PRINTER'S NO. 56
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
80
Session of
2015
INTRODUCED BY GREENLEAF, BLAKE, YUDICHAK, VULAKOVICH AND HUGHES,
JANUARY 14, 2015
REFERRED TO URBAN AFFAIRS AND HOUSING, JANUARY 14, 2015
AN ACT
Authorizing the establishment of land bank programs and
affordable housing programs with the approval of the
electorate; providing for funding by proceeds from tax on the
transfer of real property; and specifying the purposes of the
programs.
TABLE OF CONTENTS
Section 1. Short title.
Section 2. Establishment of land bank programs and affordable
housing programs.
Section 3. Initiative of electors.
Section 4. Filing of ordinance or petition.
Section 5. Form of question for land bank program.
Section 6. Form of question for affordable housing program.
Section 7. Dual question.
Section 8. Dedication of portion of tax.
Section 9. Municipal option.
Section 10. Establishment of program.
Section 11. Special fund.
Section 12. Acquisition of open-space land.
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Section 13. Bond issues for open-space land.
Section 14. Conveyance of open-space land.
Section 15. Use of affordable housing fund.
Section 16. Termination of land bank program or affordable
housing program.
Section 17. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Municipal
Land Bank and Affordable Housing Act.
Section 2. Establishment of land bank programs and affordable
housing programs.
The governing body of a municipality may, by ordinance, or
the electors of a municipality may, by petition, cause to be
submitted to the qualified voters of the municipality the
question of whether the municipality should establish a land
bank program or an affordable housing program, or both, and
dedicate all or a portion of taxes imposed by the municipality
on the transfer of real property in the municipality for the
purpose of funding the program or programs.
Section 3. Initiative of electors.
In order for the question of whether to establish a land bank
program or an affordable housing program, or both, to be
initiated by petition of electors, petitions calling for the
question containing signatures of at least 5% of the electors
voting for the Office of Governor in the last gubernatorial
general election in the municipality must be filed with the
county board of elections.
Section 4. Filing of ordinance or petition.
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The ordinance or petition calling for the question of whether
to establish a land bank program or an affordable housing
program, or both, that is to be submitted to the electors shall
be filed with the election officials not later than the 13th
Tuesday prior to the next primary, municipal or general
election. The petition and proceedings on the petition shall be
in the manner and subject to the applicable provisions of the
election laws which relate to the signing, filing and
adjudication of nomination petitions, except that no petition
shall be signed or circulated prior to the 20th Tuesday before
the election nor later than the 13th Tuesday before the
election.
Section 5. Form of question for land bank program.
The question of whether to establish a land bank program
shall be in substantially the following form:
"Do you favor the establishment, administration and
maintenance of a land bank program for the purpose of
enabling (insert name of municipality) to acquire open-space
land or interests in such land to conserve natural and scenic
resources, to preserve agricultural land and to augment
public recreation opportunities and the dedication of taxes
imposed by the municipality on the transfer of real property
in the municipality for funding of the program?"
Section 6. Form of question for affordable housing program.
The question of whether to establish an affordable housing
program shall be in substantially the following form:
"Do you favor the establishment and administration of a
program consisting of the awarding of grants to nonprofit
organizations, housing authorities and redevelopment
authorities to provide adequate, safe and affordable housing
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in (insert name of municipality) for low-income individuals
and low-income families, and the dedication of taxes imposed
by the municipality on the transfer of real property in the
municipality for funding of the program?"
Section 7. Dual question.
In the event that the ordinance or petition calls for the
question of whether to establish both a land bank program and an
affordable housing program, the questions set forth in sections
5 and 6 may be appropriately combined into one question.
Section 8. Dedication of portion of tax.
The ordinance or petition calling for a question of whether
to establish a land bank program or an affordable housing
program, or both, may call for some percentage less than all of
the tax imposed by the municipality on the transfer of real
property to be dedicated for the program or programs, in which
case the question on the ballot shall be revised to indicate the
portion of the tax to be so dedicated.
Section 9. Municipal option.
In the event that a special fund for purposes of affordable
housing exists at the county level, a municipality shall have
the option of dedicating the revenue derived from taxes imposed
by the municipality on the transfer of real property and
dedicated for affordable housing purposes to the county fund.
Money so dedicated shall be deposited in the county special fund
for affordable housing for use by the county in providing grants
to nonprofit organizations, housing authorities and
redevelopment authorities to provide adequate, safe and
affordable housing in the municipality that exercises its option
under this section.
Section 10. Establishment of program.
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If a majority of the electors voting on the question of
establishing, administering and maintaining a land bank program
or an affordable housing program, or both, and dedicating taxes
imposed by the municipality on the transfer of real property
within the municipality in order to fund the program or programs
vote in favor of the question, the governing body of the
municipality within 90 days following the certification of the
results of the election shall adopt an ordinance or ordinances
establishing the appropriate program or programs. If both a land
bank program and an affordable housing program are approved, the
ordinance or ordinances shall specify the portion of available
funds allocated to each program.
Section 11. Special fund.
(a) Establishment.--Unless a municipality exercises its
option under section 9, all revenue derived from a tax imposed
by the municipality on the transfer of real property in the
municipality dedicated for land bank purposes or affordable
housing purposes, or both, shall be remitted by the county
recorder of deeds to the municipality and deposited in a special
fund to be known as a land bank fund, affordable housing fund or
land bank and affordable housing fund, whichever may be
appropriate, and used exclusively for the purposes authorized by
this act.
(b) Donations.--The municipality may accept donations from
any source for the purposes authorized by this act, and any
funds so received, including any funds which may become
available from the Federal or State government for the purposes
stated in this act, all revenues derived from the sale of bonds
for land bank purposes and interest accrued, shall be deposited
in the appropriate special fund, including the special county
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fund in the case of a municipality exercising its option under
section 9.
(c) Deposit of proceeds.--All proceeds from the rental,
lease or sale of any open-space land or an interest in open-
space land that the municipality acquired through a land bank
program shall be deposited in the land bank fund.
Section 12. Acquisition of open-space land.
(a) Money in fund.--Money in a land bank fund shall be used
by the municipality for the acquisition and maintenance of open-
space land and interests in open-space land within the
municipality and for related administrative expenses, including,
but not limited to, expenditures for engineering, legal and
appraisal services and for the repayment of debts incurred
through the issuance of bonds under section 13.
(b) Approval not required.--When a land bank program has
been established, no additional approval of the electors shall
be required for the acquisition of open-space land or interests
in open-space land with money in a land bank fund, nor shall
approval of the electors be required for the governing body of
the municipality, on behalf of the municipality, to accept title
to open-space land or interests in open-space land that may be
donated to the municipality.
(c) Public notice.--The governing body of the municipality
shall give public notice of a meeting at which final action on
an acquisition of open-space land or an interest in open-space
land or acceptance of a donation of open-space land is to be
taken, which public notice shall be given in the manner
prescribed by 65 Pa.C.S. Ch. 7 (relating to open meetings) and
shall include a brief description of the proposed transaction.
(d) Advice of commission and advisory council.--The
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governing body of the municipality shall seek the advice of the
municipality's planning commission and the environmental
advisory council established under 53 Pa.C.S. Ch. 23 Subch. B
(relating to environmental advisory councils) if the
municipality has established such a council with respect to all
transactions involving open-space land.
(e) Appraisals.--At least two independent appraisals shall
be obtained prior to the purchase by the municipality of any
open-space land or interest in open-space land.
(f) Public purposes.--Any land acquired by a municipality
under this act shall be deemed to be held and used for public
purposes.
(g) Definition.--As used in this act, the term "open-space
land" means land that will be used for any of the following
purposes:
(1) To conserve natural or scenic resources, including,
but not limited to, soils, beaches, streams, wetlands or
tidal wetlands.
(2) To preserve agricultural land, including the
preservation of agricultural land through the purchase of
agricultural conservation easements as provided in the act of
June 30, 1981 (P.L.128, No.43), known as the Agricultural
Area Security Law.
(3) To enhance the value to the public of abutting or
neighboring parks, forests, wildlife preserves, nature
reservations or other public open spaces.
(4) To augment public recreation opportunities.
(5) To preserve sites of historic, geologic or botanic
interest.
Section 13. Bond issues for open-space land.
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In anticipation of money becoming available in a land bank
fund, the governing body of the municipality may issue bonds for
the exclusive purpose of acquiring and maintaining open-space
land or interests in open-space land.
Section 14. Conveyance of open-space land.
(a) Acquisition of land.--
(1) The governing body of the municipality may, by
competitive bid as provided in subsection (b), and subject to
the same requirements as provided in section 12(c), (d) and
(e) for acquisition of open-space land, convey open-space
land, portions of or interests in open-space land subject to
a protective covenant in the deed of conveyance that the land
will be used only for the purposes of open-space land, as
defined in this act, with reversion to the municipality in
the event the covenant is violated.
(2) The protective covenant in the deed of conveyance
shall state with specificity the use or restrictions on use
applicable to the land so conveyed.
(3) No conveyance of open-space land or an interest in
open-space land without this protective covenant in the deed
shall be made without approval of the court of common pleas.
(4) The court of common pleas may not approve the
proposed conveyance without a protective covenant in the deed
unless the court determines that there is an overriding
public need that cannot be met through the use of any other
land within the municipality.
(b) Sale of land.--
(1) Open-space land, portions of or interests in open-
space land may be sold by the municipality to the highest
bidder, subject to the protective covenant specified in
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subsection (a), after due notice by the advertisement for
bids in one newspaper of general circulation in the
municipality. The advertisement shall be published once not
less than 10 days prior to the date fixed for the opening of
bids, and the date for opening bids shall be announced in the
advertisement.
(2) The acceptance of bids shall be made only by public
announcement at a regular or special meeting of the governing
body of the municipality. All bids shall be accepted on the
condition that payment of the purchase price in full shall be
made within 90 days of the acceptance of bids.
(c) Donation of land.--Notwithstanding any other provision
of this act, a municipality may donate land or any portion of or
interest in land acquired pursuant to a land bank program to a
conservancy which possesses a tax-exempt status under section
501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-
514, 26 U.S.C. ยง 501(c)(3)) and which has as its primary purpose
preservation of land for historic, recreational, scenic,
agricultural or open-space opportunities. Prior to this
donation, the governing body of the municipality shall give
public notice in the manner provided in section 12(c). This
donation shall be subject to the protective covenant specified
in subsection (a).
Section 15. Use of affordable housing fund.
(a) Grants.--
(1) Money deposited in an affordable housing fund and
interest earned on money deposited in this fund shall be used
solely for the purpose of making grants to nonprofit
organizations, housing authorities and redevelopment
authorities for affordable housing purposes. Qualifications
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for grants, the manner of making applications for grants and
authorized uses of grant money shall be provided for in the
ordinance establishing the affordable housing program.
(2) Authorized uses of grant money may include:
(i) Plan preparation.
(ii) The acquisition of property.
(iii) The construction of new residential buildings.
(iv) Demolition of existing buildings.
(v) Construction, reconstruction, alteration and
repair of residential buildings.
(vi) Any other associated work, including
administrative costs and the costs of professional and
technical assistance.
(b) Public notice.--The governing body of the municipality
shall give public notice of a meeting at which final action on a
grant from the affordable housing fund is to be taken. The
public notice shall be given in the manner prescribed by 65
Pa.C.S. Ch. 7 (relating to open meetings) and shall include a
brief description of the proposed project.
Section 16. Termination of land bank program or affordable
housing program.
(a) Referendum.--The governing body of a municipality may,
by ordinance, or the electors of a municipality may, by
petition, cause to be submitted to the qualified voters of the
municipality the question of whether the municipality should
terminate an established land bank program, an established
affordable housing program, or both.
(b) Petition.--A petition by the electors shall be in the
same manner as provided for the establishment of the programs in
section 3, and the ordinance or petition shall be filed in the
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same manner as provided in section 4.
(c) Question.--The question of whether to terminate an
established land bank program or an affordable housing program
shall be in substantially the following form:
"Do you favor the termination of the existing
program?"
This question shall be followed by a brief statement of the
original purpose of the program. If both programs are to be
considered for termination, the questions may be appropriately
combined into one question.
(d) Election.--If a majority of the electors voting on the
question vote in favor of termination, the governing body of the
municipality shall, within 90 days following certification of
the results of the election, adopt any ordinances necessary to
terminate the program or programs.
Section 17. Effective date.
This act shall take effect immediately.
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