PRINTER'S NO. 1904
No. 1558 Session of 2001
INTRODUCED BY DIVEN, PETRONE, BELARDI, BELFANTI, COLAFELLA,
CORRIGAN, COSTA, DALEY, FRANKEL, FREEMAN, HARHAI, HORSEY,
JAMES, LAUGHLIN, MANN, MARKOSEK, MELIO, PETRARCA, PISTELLA,
READSHAW, SOLOBAY, STURLA, THOMAS, TRELLO, WALKO, WANSACZ,
WASHINGTON, J. WILLIAMS, YOUNGBLOOD, ROEBUCK, CRUZ, PRESTON,
HENNESSEY, PALLONE, KELLER, SAINATO AND GRUCELA, MAY 8, 2001
REFERRED TO COMMITTEE ON URBAN AFFAIRS, MAY 8, 2001
AN ACT
1 Providing for a Community Redevelopment Assistance Program;
2 conferring powers and duties on the Department of Community
3 and Economic Development; providing for review by the
4 Legislative Budget and Finance Committee; and making an
5 appropriation.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Community
10 Redevelopment Assistance Act.
11 Section 2. Definitions.
12 The following words and phrases when used in this act shall
13 have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Department." The Department of Community and Economic
16 Development of the Commonwealth.
17 "Eligible applicant." Includes:
1 (1) A redevelopment authority established in accordance
2 with the act of May 24, 1945 (P.L.991, No.385), known as the
3 Urban Redevelopment Law.
4 (2) A local development district established in
5 accordance with the act of December 7, 1994 (P.L.845,
6 No.120), known as the Local Development District Act.
7 "Person." An individual, a corporation, an organization or
8 other legal entity.
9 "Program." The Community Redevelopment Assistance Program
10 established under this act.
11 "Property." Real property purchased by a political
12 subdivision at a tax sale that qualifies for public sale.
13 Section 3. Establishment of program.
14 (a) Program established.--There is hereby established within
15 the department the Community Redevelopment Assistance Program
16 for the purpose of addressing urban blight and encouraging
17 community development at the neighborhood level.
18 (b) Selection.--The department shall select no more than one
19 eligible applicant from each of the following municipalities for
20 participation in the program:
21 (1) A city of the first class.
22 (2) A city of the second class.
23 (3) A city of the second class A.
24 (4) A city of the third class.
25 (c) Use of grants.--Grant moneys awarded under the program
26 may be used by eligible applicants to provide assistance to
27 persons in purchasing property. An eligible applicant shall
28 submit a proposal to the department which describes a plan for
29 use of the grant moneys. The plan must include the following
30 components:
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1 (1) The purchaser of the property shall pay 50% or more
2 of the appraised value of the property, as determined by an
3 independent appraiser.
4 (2) Grant moneys shall be used by the eligible applicant
5 to pay the amount of the appraised value of the property
6 beyond that paid by the purchaser.
7 (3) Grant moneys shall be used by the eligible applicant
8 to pay the amount necessary to satisfy any liens on the
9 property and other costs expended in relation to the
10 property, including, costs used in calculating an upset sales
11 price under the act of May 29, 1931 (P.L.280, No.132),
12 referred to as the Local Delinquent Tax Return Law, or the
13 act of July 7, 1947 (P.L.1368, No.542), known as the Real
14 Estate Tax Sale Law.
15 (4) The purchaser shall enter into an agreement with the
16 eligible applicant to develop, construct, improve,
17 rehabilitate, operate or maintain a building, facility or
18 structure on the property to facilitate neighborhood or
19 business development.
20 (5) An eligible applicant may contribute no more than
21 $100,000 toward the purchase of each property.
22 Section 4. Powers and duties of the department.
23 The department may prescribe application forms and promulgate
24 and publish rules, regulations and procedures necessary to carry
25 out the provisions of this act.
26 Section 5. Review by Legislative Budget and Finance Committee.
27 In order to provide necessary information to the General
28 Assembly relative to the grants provided under this act, the
29 Legislative Budget and Finance Committee shall prepare a report
30 and submit it to the General Assembly no later than six months
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1 prior to the expiration date under section 7. The report shall
2 describe the grants funded and expenditures made under the
3 program. The report shall include information on the amount of
4 moneys awarded and a description of activities financed with
5 these moneys, including the number and types of properties for
6 which purchasing assistance was provided and any other
7 information necessary in order to fully inform the General
8 Assembly about the program. All officials of the department and
9 grant recipients under this act shall cooperate with the
10 committee and its staff in carrying out this reporting
11 requirement, including making available all necessary fiscal and
12 programmatic data.
13 Section 6. Appropriation.
14 The sum of $1,000,000, or as much thereof as may be
15 necessary, is hereby appropriated to the Department of Community
16 and Economic Development for the fiscal year July 1, 2001, to
17 June 30, 2002, to carry out the provisions of this act. This
18 appropriation shall be a continuing appropriation and shall
19 lapse on June 30, 2003.
20 Section 7. Expiration.
21 This act shall expire five years after the date of the
22 enactment of this act.
23 Section 8. Effective date.
24 This act shall take effect July 1, 2001, or immediately,
25 whichever is later.
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