THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY TAYLOR, MILLER, M. O'BRIEN AND FARRY, MAY 24, 2011

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, SEPTEMBER 28, 2011   

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in municipal authorities, further

providing for purposes and powers.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 5607(d)(27) and (g) of Title 53 of the

Pennsylvania Consolidated Statutes are amended to read:

§ 5607.  Purposes and powers.

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(d)  Powers.--Every authority may exercise all powers

necessary or convenient for the carrying out of the purposes set

forth in this section, including, but without limiting the

generality of the foregoing, the following rights and powers:

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(27)  (i)  In the case of an authority created to provide

business improvements and administrative services, to

impose an assessment on each benefited property within a

business improvement district. This assessment shall be

based upon the estimated cost of the improvements [or]

and services in the district stated in the planning or

feasibility study and shall be determined by one of the

following methods:

(A)  [By] The authority may determine an

assessment determined by multiplying the total

improvement [or] and service cost by the ratio of the

assessed value for real estate tax purposes of the

benefited property to the total assessed [valuation]

value of all benefited properties in the district.

(B)  [By an assessment] The authority may

determine assessments upon the several properties in

the district in proportion to benefits as ascertained

by viewers appointed in accordance with municipal

law.

(C)  If the district served by the authority

contains single-family residential properties, 

including those that are part of a planned unit

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development, residential cooperative properties or

condominium properties formed under 68 Pa.C.S. Pt. II

Subpt. B (relating to condominiums) and other

properties, the authority may elect to calculate

assessments on the based on all of the following

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basis:

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(I)  The business improvement district

assessed value of each benefited single-family or

residential cooperative property shall be one-

half of the assessed value of the property for

real estate tax purposes.

(II)  In the case of a condominium, the unit

owners' association formed under 68 Pa.C.S. Pt.

II, Subpt. B shall be assessed. Individual units

may not be assessed. The business improvement

district assessed value of the unit owners'

association shall be the sum of the assessed

value for real estate tax purposes of any real

estate owned by the association and such assessed

value of all units, including their undivided

interests in the common elements and any limited

common elements, except that the value of any

single-family residential unit shall be one-half

of such assessed value of the unit for real

estate tax purposes. In each condominium fee

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charged to a unit owner, the unit owners'

association shall itemize that portion of the

authority's assessment that is included in the

fee to the unit owner. The authority shall

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provide to the unit owners' association the

calculation of the business improvement district

assessed value of the unit owners' association,

itemizing the assessed value of each unit as

provided in this clause. The unit owners'

association shall add to the condominium fee

charged to a unit owner the assessed value of the

unit and the amount of the district assessment

attributable to the unit.

(III)  The district assessment shall be

calculated on each benefited single-family

residential property, benefited residential

cooperative property and benefited unit owners'

association by multiplying in each case the total

improvement and services cost by the ratio of the

district assessed value of the benefited single-

family residential property, benefited

residential cooperative property or benefited

unit owners' association to the sum of the

district assessed value of all benefited single-

family residential properties, the district

assessed value of all residential cooperative

properties, the district assessed value of all

benefited unit owners' associations and the

assessed value of all remaining benefited

properties in the business improvement district.

(IV)  The remaining benefited properties

shall be assessed by multiplying in each case the

total improvement and services cost by the ratio

of the assessed value of the remaining benefited

property to the sum of the district assessed

value of all benefited single-family residential

properties, the district assessed value of all

residential cooperative properties, the district

assessed value of all benefited unit owners'

associations and the assessed value of all

remaining benefited properties in the business

improvement district.

(V)  An election by an authority under this

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clause shall not be revoked except through the

procedures stated in subparagraph (ii) and

subsection (g).

(ii)  An assessment or charge may not be made unless:

(A)  An authority submits a plan for business

improvements and administrative services, together

with estimated costs and the proposed method of

assessments for business improvements and charges for

administrative services, to the municipality in which

the project is to be undertaken.

(B)  The municipality approves the plan, the

estimated costs and the proposed method of assessment

and charges.

(iii)  An authority may not assess charges against

the improved properties in an aggregate amount in excess

of the estimated cost.

(iv)  An authority may by resolution authorize

payment of an assessment or charge in equal, annual or

more frequent installments over a fixed period of time

and bearing interest of 6% or less. If bonds, notes or

guarantees are used to raise revenue to provide for the

cost of improvements or services, the installments shall

not be payable beyond the term for which the bonds, notes

or guarantees are payable.

(v)  Claims to secure the payment of assessments

shall be entered in the prothonotary's office of the

county at the same time and in the same form and shall be

collected in the same manner as municipal claims are

filed and collected notwithstanding the provisions of

this section as to installment payments.

(vi)  In case of default of 60 days or more after an

installment is due, the entire assessment and interest

shall be due.

(vii)  An owner of property against whom an

assessment has been made may pay the assessment in full

at any time along with accrued interest and costs. Upon

proof of payment the lien shall be discharged.

(viii)  For purposes of determining assessments in

accordance with subparagraph(i)(A) and (C), the assessed

value of a benefited property shall be without reduction

for any value attributable to improvements for which an

exemption or abatement has been granted under law.

(ix)  Any claim entered to secure the payment of an

assessment against a unit owners' association shall be

enforceable as a judgment for money against the unit

owners' association within the meaning of and under the

provisions of 68 Pa.C.S. § 3319 (relating to other liens

affecting the condominium), provided that if an

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assessment against a unit owners' association is paid in

part and the unit owners' association specifies in

writing to the authority the units with respect to which

full payment was made, the claim shall not be enforceable

against units with respect to which full payment was made

or against the unit owners' association. An authority

shall discharge a lien against a unit owners' association

to the extent that it constitutes a lien on a particular

unit upon proof of payment, either to the unit owners'

association or to the authority, by the owner of the

particular unit of his itemized share of the assessment

on the unit owners' association.

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(g)  Authorization to make business improvements and provide

administrative services.--An authority may be established to

make business improvements or provide administrative services in

districts designated by a municipality or by municipalities

acting jointly and zoned commercial or used for general

commercial purposes or in contiguous areas if the inclusion of a

contiguous area is directly related to the improvements and

services proposed by the authority. The authority shall make

planning or feasibility studies to determine needed improvements

or administrative services. The following shall also apply:

(1)  The authority shall be required to hold a public

hearing on the proposed improvement or service, the estimated

costs thereof and the proposed method of assessment and

charges. Notice of the hearing shall be advertised at least

ten days before it occurs in a newspaper whose circulation is

within the municipality where the authority is established.

At the public hearing any interested party may be heard.

(2)  Written notice of the proposed improvement or

service, its estimated cost, the proposed method of

assessment and charges and project cost to individual

property owners shall be given to each property owner and

commercial lessee in benefited properties in the district at

least 30 days prior to the public hearing.

(3)  [The] Except as otherwise provided in paragraph (4),

the authority shall take no action on proposed improvement or

service if objection is made in writing by:

(i)  persons representing the ownership of one-third

of the benefited properties in the district; or [by]

(ii)  property owners of the proposed district whose

property valuation as assessed for taxable purposes shall

amount to more than one-third of the total property

valuation of the district.

(4)  In the case of an authority that has elected to make

assessments under subsection (d)(27)(i)(C), the objections in

writing must be made by either:

(i)  one-third of the owners of benefited commercial

properties; or

(ii)  owners of properties representing one-third of

the amount of all business improvement district

assessments for the first year of the proposed plan and

budget after the reduction in district assessments under

subsection (d)(27)(i)(C).

For purposes of calculating one-third of the benefited

commercial properties, the term benefited commercial

properties shall include all nonresidential property, each

condominium association formed under 68 Pa.C.S. Pt. II,

Subpt. B as one property and may not include any individual

condominium so formed nor any single-family residential

property.

(5)  Objection [shall] must be made within 45 days after

the conclusion of the public hearing. Objections must be in

writing, signed and filed in the office of the governing body

of the municipality in which the district is located and in

the registered office of the authority.

Section 2.  This act shall take effect in 60 days.