PRIOR PRINTER'S NO. 2202 PRINTER'S NO. 3131
No. 1728 Session of 1985
INTRODUCED BY COWELL, IRVIS, SEVENTY, LEVDANSKY, PRESTON,
VAN HORNE, TRELLO, POTT, DAWIDA, MARKOSEK AND PISTELLA,
OCTOBER 2, 1985
AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 19, 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.
27 The General Assembly of the Commonwealth of Pennsylvania
28 hereby enacts as follows:
29 Section 1. Sections 2, 3 and 9 of the act of May 24, 1945
1 (P.L.991, No.385), known as the Urban Redevelopment Law, are
2 amended by adding clauses to read:
3 Section 2. Findings and Declaration of Policy.--It is hereby
4 determined and declared as a matter of legislative finding--
5 * * *
6 (h) That there exists within the Commonwealth, both within
7 and outside certified redevelopment areas, an inadequate supply
8 of residential owner-occupied and rental housing due, in part,
9 to the deterioration of older dwellings, the elimination of
10 substandard dwellings by governmental action, the increased cost
11 of construction and the unavailability of affordable financing
12 from the private sector.
13 (i) That there exists within the Commonwealth, both within
14 and outside certified redevelopment areas, deteriorating
15 commercial and industrial areas and/or individual structures,
16 due, in part, to the fact that there are no private funds
17 available to finance the purchase, construction, rehabilitation
18 or equipping of the commercial and industrial properties at
19 interest rates that would make the commercial or industrial
20 project economically feasible. Such commercial or industrial
21 projects are needed for the social and economic well-being of
22 communities within the field of operation of authorities.
23 (J) THAT THERE EXISTS WITHIN THE COMMONWEALTH, BOTH WITHIN <--
24 AND OUTSIDE CERTIFIED REDEVELOPMENT AREAS, A NEED TO MAINTAIN
25 AND IMPROVE ECONOMIC CONDITIONS AND THEREFORE IT IS NECESSARY TO
26 ESTABLISH ECONOMIC DEVELOPMENT PROGRAMS TO PROVIDE FOR THE
27 STIMULATION AND MAINTENANCE OF PRIVATE INVESTMENT AND
28 ENTERPRISE. SUCH ECONOMIC DEVELOPMENT PROGRAMS WOULD ENCOURAGE
29 AND PROMOTE THE ECONOMIC AND SOCIAL WELL-BEING OF THE ENTIRE
30 COMMUNITY.
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1 * * *
2 Section 3. Definitions.--The following terms where used in
3 this act, shall have the following meanings, except where the
4 context clearly indicates a different meaning.
5 * * *
6 (s) "Commercial and Industrial Redevelopment Program."--The
7 financing of the purchase, construction, rehabilitation or
8 equipping of a commercial or an industrial project as part of
9 the redevelopment of an area designated in the program as
10 needing such assistance by the Authority and in accordance with
11 the program.
12 (t) "Commercial or Industrial Project."--A commercial or
13 industrial facility, as those terms are used in the zoning
14 ordinances of the municipality for the Authority's field of
15 operation, within an area designated in the Commercial and
16 Industrial Redevelopment Program which by its nature and
17 location has or offers reasonable likelihood of preventing,
18 slowing or reversing the deterioration of the designated area.
19 (u) "Residential Housing Redevelopment Program." The
20 financing of the purchase, construction, rehabilitation or
21 equipping of a residential housing project as part of the
22 development of an area designated in the program as needing such
23 assistance by the Authority and in accordance with the program.
24 (v) "Residential Housing Project."--A facility within an
25 area designated in the Residential Housing Redevelopment Program
26 which provides residential housing.
27 (W) "ECONOMIC DEVELOPMENT PROGRAM".--THE PROVISION OF <--
28 ASSISTANCE TO BUSINESSES AND INDUSTRIES IN ORDER TO INITIATE,
29 MAINTAIN OR CONTINUE PRIVATE INVESTMENT OR OPERATION. AN
30 ECONOMIC DEVELOPMENT PROGRAM MAY INCLUDE ASSISTANCE TO
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1 BUSINESSES, INDUSTRIES, AND OTHER ENTERPRISES THROUGH THE
2 CONSTRUCTION OR IMPROVEMENT OF INFRASTRUCTURE; THE
3 REHABILITATION OF STRUCTURES AND BUILDINGS; AND THE MAKING OF
4 LOANS FOR THE ACQUISITION, CONTINUED OPERATION, AND EXPANSION OF
5 BUSINESSES OR ENTERPRISES FOR PURPOSES SUCH AS THE PURCHASE OF
6 REAL ESTATE, MACHINERY, EQUIPMENT, AND BUILDINGS AND FOR WORKING
7 CAPITAL.
8 Section 9. Powers of an Authority.--An Authority shall
9 constitute a public body, corporate and politic, exercising
10 public powers of the Commonwealth as an agency thereof, which
11 powers shall include all powers necessary or appropriate to
12 carry out and effectuate the purposes and provisions of this
13 act, including the following powers in addition to those herein
14 otherwise granted:
15 * * *
16 (aa) To make, directly or indirectly, secured or unsecured
17 loans to any purchaser or owner of a residential housing or a
18 commercial or an industrial project for the purpose of financing
19 the purchase, construction, rehabilitation or equipping of a
20 residential housing or a commercial and industrial redevelopment
21 program.
22 (bb) To make loans to, or deposits with, at the option of
23 the Authority, without requiring collateral security therefor,
24 any financial institution, in order to enable that financial
25 institution to finance the acquisition, construction,
26 rehabilitation or equipping of a residential housing or a
27 commercial and industrial redevelopment program. For such
28 purposes, an Authority may make such loans as the Authority may
29 determine; receive interest on such deposits as may be agreed to
30 with the financial institution; purchase and hold notes or other
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1 obligations secured by mortgages, deeds of trust or security
2 interests in residential housing, commercial or industrial
3 projects or property used as additional security,
4 notwithstanding anything to the contrary elsewhere contained in
5 this act; sell, assign, pledge or encumber any security,
6 including mortgages or other security agreements, held by or
7 granted to the Authority or received in connection with the
8 financing of residential housing or commercial or industrial
9 projects and grant to any trustee, in addition to any other
10 rights or remedies contained therein or in any documents
11 granting such security, such other rights and remedies as may be
12 approved by the Authority.
13 (CC) TO MAKE, DIRECTLY OR INDIRECTLY, SECURE OR UNSECURED <--
14 LOANS IN ORDER TO UNDERTAKE AN ECONOMIC DEVELOPMENT PROGRAM.
15 Section 2. The act is amended by adding a section to read:
16 Section 11.1. Preparation and Provisions of a Residential
17 Housing Redevelopment Program and Commercial and Industrial
18 Redevelopment Program AND AN ECONOMIC DEVELOPMENT PROGRAM.--(a) <--
19 The Authority may develop a Residential Housing Redevelopment
20 Program or a Commercial and Industrial Redevelopment Program OR <--
21 AN ECONOMIC DEVELOPMENT PROGRAM for all or part of its field of
22 operation.
23 (b) The Authority shall submit the redevelopment program to
24 the planning commission for review and approval.
25 (c) The planning commission, within forty-five days, shall
26 either approve, reject or modify the program as satisfying the
27 public purpose of this act. If the planning commission takes no
28 action within forty-five days, the program shall be deemed
29 approved on the forty-sixth day.
30 (d) Upon approval by the planning commission, or at the
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1 expiration of forty-five days, if no recommendation is made by
2 the planning commission, the Authority is authorized to take
3 such action as may be necessary to carry out the redevelopment
4 program.
5 Section 3. Section 12.1(a), (c)(7) and (e) of the act, added
6 June 23, 1978 (P.L.556, No.94), are amended to read:
7 Section 12.1. Blighted Property Removal.--
8 (a) Notwithstanding any other provision of this act, any
9 Redevelopment Authority shall have the power to acquire by
10 purchase, gift, bequest, eminent domain or otherwise, any
11 blighted property as defined in this section, either within or
12 outside of a certified redevelopment area and, further, shall
13 have the power to hold, clear, manage and/or dispose of said
14 property for residential and related [use] reuse and commercial
15 or industrial reuse. This power shall be exercised in accord
16 with the procedures set forth in this section.
17 * * *
18 (c) Blighted property shall include:
19 * * *
20 (7) Any unoccupied property which has been tax delinquent
21 for a period of [two years] one year prior to the effective date
22 of this act, and those in the future having a [two year] one
23 year tax delinquency.
24 * * *
25 (e) The [vacant] blighted property review committee [and the
26 appropriate planning commission], upon making a determination
27 that any property is blighted within the terms of this section,
28 must certify said blighted property to the Redevelopment
29 Authority, except that:
30 [(1) No property shall be certified to the Redevelopment
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1 Authority unless it is vacant.
2 (2)] (1) No property shall be certified to the Redevelopment
3 Authority unless the owner of the property or an agent
4 designated by him for receipt of service of notices within the
5 municipality has been served with notice of the determination
6 that the property is blighted, together with an appropriate
7 order to eliminate the conditions causing the blight and
8 notification that failure to do so may render the property
9 subject to condemnation under this act. The notice shall be
10 served upon the owner or his agent in accord with the provisions
11 of a local ordinance pertaining to service of notice of
12 determination of a public nuisance. The owner or his agent shall
13 have the right of appeal from the determination in the same
14 manner as an appeal from the determination of public nuisance.
15 [(3)] (2) No blighted property shall be certified to the
16 Redevelopment Authority until the time period for appeal has
17 expired and no appeal has been taken, or, if taken, the appeal
18 has been disposed of, and the owner or his agent has failed to
19 comply with the order of the responsible department or other
20 officer or agency.
21 [(4) No single vacant lot or parcel of ground shall be
22 certified to the Redevelopment Authority under this section on
23 which more than ten dwelling units can be constructed under
24 existing zoning regulations.]
25 * * *
26 Section 4. Section 13.1 of the act is repealed.
27 Section 5. Section 14 of the act, amended July 17, 1970
28 (P.L.496, No.173), is amended to read:
29 Section 14. Form and Sale of Bonds.--The bonds of an
30 Authority shall be authorized by its resolution; shall be issued
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1 in one or more series; and shall bear such date, mature, at such
2 time, and bear interest at such rate[, not exceeding six per
3 centum (6%) per annum, except that for a period ending on
4 October 10, 1970 the rate or rates of interest may exceed six
5 per centum (6%) per annum but shall not exceed seven per centum
6 (7%) per annum] as shall be determined by the Authority as
7 necessary to issue and sell such bonds, payable semi-annually,
8 be in such denominations, be in such form, either coupon or
9 registered, be executed in such manner, be payable in such
10 medium of payment, at such place, and be subject to such terms
11 of redemption and carry such registration privileges as may be
12 provided in such resolution, or in any trust, indenture or
13 mortgage properly made in pursuance thereof.
14 The bonds of an Authority may be sold at public or private
15 sale [at not less than par and accrued interest] for such price
16 or prices as the Authority may determine. In case any of the
17 officers of an Authority whose signatures appear on any bonds or
18 coupons shall cease to be officers before the delivery of such
19 bonds their signatures shall, nevertheless, be valid and
20 sufficient for all purposes, the same as if such officers had
21 remained in office until such delivery.
22 The Authority shall have the power out of any funds available
23 therefor to purchase any bonds issued by it [at a price not more
24 than the par value thereof plus accrued interest]. All bonds so
25 purchased shall be cancelled. This paragraph shall not apply to
26 the redemption of bonds.
27 Any bond reciting in substance that it has been issued by an
28 Authority to accomplish the public purposes of this act shall be
29 conclusively deemed in any suit, action or proceeding involving
30 the validity or enforceability of such bond or security therefor
19850H1728B3131 - 8 -
1 to have been issued for such purpose.
2 [The interest on bonds issued with an interest rate exceeding
3 six per centum (6%) per annum shall be paid during the term for
4 which the bonds were issued and shall not be limited to the
5 specified period during which the rates in excess of six per
6 centum (6%) per annum could be determined.]
7 Section 6. This act shall take effect immediately.
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