PRINTER'S NO. 1633
No. 1358 Session of 2005
INTRODUCED BY DIVEN, ARMSTRONG, BOYD, BUXTON, CALTAGIRONE,
CAPPELLI, CAWLEY, COSTA, DeLUCA, GINGRICH, GOODMAN, GRUCELA,
W. KELLER, KOTIK, McILHATTAN, MUSTIO, O'NEILL, PETRI,
READSHAW, REICHLEY, SCAVELLO AND SHANER, APRIL 13, 2005
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 13, 2005
AN ACT
1 Providing for the remediation of blighted properties in certain
2 municipalities.
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 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 recurring revenue for municipalities without the commitment of
13 future State tax dollars.
14 Section 3. Definitions.
15 The following words and phrases when used in this act shall
16 have the meanings given to them in this section unless the
17 context clearly indicates otherwise:
1 "Blighted property." Includes any of the following:
2 (1) Any premises which, because of physical condition or
3 use, is regarded as a public nuisance at common law or has
4 been declared a public nuisance in accordance with the local
5 housing, building, plumbing, fire and related codes.
6 (2) Any dwelling which, because it is dilapidated,
7 unsanitary, unsafe, vermin-infested or lacking in the
8 facilities and equipment required by the housing code of the
9 municipality, has been designated by the local agency
10 responsible for enforcement of the code as unfit for human
11 habitation.
12 (3) Any structure which is a fire hazard or is otherwise
13 dangerous to the safety of persons or property.
14 (4) Any structure from which the utilities, plumbing,
15 heating, sewerage or other facilities have been disconnected,
16 destroyed, removed or rendered ineffective so that the
17 property is unfit for its intended use.
18 (5) Any vacant or unimproved lot or parcel of ground in
19 a predominantly built-up neighborhood which by reason of
20 neglect or lack of maintenance has become a place for
21 accumulation of trash and debris or a haven for rodents or
22 other vermin.
23 (6) Any property which has been tax delinquent for a
24 period of two years.
25 (7) Any vacant property or unimproved lot or parcel of
26 ground in a redevelopment area certified pursuant to the act
27 of May 24, 1945 (P.L.991, No.385), known as the Urban
28 Redevelopment Law.
29 "Boards." The Philadelphia Blight Remediation Board, the
30 Pittsburgh Blight Remediation Board and the Urban Blight
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1 Remediation Board as established by this act.
2 "Continuation fund." The Blight Remediation Continuation
3 Fund established by this act.
4 "Department." The Department of Community and Economic
5 Development of the Commonwealth.
6 "Fund." The Blight Remediation Fund established by this act.
7 "Municipality." A city, borough or township of the first
8 class or second class.
9 "Nonprofit developers." Community development corporations
10 registered under section 501(c)(3) of the Internal Revenue Code
11 of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)).
12 "Program." The Blight Remediation Program established by
13 this act.
14 Section 4. Program.
15 (a) Establishment.--The Blight Remediation Program is hereby
16 established within the department. The program shall be
17 comprised of:
18 (1) Blight remediation grants.
19 (2) Blight remediation matching fund grants, which shall
20 require a recipient to use funds from sources in an amount
21 equal to or greater than the grant from the fund.
22 (b) Transfer of capital budget moneys.--Following deposit of
23 capital budget moneys into the fund pursuant to section 8, an
24 aggregate amount of not more than $75,000,000 of the moneys
25 shall be transferred to the city of the first class, an
26 aggregate amount of not more than $35,000,000 of the moneys
27 shall be transferred to the city of the second class for
28 expenditure pursuant to the purposes set forth in subsection (c)
29 and an aggregate amount of not more than $50,000,000 shall be
30 transferred to the Urban Blight Remediation Board.
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1 Municipalities shall apply to the department for transfer of the
2 moneys. The department shall develop outreach, application and
3 program requirements to ensure that applying, receiving and
4 utilizing funds from the Urban Blight Remediation Board will not
5 be burdensome on municipalities with small or part-time staff.
6 (c) Use of transferred moneys.--A city of the first class in
7 cooperation with the Philadelphia Blight Remediation Board, a
8 city of the second class in cooperation with the Pittsburgh
9 Blight Remediation and the Urban Blight Remediation Board shall
10 utilize the moneys transferred to each municipality from the
11 fund to purchase blighted property within their respective
12 jurisdictions. Prior to the purchase of each blighted property,
13 the municipality, in cooperation with its respective board,
14 shall determine whether the blighted property purchase and
15 related use of moneys from the fund shall be completed using a
16 blight remediation grant or a blight remediation matching fund
17 grant. Upon determination of the grant type, purchase may be
18 effected by outright purchase, eminent domain, purchase at tax
19 sale or by any other means available. Moneys may be utilized to
20 defray all costs and expenses associated with obtaining good
21 marketable title to the blighted properties, including, but not
22 limited to, the satisfaction of liens and other claims, attorney
23 fees and all other costs incurred to acquire such properties.
24 (d) Determination of eligibility for site preparation
25 grants.--Within nine months of purchase made pursuant to this
26 act, each municipality shall each submit a list of properties
27 acquired pursuant to subsection (c) to the appropriate board.
28 Such list shall also include information specifying the amount
29 expended to purchase and clear title to each property, the exact
30 location of each property and such other information deemed
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1 warranted by the board. Following board review of these lists
2 and the accompanying information, the board shall determine
3 which properties are eligible for site preparation grants
4 pursuant to subsection (e).
5 (e) Development of conveyed property.--Following deposit of
6 capital budget moneys into the fund pursuant to section 8
7 (relating to funds), an aggregate amount of not more than
8 $25,000,000 with respect to the city of the first class and an
9 aggregate amount of not more than $15,000,000 with respect to
10 the city of the second class shall be utilized by the
11 municipality in cooperation with the board in site preparation
12 of the eligible properties. These moneys may be used to cover
13 costs in razing and clearing dilapidated buildings and in the
14 installation of necessary infrastructure, including sewer, water
15 and other utilities.
16 Section 5. Board.
17 (a) Establishment.--The boards are hereby established with
18 the department and shall administer the program.
19 (b) Composition.--Each board shall be composed of five
20 members, one appointed by each of the following:
21 (1) The Governor.
22 (2) The President pro tempore of the Senate.
23 (3) The Minority Leader of the Senate.
24 (4) The Speaker of the House of Representatives.
25 (5) The Minority Leader of the House of Representatives.
26 (c) Election of chair of the board.--The members of each
27 board shall elect a chair of that board.
28 (d) Term; vacancies.--The term of a board member shall begin
29 on the date of appointment. A member's term shall be coterminous
30 with that of the appointing authority, provided that the
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1 member's term shall continue until a replacement is appointed.
2 Board members shall serve at the pleasure of the appointing
3 authority. Whenever a vacancy occurs on the board, whether prior
4 to or on the expiration of a term, the appointing authority
5 shall appoint a successor member within 30 days of the vacancy.
6 A member appointed to fill a vacancy occurring prior to the
7 expiration of a term shall serve the unexpired term.
8 (e) Meetings.--The boards shall meet as frequently as they
9 deem appropriate but at least once during each quarter of the
10 fiscal year. In addition, a meeting of a board shall be called
11 by the chairperson if a request for a meeting is submitted to
12 the chairperson by at least a majority of the members of a
13 board. A majority of the board shall constitute a quorum for the
14 purpose of conducting the business of the board and for all
15 other purposes. All actions of the board shall be taken by a
16 majority of the board. The provisions of 65 Pa.C.S. Ch. 7
17 (relating to open meetings) shall apply to the board.
18 (f) Expenses.--A member shall not receive compensation or
19 remuneration, but shall be entitled to reimbursement for all
20 reasonable and necessary actual expenses by the department.
21 (g) 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.
29 (a) Agreement.--At the time of selection of properties for
30 blight remediation and subsequent site development, each
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1 municipality and its respective board shall execute a separate
2 agreement that sets forth the responsibilities and duties of
3 each party under the program. In such agreements, the
4 municipality in cooperation with the board shall obligate itself
5 to undertake site demolition and clearing work and the
6 installation of necessary infrastructure and to ultimately
7 convey the property to other entities, including private
8 developers, for development, but nonprofit developers shall have
9 the first opportunity.
10 (1) The grant agreement between the municipality and its
11 respective board for each blighted property purchased using a
12 blight remediation grant shall include a directive that upon
13 completion of the blight remediation project, each
14 municipality, county and school district shall agree to
15 contribute an amount equal to 50% of the amount of municipal,
16 county and school district taxes levied on the property or
17 the occupants of the property. Contributed funds shall be
18 deposited in the Blight Remediation Continuation Fund for the
19 purpose of providing ongoing funds for blight remediation in
20 a municipality. The tax contribution specified in the grant
21 agreement shall not exceed a period of 28 years.
22 (2) The grant agreement between the municipality and its
23 respective board for each blighted property purchased using a
24 blight remediation matching fund grant shall specify the
25 amount and source of other funds to be provided by the
26 municipality and the board. Projects funded through a blight
27 remediation matching fund grant shall not require
28 contributions to the continuation fund by the municipality,
29 county or school district upon project completion.
30 (b) Request for proposals.--Simultaneously with undertaking
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1 of preliminary site preparation called for in section 4(e)
2 (relating to program), the municipalities in cooperation with
3 their respective boards shall advertise for development
4 proposals from public and private development entities,
5 including, but not limited to, redevelopment authorities,
6 housing authorities, private developers and nonprofit
7 developers. Proof of financial credibility, for all bidding
8 organizations, shall be included with development proposals. The
9 department shall promulgate regulations regarding the criteria
10 to be used in reviewing the proposals received. The promulgation
11 of these regulations shall not be subject to the provisions of
12 the act of June 25, 1982 (P.L.633, No.181), known as the
13 Regulatory Review Act.
14 (c) Selection of developers.--Upon review of the proposals
15 received pursuant to subsection (b), the municipalities in
16 cooperation with their respective boards may convey a property
17 or groups of properties to a given developer for development.
18 The conveyances shall occur for the consideration of $1 per
19 property. Simultaneously with the conveyance, a separate
20 agreement shall be executed in which the developer agrees to
21 develop the property within a given period of time and pursuant
22 to the specific development standards, all of which shall be
23 detailed in regulations promulgated by the department.
24 Promulgation of the regulations shall not be subject to the
25 provisions of the Regulatory Review Act. Among other things, the
26 regulations shall provide for reversion of title to the
27 municipality and its respective board in the event the contract
28 terms are breached by the developer. Proposals which preserve or
29 expand green space shall be given priority in the review
30 process.
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1 Section 7. Repayment not required.
2 Notwithstanding the provisions of the act of May 20, 1949
3 (P.L.1633, No.493), known as the Housing and Redevelopment
4 Assistance Law, and Reorganization Plan No. 2 of 1966, grant
5 agreements executed between the municipality and its respective
6 board shall not require repayment of grant funds when the grant
7 is directed to a blight remediation grant project for a
8 municipality as authorized by a capital budget act.
9 Section 8. Funds.
10 (a) Establishment.--
11 (1) The Blight Remediation Fund is hereby established in
12 the State Treasury. All money in the fund is hereby
13 appropriated to the department on a continuing basis to carry
14 out the provisions of this act.
15 (2) The Blight Remediation Continuation Fund is hereby
16 established in the State Treasury. All money in the fund is
17 hereby appropriated to the department on a continuing basis
18 for the program authorized by this act. Moneys in the
19 continuation fund are to be utilized for blight remediation
20 projects once moneys in the fund are no longer sufficient to
21 fund the programs authorized by this act.
22 (b) Administration.--Each asset of the fund shall be
23 preserved, invested and expended solely pursuant to and for the
24 purposes set forth in this act.
25 Section 9. Funding.
26 Up to $200,000,000 of the net proceeds of the sale of
27 obligations authorized in a capital budget act for the purposes
28 of redevelopment assistance is hereby appropriated to the
29 Department of Community and Economic Development for deposit
30 into the fund established and to be used to implement the
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1 provisions of this act.
2 Section 10. Effective date.
3 This act shall take effect immediately.
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