PRINTER'S NO. 838
No. 775 Session of 1999
INTRODUCED BY GREENLEAF, WAUGH, LEMMOND, MUSTO, SCHWARTZ AND
WHITE, APRIL 12, 1999
REFERRED TO LOCAL GOVERNMENT, APRIL 12, 1999
AN ACT
1 Amending the act of May 1, 1933 (P.L.103, No.69), entitled, as
2 reenacted and amended, "An act concerning townships of the
3 second class; and amending, revising, consolidating and
4 changing the law relating thereto," authorizing the
5 establishment of land bank programs and affordable housing
6 programs with the approval of the electorate; providing for
7 funding by proceeds from tax on the transfer of real
8 property; and specifying the purposes of such programs.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. The act of May 1, 1933 (P.L.103, No.69), known as
12 The Second Class Township Code, reenacted and amended November
13 9, 1995 (P.L.350, No.60), is amended by adding an article to
14 read:
15 ARTICLE XXIX-A
16 LAND BANK PROGRAMS AND AFFORDABLE HOUSING PROGRAMS
17 Section 2901-A. Establishment of Land Bank Programs and
18 Affordable Housing Programs.--The township supervisors may, by
19 ordinance, or the electors of the township may, by petition,
20 cause to be submitted to the qualified voters of the township
1 the question of whether the township should establish either a
2 land bank program, an affordable housing program, or both, and
3 dedicate all or a portion of taxes imposed by the township on
4 the transfer of real property in the township for the purpose of
5 funding the program or programs.
6 Section 2902-A. Initiative of Electors.--In order for the
7 question of whether to establish either a land bank program, an
8 affordable housing program, or both, to be initiated by petition
9 of electors, petitions calling for the question containing
10 signatures of at least five per centum of the electors voting
11 for the Office of Governor in the last gubernatorial general
12 election in the township shall be filed with the county board of
13 elections.
14 Section 2903-A. Filing of Ordinance or Petition.--The
15 ordinance or petition calling for the question of whether to
16 establish a land bank program, an affordable housing program, or
17 both, that is to be submitted to the electors shall be filed
18 with the election officials not later than the 13th Tuesday
19 prior to the next primary, municipal or general election. The
20 petition and proceedings therein shall be in the manner and
21 subject to the provisions of the election laws which relate to
22 the signing, filing and adjudication of nomination petitions
23 insofar as such provisions are applicable, except that no
24 petition shall be signed or circulated prior to the 20th Tuesday
25 before the election, nor later than the 13th Tuesday before the
26 election.
27 Section 2904-A. Form of Question for Land Bank Program.--The
28 question of whether to establish a land bank program shall be in
29 substantially the following form:
30 "Do you favor the establishment, administration and
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1 maintenance of a land bank program for the purpose of
2 enabling Township to acquire open space land or
3 interests in such land to conserve natural and scenic
4 resources, to preserve agricultural land, and to augment
5 public recreation opportunities, and the dedication of
6 taxes imposed by the township on the transfer of real
7 property in the township for funding of the program?"
8 Section 2905-A. Form of Question for Affordable Housing
9 Program.--The question of whether to establish an affordable
10 housing program shall be in substantially the following form:
11 "Do you favor the establishment and administration of
12 a program consisting of the awarding of grants to
13 nonprofit organizations, housing authorities and
14 redevelopment authorities to provide adequate, safe and
15 affordable housing in Township for low-income
16 individuals and families, and the dedication of taxes
17 imposed by the township on the transfer of real property
18 in the township for funding of the program?"
19 Section 2906-A. Dual Question.--In the event that the
20 ordinance or petition calls for the question of whether to
21 establish both a land bank program and an affordable housing
22 program the questions set forth in sections 2904-A and 2905-A
23 may be appropriately combined into one question.
24 Section 2907-A. Dedication of a Portion of Tax.--The
25 ordinance or petition calling for a question of whether to
26 establish a land bank program, an affordable housing program, or
27 both, may call for some percentage less than all of the tax
28 imposed by the township on the transfer of real property to be
29 dedicated for the program or programs, in which case the
30 question on the ballot shall be revised to indicate the portion
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1 of the tax to be so dedicated.
2 Section 2908-A. Township Option.--In the event that a
3 special fund for purposes of affordable housing exists at the
4 county level, a township shall have the option of dedicating the
5 revenue derived from taxes imposed by the township on the
6 transfer of real property and dedicated for affordable housing
7 purposes to the county fund. Moneys so dedicated shall be
8 deposited in the county special fund for affordable housing for
9 use by the county in providing grants to nonprofit
10 organizations, housing authorities and redevelopment authorities
11 to provide adequate, safe and affordable housing in the township
12 that exercises its option under this section.
13 Section 2909-A. Establishment of Program.--If a majority of
14 the electors voting on the question of establishing,
15 administering and maintaining a land bank program or an
16 affordable housing program, or both, and dedicating taxes
17 imposed by the township on the transfer of real property within
18 the township in order to fund the program or programs vote in
19 favor of the question, the township supervisors, within ninety
20 days following the certification of the results of the election,
21 shall adopt an ordinance or ordinances establishing the
22 appropriate program or programs. If both a land bank program and
23 an affordable housing program are approved, the ordinance or
24 ordinances shall specify the portion of available funds
25 allocated to each program.
26 Section 2910-A. Special Fund.--(a) Unless a township
27 exercises its option pursuant to section 2908-A, all revenue
28 derived from a tax imposed by the township on the transfer of
29 real property in the township dedicated for land bank purposes,
30 affordable housing purposes, or both, shall be remitted by the
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1 county recorder of deeds to the township and deposited in a
2 special fund to be known as the "Land Bank Fund," the
3 "Affordable Housing Fund," or the "Land Bank and Affordable
4 Housing Fund," whichever may be appropriate, and used
5 exclusively for the purposes authorized by this article.
6 (b) The township may accept donations from any source for
7 the purposes authorized by this article, and any funds so
8 received, including any funds which may become available from
9 the Federal or State Government for the purposes stated in this
10 article, all revenues derived from the sale of bonds for land
11 bank purposes, and interest accrued, shall be deposited in the
12 appropriate special fund, including the special county fund in
13 the case of a township exercising its option pursuant to section
14 2908-A.
15 (c) All proceeds from the rental, lease or sale of any open
16 space land or an interest therein that the township acquired
17 through the land bank program shall be deposited in the Land
18 Bank Fund.
19 Section 2911-A. Acquisition of Open Space Land.--(a) Moneys
20 in a Land Bank Fund shall be used by the township for the
21 acquisition and maintenance of open space land and interests in
22 open space land within the township and for related
23 administrative expenses, including, but not limited to,
24 expenditures for engineering, legal and appraisal services and
25 for the repayment of debts incurred through the issuance of
26 bonds pursuant to section 2912-A.
27 (b) When a land bank program has been established, no
28 additional approval of the electors shall be required for the
29 acquisition of open space land or interests therein with money
30 in the Land Bank Fund, nor shall approval of the electors be
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1 required for the township supervisors, on behalf of the
2 township, to accept title to open space lands or interests
3 therein which may be donated to the township.
4 (c) The township supervisors shall give public notice of a
5 meeting at which final action on an acquisition of open space
6 land, or an interest therein, or acceptance of a donation of
7 open space land is to be taken, which public notice shall be
8 given in the manner prescribed by 65 Pa.C.S. Ch. 7 (relating to
9 open meetings), known as the "Sunshine Act," and shall include a
10 brief description of the proposed transaction.
11 (d) The township supervisors shall seek the advice of the
12 township planning commission and the Environmental Advisory
13 Council established pursuant to the act of December 21, 1973
14 (P.L.425, No.148), referred to as the Municipal Environmental
15 Advisory Council Law, if the township has established such a
16 council, with respect to all transactions involving open space
17 land.
18 (e) At least two independent appraisals shall be obtained
19 prior to the purchase by the township of any open space land or
20 interest therein.
21 (f) Any land acquired by a township pursuant to this article
22 shall be deemed to be held and used for public purposes.
23 (g) As used in this article, the term "open space land"
24 means land that will be used for any of the following purposes:
25 (1) To conserve natural or scenic resources, including, but
26 not limited to, soils, beaches, streams, wetlands or tidal
27 wetlands.
28 (2) To preserve agricultural land, including the
29 preservation of agricultural land through the purchase of
30 agricultural conservation easements as provided in the act of
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1 June 30, 1981 (P.L.128, No.43), known as the "Agricultural Area
2 Security Law."
3 (3) To enhance the value to the public of abutting or
4 neighboring parks, forests, wildlife preserves, nature
5 reservations, or other public open spaces.
6 (4) To augment public recreation opportunities.
7 (5) To preserve sites of historic, geologic or botanic
8 interest.
9 Section 2912-A. Bond Issues for Open Space Land.--In
10 anticipation of moneys becoming available in the Land Bank Fund,
11 the township supervisors may issue bonds for the exclusive
12 purpose of acquiring and maintaining open space land or
13 interests therein.
14 Section 2913-A. Conveyance of Open Space Land.--(a) The
15 township supervisors may, by competitive bid as provided in
16 subsection (b), and subject to the same requirements as provided
17 in section 2911-A(c), (d) and (e) for acquisition of open space
18 land, convey open space land, portions thereof, or interests
19 therein subject to a protective covenant in the deed of
20 conveyance that the land will be used only for the purposes of
21 open space land, as defined in this article, with reversion to
22 the township in the event the covenant is violated. The
23 protective covenant in the deed of conveyance shall state with
24 specificity the use or restrictions on use applicable to the
25 land so conveyed. No conveyance of open space land or an
26 interest therein without this protective covenant in the deed
27 shall be made without approval of the court of common pleas. The
28 court of common pleas may not approve the proposed conveyance
29 without a protective covenant in the deed unless the court
30 determines that there is an overriding public need that cannot
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1 be met through the use of any other land within the township.
2 (b) Open space land, portions thereof, or interests therein
3 may be sold by the township to the highest bidder, subject to
4 the protective covenant specified in subsection (a), after due
5 notice by the advertisement for bids in one newspaper of general
6 circulation in the township. The advertisement shall be
7 published once not less than ten days prior to the date fixed
8 for the opening of bids, and the date for opening bids shall be
9 announced in the advertisement. The acceptance of bids shall be
10 made only by public announcement at a regular or special meeting
11 of the board of township supervisors. All bids shall be accepted
12 on the condition that payment of the purchase price in full
13 shall be made within ninety days of the acceptance of bids.
14 (c) Notwithstanding any other provision of this article, a
15 township may donate land or any portion thereof or interest
16 therein acquired pursuant to a land bank program to a
17 conservancy which possesses a tax-exempt status pursuant to
18 section 501(c)(3) of the Internal Revenue Code of 1986 (Public
19 Law 99-514, 26 U.S.C. § 501(c)(3)) and which has as its primary
20 purpose preservation of land for historic, recreational, scenic,
21 agricultural or open-space opportunities. Prior to this
22 donation, the township supervisors shall give public notice in
23 the manner provided in section 2911-A(c). This donation shall be
24 subject to the protective covenant specified in subsection (a).
25 Section 2914-A. Use of Affordable Housing Fund.--(a) Moneys
26 deposited in an Affordable Housing Fund and interest earned on
27 moneys deposited in this fund shall be used solely for the
28 purpose of making grants to nonprofit organizations, housing
29 authorities and redevelopment authorities for affordable housing
30 purposes. Qualifications for grants, the manner of making
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1 applications for grants and authorized uses of grant moneys
2 shall be provided for in the ordinance establishing the
3 affordable housing program. Authorized uses of grant moneys may
4 include plan preparation, the acquisition of property, the
5 construction of new residential buildings, demolition of
6 existing buildings, construction, reconstruction, alteration and
7 repair of residential buildings and any other associated work,
8 including administrative costs and the cost of professional and
9 technical assistance.
10 (b) The township supervisors shall give public notice of a
11 meeting at which final action on a grant from the Affordable
12 Housing Fund is to be taken. The public notice shall be given in
13 the manner prescribed by 65 Pa.C.S. Ch. 7 (relating to open
14 meetings), known as the "Sunshine Act," and shall include a
15 brief description of the proposed project.
16 Section 2915-A. Termination of Land Bank Program or
17 Affordable Housing Program.--(a) The township supervisors may,
18 by ordinance, or the electors of the township may, by petition,
19 cause to be submitted to the qualified voters of the township
20 the question of whether the township should terminate an
21 established land bank program, an established affordable housing
22 program, or both.
23 (b) A petition by the electors shall be in the same manner
24 as provided for the establishment of such programs in section
25 2902-A, and the ordinance or petition shall be filed in the same
26 manner as provided in section 2903-A.
27 (c) The question of whether to terminate an established land
28 bank program or an affordable housing program shall be in
29 substantially the following form:
30 "Do you favor the termination of the existing
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1 program?"
2 This question shall be followed by a brief statement of the
3 original purpose of the program. If both programs are to be
4 considered for termination, the questions may be appropriately
5 combined into one question.
6 (d) If a majority of the electors voting on the question
7 vote in favor of termination, the township supervisors shall,
8 within ninety days following certification of the results of the
9 election, adopt any ordinances necessary to terminate the
10 program or programs.
11 Section 2. This act shall take effect immediately.
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