PRIOR PRINTER'S NO. 1290 PRINTER'S NO. 2558
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, E. Z. TAYLOR, WILLIAMS AND BROWNE, MARCH 29, 1999
AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 26, 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 19990H1142B2558 - 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 19990H1142B2558 - 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 19990H1142B2558 - 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 19990H1142B2558 - 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. A DESIGNATED PROPERTY MAY NOT BE INCLUDED <-- 15 IN MORE THAN ONE NEIGHBORHOOD IMPROVEMENT DISTRICT. 16 "Neighborhood improvement district management association." 17 The governing body which oversees the management of neighborhood 18 improvement districts in a municipality as established under 19 section 5 which hereinafter shall be referred to as the NIDMA. 20 Such body shall be incorporated as a nonprofit corporation in 21 this Commonwealth or an authority as established pursuant to the 22 act of May 2, 1945 (P.L.382, No.164), known as the Municipality 23 Authorities Act of 1945. 24 "Neighborhood improvement district plan." The strategic plan 25 for neighborhood improvements required by section 5, hereinafter 26 referred to as NIDP, and all projects, programs and supplemental 27 services to be provided within the district to implement the 28 plan by the neighborhood improvement district management 29 association. 30 "Neighborhood improvement district services." In the case of 19990H1142B2558 - 6 -
1 neighborhood improvement district management associations 2 created for the purpose of making improvements or providing 3 expanded services within any neighborhood business improvement 4 districts established, the term shall include, but not be 5 limited to, those services which improve the ability of the 6 commercial establishments within the district to serve the 7 consumer, such as free or reduced-fee parking for customers, 8 transportation-related expenses, public relations programs, 9 group advertising, and district maintenance and security 10 services. For services provided within any residential, 11 industrial, institutional, or mixed-use neighborhood improvement 12 district, the term shall include, but not be limited to, those 13 services which improve the ability of property owners to enjoy a 14 safer and more attractive neighborhood through the provision of 15 increased or expanded services, including street lighting, 16 street cleaning, street maintenance, parks, recreational 17 equipment and facilities, open space and/or security services. 18 "Nonprofit corporation." A legal entity that is incorporated 19 within this Commonwealth and specifies in its charter or bylaws 20 that no part of the net earnings may benefit any private 21 shareholder or individual holding interest in such entity. 22 "Private security officer." Any person or firm employed by 23 the neighborhood improvement district management association for 24 the purpose of providing increased security or protective patrol 25 services within the neighborhood improvement district. The term 26 may include off-duty police officers provided that the use of 27 such officers for this purpose is approved by the governing body 28 of the municipality in which the neighborhood improvement 29 district is located or the municipality where the officer is 30 employed if different. 19990H1142B2558 - 7 -
1 "Project." The acquisition, development, construction, 2 improvement, rehabilitation, operation and/or maintenance of any 3 building, facility, equipment or structure, by purchase, lease 4 or contract, by a neighborhood improvement district management 5 association to facilitate neighborhood and business improvements 6 as authorized by this act. 7 "Rational nexus." The legal principle which requires that 8 there is a rational, definable benefit which accrues to any 9 property owner assessed a fee for said benefit in a neighborhood 10 improvement district created under this act. All property owners 11 within a designated neighborhood improvement district paying a 12 special assessment fee must benefit directly or indirectly from 13 facilities or services provided by a neighborhood improvement 14 district management association within the neighborhood 15 improvement district, provided, however, that property owners 16 need not benefit equally. 17 "Residential district." A limited, geographical area 18 comprised of real property consisting predominantly of buildings 19 and structures for housing individuals and families, including, 20 but not limited to, single family detached homes, single family 21 semi-detached homes, townhouses, condominiums, apartments, 22 manufactured homes, modular homes or any combination of same. 23 "Service area." The area within the boundaries of the 24 neighborhood improvement district established by a municipality 25 under this act, in which the neighborhood improvement district 26 management association provides programs, services and 27 improvements. The term may also include an area outside of the 28 neighborhood improvement district where services are being 29 provided by the neighborhood improvement district management 30 association under contract. 19990H1142B2558 - 8 -
1 "Special assessment fee." The fee assessed on property 2 owners within a neighborhood improvement district, levied by the 3 municipality establishing a neighborhood improvement district, 4 under section 4(8), for the purposes of providing programs, 5 improvements and services, under section 7. 6 "Sunset provision." The term means a provision in the 7 neighborhood improvement district plan, under section 5(c), 8 establishing a neighborhood improvement district, which provides 9 for the automatic termination of the neighborhood improvement 10 district on a date specified in the neighborhood improvement 11 district plan and in the municipal ordinance establishing the 12 neighborhood improvement district. The neighborhood improvement 13 district may be continued beyond that date, provided the 14 municipal enabling ordinance creating the original neighborhood 15 improvement district is reenacted, following a review of the 16 neighborhood improvement district and the neighborhood 17 improvement district management association programs and 18 services provided within the neighborhood improvement district, 19 by the municipality. 20 Section 4. Powers of municipal corporation. 21 Every municipal corporation shall have the power: 22 (1) To establish within the municipality an area or 23 areas designated as an NID. 24 (2) To establish an authority to administer the NID or 25 to designate an existing community development corporation or 26 other existing nonprofit corporation to administer same or to 27 create a community development corporation or other nonprofit 28 corporation to administer same, under sections 6 and 7. 29 (3) To appropriate and expend, in accordance with the 30 specific provisions of the municipal enabling ordinance, 19990H1142B2558 - 9 -
1 municipal funds as may be required to: 2 (i) Acquire by purchase or lease real or personal 3 property deemed necessary to effectuate the purposes of 4 the NID. 5 (ii) Prepare or have prepared preliminary planning 6 or feasibility studies to determine needed improvements 7 in an NID, including, but not limited to, capital 8 improvements, traditional streetscape and building 9 renovations, retaining walls, street paving, street 10 lighting, parking lots, parking garages, trees and 11 shrubbery, pedestrian walks, sewers, water lines, rest 12 areas, acquisition, rehabilitation or demolition of 13 blighted buildings and structures, graffiti removal, 14 security, marketing, promotions, advertising, business 15 retention and recruitment activities, master leasing and 16 property management, joint advertising, research and 17 planning, as well as the provision of additional services 18 to supplement, not replace, existing municipal services 19 provided within the NID. 20 (4) To advance funds to a NIDMA as may be required to 21 carry out the purposes of this act. 22 (5) To collect special property assessments on behalf of 23 the NIDMA levied on designated property owners within the 24 NID, and to employ any legal methods to insure collection of 25 the assessments. 26 (6) To acquire by gift, purchase or eminent domain, 27 land, real property, or rights-of way, which may be needed 28 for the purposes of making physical improvements within the 29 NID. 30 (7) To issue bonds, notes or guarantees, in accordance 19990H1142B2558 - 10 -
1 with the provisions of general laws in the amounts and for 2 the periods necessary, to finance needed improvements within 3 any NID. 4 (8) To review all proposed expenditures of funds within 5 NIDs by NIDMAs and suggest changes to same where a nonprofit 6 corporation is the NIDMA. 7 (9) To include a sunset provision of no less than five 8 years in the municipal enabling ordinance creating the NID 9 and in the contract with the NIDMA. 10 (10) To levy an assessment fee on property owners 11 located within an NID needed to finance additional 12 supplemental programs, services and improvements to be 13 provided or made by the NIDMA. 14 Section 5. Creation of neighborhood improvement district. 15 (a) Establishment.-- 16 (1) The governing body of the municipality, or any 17 municipal businesses, or residents, or combination thereof, 18 may initiate action to establish an NID or NIDs within the 19 municipality, under this act. 20 (2) In the case of businesses, or residents, or both 21 desiring to establish an NID, where the municipality has not 22 taken action to do so, the governing body of the municipality 23 may be petitioned to establish an NID, under the procedures 24 provided for by this act. 25 (3) In no case, where the governing body of a 26 municipality is petitioned to establish an NID under 27 paragraph (2), shall the municipality be required to 28 establish an NID. 29 (b) Specific procedures.-- 30 (1) A copy of everything required under this section, as 19990H1142B2558 - 11 -
1 well as the date, location and time of any public hearing 2 required by this act, shall be provided by the municipal 3 corporation to all property owners and lessees of property 4 owners located in the proposed NID, at least 30 days prior to 5 the first public hearing required by this section. 6 (2) At least one public hearing, no earlier than 15 days 7 apart, for the purpose of receiving public comment from 8 affected property owners within the proposed NID, on the 9 proposed NIDP, shall be held by the municipality before the 10 establishment of an NID. Notice of the hearing shall be 11 advertised at least ten days prior thereto in a newspaper of 12 general circulation in the municipality. 13 (3) Any objections by property owners within the 14 proposed NID must be made in writing, by persons representing 15 the ownership of 51%, in numbers, of the benefited properties 16 within the NID, or by property owners within the proposed NID 17 whose property valuation, as assessed for taxable purposes, 18 shall amount to 51% of the total property valuation within 19 the NID. Objections must be signed by the property owner and 20 filed in the office of the clerk for the governing body of 21 the municipality in which the NID is proposed. 22 (c) Contents of preliminary plan.--The plan shall include 23 the following: 24 (1) A map indicating the boundaries by street of the 25 proposed NID, HOWEVER, A DESIGNATED PROPERTY MAY NOT BE <-- 26 INCLUDED IN MORE THAN ONE NID. 27 (2) A written report from the municipality containing: 28 (i) The name of the proposed district. 29 (ii) A detailed description of the service areas of 30 the proposed district. 19990H1142B2558 - 12 -
1 (iii) A list of all properties to be assessed. 2 (iv) A list of proposed improvements within the NID, 3 and their estimated cost. 4 (v) A proposed budget for the first fiscal year, 5 including, but not limited to, the following: personnel 6 and administration, programs and services, maintenance 7 and operation, and capital expenditures. 8 (vi) The proposed revenue sources for financing all 9 proposed improvements, programs and services. 10 (vii) The estimated time for implementation and 11 completion of all proposed improvements, programs and 12 services. 13 (viii) A statement identifying the administrative 14 body which will govern and administer the NID. 15 (ix) Any other information, including the statutory 16 authority, or, in the case of a nonprofit corporation, 17 the bylaws, which describe the powers and duties of and 18 the method for making decisions by the NIDMA. 19 (x) The method of determining the amount of the 20 assessment fee to be levied on property owners within the 21 NID under section 7. 22 (3) In addition, the plan shall also: 23 (i) Identify in detail the specific duties and 24 responsibilities of both the NIDMA and the municipal 25 corporation with respect to the NID. 26 (ii) Require that a written agreement be signed by 27 the municipal corporation and the NIDMA describing in 28 detail their respective duties and responsibilities. 29 (iii) Allow for and encourage tax-exempt property 30 owners located within the NID to provide in-kind services 19990H1142B2558 - 13 -
1 or a financial contribution to the NIDMA, if not 2 assessed, in lieu of a property assessment fee. 3 (iv) Require in the agreement between the municipal 4 corporation and the NIDMA that the municipality must 5 maintain the same level of municipal programs and 6 services provided within the NID before NID designation 7 as after NID designation. 8 (v) Allow the municipal corporation the right to 9 include in the agreement with the NIDMA and in the 10 enabling ordinance establishing the NID a sunset 11 provision of no less than five years for renewal of the 12 agreement. 13 (vi) Require in the agreement with the NIDMA that 14 the municipality establishing an NID shall be responsible 15 for the collection of all property assessment fees levied 16 within the NID, if so desired by the NIDMA. 17 (vii) Provide that a negative vote of at least 51% 18 of the property owners within the NID, or property owners 19 within the NID whose property valuation as assessed for 20 taxable purposes amounts to 51% of the total property 21 valuation located within the NID proposed in the final 22 plan, shall be required to defeat the establishment of 23 the proposed NID by filing objections with the clerk for 24 the governing body of the municipality within 45 days of 25 presentation of the final plan, where the governing body 26 of municipality is inclined to establish the NID. 27 (d) Final plan.--Prior to the establishment of an NID, the 28 municipality shall submit a revised final plan to property 29 owners located within the proposed NID, which incorporates 30 changes made to the plan, based on comments from affected 19990H1142B2558 - 14 -
1 property owners within the NID, provided at the public hearings 2 or at some other time. Changes to the final plan, which differ 3 from the preliminary plan, shall also be so indicated in an 4 easily discernible method for the reader, including, but not 5 limited to, changes being in boldfaced or italicized type. 6 (e) Public hearing.--At least one public hearing for the 7 purpose of receiving public comment on any revisions to the 8 preliminary plan made following suggestions by affected property 9 owners within the proposed NID and reflected in the final NIDP 10 shall be held by the municipal corporation before enacting an 11 ordinance establishing an NID. Notice of the hearing shall be 12 advertised at least ten days prior thereto in a newspaper of 13 general circulation in the municipality. 14 (f) Veto of final plan for NID.-- 15 (1) Following the last public hearing required under 16 subsection (e) or under subsection (g), if an amendment to 17 the final plan, affected property owners located within a 18 proposed NID shall have 45 days from the date of the hearing 19 to object to and disapprove the final plan or any amendment 20 to the final plan under the requirements of subsection 21 (b)(3). 22 (2) If 51% or more of the affected property owners or 23 property owners whose property valuation as assessed for 24 taxable purposes amounts to 51% of the total property 25 valuation within the proposed NID fail to register their 26 disapproval of the final plan or amendment to the final plan 27 in writing with the clerk of the governing body of the 28 municipality in which the NID is proposed, the governing body 29 of the municipality may, following the 45-day period, enact a 30 municipal ordinance establishing an NID under this act, or in 19990H1142B2558 - 15 -
1 the case of an amendment to the final plan, adopt any 2 amendments to the ordinance. 3 (g) Amendments to final plan.-- 4 (1) The final plan may be amended by the NIDMA any time 5 after the establishment of an NID, pursuant to the provisions 6 of this act, upon the recommendation of the NIDMA board, 7 provided there is concurrence with the owners of at least 51% 8 of the assessed valuation of all property within the NID or 9 51% of the property owners within the NID. 10 (2) Amendments to the final plan which also require the 11 approval of the governing body of the municipality 12 establishing the NID, include: 13 (i) Substantially changed or added programs, 14 improvements and/or services to be provided in the NID. 15 (ii) Increased expenditures affecting more than 25% 16 of the total NIDMA budget for the fiscal year. 17 (iii) Incurring increased indebtedness. 18 (iv) Changing the assessment fee structure levied on 19 property owners in the NID. 20 (v) Changing the legal entity (NIDMA) which provides 21 programs, improvements and services within the NID. 22 (vi) Changing the NID service area boundary. 23 Prior to the governing body of the municipality approving any 24 of the changes in this paragraph, the governing body shall 25 hold at least one public hearing to determine that such 26 changes are in the public interest as it relates to affected 27 property owners within the NID. 28 (3) The municipality shall provide public notice of the 29 hearing for any amendments, by publication of a notice, in at 30 least one newspaper having a general circulation in the NID, 19990H1142B2558 - 16 -
1 specifying the time and the place of such hearing and the 2 amendments to be considered. This notice shall be published 3 once at least 10 days prior to the date of the hearing. 4 (4) The governing body of the municipality may, within 5 30 days following the public hearing and at its sole 6 discretion, approve or disapprove of any amendments to the 7 plan. If approved, such amendments shall be effective upon 8 the date of such approval. 9 (5) Prior to the adoption of any amendment to the NID 10 boundary which increases the size of the NID, any owner of 11 property to be added to the NID shall be notified of the 12 date, time and location of the public hearing on the proposed 13 amendment to the final plan, and provided all information 14 required by subsection (c). 15 Section 6. Creation of neighborhood improvement district 16 management association. 17 (a) Association designated.--When a municipality establishes 18 an NID under this act, a neighborhood improvement district 19 management association shall be designated by the governing body 20 of the municipality in which the NID is to be located to 21 administer programs, improvements and services within the NID. 22 (b) Administration.-- 23 (1) NIDs created pursuant to this act shall be 24 administered by an NIDMA which shall be an authority created 25 pursuant to the act of May 2, 1945 (P.L.382, No.164), known 26 as the Municipality Authorities Act of 1945, an existing 27 nonprofit development corporation, an existing nonprofit 28 corporation or a nonprofit development corporation or 29 nonprofit corporation established by the governing body or 30 authorized to be established by the governing body of the 19990H1142B2558 - 17 -
1 municipality in which the NID is to be located, to administer 2 the NIDP. 3 (2) If an active nonprofit development corporation 4 already exists within the geographic boundaries of the NID 5 and formally indicates its interest to the governing body of 6 the municipality to become the designated NIDMA, the 7 governing body of the municipality shall grant that request 8 unless 51% or more of the affected property owners or 9 property owners whose property valuation as assessed for 10 taxable purposes amounts to 51% of the total property 11 valuation within the proposed NID register their disapproval 12 of this designation in writing with the clerk of the 13 governing body within a 45-day period following the formal 14 written request for designation by the nonprofit development 15 corporation to become the NIDMA. 16 (c) Powers.--An NIDMA created under this act shall assume 17 all powers provided for in section 7 immediately upon the 18 effective date of the municipal ordinance enacted under section 19 4 creating an NID. 20 (d) Board.--Every NIDMA shall have an administrative board. 21 (1) Where an authority created pursuant to the 22 Municipality Authorities Act of 1945 serves as the NIDMA, the 23 board shall be appointed pursuant to the Municipality 24 Authorities Act of 1945. 25 (2) Where an existing nonprofit development corporation 26 or other nonprofit corporation is to serve as the NIDMA, the 27 board shall be appointed according to the bylaws of the NIDMA 28 filed with the Department of State. 29 (3) Where a nonprofit development corporation or other 30 nonprofit corporation is established to serve as the NIDMA 19990H1142B2558 - 18 -
1 for an NID, the board shall be comprised of an odd number of 2 members, between five and nine, with at least one member 3 representing the municipal corporation in which the NID is 4 located. 5 (4) In all cases, NIDMA boards shall include a 6 representative of property owners located in the NID, 7 business owners located in the NID and any institutions 8 located in the NID. Institutional members may appoint a 9 designee to represent them. All board members need not be 10 residents of the NID. 11 Section 7. Powers of neighborhood improvement district 12 management association. 13 (a) General powers.--A NIDMA shall have, in addition to any 14 other powers provided pursuant to the act of May 2, 1945 15 (P.L.382, No.164), known as the Municipality Authorities Act of 16 1945, where the NIDMA is an authority, or in addition to any 17 other powers provided pursuant to the charter establishing a 18 nonprofit development corporation or other nonprofit 19 corporation, where the NIDMA is a nonprofit development 20 corporation or other nonprofit corporation, the power to: 21 (1) Sue or be sued, implead or be impleaded, complain 22 and defend in all courts. 23 (2) Employ an executive director or administrator and 24 any necessary supporting staff or contract for the provision 25 of same. 26 (3) Prepare planning or feasibility studies or contract 27 for the preparation of same, to determine needed capital 28 improvements or administrative programs and services within 29 the NID. 30 (4) Make capital improvements or provide administrative 19990H1142B2558 - 19 -
1 programs and services within an NID. 2 (5) Purchase, own, construct, renovate, develop, 3 operate, rehabilitate, manage, sell and/or dispose of real 4 property. 5 (6) Contract with existing businesses within the NID. 6 (7) Contract for the provision of products or services 7 by the NIDMA to clients located inside and outside of the 8 NID, including billing and collection of assessment fees by 9 another NIDMA. 10 (8) Appropriate and expend NID funds which would include 11 any Federal, State or municipal funds received by the NIDMA. 12 The funds shall be expended in accordance with any specific 13 provisions contained in the municipal enabling ordinance 14 establishing the NID and may be used: 15 (i) To acquire by purchase or lease real or personal 16 property to effectuate the purposes of this act, 17 including making common improvements within the NID, 18 including, but not limited to, sidewalks, retaining 19 walls, street paving, parks, recreational equipment and 20 facilities, open space, street lighting, parking lots, 21 parking garages, trees and shrubbery, pedestrian walks, 22 sewers, water lines, rest areas and the acquisition, 23 rehabilitation or demolition of blighted buildings or 24 comparable structures. 25 (ii) To provide free or reduced-fee parking for 26 customers of businesses within the NID; transportation- 27 related expenditures, public relations programs, group 28 advertising and NID maintenance and security services. 29 (iii) To impose special assessment fees. 30 (9) Solicit in-kind services or financial contributions 19990H1142B2558 - 20 -
1 from tax-exempt property owners within the NID in lieu of 2 property assessment fees. This may include entering into 3 voluntary multiyear agreements (VMAs) between the NIDMA and 4 tax-exempt property owners located within an NID, for the 5 provision of same. 6 (10) Impose liens on property for the nonpayment of 7 property assessments. NIDs administered by nonprofit 8 corporations would have any such liens filed by the municipal 9 corporation. 10 (11) Hire additional off-duty police officers or private 11 security officers, whose patrol area responsibilities would 12 be limited to the geographical area incorporated within the 13 designated NID service area and whose responsibility would be 14 to support existing municipal and volunteer efforts aimed at 15 reducing crime and improving security in the NID. 16 (12) Designate a district advisory committee, referred 17 to as the DAC, for each NID established within the 18 municipality. Each DAC shall consist of an odd number of 19 members, between five and nine, who shall be representative 20 of the neighborhood's character, including, but not limited 21 to, age, sex and cultural diversity. 22 (b) Assessments.-- 23 (1) The NIDMA shall, upon approval by the governing body 24 of the municipality, have the power to assess property owners 25 within the NID a special property assessment fee. Revenues 26 from the fee shall be accounted for and used by the NIDMA to 27 make improvements and provide programs and services within 28 the NID as authorized by this act. Where the district 29 established is a BID, the NIDMA shall have the authority to 30 exempt residential property owners from any special 19990H1142B2558 - 21 -
1 assessment fees levied. 2 (2) All assessments authorized under this section shall 3 be calculated using January 1 as the first day of the fiscal 4 year. 5 (3) All special property assessment fees shall be based 6 upon the estimated cost of the programs, improvements or 7 services to be provided in such NID as stated in the final 8 plan under section 5(d). In no case shall the aggregate 9 amount of all fees levied by the NIDMA during the year exceed 10 the estimated cost of proposed programs, improvements and 11 services for the year. 12 (4) In the case of an NID which contains a combination 13 of business, residential, industrial and/or institutional 14 areas and uses, a weighted assessment may be instituted. In 15 such case, the fee levied on property owners generally may be 16 weighted higher for business, industrial or institutional 17 properties than that levied on residential property owners, 18 provided the basis for the calculation of the fee meets the 19 rational nexus test. 20 (5) The total costs of improvements, programs and 21 administrative services provided by the NIDMA shall be 22 assessed to all designated properties within the NID by one 23 of the following methods: 24 (i) An assessment determined by multiplying the 25 total service and improvement costs by the ratio of the 26 assessed value of the benefited property to the total 27 assessed valuation of all designated benefited properties 28 in the NID. 29 (ii) An assessment upon the several properties in 30 the NID in proportion to benefits as ascertained by 19990H1142B2558 - 22 -
1 viewers appointed in accordance with law. 2 (iii) Any method that equitably apportions costs 3 among benefiting properties. 4 (iv) In the case of improvements benefiting 5 properties abutting the NID by the front-foot method, 6 with equitable adjustments for corner properties and 7 other cases provided for in the municipal ordinance. Any 8 property which cannot be equitably assessed by the front- 9 foot method may be assessed by any of the above methods. 10 (c) Payment.--The governing body may by ordinance authorize 11 the payment of the assessment in equal annual or more frequent 12 installments, over such time and bearing interest at the rate 13 specified in the municipal ordinance. If bonds have been issued 14 and sold, or notes or guarantees have been given or issued, to 15 provide for the cost of the services and improvements, the 16 assessment in equal installments shall not be payable beyond the 17 term for which the bonds, notes or guarantees are payable. 18 (d) Liens.-- 19 (1) Notwithstanding the filing of the claims, all 20 assessments which are made payable in installments shall 21 constitute liens and encumbrances upon the respective 22 benefited properties at the beginning of each calendar year, 23 except as provided in subsection (c), and only in an amount 24 equal to the sum of: 25 (i) the annual or other installments becoming 26 payable in such year, with interest and penalties, if 27 any, thereon; and 28 (ii) the total of all installments, with interest 29 and penalties thereon, which became due during prior 30 years and which remain due and unpaid at the beginning of 19990H1142B2558 - 23 -
1 the current year. 2 (2) In the case of default in the payment of any 3 installment and interest for a period of 90 days after the 4 payment becomes due, the assessment ordinance may provide 5 either for the entire assessment, with accrued interest and 6 penalties to become due and become a lien from the due date 7 of the installment, or may provide solely for the enforcement 8 of the claim as to the overdue installment, with interest and 9 penalties, in which case the ordinance shall further provide 10 that, if any installment or portion thereof remains due and 11 unpaid for one year after it has become due and payable, then 12 the entire assessment with accrued interest and penalties 13 shall become due and become a lien from the due date of the 14 installment. 15 (3) No action taken to enforce a claim for any 16 installment or installments shall affect the status of any 17 subsequent installment of the same assessment, each of which 18 shall continue to become a lien upon the property annually 19 pursuant to paragraph (1). 20 (4) The ordinance may contain any other provision 21 relating to installment assessments which is not inconsistent 22 with applicable law. 23 (5) Any owner of property against whom an assessment has 24 been made may pay the assessment in full at any time, with 25 accrued interest and costs thereon, and such a payment shall 26 discharge the lien of the assessment, or installments then 27 constituting a lien, and shall also release the claim to any 28 later installments. 29 (6) Claims to secure the assessments shall be entered in 30 the prothonotary's office of the county at the same time, and 19990H1142B2558 - 24 -
1 in the same form, and collected in the same manner, as 2 municipal tax claims are filed and collected, notwithstanding 3 the provisions of this section as to installment payments. 4 Section 8. Dissolution of neighborhood improvement district 5 management association and neighborhood 6 improvement district. 7 (a) Conveying projects.--When any NIDMA shall have finally 8 paid and discharged all bonds which, together with the interest 9 due thereon, shall have been secured by a pledge of any of the 10 revenues or receipts of a project, it may, subject to any 11 agreements concerning the operation or disposition of such 12 project and the NIDMA bylaws, convey such project or projects to 13 the municipal corporation which established or had established 14 the NIDMA. 15 (b) Request for termination.--Any request for the 16 termination of the NID and NIDMA approved by 51% of the assessed 17 property owners, in numbers, located in the NID, shall be 18 submitted to the governing body of the municipality in writing. 19 The governing body shall hold a hearing on the merits of same, 20 pursuant to section 5(b)(2) as it relates to the required 21 procedure of holding a hearing. Such written request shall be 22 considered by the governing body of the municipality. If the 23 request is approved by the governing body of the municipality, 24 then a resolution to that effect shall be filed with the 25 Secretary of the Commonwealth, and the secretary shall note the 26 termination of the existence on the record of incorporation and 27 return the resolution with his or her approval shown on the 28 resolution to the municipal corporation. Then, the property of 29 the NIDMA shall pass to the municipal corporation, as the case 30 may be, and the NIDMA and NID shall cease to exist. Any request 19990H1142B2558 - 25 -
1 for the termination of the NID and NIDMA by the governing body 2 of the municipality in which the NID is located shall result in 3 a hearing on the merits of same, pursuant to section 5(b)(2) as 4 it relates to the required procedure for holding a hearing. 5 Before the decision to terminate an NID and NIDMA is made, such 6 termination must be approved by 51% of the assessed property 7 owners, in numbers, located in the NID, and shall be submitted 8 to the governing body of the municipality in writing. Such 9 written request shall be considered by the governing body of the 10 municipality. If the request is approved by the governing body 11 of the municipality, then a resolution to that effect shall be 12 filed with the Secretary of the Commonwealth, and the secretary 13 shall note the termination of the existence on the record of 14 incorporation and return the resolution with his or her approval 15 shown to the municipal corporation. The property of the NIDMA 16 shall pass to the municipal corporation, as the case may be, and 17 the NIDMA and NID shall cease to exist. 18 Section 9. Annual audit; report. 19 The NIDMA shall annually: 20 (1) submit an audit of all income and expenditures to 21 the Department of Community and Economic Development and the 22 governing body of the municipality in which the NID is 23 located within 120 days after the end of each fiscal year; 24 and 25 (2) submit a report, including financial and 26 programmatic information, including a summary of audit 27 findings, to the governing body of the municipality in which 28 the NID is located and to all assessed property owners 29 located in the NID. 30 Section 10. Applicability. 19990H1142B2558 - 26 -
1 (a) Existing districts.--Except as provided for in 2 subsection (d), any existing business improvement district or 3 downtown improvement district established prior to the effective 4 date of this act shall remain in existence and shall be governed 5 by the Municipality Authorities Act of 1945, insofar as it 6 relates to business improvement districts or 53 Pa.C.S. Ch. 54 7 (relating to business improvement districts). 8 (b) Districts created subsequently.--Any NID established 9 subsequent to the effective date of this act shall be governed 10 by the provisions of this act. 11 (c) Previously terminated districts.--Any business 12 improvement district or downtown improvement district in 13 existence prior to the effective date of this act which is 14 terminated shall, upon its reestablishment, be governed by the 15 provisions of this act. This shall include any termination 16 resulting from a sunset provision in any municipal agreement or 17 ordinance. 18 (d) Additional requirements.--Any business improvement 19 district or downtown improvement district in existence on the 20 effective date of this act shall: 21 (1) be required to carry out any duty or responsibility 22 imposed on NIDs under this act; and 23 (2) possess any additional power given to NIDs under 24 this act without having to restructure or reorganize under 25 this act. 26 Section 11. Effective date. 27 This act shall take effect in 60 days. B11L53JLW/19990H1142B2558 - 27 -