fund is 30 hereby appropriated to the department on a continuing basis to 20030H0300B0346 - 7 -
1 carry out the provisions of this act. 2 (b) Administration.--The assets of the fund shall be 3 preserved, invested and expended solely pursuant to and for the 4 purposes set forth in this act. 5 Section 8. Funding. 6 Up to $150,000,000 of the net proceeds of the sale of 7 obligations authorized in a capital budget act for the purposes 8 of blight remediation is hereby appropriated to the Department 9 of Community and Economic Development for deposit into the fund 10 established and to be used to implement the provisions of this 11 act. To the extent moneys from this appropriation are expended 12 pursuant to this act, the moneys shall be repaid, without 13 interest, to the Commonwealth as soon as practicable pursuant to 14 section 9. 15 Section 9. Repayment of funds. 16 (a) Repayment.--Each city shall be responsible for the 17 repayment of all Commonwealth funding it received directly 18 pursuant to section 4(b), as well as the funds expended on its 19 behalf by the board pursuant to section 6(d), within 20 years of 20 the calendar year in which the expenditures were made. The board 21 shall advise each city of the year by which all repayments are 22 to be made. 23 (b) Sources of repayment.--Repayment shall be made from any 24 sources available to the respective cities, including positive 25 city and school district real estate tax increments generated on 26 the properties rehabilitated pursuant to the program. Each city 27 shall determine the aggregate value of the property approved for 28 and included in the program as of the calendar year in which 29 funds are made available to the cities under section 4(c), which 30 aggregate valuation shall constitute the tax increment base. 20030H0300B0346 - 8 -
1 With respect to each city, in any year in which its debt remains 2 unpaid, at least 50% of any positive tax increment generated in 3 that year shall be utilized to make payment toward the 4 outstanding debt. 5 Section 10. Effective date. 6 This act shall take effect immediately. B10L14JLW/20030H0300B0346 - 9 -