PRINTER'S NO. 391
No. 378 Session of 2001
INTRODUCED BY CONTI, WAGNER, TARTAGLIONE, TOMLINSON, COSTA, SCHWARTZ, M. WHITE, KUKOVICH, WOZNIAK AND O'PAKE, FEBRUARY 8, 2001
REFERRED TO URBAN AFFAIRS AND HOUSING, FEBRUARY 8, 2001
AN ACT 1 Authorizing counties and municipalities to designate urban 2 infill and redevelopment areas based on specified criteria; 3 providing for community participation; requiring preparation 4 of a plan or designation of an existing plan and providing 5 requirements with respect thereto; requiring notice and 6 public hearing for the ordinance adopting the plan; providing 7 for amendment of the local comprehensive plan and for 8 economic and regulatory incentives; providing that counties 9 and municipalities adopting a plan may issue revenue bonds 10 and employ tax increment financing; providing a program for 11 grants to counties and municipalities with urban infill and 12 redevelopment areas; changing standards for projects located 13 in certain urban infill and redevelopment areas; authorizing 14 acquisition by eminent domain; providing procedures by which 15 counties and municipalities may develop and adopt a plan to 16 improve efficiency, accountability and coordination of 17 delivery of local government services; and authorizing 18 municipal annexation. 19 The General Assembly of the Commonwealth of Pennsylvania 20 hereby enacts as follows: 21 Section 1. Short title. 22 This act shall be known and may be cited as the 21st Century 23 Neighborhoods Act. 24 Section 2. Legislative findings and purpose. 25 The General Assembly finds and declares as follows:
1 (1) Fiscally strong urban centers are beneficial to 2 State and regional economies and resources, are a method for 3 reduction of future urban sprawl and should be promoted by 4 State, regional and local governments. 5 (2) The health and vibrancy of the urban cores benefit 6 their respective regions and this Commonwealth; conversely, 7 the deterioration of those urban cores negatively impacts the 8 surrounding area and this Commonwealth. 9 (3) In recognition of the interwoven destiny between the 10 urban center, the suburbs, the region and the Commonwealth, 11 the respective governments need to establish a framework and 12 work in partnership with communities and the private sector 13 to revitalize urban centers. 14 (4) Commonwealth urban policies should guide the 15 Commonwealth, regional agencies, local governments and the 16 private sector in preserving and redeveloping existing urban 17 centers and promoting the adequate provision of 18 infrastructure, human services, safe neighborhoods, 19 educational facilities and economic development to sustain 20 these centers into the future. 21 (5) Successfully revitalizing and sustaining the urban 22 centers is dependent on addressing, through an integrated and 23 coordinated community effort, a range of varied components 24 essential to a healthy urban environment, including cultural, 25 educational, recreational, economic, transportation and 26 social service components. 27 (6) Infill development and redevelopment are recognized 28 as important components and useful mechanisms to promote and 29 sustain urban centers. Commonwealth and regional entities and 30 local governments should provide incentives to promote urban 20010S0378B0391 - 2 -
1 infill and redevelopment. Existing programs and incentives 2 should be integrated to the extent possible to promote urban 3 infill and redevelopment and to achieve the goals of the 4 Commonwealth urban policy. 5 (7) In recognition of the importance of Pennsylvania's 6 vital urban centers and of the need to develop and revitalize 7 downtown areas in order to accommodate growth in an orderly, 8 efficient and environmentally acceptable manner, 9 centralization of commercial, governmental, retail, 10 residential and cultural activities within downtown areas 11 should be encouraged by: 12 (i) Providing incentives to encourage private sector 13 investment in the preservation and enhancement of 14 downtown areas. 15 (ii) Assisting local governments in the planning, 16 financing and implementation of development efforts aimed 17 at revitalizing distressed downtown areas. 18 (iii) Promoting Commonwealth programs and 19 investments which encourage redevelopment of downtown 20 areas. 21 (iv) Encouraging communities to engage in a redesign 22 step to include public participation of members of the 23 community in envisioning redevelopment goals and design 24 of the community core before redevelopment. 25 (v) Ensuring that local governments have adequate 26 flexibility to determine and address their urban 27 priorities within the Commonwealth urban policy. 28 (vi) Enhancing the linkages between land use, water 29 use and transportation planning in State, regional and 30 local plans for current and future designated urban 20010S0378B0391 - 3 -
1 areas. 2 (vii) Promoting processes for the Commonwealth, 3 general purpose local governments, school boards and 4 local community colleges to coordinate and cooperate 5 regarding educational facilities in urban areas, 6 including planning functions, the development of joint 7 facilities and the reuse of existing buildings. 8 (viii) Encouraging development of mass transit 9 systems for urban centers, including multimodal 10 transportation feeder systems, as a priority of local, 11 metropolitan, regional and State transportation planning. 12 (ix) Locating appropriate public facilities within 13 urban centers to demonstrate public commitment to the 14 centers and to encourage private sector development. 15 (x) Integrating State programs that have been 16 developed to promote economic development and 17 neighborhood revitalization through incentives to promote 18 the development of designated urban infill areas. 19 (xi) Promoting infill development and redevelopment 20 as an important mechanism to revitalize and sustain urban 21 centers. 22 Section 3. Definitions. 23 The following words and phrases when used in this act shall 24 have the meanings given to them in this section unless the 25 context clearly indicates otherwise: 26 "Local government." Any county or municipality. 27 "Urban infill and redevelopment area." An area or areas 28 designated by a local government where: 29 (1) public services such as water and wastewater, 30 transportation, schools and recreation are already available 20010S0378B0391 - 4 -
1 or are scheduled to be provided in an adopted five-year 2 schedule of capital improvements and are located within the 3 existing urban service area as defined in the local 4 government's comprehensive plan; 5 (2) the area, or one or more neighborhoods within the 6 area, suffers from pervasive poverty, unemployment and 7 general distress; 8 (3) the area exhibits a higher than average proportion, 9 compared to the local government as a whole, of buildings 10 that are substandard, overcrowded, dilapidated, vacant or 11 abandoned, or functionally obsolete; 12 (4) more than 50% of the area is within one-quarter mile 13 of a transit stop or stops, or such transit stop or stops 14 will be made available concurrent with the designation; and 15 (5) the area includes or is adjacent to community 16 redevelopment areas or enterprise zones or has been 17 designated by the Federal Government as an empowerment zone, 18 enterprise community or similar urban revitalization 19 designation. 20 Section 4. Designation of urban infill and redevelopment area. 21 (a) Infill designation.--A local government may designate a 22 geographic area or areas within its jurisdiction as an urban 23 infill and redevelopment area for the purpose of targeting 24 economic, job creation, housing, transportation, neighborhood 25 revitalization and preservation and land use incentives to 26 encourage urban infill and redevelopment within the urban core. 27 (b) Community participation.--As part of the preparation of 28 an urban infill and redevelopment area plan, a community 29 participation process shall be implemented in each neighborhood 30 within the area targeted for designation as an urban infill and 20010S0378B0391 - 5 -
1 redevelopment area. The process shall include the input of 2 stakeholders, including, but not limited to, community-based 3 organizations, neighborhood associations and educational and 4 religious organizations. The objective of the community 5 participation is to encourage communities within the proposed 6 urban infill and redevelopment area to participate in the design 7 and implementation of the plan, including a visioning of the 8 community core, before redevelopment. Issues to be addressed in 9 the planning process include the size of the area, the 10 objectives for urban infill and redevelopment, coordination with 11 existing redevelopment programs, goals for improving transit and 12 transportation, the objectives for economic development, job 13 creation, crime reduction and neighborhood preservation and 14 revitalization. 15 (c) Preparation of plan.--A local government seeking to 16 designate a geographic area within its jurisdiction as an urban 17 infill and redevelopment area shall prepare a plan that 18 describes the infill and redevelopment objectives of the local 19 government within the proposed area. In lieu of preparing a new 20 plan, the local government may demonstrate that an existing plan 21 or combination of plans associated with a community development 22 area, sustainable community, enterprise zone or neighborhood 23 improvement district includes the factors listed in this 24 subsection, or may amend such existing plans to include the 25 factors listed in this subsection. The plan shall demonstrate 26 the local government and community's commitment to 27 comprehensively addressing the urban problems within the urban 28 infill and redevelopment area and identify activities and 29 programs to accomplish locally identified goals such as code 30 enforcement; improved educational opportunities; reduction in 20010S0378B0391 - 6 -
1 crime; neighborhood preservation and revitalization; provision 2 of infrastructure needs, including mass transit and multimodal 3 linkages; and mixed-use planning to promote multifunctional 4 redevelopment to improve both the residential and commercial 5 quality of life in the area. The plan shall also: 6 (1) Contain a map depicting the geographic area or areas 7 to be included within the designation. 8 (2) Confirm that the urban infill and redevelopment area 9 is within an existing urban service area defined in the local 10 government's comprehensive plan. 11 (3) Identify existing enterprise zones, community 12 redevelopment areas, community development corporations, 13 downtown redevelopment districts, safe neighborhood 14 improvement districts, historic preservation districts and 15 empowerment zones located within the area proposed for 16 designation as an urban infill and redevelopment area and 17 provide a framework for coordinating infill and redevelopment 18 programs within the urban core. 19 (4) Identify a memorandum of understanding between the 20 district school board and the local government jurisdiction 21 regarding public school facilities located within the urban 22 infill and redevelopment area to identify how the school 23 board will provide priority to enhancing public school 24 facilities and programs in the designated area, including the 25 reuse of existing buildings for schools within the area. 26 (5) Identify each neighborhood within the proposed area 27 and State preservation and revitalization goals and projects 28 identified through the community participation process and 29 how such projects shall be implemented. 30 (6) Identify how the local government intends to 20010S0378B0391 - 7 -
1 implement affordable housing programs, including, but not 2 limited to, economic and community development programs 3 administered by the Department of Community and Economic 4 Development, within the urban infill and redevelopment area. 5 (7) Identify strategies for reducing crime. 6 (8) Adopt, if applicable, land development regulations 7 specific to the urban infill and redevelopment area which 8 include, for example, setbacks and parking requirements 9 appropriate to urban development. 10 (9) Identify and map any relevant public transportation 11 corridors designated by a metropolitan planning organization 12 in its long-range transportation plans or by the local 13 government in its comprehensive plan for which the local 14 government seeks designation as a transportation concurrency 15 exception area, and describe how public transportation, 16 pedestrian ways and bicycle ways will be implemented as an 17 alternative to increased automobile use for such areas. 18 (10) Identify and adopt a package of financial and local 19 government incentives which the local government will offer 20 for new development, expansion of existing development and 21 redevelopment within the urban infill and redevelopment area. 22 Examples of such incentives include: 23 (i) Waiver of license and permit fees. 24 (ii) Waiver of local option sales taxes. 25 (iii) Waiver of delinquent taxes or fees to promote 26 the return of property to productive use. 27 (iv) Expedited permitting. 28 (v) Lower transportation impact fees for development 29 which encourages higher use of public transit, pedestrian 30 and bicycle modes of transportation. 20010S0378B0391 - 8 -
1 (vi) Prioritization of infrastructure spending 2 within the urban infill and redevelopment area. 3 (vii) Local government absorption of developers' 4 concurrency costs. 5 (11) Identify how activities and incentives within the 6 urban infill and redevelopment area will be coordinated and 7 what administrative mechanism the local government will use 8 for the coordination. 9 (12) Identify performance measures to evaluate the 10 success of the local government in implementing the urban 11 infill and redevelopment plan. 12 (d) Adoption of plan.--After the preparation of an urban 13 infill and redevelopment plan or designation of an existing 14 plan, the local government shall adopt the plan by ordinance. 15 Public hearings shall be held on such ordinance, and notice 16 shall be given of such hearings. 17 (e) Land use plan amendment.--In order for a local 18 government to designate an urban infill and redevelopment area, 19 it must amend its comprehensive land use plan to adopt the urban 20 infill and redevelopment area plan and delineate the urban 21 infill and redevelopment area within the future land use element 22 of its comprehensive plan. If the local government elects to 23 employ an existing or amended community redevelopment, 24 sustainable community, enterprise zone or neighborhood 25 improvement district plan or plans in lieu of preparation of an 26 urban infill and redevelopment plan, the local government must 27 amend its comprehensive land use plan to delineate the urban 28 infill and redevelopment area within the future land use element 29 of its comprehensive plan. 30 (f) Eligibility-- 20010S0378B0391 - 9 -
1 (1) In order to continue to be eligible for the economic 2 and regulatory incentives granted with respect to an urban 3 infill and redevelopment area, the local government must 4 demonstrate during the evaluation, assessment and review of 5 its comprehensive plan that at least 10% of its combined 6 annual residential, commercial and institutional development 7 has occurred within the designated urban infill and 8 redevelopment area. 9 (2) If the local government fails to implement the urban 10 infill and redevelopment plan in accordance with the 11 deadlines set forth in the plan, the Department of Community 12 and Economic Development may seek to rescind the economic and 13 regulatory incentives granted to the urban infill and 14 redevelopment area. The action to rescind may be initiated 90 15 days after issuing a written letter of warning to the local 16 government. 17 Section 5. Economic incentives and report. 18 (a) Bonds.--A local government with an adopted urban infill 19 and redevelopment plan or plan employed in lieu thereof may 20 issue revenue bonds and employ tax increment financing for the 21 purpose of financing the implementation of the plan. 22 (b) Special assessments.--A local government with an adopted 23 urban infill and redevelopment plan or plan employed in lieu 24 thereof may exercise the powers granted for community 25 redevelopment neighborhood improvement districts, including the 26 authority to levy special assessments. 27 (c) Report.--State agencies that provide infrastructure 28 funding, cost reimbursement, grants or loans to local 29 governments, including, but not limited to, the Department of 30 Environmental Protection, the Department of Community and 20010S0378B0391 - 10 -
1 Economic Development and the Department of Transportation, are 2 directed to report to the President of the Senate and the 3 Speaker of the House of Representatives by January 1, 2001, 4 regarding statutory and rule changes necessary to give urban 5 infill and redevelopment areas identified by local governments 6 under this act an elevated priority in infrastructure funding, 7 loan and grant programs. 8 Section 6. Grant program. 9 An urban infill and redevelopment assistance grant program is 10 created for local governments with adopted urban infill and 11 redevelopment areas. Ninety percent of the general revenue 12 appropriated for this program shall be available for 50/50 13 matching grants for planning and implementing urban infill and 14 redevelopment projects that further the objectives set forth in 15 the local government's adopted urban infill and redevelopment 16 plan or plan employed in lieu thereof. The remaining 10% of the 17 revenue must be used for outright grants for projects requiring 18 an expenditure of under $50,000. Projects that provide 19 employment opportunities to clients of the wages program and 20 projects within urban infill and redevelopment areas that 21 include a community redevelopment area, enterprise zone or 22 neighborhood improvement district must be given an elevated 23 priority in the scoring of competing grant applications. The 24 Division of Community Development and Housing of the Department 25 of Community and Economic Development shall administer the grant 26 program. The Department of Community and Economic Development 27 shall adopt rules establishing grant review criteria consistent 28 with this section. 29 Section 7. Eminent domain. 30 Any county or municipality, or any community redevelopment 20010S0378B0391 - 11 -
1 agency pursuant to specific approval of the governing body of 2 the county or municipality which established the agency, as 3 provided by any county or municipal ordinance has the right to 4 acquire by condemnation any interest in real property, including 5 a fee simple title thereto, which it deems necessary for or in 6 connection with community redevelopment and related activities 7 under this act. 8 Section 8. Efficient local government services. 9 (a) General rule.--In connection with an urban infill and 10 redevelopment area, any county or combination of counties, and 11 the municipalities therein, may use the procedures provided by 12 this section to develop and adopt a plan to improve the 13 efficiency, accountability and coordination of the delivery of 14 local government services. The development of such a plan may be 15 initiated by a resolution adopted by a majority vote of the 16 governing body of each of the counties involved, by resolutions 17 adopted by a majority vote of the governing bodies of a majority 18 of the municipalities within each county or by resolutions 19 adopted by a majority vote of the governing bodies of the 20 municipality or combination of municipalities representing a 21 majority of the municipal population of each county. The 22 resolution shall specify the representatives of the county and 23 municipal governments, of any affected special districts and of 24 any relevant local government agencies who will be responsible 25 for developing the plan. The resolution shall include a proposed 26 timetable for development of the plan and shall specify the 27 local government support and personnel services which will be 28 made available to the representatives developing the plan. 29 (b) Plan.--Upon adoption of a resolution or resolutions as 30 provided in subsection (a), the designated representatives shall 20010S0378B0391 - 12 -
1 develop a plan for delivery of local government services. The 2 plan shall: 3 (1) Designate the areawide and local government services 4 which are the subject of the plan. 5 (2) Describe the existing organization of such services 6 and the means of financing the services, and create a 7 reorganization of such services and the financing thereof 8 that will meet the goals of this section. 9 (3) Designate the local agency that should be 10 responsible for the delivery of each service. 11 (4) Designate those services that should be delivered 12 regionally or countywide. No provision of the plan shall 13 operate to restrict the power of a municipality to finance 14 and deliver services in addition to or at a higher level than 15 the services designated for regional or countywide delivery 16 under this paragraph. 17 (5) Provide means to reduce the cost of providing local 18 services and enhance the accountability of service providers. 19 (6) Include a multiyear capital outlay plan for 20 infrastructure. 21 (7) Specifically describe any expansion of municipal 22 boundaries that would further the goals of this section. Any 23 area proposed to be annexed must meet all applicable legal 24 standards. The plan shall not contain any provision for 25 contraction of municipal boundaries or elimination of any 26 municipality. 27 (8) Provide specific procedures for modification or 28 termination of the plan. 29 (9) Specify the effective date of the plan. 30 (c) Conformance to other plans.-- 20010S0378B0391 - 13 -
1 (1) A plan developed pursuant to this section must 2 conform to all applicable comprehensive plans. 3 (2) No provision of a plan developed pursuant to this 4 section shall restrict the authority of any State or regional 5 governmental agency to perform any duty required to be 6 performed by that agency by law. 7 (d) Approval.-- 8 (1) A plan developed pursuant to this section must be 9 approved by a majority vote of the governing body of each 10 county involved in the plan, by a majority of the governing 11 bodies of a majority of municipalities in each county and by 12 a majority vote of the governing bodies of the municipality 13 or municipalities that represent a majority of the municipal 14 population of each county. 15 (2) After approval by the county and municipal governing 16 bodies as required by paragraph (1), the plan shall be 17 submitted for referendum approval in a countywide election in 18 each county involved. The plan shall not take effect unless 19 approved by a majority of the electors of each county who 20 vote in the referendum and also by a majority of the electors 21 of the municipalities that represent a majority of the 22 municipal population of each county who vote in the 23 referendum. If approved by the electors as required by this 24 paragraph, the plan shall take effect on the date specified 25 in the plan. 26 Section 9. Effective date. 27 This act shall take effect immediately. L27L53JAM/20010S0378B0391 - 14 -