THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GREENLEAF, ALLOWAY, ERICKSON, BROWNE, WOZNIAK, O'PAKE AND WONDERLING, FEBRUARY 2, 2009

REFERRED TO LOCAL GOVERNMENT, FEBRUARY 2, 2009  

AN ACT

Authorizing the establishment of land bank programs and

affordable housing programs with the approval of the

electorate; providing for funding by proceeds from tax on the

transfer of real property; and specifying the purposes of

such programs.

TABLE OF CONTENTS

Section 1.  Short title.

Section 2.  Establishment of land bank programs and affordable

housing programs.

Section 3.  Initiative of electors.

Section 4.  Filing of ordinance or petition.

Section 5.  Form of question for land bank program.

Section 6.  Form of question for affordable housing program.

Section 7.  Dual question.

Section 8.  Dedication of portion of tax.

Section 9.  Municipal option.

Section 10.  Establishment of program.

Section 11.  Special fund.

Section 12.  Acquisition of open-space land.

Section 13.  Bond issues for open-space land.

Section 14.  Conveyance of open-space land.

Section 15.  Use of affordable housing fund.

Section 16.  Termination of land bank program or affordable

housing program.

Section 30.  Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Municipal

Land Bank and Affordable Housing Act.

Section 2.  Establishment of land bank programs and affordable

housing programs.

The governing body of a municipality may, by ordinance, or

the electors of a municipality may, by petition, cause to be

submitted to the qualified voters of the municipality the

question of whether the municipality should establish a land

bank program or an affordable housing program, or both, and

dedicate all or a portion of taxes imposed by the municipality

on the transfer of real property in the municipality for the

purpose of funding the program or programs.

Section 3.  Initiative of electors.

In order for the question of whether to establish a land bank

program or an affordable housing program, or both, to be

initiated by petition of electors, petitions calling for the

question containing signatures of at least 5% of the electors

voting for the Office of Governor in the last gubernatorial

general election in the municipality must be filed with the

county board of elections.

Section 4.  Filing of ordinance or petition.

The ordinance or petition calling for the question of whether

to establish a land bank program or an affordable housing

program, or both, that is to be submitted to the electors shall

be filed with the election officials not later than the 13th

Tuesday prior to the next primary, municipal or general

election. The petition and proceedings therein shall be in the

manner and subject to the provisions of the election laws which

relate to the signing, filing and adjudication of nomination

petitions insofar as such provisions are applicable, except that

no petition shall be signed or circulated prior to the 20th

Tuesday before the election nor later than the 13th Tuesday

before the election.

Section 5.  Form of question for land bank program.

The question of whether to establish a land bank program

shall be in substantially the following form:

"Do you favor the establishment, administration and

maintenance of a land bank program for the purpose of

enabling (insert name of municipality) to acquire open-space

land or interests in such land to conserve natural and scenic

resources, to preserve agricultural land and to augment

public recreation opportunities and the dedication of taxes

imposed by the municipality on the transfer of real property

in the municipality for funding of the program?"

Section 6.  Form of question for affordable housing program.

The question of whether to establish an affordable housing

program shall be in substantially the following form:

"Do you favor the establishment and administration of a

program consisting of the awarding of grants to nonprofit

organizations, housing authorities and redevelopment

authorities to provide adequate, safe and affordable housing

in (insert name of municipality) for low-income individuals

and families, and the dedication of taxes imposed by the

municipality on the transfer of real property in the

municipality for funding of the program?"

Section 7.  Dual question.

In the event that the ordinance or petition calls for the

question of whether to establish both a land bank program and an

affordable housing program, the questions set forth in sections

5 and 6 may be appropriately combined into one question.

Section 8.  Dedication of portion of tax.

The ordinance or petition calling for a question of whether

to establish a land bank program or an affordable housing

program, or both, may call for some percentage less than all of

the tax imposed by the municipality on the transfer of real

property to be dedicated for the program or programs, in which

case the question on the ballot shall be revised to indicate the

portion of the tax to be so dedicated.

Section 9.  Municipal option.

In the event that a special fund for purposes of affordable

housing exists at the county level, a municipality shall have

the option of dedicating the revenue derived from taxes imposed

by the municipality on the transfer of real property and

dedicated for affordable housing purposes to the county fund.

Moneys so dedicated shall be deposited in the county special

fund for affordable housing for use by the county in providing

grants to nonprofit organizations, housing authorities and

redevelopment authorities to provide adequate, safe and

affordable housing in the municipality that exercises its option

under this section.

Section 10.  Establishment of program.

If a majority of the electors voting on the question of

establishing, administering and maintaining a land bank program

or an affordable housing program, or both, and dedicating taxes

imposed by the municipality on the transfer of real property

within the municipality in order to fund the program or programs

vote in favor of the question, the governing body of the

municipality within 90 days following the certification of the

results of the election shall adopt an ordinance or ordinances

establishing the appropriate program or programs. If both a land

bank program and an affordable housing program are approved, the

ordinance or ordinances shall specify the portion of available

funds allocated to each program.

Section 11.  Special fund.

(a)  Establishment.--Unless a municipality exercises its

option under section 9, all revenue derived from a tax imposed

by the municipality on the transfer of real property in the

municipality dedicated for land bank purposes or affordable

housing purposes, or both, shall be remitted by the county

recorder of deeds to the municipality and deposited in a special

fund to be known as a land bank fund, affordable housing fund or

land bank and affordable housing fund, whichever may be

appropriate, and used exclusively for the purposes authorized by

this act.

(b)  Donations.--The municipality may accept donations from

any source for the purposes authorized by this act, and any

funds so received, including any funds which may become

available from the Federal or State government for the purposes

stated in this act, all revenues derived from the sale of bonds

for land bank purposes and interest accrued, shall be deposited

in the appropriate special fund, including the special county

fund in the case of a municipality exercising its option under

section 9.

(c)  Deposit of proceeds.--All proceeds from the rental,

lease or sale of any open-space land or an interest therein that

the municipality acquired through a land bank program shall be

deposited in the land bank fund.

Section 12.  Acquisition of open-space land.

(a)  Moneys in fund.--Moneys in a land bank fund shall be

used by the municipality for the acquisition and maintenance of

open-space land and interests in open-space land within the

municipality and for related administrative expenses, including,

but not limited to, expenditures for engineering, legal and

appraisal services and for the repayment of debts incurred

through the issuance of bonds under section 13.

(b)  Approval not required.--When a land bank program has

been established, no additional approval of the electors shall

be required for the acquisition of open-space land or interests

therein with money in a land bank fund, nor shall approval of

the electors be required for the governing body of the

municipality, on behalf of the municipality, to accept title to

open-space lands or interests therein which may be donated to

the municipality.

(c)  Public notice.--The governing body of the municipality

shall give public notice of a meeting at which final action on

an acquisition of open-space land or an interest therein or

acceptance of a donation of open-space land is to be taken,

which public notice shall be given in the manner prescribed by

65 Pa.C.S. Ch. 7 (relating to open meetings) and shall include a

brief description of the proposed transaction.

(d)  Advice of commission and advisory council.--The

governing body of the municipality shall seek the advice of the

municipality's planning commission and the Environmental

Advisory Council established under 53 Pa.C.S. Ch. 23 Subch. B 

(relating to environmental advisory councils) if the

municipality has established such a council with respect to all

transactions involving open-space land.

(e)  Appraisals.--At least two independent appraisals shall

be obtained prior to the purchase by the municipality of any

open-space land or interest therein.

(f)  Public purposes.--Any land acquired by a municipality

under this act shall be deemed to be held and used for public

purposes.

(g)  Definition.--As used in this act, the term "open-space

land" means land that will be used for any of the following

purposes:

(1)  To conserve natural or scenic resources, including,

but not limited to, soils, beaches, streams, wetlands or

tidal wetlands.

(2)  To preserve agricultural land, including the

preservation of agricultural land through the purchase of

agricultural conservation easements as provided in the act of

June 30, 1981 (P.L.128, No.43), known as the Agricultural

Area Security Law.

(3)  To enhance the value to the public of abutting or

neighboring parks, forests, wildlife preserves, nature

reservations or other public open spaces.

(4)  To augment public recreation opportunities.

(5)  To preserve sites of historic, geologic or botanic

interest.

Section 13.  Bond issues for open-space land.

In anticipation of moneys becoming available in a land bank

fund, the governing body of the municipality may issue bonds for

the exclusive purpose of acquiring and maintaining open-space

land or interests therein.

Section 14.  Conveyance of open-space land.

(a)  Acquisition of land.--

(1)  The governing body of the municipality may, by

competitive bid as provided in subsection (b), and subject to

the same requirements as provided in section 12(c), (d) and

(e) for acquisition of open-space land, convey open-space

land, portions thereof or interests therein subject to a

protective covenant in the deed of conveyance that the land

will be used only for the purposes of open-space land, as

defined in this act, with reversion to the municipality in

the event the covenant is violated.

(2)  The protective covenant in the deed of conveyance

shall state with specificity the use or restrictions on use

applicable to the land so conveyed.

(3)  No conveyance of open-space land or an interest

therein without this protective covenant in the deed shall be

made without approval of the court of common pleas.

(4)  The court of common pleas may not approve the

proposed conveyance without a protective covenant in the deed

unless the court determines that there is an overriding

public need that cannot be met through the use of any other

land within the municipality.

(b)  Sale of land.--

(1) Open-space land, portions thereof or interests

therein may be sold by the municipality to the highest

bidder, subject to the protective covenant specified in

subsection (a), after due notice by the advertisement for

bids in one newspaper of general circulation in the

municipality. The advertisement shall be published once not

less than ten days prior to the date fixed for the opening of

bids, and the date for opening bids shall be announced in the

advertisement.

(2)  The acceptance of bids shall be made only by public

announcement at a regular or special meeting of the governing

body of the municipality. All bids shall be accepted on the

condition that payment of the purchase price in full shall be

made within 90 days of the acceptance of bids.

(c)  Donation of land.--Notwithstanding any other provision

of this act, a municipality may donate land or any portion

thereof or interest therein acquired pursuant to a land bank

program to a conservancy which possesses a tax-exempt status

under section 501(c)(3) of the Internal Revenue Code of 1986

(Public Law 99-514, 26 U.S.C. § 501(c)(3)) and which has as its

primary purpose preservation of land for historic, recreational,

scenic, agricultural or open-space opportunities. Prior to this

donation, the governing body of the municipality shall give

public notice in the manner provided in section 12(c). This

donation shall be subject to the protective covenant specified

in subsection (a).

Section 15.  Use of affordable housing fund.

(a)  Grants.--

(1)  Moneys deposited in an affordable housing fund and

interest earned on moneys deposited in this fund shall be

used solely for the purpose of making grants to nonprofit

organizations, housing authorities and redevelopment

authorities for affordable housing purposes. Qualifications

for grants, the manner of making applications for grants and

authorized uses of grant moneys shall be provided for in the

ordinance establishing the affordable housing program.

(2)  Authorized uses of grant moneys may include:

(i)  Plan preparation.

(ii)  The acquisition of property.

(iii)  The construction of new residential buildings.

(iv)  Demolition of existing buildings.

(v)  Construction, reconstruction, alteration and

repair of residential buildings.

(vi)  Any other associated work, including

administrative costs and the cost of professional and

technical assistance.

(b)  Public notice.--The governing body of the municipality

shall give public notice of a meeting at which final action on a

grant from the affordable housing fund is to be taken. The

public notice shall be given in the manner prescribed by 65

Pa.C.S. Ch. 7 (relating to open meetings) and shall include a

brief description of the proposed project.

Section 16.  Termination of land bank program or affordable

housing program.

(a)  Referendum.--The governing body of a municipality may,

by ordinance, or the electors of a municipality may, by

petition, cause to be submitted to the qualified voters of the

municipality the question of whether the municipality should

terminate an established land bank program, an established

affordable housing program, or both.

(b)  Petition.--A petition by the electors shall be in the

same manner as provided for the establishment of such programs

in section 3, and the ordinance or petition shall be filed in

the same manner as provided in section 4.

(c)  Question.--The question of whether to terminate an

established land bank program or an affordable housing program

shall be in substantially the following form:

"Do you favor the termination of the existing

                        program?"

This question shall be followed by a brief statement of the

original purpose of the program. If both programs are to be

considered for termination, the questions may be appropriately

combined into one question.

(d)  Election.--If a majority of the electors voting on the

question vote in favor of termination, the governing body of the

municipality shall, within 90 days following certification of

the results of the election, adopt any ordinances necessary to

terminate the program or programs.

Section 30.  Effective date.

This act shall take effect immediately.