PRIOR PRINTER'S NOS. 2202, 3131 PRINTER'S NO. 3572
No. 1728 Session of 1985
INTRODUCED BY COWELL, IRVIS, SEVENTY, LEVDANSKY, PRESTON,
VAN HORNE, TRELLO, POTT, DAWIDA, MARKOSEK AND PISTELLA,
OCTOBER 2, 1985
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 3, 1986
AN ACT
1 Amending the act of May 24, 1945 (P.L.991, No.385), entitled "An
2 act to promote elimination of blighted areas and supply
3 sanitary housing in areas throughout the Commonwealth; by
4 declaring acquisition, sound replanning and redevelopment of
5 such areas to be for the promotion of health, safety,
6 convenience and welfare; creating public bodies corporate and
7 politic to be known as Redevelopment Authorities; authorizing
8 them to engage in the elimination of blighted areas and to
9 plan and contract with private, corporate or governmental
10 redevelopers for their redevelopment; providing for the
11 organization of such authorities; defining and providing for
12 the exercise of their powers and duties, including the
13 acquisition of property by purchase, gift or eminent domain;
14 the leasing and selling of property, including borrowing
15 money, issuing bonds and other obligations, and giving
16 security therefor; restricting the interest of members and
17 employes of authorities; providing for notice and hearing;
18 supplying certain mandatory provisions to be inserted in
19 contracts with redevelopers; prescribing the remedies of
20 obligees of redevelopment authorities; conferring certain
21 duties upon local planning commissions, the governing bodies
22 of cities and counties, and on certain State officers, boards
23 and departments," further providing for the acquisition of
24 blighted property by redevelopment authorities for certain
25 uses and the means of financing the purchase of property; and <--
26 further providing for economic development programs; AND <--
27 FURTHER PROVIDING FOR THE ADOPTION OF REDEVELOPMENT
28 PROPOSALS.
29 The General Assembly of the Commonwealth of Pennsylvania
30 hereby enacts as follows:
1 Section 1. Sections 2, 3 and 9 of the act of May 24, 1945
2 (P.L.991, No.385), known as the Urban Redevelopment Law, are
3 amended by adding clauses to read:
4 Section 2. Findings and Declaration of Policy.--It is hereby
5 determined and declared as a matter of legislative finding--
6 * * *
7 (h) That there exists within the Commonwealth, both within
8 and outside certified redevelopment areas, an inadequate supply
9 of residential owner-occupied and rental housing due, in part,
10 to the deterioration of older dwellings, the elimination of
11 substandard dwellings by governmental action, the increased cost
12 of construction and the unavailability of affordable financing
13 from the private sector.
14 (i) That there exists within the Commonwealth, both within
15 and outside certified redevelopment areas, deteriorating
16 commercial and industrial areas and/or individual structures,
17 due, in part, to the fact that there are no private funds
18 available to finance the purchase, construction, rehabilitation
19 or equipping of the commercial and industrial properties at
20 interest rates that would make the commercial or industrial
21 project economically feasible. Such commercial or industrial
22 projects are needed for the social and economic well-being of
23 communities within the field of operation of authorities.
24 (j) That there exists within the Commonwealth, both within
25 and outside certified redevelopment areas, a need to maintain
26 and improve economic conditions and therefore it is necessary to
27 establish economic development programs to provide for the
28 stimulation and maintenance of private investment and
29 enterprise. Such economic development programs would encourage
30 and promote the economic and social well-being of the entire
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1 community.
2 * * *
3 Section 3. Definitions.--The following terms where used in
4 this act, shall have the following meanings, except where the
5 context clearly indicates a different meaning.
6 * * *
7 (s) "Commercial and Industrial Redevelopment Program."--The
8 financing of the purchase, construction, rehabilitation or
9 equipping of a commercial or an industrial project as part of
10 the redevelopment of an area designated in the program as
11 needing such assistance by the Authority and in accordance with
12 the program.
13 (t) "Commercial or Industrial Project."--A commercial or
14 industrial facility, as those terms are used in the zoning
15 ordinances of the municipality for the Authority's field of
16 operation, within an area designated in the Commercial and
17 Industrial Redevelopment Program which by its nature and
18 location has or offers reasonable likelihood of preventing,
19 slowing or reversing the deterioration of the designated area.
20 (u) "Residential Housing Redevelopment Program." The
21 financing of the purchase, construction, rehabilitation or
22 equipping of a residential housing project as part of the
23 development of an area designated in the program as needing such
24 assistance by the Authority and in accordance with the program.
25 (v) "Residential Housing Project."--A facility within an
26 area designated in the Residential Housing Redevelopment Program
27 which provides residential housing.
28 (w) "Economic Development Program".--The provision of
29 assistance to businesses and industries in order to initiate,
30 maintain or continue private investment or operation. An
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1 Economic Development Program may include assistance to
2 businesses, industries, and other enterprises through the
3 construction or improvement of infrastructure; the
4 rehabilitation of structures and buildings; and the making of
5 loans for the acquisition, continued operation, and expansion of
6 businesses or enterprises for purposes such as the purchase of
7 real estate, machinery, equipment, and buildings and for working
8 capital.
9 Section 9. Powers of an Authority.--An Authority shall
10 constitute a public body, corporate and politic, exercising
11 public powers of the Commonwealth as an agency thereof, which
12 powers shall include all powers necessary or appropriate to
13 carry out and effectuate the purposes and provisions of this
14 act, including the following powers in addition to those herein
15 otherwise granted:
16 * * *
17 (aa) To make, directly or indirectly, secured or unsecured
18 loans to any purchaser or owner of a residential housing or, <--
19 EXCEPT IN CITIES OF THE FIRST CLASS, a commercial or an
20 industrial project for the purpose of financing the purchase,
21 construction, rehabilitation or equipping of a residential
22 housing or, EXCEPT IN CITIES OF THE FIRST CLASS, a commercial <--
23 and industrial redevelopment program.
24 (bb) To make loans to, or deposits with, at the option of
25 the Authority, without requiring collateral security therefor,
26 any financial institution, in order to enable that financial
27 institution to finance the acquisition, construction,
28 rehabilitation or equipping of a residential housing or, EXCEPT <--
29 IN CITIES OF THE FIRST CLASS, a commercial and industrial
30 redevelopment program. For such purposes, an Authority may make
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1 such loans as the Authority may determine; receive interest on
2 such deposits as may be agreed to with the financial
3 institution; purchase and hold notes or other obligations
4 secured by mortgages, deeds of trust or security interests in
5 residential housing OR, EXCEPT IN CITIES OF THE FIRST CLASS, <--
6 commercial or industrial projects or property used as additional
7 security, notwithstanding anything to the contrary elsewhere
8 contained in this act; sell, assign, pledge or encumber any
9 security, including mortgages or other security agreements, held
10 by or granted to the Authority or received in connection with
11 the financing of residential housing or, EXCEPT IN CITIES OF THE <--
12 FIRST CLASS, commercial or industrial projects and grant to any
13 trustee, in addition to any other rights or remedies contained
14 therein or in any documents granting such security, such other
15 rights and remedies as may be approved by the Authority.
16 (cc) To EXCEPT IN CITIES OF THE FIRST CLASS, TO make, <--
17 directly or indirectly, secure or unsecured loans in order to
18 undertake an Economic Development Program.
19 SECTION 2. SECTION 10(H) AND (I) OF THE ACT, AMENDED MAY 31, <--
20 1955 (P.L.107, NO.33), ARE AMENDED TO READ:
21 SECTION 10. PREPARATION AND ADOPTION OF REDEVELOPMENT
22 PROPOSAL.--
23 * * *
24 (H) [THE] EXCEPT IN CITIES OF THE FIRST CLASS, THE GOVERNING
25 BODY SHALL APPROVE OR REJECT THE REDEVELOPMENT PROPOSAL AS
26 SUBMITTED. IN CITIES OF THE FIRST CLASS, THE GOVERNING BODY
27 SHALL APPROVE, REJECT OR MODIFY ANY REDEVELOPMENT PROPOSAL
28 SUBMITTED ON OR AFTER THE EFFECTIVE DATE OF THIS AMENDATORY ACT;
29 BUT A MODIFICATION MUST BE CONSISTENT WITH THE REDEVELOPMENT
30 AREA PLAN. THE GOVERNING BODY SHALL NOT APPROVE A REDEVELOPMENT
19850H1728B3572 - 5 -
1 PROPOSAL UNLESS IT IS SATISFIED THAT ADEQUATE PROVISIONS WILL BE
2 MADE TO REHOUSE DISPLACED FAMILIES, IF ANY, WITHOUT UNDUE
3 HARDSHIP, OR IF THE MUNICIPALITY IN WHICH THE PROJECT IS TO BE
4 LOCATED HAS FILED ITS OBJECTIONS THERETO.
5 (I) UPON APPROVAL BY THE GOVERNING BODY OF THE REDEVELOPMENT
6 PROPOSAL, AS SUBMITTED BY THE AUTHORITY OR AS MODIFIED BY THE
7 GOVERNING BODY, THE AUTHORITY IS AUTHORIZED, AND, IN CITIES OF
8 THE FIRST CLASS, DIRECTED, TO TAKE SUCH ACTION AS MAY BE
9 NECESSARY TO CARRY IT OUT.
10 * * *
11 Section 2 3. The act is amended by adding a section to read: <--
12 Section 11.1. Preparation and Provisions of a Residential
13 Housing Redevelopment Program and Commercial and Industrial
14 Redevelopment Program and an Economic Development Program.--(a)
15 The Authority may develop a Residential Housing Redevelopment
16 Program or a Commercial and Industrial Redevelopment Program or
17 an Economic Development Program for all or part of its field of
18 operation.
19 (b) The Authority shall submit the redevelopment program to
20 the planning commission for review and approval.
21 (c) The planning commission, within forty-five days, shall
22 either approve, reject or modify the program as satisfying the
23 public purpose of this act. If the planning commission takes no
24 action within forty-five days, the program shall be deemed
25 approved on the forty-sixth day.
26 (d) Upon approval by the planning commission, or at the
27 expiration of forty-five days, if no recommendation is made by
28 the planning commission, the Authority is authorized to take
29 such action as may be necessary to carry out the redevelopment
30 program.
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1 Section 3 4. Section 12.1(a), (c)(7) and (e) of the act, <--
2 added June 23, 1978 (P.L.556, No.94), are amended to read:
3 Section 12.1. Blighted Property Removal.--
4 (a) Notwithstanding any other provision of this act, any
5 Redevelopment Authority shall have the power to acquire by
6 purchase, gift, bequest, eminent domain or otherwise, any
7 blighted property as defined in this section, either within or
8 outside of a certified redevelopment area and, further, shall
9 have the power to hold, clear, manage and/or dispose of said
10 property for residential and related [use] reuse and commercial
11 or industrial reuse. This power shall be exercised in accord
12 with the procedures set forth in this section.
13 * * *
14 (c) Blighted property shall include:
15 * * *
16 (7) Any unoccupied property which has been tax delinquent
17 for a period of [two years] one year prior to the effective date
18 of this act, and those in the future having a [two year] one
19 year tax delinquency.
20 * * *
21 (e) The [vacant] blighted property review committee [and the
22 appropriate planning commission], upon making a determination
23 that any property is blighted within the terms of this section,
24 must certify said blighted property to the Redevelopment
25 Authority, except that:
26 [(1) No property shall be certified to the Redevelopment
27 Authority unless it is vacant.
28 (2)] (1) No property shall be certified to the Redevelopment
29 Authority unless the owner of the property or an agent
30 designated by him for receipt of service of notices within the
19850H1728B3572 - 7 -
1 municipality has been served with notice of the determination
2 that the property is blighted, together with an appropriate
3 order to eliminate the conditions causing the blight and
4 notification that failure to do so may render the property
5 subject to condemnation under this act. The notice shall be
6 served upon the owner or his agent in accord with the provisions
7 of a local ordinance pertaining to service of notice of
8 determination of a public nuisance. The owner or his agent shall
9 have the right of appeal from the determination in the same
10 manner as an appeal from the determination of public nuisance.
11 [(3)] (2) No blighted property shall be certified to the
12 Redevelopment Authority until the time period for appeal has
13 expired and no appeal has been taken, or, if taken, the appeal
14 has been disposed of, and the owner or his agent has failed to
15 comply with the order of the responsible department or other
16 officer or agency.
17 [(4) No single vacant lot or parcel of ground shall be
18 certified to the Redevelopment Authority under this section on
19 which more than ten dwelling units can be constructed under
20 existing zoning regulations.]
21 * * *
22 Section 4 5. Section 13.1 of the act is repealed. <--
23 Section 5 6. Section 14 of the act, amended July 17, 1970 <--
24 (P.L.496, No.173), is amended to read:
25 Section 14. Form and Sale of Bonds.--The bonds of an
26 Authority shall be authorized by its resolution; shall be issued
27 in one or more series; and shall bear such date, mature, at such
28 time, and bear interest at such rate[, not exceeding six per
29 centum (6%) per annum, except that for a period ending on
30 October 10, 1970 the rate or rates of interest may exceed six
19850H1728B3572 - 8 -
1 per centum (6%) per annum but shall not exceed seven per centum
2 (7%) per annum] as shall be determined by the Authority as
3 necessary to issue and sell such bonds, payable semi-annually,
4 be in such denominations, be in such form, either coupon or
5 registered, be executed in such manner, be payable in such
6 medium of payment, at such place, and be subject to such terms
7 of redemption and carry such registration privileges as may be
8 provided in such resolution, or in any trust, indenture or
9 mortgage properly made in pursuance thereof.
10 The bonds of an Authority may be sold at public or private
11 sale [at not less than par and accrued interest] for such price
12 or prices as the Authority may determine. In case any of the
13 officers of an Authority whose signatures appear on any bonds or
14 coupons shall cease to be officers before the delivery of such
15 bonds their signatures shall, nevertheless, be valid and
16 sufficient for all purposes, the same as if such officers had
17 remained in office until such delivery.
18 The Authority shall have the power out of any funds available
19 therefor to purchase any bonds issued by it [at a price not more
20 than the par value thereof plus accrued interest]. All bonds so
21 purchased shall be cancelled. This paragraph shall not apply to
22 the redemption of bonds.
23 Any bond reciting in substance that it has been issued by an
24 Authority to accomplish the public purposes of this act shall be
25 conclusively deemed in any suit, action or proceeding involving
26 the validity or enforceability of such bond or security therefor
27 to have been issued for such purpose.
28 [The interest on bonds issued with an interest rate exceeding
29 six per centum (6%) per annum shall be paid during the term for
30 which the bonds were issued and shall not be limited to the
19850H1728B3572 - 9 -
1 specified period during which the rates in excess of six per
2 centum (6%) per annum could be determined.]
3 Section 6 7. This act shall take effect immediately. <--
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