PRINTER'S NO. 1290
No. 1142 Session of 1999
INTRODUCED BY REINARD, PETRONE, J. TAYLOR, MARSICO, PIPPY, LEH, STURLA, YOUNGBLOOD, CORRIGAN, RAMOS, ROSS, ARGALL, L. I. COHEN, COSTA, BUNT, WRIGHT, FICHTER, READSHAW, FREEMAN, McILHINNEY, MANDERINO, THOMAS, STEELMAN AND E. Z. TAYLOR, MARCH 29, 1999
REFERRED TO COMMITTEE ON URBAN AFFAIRS, MARCH 29, 1999
AN ACT 1 Establishing Neighborhood Improvement Districts; conferring 2 powers and duties on municipal corporations and neighborhood 3 improvement districts; providing for annual audits; and 4 making repeals. 5 TABLE OF CONTENTS 6 Section 1. Short title. 7 Section 2. Legislative findings. 8 Section 3. Definitions. 9 Section 4. Powers of municipal corporation. 10 Section 5. Creation of neighborhood improvement district. 11 Section 6. Creation of neighborhood improvement district 12 management association. 13 Section 7. Powers of neighborhood improvement district 14 management association. 15 Section 8. Dissolution of neighborhood improvement district 16 management association and neighborhood 17 improvement district.
1 Section 9. Annual audit; report. 2 Section 10. Applicability. 3 Section 11. Effective date. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Short title. 7 This act shall be known and may be cited as the Neighborhood 8 Improvement District Act. 9 Section 2. Legislative findings. 10 The General Assembly finds that: 11 (1) Existing tax rates in many municipalities are at or 12 near their statutory cap. 13 (2) The General Fund revenue derived from these taxes 14 many times is not sufficient to provide adequate municipal 15 services or additional services needed in specific geographic 16 areas within the municipality, including, but not limited to, 17 downtown commercial districts. 18 (3) As a result, municipalities should be encouraged to 19 create, where feasible and desired, assessment-based 20 neighborhood improvement districts which would include, but 21 not be limited to, downtown commercial districts. Designated 22 district management associations would initiate and 23 administer programs to promote and enhance more attractive 24 and safer commercial, industrial, residential and mixed-use 25 neighborhoods; economic growth; increased employment 26 opportunities; and improved commercial, industrial, business 27 districts and business climates. 28 (4) Municipalities should be given the broadest possible 29 discretion in establishing by local ordinance the type of 30 assessment-based programs most consistent with neighborhood 19990H1142B1290 - 2 -
1 needs, goals and objectives, as determined and expressed by 2 property owners in the designated district. 3 Section 3. Definitions. 4 The following words and phrases when used in this act shall 5 have the meanings given to them in this section unless the 6 context clearly indicates otherwise: 7 "Authority." A body politic and corporate, created pursuant 8 to the act of May 2, 1945 (P.L.382, No.164), known as the 9 Municipality Authorities Act of 1945. 10 "Benefited property." Those properties located within a 11 neighborhood improvement district which profit from district 12 improvements based on a rational nexus test. Properties need not 13 profit equally to be considered to have benefited. 14 "Bonds." The term shall include the notes, bonds and other 15 evidence of indebtedness or obligations which each municipal 16 corporation is authorized to issue under section 4(5). 17 "Business improvement." In the case of neighborhood 18 improvement district management associations created for the 19 purpose of making improvements or providing administrative 20 services within a neighborhood improvement district, the term 21 shall mean those improvements needed in specific areas or to 22 individual properties, including, but not limited to, sidewalks, 23 retaining walls, street paving, parks, recreational equipment 24 and facilities, open space, street lighting, parking lots, 25 parking garages, trees and shrubbery, pedestrian walks, sewers, 26 water lines, rest areas and the acquisition and rehabilitation 27 or demolition of blighted buildings or structures. 28 "Business improvement district." A business improvement 29 district (BID) created prior to the effective date of this act 30 governed by the act of May 2, 1945 (P.L.382, No.164), known as 19990H1142B1290 - 3 -
1 the Municipality Authorities Act of 1945, insofar as it relates 2 to business improvement districts or 53 Pa.C.S. Ch. 54 (relating 3 to business improvement districts). On or after the effective 4 date of this act, the term shall mean a limited, geographical 5 area comprised of real property which is used for any for-profit 6 activity involving trade and traffic, or commerce in general. 7 "Commercial." Relating to or associated with any for-profit 8 activity involving trade and traffic, or commerce in general. 9 "Construction expenditures." Property and right-of-way 10 acquisition costs where applicable. 11 "Costs of improvements." The term includes architectural 12 fees, engineering fees, attorney fees, consulting fees, 13 professional fees, preliminary planning expenditures, 14 feasibility study expenditures, financing costs and any other 15 expenditures necessary and incidental to the development, 16 construction or completion of the improvement. 17 "District Advisory Council." A committee comprised of 18 property owners from a neighborhood improvement district 19 established under section 7(a), for the purpose of providing 20 guidance and direction to the neighborhood improvement district 21 management association concerning association activities within 22 the district. 23 "Industrial district." A limited, geographical area 24 comprised of real property which is used predominantly for 25 manufacturing, commercial or any other activity related to the 26 distribution of goods and services and intermediate and final 27 products, including, but not limited to, warehousing, shipping, 28 transportation, remanufacturing, stockpiling of raw materials, 29 repair and maintenance of machinery and equipment, storage, 30 administration or business activities, and research and 19990H1142B1290 - 4 -
1 development. 2 "Institution." The term includes, but is not limited to, 3 colleges, universities, schools, hospitals, museums, theaters, 4 churches, synagogues, art centers or similar facilities. 5 "Institutional district." A limited, geographical area 6 comprised predominantly of real property on which educational, 7 health-related or cultural activities occur within buildings and 8 structures, including, but not limited to, colleges, 9 universities, schools, hospitals, museums, theaters, churches, 10 synagogues and art centers. 11 "Mixed-use district." A limited, geographical area comprised 12 of real property used for any or all purposes contained within a 13 business, residential, industrial or institutional district. 14 "Municipal corporation." The body or board authorized by law 15 to enact ordinances or adopt resolutions for the particular 16 municipality. 17 "Municipality." With the exception of cities of the first 18 class, any city, borough, incorporated town, township, home 19 rule, optional plan or optional charter municipality, located 20 within this Commonwealth. 21 "Neighborhood." A limited geographic area within a 22 municipality establishing a neighborhood improvement district, 23 the limits of which form the neighborhood improvement district 24 boundary. 25 "Neighborhood improvement." Improvements needed in specific 26 geographic areas or to individual properties within those areas, 27 including, but not limited to, sidewalks, retaining walls, 28 street paving, parks, recreational equipment and facilities, 29 open space, street lighting, parking lots, trees and shrubbery, 30 sewers, water lines, rest areas and the acquisition and 19990H1142B1290 - 5 -
1 rehabilitation or demolition of deteriorated buildings or 2 structures. 3 "Neighborhood improvement district." A limited geographic 4 area within a municipality, in which a special assessment is 5 levied on all designated property, other than tax-exempt 6 property, for the purpose of promoting the economic and general 7 welfare of the district and the municipality, hereinafter 8 referred to as NID. Such districts shall be referred to 9 generally as neighborhood improvement district (NID) and 10 specifically as: business improvement district (BID); 11 residential improvement district (RID); industrial improvement 12 district (IID); institutional improvement district (INID); or 13 mixed-use improvement district (MID) depending on the type 14 district established. 15 "Neighborhood improvement district management association." 16 The governing body which oversees the management of neighborhood 17 improvement districts in a municipality as established under 18 section 5 which hereinafter shall be referred to as the NIDMA. 19 Such body shall be incorporated as a nonprofit corporation in 20 this Commonwealth or an authority as established pursuant to the 21 act of May 2, 1945 (P.L.382, No.164), known as the Municipality 22 Authorities Act of 1945. 23 "Neighborhood improvement district plan." The strategic plan 24 for neighborhood improvements required by section 5, hereinafter 25 referred to as NIDP, and all projects, programs and supplemental 26 services to be provided within the district to implement the 27 plan by the neighborhood improvement district management 28 association. 29 "Neighborhood improvement district services." In the case of 30 neighborhood improvement district management associations 19990H1142B1290 - 6 -
1 created for the purpose of making improvements or providing 2 expanded services within any neighborhood business improvement 3 districts established, the term shall include, but not be 4 limited to, those services which improve the ability of the 5 commercial establishments within the district to serve the 6 consumer, such as free or reduced-fee parking for customers, 7 transportation-related expenses, public relations programs, 8 group advertising, and district maintenance and security 9 services. For services provided within any residential, 10 industrial, institutional, or mixed-use neighborhood improvement 11 district, the term shall include, but not be limited to, those 12 services which improve the ability of property owners to enjoy a 13 safer and more attractive neighborhood through the provision of 14 increased or expanded services, including street lighting, 15 street cleaning, street maintenance, parks, recreational 16 equipment and facilities, open space and/or security services. 17 "Nonprofit corporation." A legal entity that is incorporated 18 within this Commonwealth and specifies in its charter or bylaws 19 that no part of the net earnings may benefit any private 20 shareholder or individual holding interest in such entity. 21 "Private security officer." Any person or firm employed by 22 the neighborhood improvement district management association for 23 the purpose of providing increased security or protective patrol 24 services within the neighborhood improvement district. The term 25 may include off-duty police officers provided that the use of 26 such officers for this purpose is approved by the governing body 27 of the municipality in which the neighborhood improvement 28 district is located or the municipality where the officer is 29 employed if different. 30 "Project." The acquisition, development, construction, 19990H1142B1290 - 7 -
1 improvement, rehabilitation, operation and/or maintenance of any 2 building, facility, equipment or structure, by purchase, lease 3 or contract, by a neighborhood improvement district management 4 association to facilitate neighborhood and business improvements 5 as authorized by this act. 6 "Rational nexus." The legal principle which requires that 7 there is a rational, definable benefit which accrues to any 8 property owner assessed a fee for said benefit in a neighborhood 9 improvement district created under this act. All property owners 10 within a designated neighborhood improvement district paying a 11 special assessment fee must benefit directly or indirectly from 12 facilities or services provided by a neighborhood improvement 13 district management association within the neighborhood 14 improvement district, provided, however, that property owners 15 need not benefit equally. 16 "Residential district." A limited, geographical area 17 comprised of real property consisting predominantly of buildings 18 and structures for housing individuals and families, including, 19 but not limited to, single family detached homes, single family 20 semi-detached homes, townhouses, condominiums, apartments, 21 manufactured homes, modular homes or any combination of same. 22 "Service area." The area within the boundaries of the 23 neighborhood improvement district established by a municipality 24 under this act, in which the neighborhood improvement district 25 management association provides programs, services and 26 improvements. The term may also include an area outside of the 27 neighborhood improvement district where services are being 28 provided by the neighborhood improvement district management 29 association under contract. 30 "Special assessment fee." The fee assessed on property 19990H1142B1290 - 8 -
1 owners within a neighborhood improvement district, levied by the 2 municipality establishing a neighborhood improvement district, 3 under section 4(8), for the purposes of providing programs, 4 improvements and services, under section 7. 5 "Sunset provision." The term means a provision in the 6 neighborhood improvement district plan, under section 5(c), 7 establishing a neighborhood improvement district, which provides 8 for the automatic termination of the neighborhood improvement 9 district on a date specified in the neighborhood improvement 10 district plan and in the municipal ordinance establishing the 11 neighborhood improvement district. The neighborhood improvement 12 district may be continued beyond that date, provided the 13 municipal enabling ordinance creating the original neighborhood 14 improvement district is reenacted, following a review of the 15 neighborhood improvement district and the neighborhood 16 improvement district management association programs and 17 services provided within the neighborhood improvement district, 18 by the municipality. 19 Section 4. Powers of municipal corporation. 20 Every municipal corporation shall have the power: 21 (1) To establish within the municipality an area or 22 areas designated as an NID. 23 (2) To establish an authority to administer the NID or 24 to designate an existing community development corporation or 25 other existing nonprofit corporation to administer same or to 26 create a community development corporation or other nonprofit 27 corporation to administer same, under sections 6 and 7. 28 (3) To appropriate and expend, in accordance with the 29 specific provisions of the municipal enabling ordinance, 30 municipal funds as may be required to: 19990H1142B1290 - 9 -
1 (i) Acquire by purchase or lease real or personal 2 property deemed necessary to effectuate the purposes of 3 the NID. 4 (ii) Prepare or have prepared preliminary planning 5 or feasibility studies to determine needed improvements 6 in an NID, including, but not limited to, capital 7 improvements, traditional streetscape and building 8 renovations, retaining walls, street paving, street 9 lighting, parking lots, parking garages, trees and 10 shrubbery, pedestrian walks, sewers, water lines, rest 11 areas, acquisition, rehabilitation or demolition of 12 blighted buildings and structures, graffiti removal, 13 security, marketing, promotions, advertising, business 14 retention and recruitment activities, master leasing and 15 property management, joint advertising, research and 16 planning, as well as the provision of additional services 17 to supplement, not replace, existing municipal services 18 provided within the NID. 19 (4) To advance funds to a NIDMA as may be required to 20 carry out the purposes of this act. 21 (5) To collect special property assessments on behalf of 22 the NIDMA levied on designated property owners within the 23 NID, and to employ any legal methods to insure collection of 24 the assessments. 25 (6) To acquire by gift, purchase or eminent domain, 26 land, real property, or rights-of way, which may be needed 27 for the purposes of making physical improvements within the 28 NID. 29 (7) To issue bonds, notes or guarantees, in accordance 30 with the provisions of general laws in the amounts and for 19990H1142B1290 - 10 -
1 the periods necessary, to finance needed improvements within 2 any NID. 3 (8) To review all proposed expenditures of funds within 4 NIDs by NIDMAs and suggest changes to same where a nonprofit 5 corporation is the NIDMA. 6 (9) To include a sunset provision of no less than five 7 years in the municipal enabling ordinance creating the NID 8 and in the contract with the NIDMA. 9 (10) To levy an assessment fee on property owners 10 located within an NID needed to finance additional 11 supplemental programs, services and improvements to be 12 provided or made by the NIDMA. 13 Section 5. Creation of neighborhood improvement district. 14 (a) Establishment.-- 15 (1) The governing body of the municipality, or any 16 municipal businesses, or residents, or combination thereof, 17 may initiate action to establish an NID or NIDs within the 18 municipality, under this act. 19 (2) In the case of businesses, or residents, or both 20 desiring to establish an NID, where the municipality has not 21 taken action to do so, the governing body of the municipality 22 may be petitioned to establish an NID, under the procedures 23 provided for by this act. 24 (3) In no case, where the governing body of a 25 municipality is petitioned to establish an NID under 26 paragraph (2), shall the municipality be required to 27 establish an NID. 28 (b) Specific procedures.-- 29 (1) A copy of everything required under this section, as 30 well as the date, location and time of any public hearing 19990H1142B1290 - 11 -
1 required by this act, shall be provided by the municipal 2 corporation to all property owners and lessees of property 3 owners located in the proposed NID, at least 30 days prior to 4 the first public hearing required by this section. 5 (2) At least one public hearing, no earlier than 15 days 6 apart, for the purpose of receiving public comment from 7 affected property owners within the proposed NID, on the 8 proposed NIDP, shall be held by the municipality before the 9 establishment of an NID. Notice of the hearing shall be 10 advertised at least ten days prior thereto in a newspaper of 11 general circulation in the municipality. 12 (3) Any objections by property owners within the 13 proposed NID must be made in writing, by persons representing 14 the ownership of 51%, in numbers, of the benefited properties 15 within the NID, or by property owners within the proposed NID 16 whose property valuation, as assessed for taxable purposes, 17 shall amount to 51% of the total property valuation within 18 the NID. Objections must be signed by the property owner and 19 filed in the office of the clerk for the governing body of 20 the municipality in which the NID is proposed. 21 (c) Contents of preliminary plan.--The plan shall include 22 the following: 23 (1) A map indicating the boundaries by street of the 24 proposed NID. 25 (2) A written report from the municipality containing: 26 (i) The name of the proposed district. 27 (ii) A detailed description of the service areas of 28 the proposed district. 29 (iii) A list of all properties to be assessed. 30 (iv) A list of proposed improvements within the NID, 19990H1142B1290 - 12 -
1 and their estimated cost. 2 (v) A proposed budget for the first fiscal year, 3 including, but not limited to, the following: personnel 4 and administration, programs and services, maintenance 5 and operation, and capital expenditures. 6 (vi) The proposed revenue sources for financing all 7 proposed improvements, programs and services. 8 (vii) The estimated time for implementation and 9 completion of all proposed improvements, programs and 10 services. 11 (viii) A statement identifying the administrative 12 body which will govern and administer the NID. 13 (ix) Any other information, including the statutory 14 authority, or, in the case of a nonprofit corporation, 15 the bylaws, which describe the powers and duties of and 16 the method for making decisions by the NIDMA. 17 (x) The method of determining the amount of the 18 assessment fee to be levied on property owners within the 19 NID under section 7. 20 (3) In addition, the plan shall also: 21 (i) Identify in detail the specific duties and 22 responsibilities of both the NIDMA and the municipal 23 corporation with respect to the NID. 24 (ii) Require that a written agreement be signed by 25 the municipal corporation and the NIDMA describing in 26 detail their respective duties and responsibilities. 27 (iii) Allow for and encourage tax-exempt property 28 owners located within the NID to provide in-kind services 29 or a financial contribution to the NIDMA, if not 30 assessed, in lieu of a property assessment fee. 19990H1142B1290 - 13 -
1 (iv) Require in the agreement between the municipal 2 corporation and the NIDMA that the municipality must 3 maintain the same level of municipal programs and 4 services provided within the NID before NID designation 5 as after NID designation. 6 (v) Allow the municipal corporation the right to 7 include in the agreement with the NIDMA and in the 8 enabling ordinance establishing the NID a sunset 9 provision of no less than five years for renewal of the 10 agreement. 11 (vi) Require in the agreement with the NIDMA that 12 the municipality establishing an NID shall be responsible 13 for the collection of all property assessment fees levied 14 within the NID, if so desired by the NIDMA. 15 (vii) Provide that a negative vote of at least 51% 16 of the property owners within the NID, or property owners 17 within the NID whose property valuation as assessed for 18 taxable purposes amounts to 51% of the total property 19 valuation located within the NID proposed in the final 20 plan, shall be required to defeat the establishment of 21 the proposed NID by filing objections with the clerk for 22 the governing body of the municipality within 45 days of 23 presentation of the final plan, where the governing body 24 of municipality is inclined to establish the NID. 25 (d) Final plan.--Prior to the establishment of an NID, the 26 municipality shall submit a revised final plan to property 27 owners located within the proposed NID, which incorporates 28 changes made to the plan, based on comments from affected 29 property owners within the NID, provided at the public hearings 30 or at some other time. Changes to the final plan, which differ 19990H1142B1290 - 14 -
1 from the preliminary plan, shall also be so indicated in an 2 easily discernible method for the reader, including, but not 3 limited to, changes being in boldfaced or italicized type. 4 (e) Public hearing.--At least one public hearing for the 5 purpose of receiving public comment on any revisions to the 6 preliminary plan made following suggestions by affected property 7 owners within the proposed NID and reflected in the final NIDP 8 shall be held by the municipal corporation before enacting an 9 ordinance establishing an NID. Notice of the hearing shall be 10 advertised at least ten days prior thereto in a newspaper of 11 general circulation in the municipality. 12 (f) Veto of final plan for NID.-- 13 (1) Following the last public hearing required under 14 subsection (e) or under subsection (g), if an amendment to 15 the final plan, affected property owners located within a 16 proposed NID shall have 45 days from the date of the hearing 17 to object to and disapprove the final plan or any amendment 18 to the final plan under the requirements of subsection 19 (b)(3). 20 (2) If 51% or more of the affected property owners or 21 property owners whose property valuation as assessed for 22 taxable purposes amounts to 51% of the total property 23 valuation within the proposed NID fail to register their 24 disapproval of the final plan or amendment to the final plan 25 in writing with the clerk of the governing body of the 26 municipality in which the NID is proposed, the governing body 27 of the municipality may, following the 45-day period, enact a 28 municipal ordinance establishing an NID under this act, or in 29 the case of an amendment to the final plan, adopt any 30 amendments to the ordinance. 19990H1142B1290 - 15 -
1 (g) Amendments to final plan.-- 2 (1) The final plan may be amended by the NIDMA any time 3 after the establishment of an NID, pursuant to the provisions 4 of this act, upon the recommendation of the NIDMA board, 5 provided there is concurrence with the owners of at least 51% 6 of the assessed valuation of all property within the NID or 7 51% of the property owners within the NID. 8 (2) Amendments to the final plan which also require the 9 approval of the governing body of the municipality 10 establishing the NID, include: 11 (i) Substantially changed or added programs, 12 improvements and/or services to be provided in the NID. 13 (ii) Increased expenditures affecting more than 25% 14 of the total NIDMA budget for the fiscal year. 15 (iii) Incurring increased indebtedness. 16 (iv) Changing the assessment fee structure levied on 17 property owners in the NID. 18 (v) Changing the legal entity (NIDMA) which provides 19 programs, improvements and services within the NID. 20 (vi) Changing the NID service area boundary. 21 Prior to the governing body of the municipality approving any 22 of the changes in this paragraph, the governing body shall 23 hold at least one public hearing to determine that such 24 changes are in the public interest as it relates to affected 25 property owners within the NID. 26 (3) The municipality shall provide public notice of the 27 hearing for any amendments, by publication of a notice, in at 28 least one newspaper having a general circulation in the NID, 29 specifying the time and the place of such hearing and the 30 amendments to be considered. This notice shall be published 19990H1142B1290 - 16 -
1 once at least 10 days prior to the date of the hearing. 2 (4) The governing body of the municipality may, within 3 30 days following the public hearing and at its sole 4 discretion, approve or disapprove of any amendments to the 5 plan. If approved, such amendments shall be effective upon 6 the date of such approval. 7 (5) Prior to the adoption of any amendment to the NID 8 boundary which increases the size of the NID, any owner of 9 property to be added to the NID shall be notified of the 10 date, time and location of the public hearing on the proposed 11 amendment to the final plan, and provided all information 12 required by subsection (c). 13 Section 6. Creation of neighborhood improvement district 14 management association. 15 (a) Association designated.--When a municipality establishes 16 an NID under this act, a neighborhood improvement district 17 management association shall be designated by the governing body 18 of the municipality in which the NID is to be located to 19 administer programs, improvements and services within the NID. 20 (b) Administration.-- 21 (1) NIDs created pursuant to this act shall be 22 administered by an NIDMA which shall be an authority created 23 pursuant to the act of May 2, 1945 (P.L.382, No.164), known 24 as the Municipality Authorities Act of 1945, an existing 25 nonprofit development corporation, an existing nonprofit 26 corporation or a nonprofit development corporation or 27 nonprofit corporation established by the governing body or 28 authorized to be established by the governing body of the 29 municipality in which the NID is to be located, to administer 30 the NIDP. 19990H1142B1290 - 17 -
1 (2) If an active nonprofit development corporation 2 already exists within the geographic boundaries of the NID 3 and formally indicates its interest to the governing body of 4 the municipality to become the designated NIDMA, the 5 governing body of the municipality shall grant that request 6 unless 51% or more of the affected property owners or 7 property owners whose property valuation as assessed for 8 taxable purposes amounts to 51% of the total property 9 valuation within the proposed NID register their disapproval 10 of this designation in writing with the clerk of the 11 governing body within a 45-day period following the formal 12 written request for designation by the nonprofit development 13 corporation to become the NIDMA. 14 (c) Powers.--An NIDMA created under this act shall assume 15 all powers provided for in section 7 immediately upon the 16 effective date of the municipal ordinance enacted under section 17 4 creating an NID. 18 (d) Board.--Every NIDMA shall have an administrative board. 19 (1) Where an authority created pursuant to the 20 Municipality Authorities Act of 1945 serves as the NIDMA, the 21 board shall be appointed pursuant to the Municipality 22 Authorities Act of 1945. 23 (2) Where an existing nonprofit development corporation 24 or other nonprofit corporation is to serve as the NIDMA, the 25 board shall be appointed according to the bylaws of the NIDMA 26 filed with the Department of State. 27 (3) Where a nonprofit development corporation or other 28 nonprofit corporation is established to serve as the NIDMA 29 for an NID, the board shall be comprised of an odd number of 30 members, between five and nine, with at least one member 19990H1142B1290 - 18 -
1 representing the municipal corporation in which the NID is 2 located. 3 (4) In all cases, NIDMA boards shall include a 4 representative of property owners located in the NID, 5 business owners located in the NID and any institutions 6 located in the NID. Institutional members may appoint a 7 designee to represent them. All board members need not be 8 residents of the NID. 9 Section 7. Powers of neighborhood improvement district 10 management association. 11 (a) General powers.--A NIDMA shall have, in addition to any 12 other powers provided pursuant to the act of May 2, 1945 13 (P.L.382, No.164), known as the Municipality Authorities Act of 14 1945, where the NIDMA is an authority, or in addition to any 15 other powers provided pursuant to the charter establishing a 16 nonprofit development corporation or other nonprofit 17 corporation, where the NIDMA is a nonprofit development 18 corporation or other nonprofit corporation, the power to: 19 (1) Sue or be sued, implead or be impleaded, complain 20 and defend in all courts. 21 (2) Employ an executive director or administrator and 22 any necessary supporting staff or contract for the provision 23 of same. 24 (3) Prepare planning or feasibility studies or contract 25 for the preparation of same, to determine needed capital 26 improvements or administrative programs and services within 27 the NID. 28 (4) Make capital improvements or provide administrative 29 programs and services within an NID. 30 (5) Purchase, own, construct, renovate, develop, 19990H1142B1290 - 19 -
1 operate, rehabilitate, manage, sell and/or dispose of real 2 property. 3 (6) Contract with existing businesses within the NID. 4 (7) Contract for the provision of products or services 5 by the NIDMA to clients located inside and outside of the 6 NID, including billing and collection of assessment fees by 7 another NIDMA. 8 (8) Appropriate and expend NID funds which would include 9 any Federal, State or municipal funds received by the NIDMA. 10 The funds shall be expended in accordance with any specific 11 provisions contained in the municipal enabling ordinance 12 establishing the NID and may be used: 13 (i) To acquire by purchase or lease real or personal 14 property to effectuate the purposes of this act, 15 including making common improvements within the NID, 16 including, but not limited to, sidewalks, retaining 17 walls, street paving, parks, recreational equipment and 18 facilities, open space, street lighting, parking lots, 19 parking garages, trees and shrubbery, pedestrian walks, 20 sewers, water lines, rest areas and the acquisition, 21 rehabilitation or demolition of blighted buildings or 22 comparable structures. 23 (ii) To provide free or reduced-fee parking for 24 customers of businesses within the NID; transportation- 25 related expenditures, public relations programs, group 26 advertising and NID maintenance and security services. 27 (iii) To impose special assessment fees. 28 (9) Solicit in-kind services or financial contributions 29 from tax-exempt property owners within the NID in lieu of 30 property assessment fees. This may include entering into 19990H1142B1290 - 20 -
1 voluntary multiyear agreements (VMAs) between the NIDMA and 2 tax-exempt property owners located within an NID, for the 3 provision of same. 4 (10) Impose liens on property for the nonpayment of 5 property assessments. NIDs administered by nonprofit 6 corporations would have any such liens filed by the municipal 7 corporation. 8 (11) Hire additional off-duty police officers or private 9 security officers, whose patrol area responsibilities would 10 be limited to the geographical area incorporated within the 11 designated NID service area and whose responsibility would be 12 to support existing municipal and volunteer efforts aimed at 13 reducing crime and improving security in the NID. 14 (12) Designate a district advisory committee, referred 15 to as the DAC, for each NID established within the 16 municipality. Each DAC shall consist of an odd number of 17 members, between five and nine, who shall be representative 18 of the neighborhood's character, including, but not limited 19 to, age, sex and cultural diversity. 20 (b) Assessments.-- 21 (1) The NIDMA shall, upon approval by the governing body 22 of the municipality, have the power to assess property owners 23 within the NID a special property assessment fee. Revenues 24 from the fee shall be accounted for and used by the NIDMA to 25 make improvements and provide programs and services within 26 the NID as authorized by this act. Where the district 27 established is a BID, the NIDMA shall have the authority to 28 exempt residential property owners from any special 29 assessment fees levied. 30 (2) All assessments authorized under this section shall 19990H1142B1290 - 21 -
1 be calculated using January 1 as the first day of the fiscal 2 year. 3 (3) All special property assessment fees shall be based 4 upon the estimated cost of the programs, improvements or 5 services to be provided in such NID as stated in the final 6 plan under section 5(d). In no case shall the aggregate 7 amount of all fees levied by the NIDMA during the year exceed 8 the estimated cost of proposed programs, improvements and 9 services for the year. 10 (4) In the case of an NID which contains a combination 11 of business, residential, industrial and/or institutional 12 areas and uses, a weighted assessment may be instituted. In 13 such case, the fee levied on property owners generally may be 14 weighted higher for business, industrial or institutional 15 properties than that levied on residential property owners, 16 provided the basis for the calculation of the fee meets the 17 rational nexus test. 18 (5) The total costs of improvements, programs and 19 administrative services provided by the NIDMA shall be 20 assessed to all designated properties within the NID by one 21 of the following methods: 22 (i) An assessment determined by multiplying the 23 total service and improvement costs by the ratio of the 24 assessed value of the benefited property to the total 25 assessed valuation of all designated benefited properties 26 in the NID. 27 (ii) An assessment upon the several properties in 28 the NID in proportion to benefits as ascertained by 29 viewers appointed in accordance with law. 30 (iii) Any method that equitably apportions costs 19990H1142B1290 - 22 -
1 among benefiting properties. 2 (iv) In the case of improvements benefiting 3 properties abutting the NID by the front-foot method, 4 with equitable adjustments for corner properties and 5 other cases provided for in the municipal ordinance. Any 6 property which cannot be equitably assessed by the front- 7 foot method may be assessed by any of the above methods. 8 (c) Payment.--The governing body may by ordinance authorize 9 the payment of the assessment in equal annual or more frequent 10 installments, over such time and bearing interest at the rate 11 specified in the municipal ordinance. If bonds have been issued 12 and sold, or notes or guarantees have been given or issued, to 13 provide for the cost of the services and improvements, the 14 assessment in equal installments shall not be payable beyond the 15 term for which the bonds, notes or guarantees are payable. 16 (d) Liens.-- 17 (1) Notwithstanding the filing of the claims, all 18 assessments which are made payable in installments shall 19 constitute liens and encumbrances upon the respective 20 benefited properties at the beginning of each calendar year, 21 except as provided in subsection (c), and only in an amount 22 equal to the sum of: 23 (i) the annual or other installments becoming 24 payable in such year, with interest and penalties, if 25 any, thereon; and 26 (ii) the total of all installments, with interest 27 and penalties thereon, which became due during prior 28 years and which remain due and unpaid at the beginning of 29 the current year. 30 (2) In the case of default in the payment of any 19990H1142B1290 - 23 -
1 installment and interest for a period of 90 days after the 2 payment becomes due, the assessment ordinance may provide 3 either for the entire assessment, with accrued interest and 4 penalties to become due and become a lien from the due date 5 of the installment, or may provide solely for the enforcement 6 of the claim as to the overdue installment, with interest and 7 penalties, in which case the ordinance shall further provide 8 that, if any installment or portion thereof remains due and 9 unpaid for one year after it has become due and payable, then 10 the entire assessment with accrued interest and penalties 11 shall become due and become a lien from the due date of the 12 installment. 13 (3) No action taken to enforce a claim for any 14 installment or installments shall affect the status of any 15 subsequent installment of the same assessment, each of which 16 shall continue to become a lien upon the property annually 17 pursuant to paragraph (1). 18 (4) The ordinance may contain any other provision 19 relating to installment assessments which is not inconsistent 20 with applicable law. 21 (5) Any owner of property against whom an assessment has 22 been made may pay the assessment in full at any time, with 23 accrued interest and costs thereon, and such a payment shall 24 discharge the lien of the assessment, or installments then 25 constituting a lien, and shall also release the claim to any 26 later installments. 27 (6) Claims to secure the assessments shall be entered in 28 the prothonotary's office of the county at the same time, and 29 in the same form, and collected in the same manner, as 30 municipal tax claims are filed and collected, notwithstanding 19990H1142B1290 - 24 -
1 the provisions of this section as to installment payments. 2 Section 8. Dissolution of neighborhood improvement district 3 management association and neighborhood 4 improvement district. 5 (a) Conveying projects.--When any NIDMA shall have finally 6 paid and discharged all bonds which, together with the interest 7 due thereon, shall have been secured by a pledge of any of the 8 revenues or receipts of a project, it may, subject to any 9 agreements concerning the operation or disposition of such 10 project and the NIDMA bylaws, convey such project or projects to 11 the municipal corporation which established or had established 12 the NIDMA. 13 (b) Request for termination.--Any request for the 14 termination of the NID and NIDMA approved by 51% of the assessed 15 property owners, in numbers, located in the NID, shall be 16 submitted to the governing body of the municipality in writing. 17 The governing body shall hold a hearing on the merits of same, 18 pursuant to section 5(b)(2) as it relates to the required 19 procedure of holding a hearing. Such written request shall be 20 considered by the governing body of the municipality. If the 21 request is approved by the governing body of the municipality, 22 then a resolution to that effect shall be filed with the 23 Secretary of the Commonwealth, and the secretary shall note the 24 termination of the existence on the record of incorporation and 25 return the resolution with his or her approval shown on the 26 resolution to the municipal corporation. Then, the property of 27 the NIDMA shall pass to the municipal corporation, as the case 28 may be, and the NIDMA and NID shall cease to exist. Any request 29 for the termination of the NID and NIDMA by the governing body 30 of the municipality in which the NID is located shall result in 19990H1142B1290 - 25 -
1 a hearing on the merits of same, pursuant to section 5(b)(2) as 2 it relates to the required procedure for holding a hearing. 3 Before the decision to terminate an NID and NIDMA is made, such 4 termination must be approved by 51% of the assessed property 5 owners, in numbers, located in the NID, and shall be submitted 6 to the governing body of the municipality in writing. Such 7 written request shall be considered by the governing body of the 8 municipality. If the request is approved by the governing body 9 of the municipality, then a resolution to that effect shall be 10 filed with the Secretary of the Commonwealth, and the secretary 11 shall note the termination of the existence on the record of 12 incorporation and return the resolution with his or her approval 13 shown to the municipal corporation. The property of the NIDMA 14 shall pass to the municipal corporation, as the case may be, and 15 the NIDMA and NID shall cease to exist. 16 Section 9. Annual audit; report. 17 The NIDMA shall annually: 18 (1) submit an audit of all income and expenditures to 19 the Department of Community and Economic Development and the 20 governing body of the municipality in which the NID is 21 located within 120 days after the end of each fiscal year; 22 and 23 (2) submit a report, including financial and 24 programmatic information, including a summary of audit 25 findings, to the governing body of the municipality in which 26 the NID is located and to all assessed property owners 27 located in the NID. 28 Section 10. Applicability. 29 (a) Existing districts.--Except as provided for in 30 subsection (d), any existing business improvement district or 19990H1142B1290 - 26 -
1 downtown improvement district established prior to the effective 2 date of this act shall remain in existence and shall be governed 3 by the Municipality Authorities Act of 1945, insofar as it 4 relates to business improvement districts or 53 Pa.C.S. Ch. 54 5 (relating to business improvement districts). 6 (b) Districts created subsequently.--Any NID established 7 subsequent to the effective date of this act shall be governed 8 by the provisions of this act. 9 (c) Previously terminated districts.--Any business 10 improvement district or downtown improvement district in 11 existence prior to the effective date of this act which is 12 terminated shall, upon its reestablishment, be governed by the 13 provisions of this act. This shall include any termination 14 resulting from a sunset provision in any municipal agreement or 15 ordinance. 16 (d) Additional requirements.--Any business improvement 17 district or downtown improvement district in existence on the 18 effective date of this act shall: 19 (1) be required to carry out any duty or responsibility 20 imposed on NIDs under this act; and 21 (2) possess any additional power given to NIDs under 22 this act without having to restructure or reorganize under 23 this act. 24 Section 11. Effective date. 25 This act shall take effect in 60 days. B11L53JLW/19990H1142B1290 - 27 -