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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 594, 1260, 1788,         PRINTER'S NO. 3187
        1989, 3185

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 500 Session of 2003


        INTRODUCED BY FREEMAN, ARGALL, TANGRETTI, HERMAN, CURRY, HARPER,
           STURLA, HENNESSEY, STEIL, GRUCELA, SAMUELSON, ALLEN, BEBKO-
           JONES, BELARDI, BELFANTI, BROWNE, CALTAGIRONE, CASORIO,
           CAWLEY, CORRIGAN, COSTA, DAILEY, DALLY, DeWEESE, EACHUS,
           D. EVANS, FAIRCHILD, FICHTER, FRANKEL, GEIST, GERGELY,
           HALUSKA, HARHAI, HERSHEY, HORSEY, HUTCHINSON, JOSEPHS,
           KELLER, KIRKLAND, LAUGHLIN, LEACH, LEDERER, LEH, LESCOVITZ,
           LEVDANSKY, LEWIS, MANDERINO, MANN, MARKOSEK, McCALL,
           McILHINNEY, MELIO, O'NEILL, PETRARCA, PETRI, PETRONE,
           PISTELLA, PRESTON, READSHAW, ROBERTS, RUBLEY, SAINATO,
           SANTONI, SCHRODER, SCRIMENTI, SHANER, SOLOBAY, STABACK,
           SURRA, THOMAS, TRAVAGLIO, VITALI, WALKO, WANSACZ, WATSON,
           WILLIAMS, WRIGHT, YOUNGBLOOD, YUDICHAK, PALLONE, BISHOP,
           REICHLEY AND BARD, FEBRUARY 26, 2003

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JANUARY 21, 2004

                                     AN ACT

     1  Providing for a residential neighborhood enhancement program to
     2     be administered by the Department of Community and Economic
     3     Development; AND MAKING AN ALLOCATION OF APPROPRIATED FUNDS.   <--

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Elm Street
     8  PROGRAM Act.                                                      <--
     9  Section 2.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have the meanings given to them in this section unless the


     1  context clearly indicates otherwise:
     2     "Department."  The Department of Community and Economic
     3  Development of the Commonwealth.
     4     "Established residential neighborhood."  A defined geographic
     5  area which has consisted of buildings and structures for housing
     6  individuals and families, WHICH IS in close proximity to a        <--
     7  commercial district and which has existed as a residential
     8  neighborhood since before 1961.
     9     "Main Street Program."  The program administered by the
    10  Department of Community and Economic Development designed to
    11  assist a community's downtown economic development effort
    12  through the establishment of a local organization dedicated to
    13  downtown revitalization and management of downtown
    14  revitalization by hiring a full-time professional downtown
    15  coordinator.
    16     "Program."  The Elm Street Program as established in section
    17  3.
    18  Section 3.  Elm Street Program.
    19     (a)  Establishment.--There is established an THE Elm Street    <--
    20  Program within the department which shall assist municipalities
    21  in preparing and implementing a revitalization strategy for
    22  established residential neighborhoods either in the vicinity of   <--
    23  WHICH ARE IN CLOSE PROXIMITY TO EITHER a Main Street Program      <--
    24  project or in close proximity to an existing commercial           <--
    25  district.
    26     (b)  Applications.--The department shall prepare application
    27  forms for the grant program established in this act and award
    28  grants to municipalities and other eligible entities based on
    29  the requirements in subsection (c). The department shall require
    30  that a map be furnished with all applications clearly
    20030H0500B3187                  - 2 -     

     1  identifying the established residential neighborhood and
     2  demonstrating its close proximity to a MAIN STREET PROGRAM        <--
     3  PROJECT OR AN EXISTING commercial district.
     4     (c)  Program requirements.--The program shall:
     5         (1)  Provide basic grants for a maximum of five years per
     6     project for administrative costs associated with the hiring
     7     of a professional Elm Street Manager, who may serve as an
     8     assistant to the Main Street Manager if a Main Street Program
     9     exists within a THE municipality.                              <--
    10         (2)  Provide residential reinvestment grants for
    11     infrastructure and structural improvements, including, but
    12     not limited to, streets, street lights, trees, exteriors of
    13     buildings and sidewalks or other pedestrian-oriented
    14     features.
    15         (3)  Provide planning and development grants for:
    16             (i)  Marketing and promoting urban residential
    17         living.
    18             (ii)  Leveraging additional private and public
    19         investment.
    20             (iii)  Promoting home ownership and other housing
    21         options.
    22             (iv)  Addressing social and economic concerns
    23         including, but not limited to, crime, blight, employment
    24         opportunities and public services and amenities.
    25             (v)  Achieving consistency, whenever appropriate,
    26         with existing commercial and residential revitalization
    27         efforts.
    28         (4)  Provide an assessment of the applying
    29     municipalities' MUNICIPALITY'S need for the following:         <--
    30             (i)  The establishment of a neighborhood improvement
    20030H0500B3187                  - 3 -     

     1         district as defined in the act of December 20, 2000
     2         (P.L.949, No.130), known as the Neighborhood Improvement
     3         District Act.
     4             (ii)  A review of local comprehensive plans and
     5         zoning and other land use ordinances to foster the
     6         viability of established residential neighborhoods, with
     7         a balanced mix of commercial, civic, employment and
     8         residential uses, with particular attention to a
     9         diversity of housing options.
    10             (iii)  A review of educational and recreational
    11         opportunities and facilities.
    12     (d)  Eligibility.--Municipalities or their designated
    13  agencies must meet the following criteria:
    14         (1)  Have an established residential neighborhood in need
    15     of revitalization in close proximity to a AN EXISTING          <--
    16     commercial district.
    17         (2)  Have expressed PROVIDE EVIDENCE OF support by local   <--
    18     residents, merchants and government officials.
    19         (3)  Have ability to provide a minimum of a 10% match in   <--
    20     financial and/or in-kind support for any department grants
    21         (3)  COMMIT TO PROVIDE A MINIMUM OF A 10% MATCH FOR ANY    <--
    22     DEPARTMENT GRANTS. THE MATCH MUST CONSIST OF FINANCIAL OR IN-
    23     KIND SUPPORT from other public or private sources based upon
    24     departmental guidelines. The department may waive or reduce
    25     the matching requirement if it determines such requirement
    26     would constitute a hardship upon the municipality or an THE    <--
    27     agency designated by the municipality. A hardship exists if
    28     the municipality meets one of the following criteria:
    29         (1) (I)  The municipality is declared as financially       <--
    30     distressed under the act of July 10, 1987 (P.L.246, No.47),
    20030H0500B3187                  - 4 -     

     1     known as the Municipalities Financial Recovery Act.
     2         (2) (II)  The matching requirements for the application    <--
     3     would exceed 5% of the municipality's annual operating
     4     budget.
     5         (3) (III)  Part or all of the established residential      <--
     6     neighborhood identified in the application is participating
     7     in the Pennsylvania Weed and Seed Program as administered by
     8     the Pennsylvania Commission on Crime and Delinquency.
     9         (4) (IV)  A minimum of 20% of the municipality's           <--
    10     population falls below 150% of the Federal poverty level.
    11     (e)  Multiple projects.--The department may approve more than
    12  one project within the boundaries of a municipality. Multiple
    13  projects may occur simultaneously or at different periods of
    14  time.
    15     (f)  Cooperative projects.--The department may consider
    16  applications submitted by two or more municipalities as a single
    17  application for a single project area.
    18     (g)  Priority projects.--The department shall give priority
    19  to projects with an established residential neighborhood that
    20  was already in existence prior to 1951.
    21     (h)  Limits.--The department shall establish limits on the
    22  amount of money available per project area so as to distribute
    23  the available funds as fairly as possible throughout this
    24  Commonwealth.
    25  Section 4.  Limitations.
    26     (a)  Program limits.--In no case shall the aggregate amount    <--
    27     (A)  PROGRAM LIMITS.--                                         <--
    28         (1)  NO MORE THAN 15% 20% OF ITS FUNDS APPROPRIATED OR     <--
    29     ALLOCATED TO THE PROGRAM IN ANY FISCAL YEAR MAY BE GRANTED TO
    30     MUNICIPALITIES IN ANY COUNTY.
    20030H0500B3187                  - 5 -     

     1         (2)  IN NO CASE SHALL THE AGGREGATE AMOUNT of grants in
     2     any fiscal year exceed the amount of the appropriation to the
     3     department for the program in that fiscal year OR THE AMOUNT   <--
     4     ALLOCATED TO THE PROGRAM BY THE DEPARTMENT IN THE EVENT THAT
     5     FUNDING FOR THE PROGRAM IS INCLUDED IN AN APPROPRIATION TO
     6     THE DEPARTMENT CONTAINING FUNDING FOR OTHER PROGRAMS. The
     7     provision of grants under this act shall in no way constitute
     8     an entitlement derived from the Commonwealth or a claim on
     9     any other funds of the Commonwealth.
    10     (b)  Prohibitions.--No funds from this program shall be
    11  expended to develop or convert farmland to residential,
    12  commercial or industrial uses. Farmland is any land that
    13  supports, or land with a recent history of supporting, the
    14  commercial production of agricultural crops, livestock or
    15  livestock products, poultry products, milk or dairy products,
    16  fruit or other horticultural products.
    17  SECTION 5.  ALLOCATION OF APPROPRIATED FUNDS.                     <--
    18     THE SUM OF $5,000,000 OF THE STATE FUNDS APPROPRIATED TO THE
    19  DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT FOR THE NEW
    20  COMMUNITIES PROGRAM IN SECTION 209 OF THE ACT OF MARCH 20, 2003
    21  (P.L.    , NO.1A), KNOWN AS THE GENERAL APPROPRIATION ACT OF
    22  2003, IS HEREBY ALLOCATED TO THE DEPARTMENT TO MAKE GRANTS AS
    23  AUTHORIZED IN THIS ACT.
    24  SECTION 6.  EXPIRATION OF ACT.
    25     THIS ACT SHALL EXPIRE JUNE 30, 2009 2011, UNLESS IT IS         <--
    26  REENACTED PRIOR TO THAT DATE.
    27  Section 5 7.  Effective date.                                     <--
    28     This act shall take effect immediately.


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