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                                                      PRINTER'S NO. 3820

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1560 Session of 2004


        INTRODUCED BY WRIGHT, WATSON, CLYMER, BELFANTI, BUNT, CAPPELLI,
           CAUSER, CORRIGAN, CRAHALLA, DALEY, GINGRICH, LAUGHLIN,
           MACKERETH, McILHATTAN, READSHAW, SATHER, WEBER AND YUDICHAK,
           MAY 10, 2004

        REFERRED TO COMMITTEE ON COMMERCE, MAY 10, 2004

                                     AN ACT

     1  Amending the act of December 14, 1992 (P.L.866, No.137),
     2     entitled "An act authorizing certain counties to increase the
     3     recording fees of deeds and mortgages to support or enhance
     4     local affordable housing efforts," amending the title and
     5     short title of the act; further providing for legislative
     6     purpose, for definitions, for optional fee increases and for
     7     disposition of proceeds; and providing for economic
     8     redevelopment efforts.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  The title and sections 1, 2, 3, 4 and 5 of the
    12  act of December 14, 1992 (P.L.866, No.137), known as the
    13  Optional County Affordable Housing Funds Act, are amended to
    14  read:
    15                               AN ACT
    16  Authorizing [certain] counties to increase the recording fees of
    17     deeds and mortgages to support or enhance local affordable
    18     housing efforts and economic redevelopment initiatives.
    19  Section 1.  Short title.
    20     This act shall be known and may be cited as the Optional

     1  County Affordable Housing and Economic Redevelopment Funds Act.
     2  Section 2.  Legislative purpose.
     3     The General Assembly intends to provide an alternative method
     4  for county governments to raise revenues at the local level to
     5  enable county residents to purchase or rent quality residential
     6  housing and to pursue economic redevelopment efforts that
     7  revitalize areas and communities, maximize use of local economic
     8  assets and create business and employment opportunities for
     9  their residents.
    10  Section 3.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Affordable housing effort."  Any program or project approved
    15  by the county commissioners which increases the availability of
    16  quality housing, either sales or rental, to any county resident
    17  whose annual income is less than the median income of the
    18  county.
    19     "County."  Any county of [the second, second A, third,
    20  fourth, fifth, sixth, seventh or eighth class. The term does not
    21  include any county of the first class.] this Commonwealth.
    22     "Economic redevelopment effort."  A program or project
    23  approved by the county commissioners which promotes
    24  redevelopment and revitalization of dilapidated areas, upgrading
    25  of infrastructure or aesthetics and beautification with the
    26  intent of creating or attracting business activity, affordable
    27  housing and jobs for local residents.
    28  Section 4.  Optional fee increases.
    29     (a)  Recording fees.--The county commissioners or the
    30  governing body of each county, as defined in section 3, shall
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     1  have the power and may by ordinance increase the fees charged
     2  for recording deeds and mortgages in counties of the first class
     3  under ordinances adopted under the act of August 26, 1953
     4  (P.L.1476, No.433), referred to as the Philadelphia City-County
     5  Consolidation Act, and the fees charged by the recorder of deeds
     6  for recording deeds and mortgages under the act of June 12, 1919
     7  (P.L.476, No.240), referred to as the Second Class County
     8  Recorder of Deeds Fee Law, and the act of April 8, 1982
     9  (P.L.310, No.87), referred to as the Recorder of Deeds Fee
    10  Law[.], for the purposes of affordable housing or economic
    11  redevelopment.
    12     (b)  Limitation.--The additional fees levied by the county
    13  commissioners or the governing body of the county for affordable
    14  housing shall not exceed 100% of the amounts charged [on the
    15  effective date of this act.] for recording deeds and mortgages,
    16  including the base fee, certification fee and writ tax. The
    17  additional fees levied by the county commissioners or the
    18  governing body of the county for economic redevelopment shall
    19  not exceed 100% of the base amounts charged for recording deeds
    20  and mortgages, including the base fee, certification fee and
    21  writ tax.
    22     (c)  Supplantation.--The levy by a county of additional fees
    23  for economic redevelopment under this section shall not supplant
    24  fees levied by the county for affordable housing in effect on
    25  the effective date of the authorization of the fee for economic
    26  redevelopment.
    27  Section 5.  Disposition of proceeds.
    28     (a)  Allocation.--All additional moneys raised under section
    29  4 shall be deposited in the general fund of the county and shall
    30  be allocated as follows:
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     1         (1)  A minimum of 85% or such higher amount as may be
     2     determined by the county of the additional revenue from a fee
     3     for affordable housing shall be set aside in a separate
     4     account to be used to fund affordable housing efforts in the
     5     county. [Fifteen percent of the amount allocated under this
     6     paragraph may be used by the county for the administrative
     7     costs associated with the affordable housing efforts.]
     8         (2)  A minimum of 85% or such higher amount as may be
     9     determined by the county of the additional revenue from a fee
    10     for economic redevelopment shall be set aside in a separate
    11     account to be used to fund economic redevelopment efforts in
    12     the county.
    13     (b)  Administrative costs.--Up to 15% of the additional money
    14  raised may be used by the county for the administrative costs
    15  associated with affordable housing and economic redevelopment
    16  efforts and for costs of administration and collection of fees.
    17     Section 2.  The act is amended by adding a section to read:
    18  Section 6.1.  Economic redevelopment efforts.
    19     Economic redevelopment efforts may include, but shall not be
    20  limited to:
    21         (1)  Providing matching funds to secure private, Federal
    22     and State economic redevelopment or revitalization funds.
    23         (2)  Assisting and supporting efforts by the Commonwealth
    24     or developers and lending institutions when in support of an
    25     established or recognized economic redevelopment program or
    26     statute to redevelop or revitalize local areas.
    27         (3)  Supporting the efforts of municipalities in regard
    28     to infrastructure and aesthetic improvements in dilapidated
    29     areas with grants and zero percent loans for the purpose of
    30     retaining or expanding their business base.
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     1         (4)  Supporting county affordable housing efforts.
     2     Section 3.  This act shall take effect in 60 days.



















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