PRINTER'S NO. 4478
No. 2929 Session of 2002
INTRODUCED BY WALKO, BEBKO-JONES, BELARDI, BUXTON, CALTAGIRONE,
CAPPELLI, COSTA, CURRY, DALLY, DeLUCA, DERMODY, DeWEESE,
FREEMAN, GEORGE, HARHAI, JOSEPHS, LEVDANSKY, McGEEHAN,
McNAUGHTON, S. MILLER, PISTELLA, ROEBUCK, SAINATO, SOLOBAY,
STEELMAN, TIGUE, WANSACZ, YOUNGBLOOD, D. EVANS, GEIST,
GRUCELA, JAMES, LAUGHLIN, MANDERINO, McILHATTAN, MELIO,
PALLONE, PRESTON, ROONEY, SCRIMENTI, STABACK, THOMAS,
TRAVAGLIO AND WOJNAROSKI, OCTOBER 15, 2002
REFERRED TO COMMITTEE ON URBAN AFFAIRS, OCTOBER 15, 2002
AN ACT
1 Establishing a grant program to assist municipalities in the
2 eradication of blighted property; conferring powers and
3 duties upon the Department of Community and Economic
4 Development; establishing the Blighted Property Eradication
5 Grant Fund; creating the Blighted Property Eradication Grant
6 Sinking Fund; authorizing the incurring of indebtedness of
7 $100,000,000 to assist in the eradication of blighted
8 property; and making an appropriation.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 CHAPTER 1
12 PRELIMINARY PROVISIONS
13 Section 101. Short title.
14 This act shall be known and may be cited as the Blighted
15 Property Eradication Grant Act.
16 Section 102. Purpose.
17 The purpose of this act is to provide assistance to
18 municipalities to remove blighted properties to clear sites for
1 new development.
2 Section 103. Definitions.
3 The following words and phrases when used in this act shall
4 have the meanings given to them in this section unless the
5 context clearly indicates otherwise:
6 "Blighted property." Any of the following:
7 (1) A premises which, because of physical condition or
8 use, is regarded as a public nuisance at common law or has
9 been declared a public nuisance in accordance with the local
10 housing, building, plumbing, fire and related codes and
11 ordinances, including nuisance and dangerous building
12 ordinances.
13 (2) A premises which, because of physical condition, use
14 or occupancy, is considered an attractive nuisance to
15 children, including, but not limited to, abandoned wells,
16 shafts, basements, excavations and unsafe fences or
17 structures.
18 (3) A dwelling which, because it is dilapidated,
19 unsanitary, unsafe, vermin infested or lacking in the
20 facilities and equipment required by the housing code of the
21 municipality, has been designated by the department
22 responsible for enforcement of the code as unfit for human
23 habitation.
24 (4) A structure which is a fire hazard or is otherwise
25 dangerous to the safety of persons or property.
26 (5) A structure from which the utilities, plumbing,
27 heating, sewerage or other facilities have been disconnected,
28 destroyed, removed or rendered ineffective so that the
29 property is unfit for its intended use.
30 (6) A vacant or unimproved lot or parcel of ground in a
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1 predominantly built-up neighborhood which by reason of
2 neglect or lack of maintenance has become a place for
3 accumulation of trash and debris or a haven for rodents or
4 other vermin.
5 (7) An unoccupied property which has been tax delinquent
6 for a period of two years and those in the future having a
7 two-year tax delinquency.
8 (8) A property which is vacant but not tax delinquent
9 and which has not been rehabilitated within one year of the
10 receipt of notice to rehabilitate from the appropriate code
11 enforcement agency.
12 "Department." The Department of Community and Economic
13 Development of the Commonwealth.
14 "Fund." The Blighted Property Eradication Grant Fund
15 established under section 501(a).
16 "Municipality." A city, borough, incorporated town, township
17 or home rule, optional plan or optional charter municipality or
18 public authority within this Commonwealth which has a
19 redevelopment assistance or antiblight program. The term also
20 includes any other governmental entity charged with enforcement
21 of municipal housing, building, plumbing, fire and related
22 codes.
23 "Review board." The Blighted Property Eradication Review
24 Board established under section 302.
25 CHAPTER 3
26 GRANT PROGRAM
27 Section 301. Blighted Property Eradication Grant Program.
28 (a) Establishment.--The Blighted Property Eradication Grant
29 Program is hereby established and shall be administered by the
30 department. The department shall issue grants to eligible
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1 municipalities for the purpose of reducing blighted property
2 conditions through the demolition and removal of blighted
3 property.
4 (b) Eligibility.--In order to receive a grant under this
5 act, a municipality must submit an application acceptable to the
6 review board and satisfy any eligibility criteria established
7 under subsection (e).
8 (c) Matching funds.--A municipality shall provide its own
9 funds or in-kind contributions, approved by the department as
10 determined by regulations promulgated by the department under
11 section 303, equal to the amount of the grant provided, and
12 shall dedicate and expend those funds for the purpose for which
13 the grant was awarded.
14 (d) Limitation.--Grants provided under this section shall
15 not exceed $2,000,000 per year. A municipality shall not be
16 entitled to more than one grant per calendar year.
17 (e) Criteria.--The department shall establish criteria for
18 the grants, including, but not limited to:
19 (1) The overall need of the municipality as determined
20 by the average income of the residents of the municipality.
21 (2) The age of the existing housing stock in the
22 municipality.
23 (3) The municipality's existing tax base.
24 (4) The existing financial condition of the
25 municipality.
26 Section 302. Blighted Property Eradication Review Board.
27 (a) Establishment.--There is hereby established a Blighted
28 Property Eradication Review Board within the department.
29 (b) Powers and duties.--It shall be the duty of the review
30 board to review each application submitted pursuant to this act,
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1 and the review board shall have the power to award or deny a
2 municipality a grant under this act. The review board shall
3 attempt to award grants to the most geographically diverse
4 extent as possible.
5 CHAPTER 5
6 ADMINISTRATION
7 Section 501. Fund.
8 (a) Establishment.--The Blighted Property Eradication Grant
9 Fund is established as a separate fund in the State Treasury.
10 (b) Source.--The proceeds from the sale of bonds under
11 section 705 shall be a source of the fund.
12 (c) Purpose.--The department shall administer the fund to do
13 all of the following:
14 (1) Repay the State Treasurer for the cost of any bonds
15 issued under Chapter 7.
16 (2) Make grants under Chapter 3.
17 (3) Administer this act.
18 In any fiscal year, the review board may use for administrative
19 costs 1% of the aggregate debt authorized under section 703.
20 CHAPTER 7
21 DEBT
22 Section 701. Definitions.
23 The following words and phrases when used in this chapter
24 shall have the meanings given to them in this section unless the
25 context clearly indicates otherwise:
26 "Issuing officials." The Governor, the Auditor General and
27 the State Treasurer acting in concert to effect borrowing in
28 accordance with and for the purposes of this act.
29 "Secretary." The Secretary of the Commonwealth.
30 Section 702. Referendum to authorize incurring indebtedness.
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1 (a) Submission of question to electors.--The question of
2 incurring indebtedness of $100,000,000 for the fund to be used
3 to help eradicate blighted property by issuing grants to
4 municipalities shall be submitted to the electors at the next
5 primary, municipal or general election following the effective
6 date of this act.
7 (b) Certification to county boards of elections.--The
8 secretary shall immediately certify the question under
9 subsection (a) to the county boards of elections.
10 (c) Form of question.--The question shall be in
11 substantially the following form:
12 Do you favor the incurring of indebtedness by the
13 Commonwealth of $100,000,000 to be used to help eradicate
14 blighted property by issuing grants to municipalities in
15 this Commonwealth?
16 (d) Conduct of election.--The election shall be conducted in
17 accordance with the act of June 3, 1937 (P.L.1333, No.320),
18 known as the Pennsylvania Election Code, except that the time
19 limits for advertisement of notice of the election may be waived
20 as to the question.
21 Section 703. Authority to borrow.
22 In the event that the question of incurring indebtedness, as
23 described in section 702, is approved by a majority of those
24 voting on the question in accordance with section 7(a)(3) of
25 Article VIII of the Constitution of Pennsylvania, the issuing
26 officials are hereby authorized and directed to borrow, on the
27 credit of the Commonwealth, such sum or sums of money not
28 exceeding in the aggregate the sum of $100,000,000 as may be
29 necessary to carry out the purposes of this act.
30 Section 704. Bonds, issue, maturity, interest, etc.
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1 (a) Issuance.--As evidence of the indebtedness authorized in
2 this act, general obligation bonds of the Commonwealth shall be
3 issued from time to time for such total amounts, in such forms,
4 in such denominations and subject to such terms and conditions
5 of issue, redemption and maturity, rate or rates of interest and
6 time of payment of interest as the issuing officials shall
7 direct, except that the latest stated maturity date shall not
8 exceed 30 years from the date of the bond first issued for each
9 such series.
10 (b) Signatures and seal.--All bonds issued under the
11 authority of this act shall bear facsimile signatures of the
12 issuing officials, and a facsimile of the Great Seal of the
13 Commonwealth, and shall be countersigned by two duly authorized
14 officers of the duly authorized loan and transfer agents of the
15 Commonwealth.
16 (c) Full faith and credit.--All bonds issued in accordance
17 with the provisions of this act shall be direct obligations of
18 the Commonwealth, and the full faith and credit of the
19 Commonwealth are hereby pledged for the payment of the interest
20 thereon as the same shall become due and for the payment of the
21 principal thereof at maturity. All bonds issued under the
22 provisions of this act shall be exempt from taxation for State
23 and local purposes. The principal of and interest on such bonds
24 shall be payable in lawful money of the United States of
25 America.
26 (d) Form.--Bonds issued under this act may be issued as
27 coupon bonds or registered as to both principal and interest as
28 the issuing officials may determine. If interest coupons are
29 attached, they shall contain the facsimile signature of the
30 State Treasurer.
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1 (e) Amount.--The issuing officials shall provide for the
2 amortization of the bonds issued under this act in substantial
3 and regular amounts over the term of the debt.
4 (f) Preparation.--The issuing officials shall proceed to
5 have the necessary bonds prepared and printed. The bonds, as
6 soon as they are prepared and printed, shall be deposited with
7 the duly authorized loan and transfer agent of the Commonwealth,
8 there to remain until sold in accordance with the provisions of
9 this act.
10 Section 705. Sale of bonds.
11 (a) Offering for sale.--When bonds are issued under this
12 act, they shall be offered for sale and shall be sold by the
13 issuing officials to the highest and best bidder or bidders
14 after due public advertisement, on such terms and conditions and
15 upon such open competitive bidding as the issuing officials
16 shall direct. The manner and character of advertisement and the
17 times of advertising shall be prescribed by the issuing
18 officials.
19 (b) Private sale.--Any portion of any bond issue offered
20 under subsection (a) and not sold or subscribed for may be
21 disposed of by private sale by the issuing officials, in such
22 manner and at such prices as the Governor shall direct.
23 (c) Series.--When bonds are issued from time to time, the
24 bonds of each issue shall constitute a separate series to be
25 designated by the issuing officials or may be combined for sale
26 as one series with other general obligation bonds of the
27 Commonwealth.
28 Section 706. Refunding bonds.
29 The issuing officials are hereby authorized to provide by
30 resolution for the issuance of refunding bonds for the purpose
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1 of refunding any bonds issued under the provisions of this act
2 and then outstanding, either by voluntary exchange with the
3 holders of such outstanding bonds with accrued interest and any
4 premium payable thereon, at maturity or at any call date. The
5 issuance of refunding bonds, the maturities and other details
6 thereof, the rights of the holders thereof and the duties of the
7 issuing officials in respect to refunding bonds shall be
8 governed by the provisions of this act insofar as they may be
9 applicable. Refunding bonds may be issued by the issuing
10 officials to refund bonds originally issued or to refund bonds
11 previously issued for refunding purposes.
12 Section 707. Registration of bonds.
13 The Auditor General shall prepare the necessary registry book
14 to be kept in the office of the duly authorized loan and
15 transfer agent of the Commonwealth for the registration of any
16 bonds, at the request of owners thereof, according to the terms
17 and conditions of issue directed by the issuing officials. All
18 bonds which are issued under this act without interest coupons
19 attached shall be registered in the registry books kept by the
20 duly authorized loan and transfer agent of the Commonwealth.
21 Section 708. Disposition and use of proceeds.
22 (a) Payment into fund.--The proceeds realized from the sale
23 of bonds under this act shall be paid into the fund and are
24 hereby specifically dedicated to the purpose of the referendum
25 authorized under section 702. The moneys shall be paid
26 periodically by the State Treasurer to the department at such
27 times and in such amounts as may be necessary to satisfy the
28 purpose of this act.
29 (b) Investment and earnings.--Pending their application to
30 the purposes authorized, moneys held or deposited in the fund by
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1 the State Treasurer may be invested or reinvested as are other
2 funds in the custody of the State Treasurer in the manner
3 provided by law. All earnings received from the investment or
4 deposit of such funds shall be paid into the State Treasury to
5 the credit of the fund.
6 Section 709. Blighted Property Eradication Grant Sinking Fund.
7 (a) Establishment.--All bonds issued under the authority of
8 this act shall be redeemed at maturity, and all interest due
9 from time to time on such bonds shall be paid from the Blighted
10 Property Eradication Grant Sinking Fund which is hereby
11 established. For the specific purpose of redeeming these bonds
12 at maturity and paying all interest thereon in accordance with
13 the information received from the Governor, the General Assembly
14 shall appropriate moneys for the payment of interest on these
15 bonds and the principal thereof at maturity.
16 (b) Investment.--All moneys paid into the Blighted Property
17 Eradication Grant Sinking Fund and all of such moneys not
18 necessary to pay accruing interest shall be invested by the
19 Board of Finance and Revenue in such securities as are provided
20 by law for the investment of the sinking funds of the
21 Commonwealth.
22 Section 710. Expenses of preparation, issue and sale of bonds.
23 There is hereby appropriated to the State Treasurer, from the
24 proceeds of the bonds issued, as much of the moneys as may be
25 necessary for all costs and expenses in connection with the
26 issue of and sale and registration of bonds in connection with
27 this act.
28 Section 711. Temporary financing authorization.
29 (a) Temporary borrowing.--Pending the issuance of bonds of
30 the Commonwealth, the issuing officials are authorized, on the
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1 credit of the Commonwealth, to make temporary borrowings of such
2 moneys as may from time to time be necessary to carry out the
3 purposes of this act and are authorized in the name and on
4 behalf of the Commonwealth to enter into loan or credit
5 agreements with any banks or trust companies or other lending
6 institutions or persons in the United States having power to
7 enter into the same.
8 (b) Form.--All temporary borrowings made under the authority
9 of this section shall be evidenced by notes of the Commonwealth,
10 which shall be issued from time to time for such amounts, not
11 exceeding in the aggregate the sum of $100,000,000, in such form
12 and in such denominations and subject to such terms and
13 conditions of issue, prepayment or redemption and maturity, rate
14 of interest and time of payment of interest as the issuing
15 officials shall direct. All notes issued under the authority of
16 this section shall bear the facsimile signatures of the issuing
17 officials and a facsimile of the Great Seal of the Commonwealth
18 and shall be countersigned by two duly authorized officers of a
19 duly authorized loan and transfer agent of the Commonwealth.
20 (c) Funding and retirement.--All notes under this section
21 shall be funded and retired by the issuance and sale of bonds of
22 the Commonwealth to the extent that payment of these notes has
23 not otherwise been made or provided for.
24 (d) Proceeds.--The proceeds of all temporary borrowings
25 under this section shall be paid into the fund.
26 Section 712. Quorum.
27 Whenever in this act any action is to be taken or any
28 decision is to be made by the issuing officials and the three
29 officers are not able to agree unanimously, the action or
30 decision of the Governor and either the Auditor General or the
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1 State Treasurer shall be binding and final.
2 Section 713. Information to General Assembly.
3 The Governor shall include in every budget submitted to the
4 General Assembly full information relating to the issuance of
5 bonds under the provisions of this act and the status of the
6 sinking funds of the Commonwealth for the payment of the
7 interest on those bonds and the principal thereof at maturity.
8 Section 714. Allotment of moneys.
9 (a) Appropriation.--Of the moneys received by the
10 Commonwealth from the issuance and sale of bonds and notes
11 pursuant to this act, when appropriated by the General Assembly
12 from the fund, the sum of $100,000,000 shall be allotted to the
13 department for the eradication of blighted properties through
14 the issuance of grants to municipalities.
15 (b) Federal programs.--The department and review board may
16 utilize any available Federal program to augment the funds made
17 available to the department or review board under this act.
18 Section 715. Appropriation.
19 (1) The sum of $100,000,000, or as much thereof as is
20 able to be borrowed by temporary financing or by bonds, is
21 hereby appropriated to the Blighted Property Eradication
22 Grant Fund for the purposes set forth in this act.
23 (2) The General Assembly may make appropriations from
24 time to time to the Blighted Property Eradication Grant Fund,
25 to the Department of Community and Economic Development, or
26 to both, to carry out the purposes of this act, which
27 appropriations shall be continuing appropriations and shall
28 not lapse.
29 CHAPTER 53
30 MISCELLANEOUS PROVISIONS
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1 Section 5301. Regulations.
2 Within 90 days of the effective date of this act, the
3 department shall promulgate rules and regulations to carry out
4 the provisions of this act.
5 Section 5302. Effective date.
6 This act shall take effect immediately.
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