SENATE AMENDED PRIOR PRINTER'S NOS. 1290, 2558, 3337 PRINTER'S NO. 4032
No. 1142 Session of 1999
INTRODUCED BY REINARD, PETRONE, J. TAYLOR, MARSICO, PIPPY, LEH, STURLA, YOUNGBLOOD, CORRIGAN, RAMOS, ROSS, ARGALL, L. I. COHEN, COSTA, BUNT, WRIGHT, FICHTER, READSHAW, FREEMAN, McILHINNEY, MANDERINO, THOMAS, STEELMAN, E. Z. TAYLOR, WILLIAMS, BROWNE AND WASHINGTON, MARCH 29, 1999
SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, OCTOBER 3, 2000
AN ACT 1 Establishing Neighborhood Improvement Districts; conferring <-- 2 powers and duties on municipal corporations and neighborhood 3 improvement districts; providing for annual audits; and 4 making repeals. 5 TABLE OF CONTENTS 6 Section 1. Short title. 7 Section 2. Legislative findings. 8 Section 3. Definitions. 9 Section 4. Powers of municipal corporation. 10 Section 5. Creation of neighborhood improvement district. 11 Section 6. Creation of neighborhood improvement district 12 management association. 13 Section 7. Powers of neighborhood improvement district 14 management association. 15 Section 8. Dissolution of neighborhood improvement district 16 management association and neighborhood
1 improvement district. 2 Section 9. Annual audit; report. 3 Section 10. Applicability. 4 Section 11. Effective date. 5 AMENDING THE ACT OF DECEMBER 21, 1998 (P.L.1307, NO.174), <-- 6 ENTITLED "AN ACT RELATING TO CITIES OF THE FIRST CLASS, 7 ESTABLISHING NEIGHBORHOOD IMPROVEMENT DISTRICTS; CONFERRING 8 POWERS AND DUTIES ON MUNICIPAL CORPORATIONS AND NEIGHBORHOOD 9 IMPROVEMENT DISTRICTS; AND PROVIDING FOR ANNUAL AUDITS AND 10 FOR TOURISM AND MARKETING," FURTHER PROVIDING FOR THE 11 LOCATION OF REAL PROPERTY WITHIN NEIGHBORHOOD IMPROVEMENT 12 DISTRICTS; EXTENDING PROVISIONS RELATING TO NEIGHBORHOOD 13 IMPROVEMENT DISTRICTS TO ALL MUNICIPALITIES; AND MAKING 14 EDITORIAL CHANGES. 15 The General Assembly of the Commonwealth of Pennsylvania 16 hereby enacts as follows: 17 Section 1. Short title. <-- 18 This act shall be known and may be cited as the Neighborhood 19 Improvement District Act. 20 Section 2. Legislative findings. 21 The General Assembly finds that: 22 (1) Existing tax rates in many municipalities are at or 23 near their statutory cap. 24 (2) The General Fund revenue derived from these taxes 25 many times is not sufficient to provide adequate municipal 26 services or additional services needed in specific geographic 27 areas within the municipality, including, but not limited to, 28 downtown commercial districts. 29 (3) As a result, municipalities should be encouraged to 30 create, where feasible and desired, assessment-based 19990H1142B4032 - 2 -
1 neighborhood improvement districts which would include, but 2 not be limited to, downtown commercial districts. Designated 3 district management associations would initiate and 4 administer programs to promote and enhance more attractive 5 and safer commercial, industrial, residential and mixed-use 6 neighborhoods; economic growth; increased employment 7 opportunities; and improved commercial, industrial, business 8 districts and business climates. 9 (4) Municipalities should be given the broadest possible 10 discretion in establishing by local ordinance the type of 11 assessment-based programs most consistent with neighborhood 12 needs, goals and objectives, as determined and expressed by 13 property owners in the designated district. 14 Section 3. Definitions. 15 The following words and phrases when used in this act shall 16 have the meanings given to them in this section unless the 17 context clearly indicates otherwise: 18 "Authority." A body politic and corporate, created pursuant 19 to the act of May 2, 1945 (P.L.382, No.164), known as the 20 Municipality Authorities Act of 1945. 21 "Benefited property." Those properties located within a 22 neighborhood improvement district which profit from district 23 improvements based on a rational nexus test. Properties need not 24 profit equally to be considered to have benefited. 25 "Bonds." The term shall include the notes, bonds and other 26 evidence of indebtedness or obligations which each municipal 27 corporation is authorized to issue under section 4(5). 28 "Business improvement." In the case of neighborhood 29 improvement district management associations created for the 30 purpose of making improvements or providing administrative 19990H1142B4032 - 3 -
1 services within a neighborhood improvement district, the term 2 shall mean those improvements needed in specific areas or to 3 individual properties, including, but not limited to, sidewalks, 4 retaining walls, street paving, parks, recreational equipment 5 and facilities, open space, street lighting, parking lots, 6 parking garages, trees and shrubbery, pedestrian walks, sewers, 7 water lines, rest areas and the acquisition and rehabilitation 8 or demolition of blighted buildings or structures. 9 "Business improvement district." A business improvement 10 district (BID) created prior to the effective date of this act 11 governed by the act of May 2, 1945 (P.L.382, No.164), known as 12 the Municipality Authorities Act of 1945, insofar as it relates 13 to business improvement districts or 53 Pa.C.S. Ch. 54 (relating 14 to business improvement districts). On or after the effective 15 date of this act, the term shall mean a limited, geographical 16 area comprised of real property which is used for any for-profit 17 activity involving trade and traffic, or commerce in general. 18 "Commercial." Relating to or associated with any for-profit 19 activity involving trade and traffic, or commerce in general. 20 "Construction expenditures." Property and right-of-way 21 acquisition costs where applicable. 22 "Costs of improvements." The term includes architectural 23 fees, engineering fees, attorney fees, consulting fees, 24 professional fees, preliminary planning expenditures, 25 feasibility study expenditures, financing costs and any other 26 expenditures necessary and incidental to the development, 27 construction or completion of the improvement. 28 "District Advisory Council." A committee comprised of 29 property owners from a neighborhood improvement district 30 established under section 7(a), for the purpose of providing 19990H1142B4032 - 4 -
1 guidance and direction to the neighborhood improvement district 2 management association concerning association activities within 3 the district. 4 "Industrial district." A limited, geographical area 5 comprised of real property which is used predominantly for 6 manufacturing, commercial or any other activity related to the 7 distribution of goods and services and intermediate and final 8 products, including, but not limited to, warehousing, shipping, 9 transportation, remanufacturing, stockpiling of raw materials, 10 repair and maintenance of machinery and equipment, storage, 11 administration or business activities, and research and 12 development. 13 "Institution." The term includes, but is not limited to, 14 colleges, universities, schools, hospitals, museums, theaters, 15 churches, synagogues, art centers or similar facilities. 16 "Institutional district." A limited, geographical area 17 comprised predominantly of real property on which educational, 18 health-related or cultural activities occur within buildings and 19 structures, including, but not limited to, colleges, 20 universities, schools, hospitals, museums, theaters, churches, 21 synagogues and art centers. 22 "Mixed-use district." A limited, geographical area comprised 23 of real property used for any or all purposes contained within a 24 business, residential, industrial or institutional district. 25 "Municipal corporation." The body or board authorized by law 26 to enact ordinances or adopt resolutions for the particular 27 municipality. 28 "Municipality." With the exception of cities of the first 29 class, any city, borough, incorporated town, township, home 30 rule, optional plan or optional charter municipality, located 19990H1142B4032 - 5 -
1 within this Commonwealth. 2 "Neighborhood." A limited geographic area within a 3 municipality establishing a neighborhood improvement district, 4 the limits of which form the neighborhood improvement district 5 boundary. 6 "Neighborhood improvement." Improvements needed in specific 7 geographic areas or to individual properties within those areas, 8 including, but not limited to, sidewalks, retaining walls, 9 street paving, parks, recreational equipment and facilities, 10 open space, street lighting, parking lots, trees and shrubbery, 11 sewers, water lines, rest areas and the acquisition and 12 rehabilitation or demolition of deteriorated buildings or 13 structures. 14 "Neighborhood improvement district." A limited geographic 15 area within a municipality, in which a special assessment is 16 levied on all designated property, other than tax-exempt 17 property, for the purpose of promoting the economic and general 18 welfare of the district and the municipality, hereinafter 19 referred to as NID. Such districts shall be referred to 20 generally as neighborhood improvement district (NID) and 21 specifically as: business improvement district (BID); 22 residential improvement district (RID); industrial improvement 23 district (IID); institutional improvement district (INID); or 24 mixed-use improvement district (MID) depending on the type 25 district established. A designated property may not be included 26 in more than one neighborhood improvement district. 27 "Neighborhood improvement district management association." 28 The governing body which oversees the management of neighborhood 29 improvement districts in a municipality as established under 30 section 5 which hereinafter shall be referred to as the NIDMA. 19990H1142B4032 - 6 -
1 Such body shall be incorporated as a nonprofit corporation in 2 this Commonwealth or an authority as established pursuant to the 3 act of May 2, 1945 (P.L.382, No.164), known as the Municipality 4 Authorities Act of 1945. 5 "Neighborhood improvement district plan." The strategic plan 6 for neighborhood improvements required by section 5, hereinafter 7 referred to as NIDP, and all projects, programs and supplemental 8 services to be provided within the district to implement the 9 plan by the neighborhood improvement district management 10 association. 11 "Neighborhood improvement district services." In the case of 12 neighborhood improvement district management associations 13 created for the purpose of making improvements or providing 14 expanded services within any neighborhood business improvement 15 districts established, the term shall include, but not be 16 limited to, those services which improve the ability of the 17 commercial establishments within the district to serve the 18 consumer, such as free or reduced-fee parking for customers, 19 transportation-related expenses, public relations programs, 20 group advertising, and district maintenance and security 21 services. For services provided within any residential, 22 industrial, institutional, or mixed-use neighborhood improvement 23 district, the term shall include, but not be limited to, those 24 services which improve the ability of property owners to enjoy a 25 safer and more attractive neighborhood through the provision of 26 increased or expanded services, including street lighting, 27 street cleaning, street maintenance, parks, recreational 28 equipment and facilities, open space and/or security services. 29 "Nonprofit corporation." A legal entity that is incorporated 30 within this Commonwealth and specifies in its charter or bylaws 19990H1142B4032 - 7 -
1 that no part of the net earnings may benefit any private 2 shareholder or individual holding interest in such entity. 3 "Private security officer." Any person or firm employed by 4 the neighborhood improvement district management association for 5 the purpose of providing increased security or protective patrol 6 services within the neighborhood improvement district. The term 7 may include off-duty police officers provided that the use of 8 such officers for this purpose is approved by the governing body 9 of the municipality in which the neighborhood improvement 10 district is located or the municipality where the officer is 11 employed if different. 12 "Project." The acquisition, development, construction, 13 improvement, rehabilitation, operation and/or maintenance of any 14 building, facility, equipment or structure, by purchase, lease 15 or contract, by a neighborhood improvement district management 16 association to facilitate neighborhood and business improvements 17 as authorized by this act. 18 "Rational nexus." The legal principle which requires that 19 there is a rational, definable benefit which accrues to any 20 property owner assessed a fee for said benefit in a neighborhood 21 improvement district created under this act. All property owners 22 within a designated neighborhood improvement district paying a 23 special assessment fee must benefit directly or indirectly from 24 facilities or services provided by a neighborhood improvement 25 district management association within the neighborhood 26 improvement district, provided, however, that property owners 27 need not benefit equally. 28 "Residential district." A limited, geographical area 29 comprised of real property consisting predominantly of buildings 30 and structures for housing individuals and families, including, 19990H1142B4032 - 8 -
1 but not limited to, single family detached homes, single family 2 semi-detached homes, townhouses, condominiums, apartments, 3 manufactured homes, modular homes or any combination of same. 4 "Service area." The area within the boundaries of the 5 neighborhood improvement district established by a municipality 6 under this act, in which the neighborhood improvement district 7 management association provides programs, services and 8 improvements. The term may also include an area outside of the 9 neighborhood improvement district where services are being 10 provided by the neighborhood improvement district management 11 association under contract. 12 "Special assessment fee." The fee assessed on property 13 owners within a neighborhood improvement district, levied by the 14 municipality establishing a neighborhood improvement district, 15 under section 4(8), for the purposes of providing programs, 16 improvements and services, under section 7. 17 "Sunset provision." The term means a provision in the 18 neighborhood improvement district plan, under section 5(c), 19 establishing a neighborhood improvement district, which provides 20 for the automatic termination of the neighborhood improvement 21 district on a date specified in the neighborhood improvement 22 district plan and in the municipal ordinance establishing the 23 neighborhood improvement district. The neighborhood improvement 24 district may be continued beyond that date, provided the 25 municipal enabling ordinance creating the original neighborhood 26 improvement district is reenacted, following a review of the 27 neighborhood improvement district and the neighborhood 28 improvement district management association programs and 29 services provided within the neighborhood improvement district, 30 by the municipality. 19990H1142B4032 - 9 -
1 Section 4. Powers of municipal corporation. 2 Every municipal corporation shall have the power: 3 (1) To establish within the municipality an area or 4 areas designated as an NID. 5 (2) To establish an authority to administer the NID or 6 to designate an existing community development corporation or 7 other existing nonprofit corporation to administer same or to 8 create a community development corporation or other nonprofit 9 corporation to administer same, under sections 6 and 7. 10 (3) To appropriate and expend, in accordance with the 11 specific provisions of the municipal enabling ordinance, 12 municipal funds as may be required to: 13 (i) Acquire by purchase or lease real or personal 14 property deemed necessary to effectuate the purposes of 15 the NID. 16 (ii) Prepare or have prepared preliminary planning 17 or feasibility studies to determine needed improvements 18 in an NID, including, but not limited to, capital 19 improvements, traditional streetscape and building 20 renovations, retaining walls, street paving, street 21 lighting, parking lots, parking garages, trees and 22 shrubbery, pedestrian walks, sewers, water lines, rest 23 areas, acquisition, rehabilitation or demolition of 24 blighted buildings and structures, graffiti removal, 25 security, marketing, promotions, advertising, business 26 retention and recruitment activities, master leasing and 27 property management, joint advertising, research and 28 planning, as well as the provision of additional services 29 to supplement, not replace, existing municipal services 30 provided within the NID. 19990H1142B4032 - 10 -
1 (4) To advance funds to a NIDMA as may be required to 2 carry out the purposes of this act. 3 (5) To collect special property assessments on behalf of 4 the NIDMA levied on designated property owners within the 5 NID, and to employ any legal methods to insure collection of 6 the assessments. 7 (6) To acquire by gift, purchase or eminent domain, 8 land, real property, or rights-of way, which may be needed 9 for the purposes of making physical improvements within the 10 NID. 11 (7) To issue bonds, notes or guarantees, in accordance 12 with the provisions of general laws in the amounts and for 13 the periods necessary, to finance needed improvements within 14 any NID. 15 (8) To review all proposed expenditures of funds within 16 NIDs by NIDMAs and suggest changes to same where a nonprofit 17 corporation is the NIDMA. 18 (9) To include a sunset provision of no less than five 19 years in the municipal enabling ordinance creating the NID 20 and in the contract with the NIDMA. 21 (10) To levy an assessment fee on property owners 22 located within an NID needed to finance additional 23 supplemental programs, services and improvements to be 24 provided or made by the NIDMA. 25 Section 5. Creation of neighborhood improvement district. 26 (a) Establishment.-- 27 (1) The governing body of the municipality, or any 28 municipal businesses, or residents, or combination thereof, 29 may initiate action to establish an NID or NIDs within the 30 municipality, under this act. 19990H1142B4032 - 11 -
1 (2) In the case of businesses, or residents, or both 2 desiring to establish an NID, where the municipality has not 3 taken action to do so, the governing body of the municipality 4 may be petitioned to establish an NID, under the procedures 5 provided for by this act. 6 (3) In no case, where the governing body of a 7 municipality is petitioned to establish an NID under 8 paragraph (2), shall the municipality be required to 9 establish an NID. 10 (b) Specific procedures.-- 11 (1) A copy of everything required under this section, as 12 well as the date, location and time of any public hearing 13 required by this act, shall be provided by the municipal 14 corporation to all property owners and lessees of property 15 owners located in the proposed NID, at least 30 days prior to 16 the first public hearing required by this section. 17 (2) At least one public hearing, no earlier than 15 days 18 apart, for the purpose of receiving public comment from 19 affected property owners within the proposed NID, on the 20 proposed NIDP, shall be held by the municipality before the 21 establishment of an NID. Notice of the hearing shall be 22 advertised at least ten days prior thereto in a newspaper of 23 general circulation in the municipality. 24 (3) Any objections by property owners within the 25 proposed NID must be made in writing, by persons representing 26 the ownership of 51% 40%, in numbers, of the benefited 27 properties within the NID., or by property owners within the 28 proposed NID whose property valuation, as assessed for 29 taxable purposes, shall amount to 51% of the total property 30 valuation within the NID. Objections must be signed by the 19990H1142B4032 - 12 -
1 property owner and filed in the office of the clerk for the 2 governing body of the municipality in which the NID is 3 proposed. 4 (c) Contents of preliminary plan.--The plan shall include 5 the following: 6 (1) A map indicating the boundaries by street of the 7 proposed NID, however, a designated property may not be 8 included in more than one NID. 9 (2) A written report from the municipality containing: 10 (i) The name of the proposed district. 11 (ii) A detailed description of the service areas of 12 the proposed district. 13 (iii) A list of all properties to be assessed. 14 (iv) A list of proposed improvements within the NID, 15 and their estimated cost. 16 (v) A proposed budget for the first fiscal year, 17 including, but not limited to, the following: personnel 18 and administration, programs and services, maintenance 19 and operation, and capital expenditures. 20 (vi) The proposed revenue sources for financing all 21 proposed improvements, programs and services. 22 (vii) The estimated time for implementation and 23 completion of all proposed improvements, programs and 24 services. 25 (viii) A statement identifying the administrative 26 body which will govern and administer the NID. 27 (ix) Any other information, including the statutory 28 authority, or, in the case of a nonprofit corporation, 29 the bylaws, which describe the powers and duties of and 30 the method for making decisions by the NIDMA. 19990H1142B4032 - 13 -
1 (x) The method of determining the amount of the 2 assessment fee to be levied on property owners within the 3 NID under section 7. 4 (3) In addition, the plan shall also: 5 (i) Identify in detail the specific duties and 6 responsibilities of both the NIDMA and the municipal 7 corporation with respect to the NID. 8 (ii) Require that a written agreement be signed by 9 the municipal corporation and the NIDMA describing in 10 detail their respective duties and responsibilities. 11 (iii) Allow for and encourage tax-exempt property 12 owners located within the NID to provide in-kind services 13 or a financial contribution to the NIDMA, if not 14 assessed, in lieu of a property assessment fee. 15 (iv) Require in the agreement between the municipal 16 corporation and the NIDMA that the municipality must 17 maintain the same level of municipal programs and 18 services provided within the NID before NID designation 19 as after NID designation. 20 (v) Allow the municipal corporation the right to 21 include in the agreement with the NIDMA and in the 22 enabling ordinance establishing the NID a sunset 23 provision of no less than five years for renewal of the 24 agreement. 25 (vi) Require in the agreement with the NIDMA that 26 the municipality establishing an NID shall be responsible 27 for the collection of all property assessment fees levied 28 within the NID, if so desired by the NIDMA. 29 (vii) Provide that a negative vote of at least 51% 30 40% of the property owners within the NID, or property 19990H1142B4032 - 14 -
1 owners within the NID whose property valuation as 2 assessed for taxable purposes amounts to 51% of the total 3 property valuation located within the NID proposed in the 4 final plan, shall be required to defeat the establishment 5 of the proposed NID by filing objections with the clerk 6 for the governing body of the municipality within 45 days 7 of presentation of the final plan, where the governing 8 body of municipality is inclined to establish the NID. 9 (d) Final plan.--Prior to the establishment of an NID, the 10 municipality shall submit a revised final plan to property 11 owners located within the proposed NID, which incorporates 12 changes made to the plan, based on comments from affected 13 property owners within the NID, provided at the public hearings 14 or at some other time. Changes to the final plan, which differ 15 from the preliminary plan, shall also be so indicated in an 16 easily discernible method for the reader, including, but not 17 limited to, changes being in boldfaced or italicized type. 18 (e) Public hearing.--At least one public hearing for the 19 purpose of receiving public comment on any revisions to the 20 preliminary plan made following suggestions by affected property 21 owners within the proposed NID and reflected in the final NIDP 22 shall be held by the municipal corporation before enacting an 23 ordinance establishing an NID. Notice of the hearing shall be 24 advertised at least ten days prior thereto in a newspaper of 25 general circulation in the municipality. 26 (f) Veto of final plan for NID.-- 27 (1) Following the last public hearing required under 28 subsection (e) or under subsection (g), if an amendment to 29 the final plan, affected property owners located within a 30 proposed NID shall have 45 days from the date of the hearing 19990H1142B4032 - 15 -
1 to object to and disapprove the final plan or any amendment 2 to the final plan under the requirements of subsection 3 (b)(3). 4 (2) If 51% 40% or more of the affected property owners 5 or property owners whose property valuation as assessed for 6 taxable purposes amounts to 51% of the total property 7 valuation within the proposed NID fail to register their 8 disapproval of the final plan or amendment to the final plan 9 in writing with the clerk of the governing body of the 10 municipality in which the NID is proposed, the governing body 11 of the municipality may, following the 45-day period, enact a 12 municipal ordinance establishing an NID under this act, or in 13 the case of an amendment to the final plan, adopt any 14 amendments to the ordinance. 15 (g) Amendments to final plan.-- 16 (1) The final plan may be amended by the NIDMA any time 17 after the establishment of an NID, pursuant to the provisions 18 of this act, upon the recommendation of the NIDMA board, 19 provided there is concurrence with the owners of at least 51% 20 of the assessed valuation of all property within the NID or 21 51% 60% of the property owners within the NID. 22 (2) Amendments to the final plan which also require the 23 approval of the governing body of the municipality 24 establishing the NID, include: 25 (i) Substantially changed or added programs, 26 improvements and/or services to be provided in the NID. 27 (ii) Increased expenditures affecting more than 25% 28 of the total NIDMA budget for the fiscal year. 29 (iii) Incurring increased indebtedness. 30 (iv) Changing the assessment fee structure levied on 19990H1142B4032 - 16 -
1 property owners in the NID. 2 (v) Changing the legal entity (NIDMA) which provides 3 programs, improvements and services within the NID. 4 (vi) Changing the NID service area boundary. 5 Prior to the governing body of the municipality approving any 6 of the changes in this paragraph, the governing body shall 7 hold at least one public hearing to determine that such 8 changes are in the public interest as it relates to affected 9 property owners within the NID. 10 (3) The municipality shall provide public notice of the 11 hearing for any amendments, by publication of a notice, in at 12 least one newspaper having a general circulation in the NID, 13 specifying the time and the place of such hearing and the 14 amendments to be considered. This notice shall be published 15 once at least 10 days prior to the date of the hearing. 16 (4) The governing body of the municipality may, within 17 30 days following the public hearing and at its sole 18 discretion, approve or disapprove of any amendments to the 19 plan. If approved, such amendments shall be effective upon 20 the date of such approval. 21 (5) Prior to the adoption of any amendment to the NID 22 boundary which increases the size of the NID, any owner of 23 property to be added to the NID shall be notified of the 24 date, time and location of the public hearing on the proposed 25 amendment to the final plan, and provided all information 26 required by subsection (c). 27 Section 6. Creation of neighborhood improvement district 28 management association. 29 (a) Association designated.--When a municipality establishes 30 an NID under this act, a neighborhood improvement district 19990H1142B4032 - 17 -
1 management association shall be designated by the governing body 2 of the municipality in which the NID is to be located to 3 administer programs, improvements and services within the NID. 4 (b) Administration.-- 5 (1) NIDs created pursuant to this act shall be 6 administered by an NIDMA which shall be an authority created 7 pursuant to the act of May 2, 1945 (P.L.382, No.164), known 8 as the Municipality Authorities Act of 1945, an existing 9 nonprofit development corporation, an existing nonprofit 10 corporation or a nonprofit development corporation or 11 nonprofit corporation established by the governing body or 12 authorized to be established by the governing body of the 13 municipality in which the NID is to be located, to administer 14 the NIDP. 15 (2) If an active nonprofit development corporation 16 already exists within the geographic boundaries of the NID 17 and formally indicates its interest to the governing body of 18 the municipality to become the designated NIDMA, the 19 governing body of the municipality shall grant that request 20 unless 51% 40% or more of the affected property owners or 21 property owners whose property valuation as assessed for 22 taxable purposes amounts to 51% of the total property 23 valuation within the proposed NID register their disapproval 24 of this designation in writing with the clerk of the 25 governing body within a 45-day period following the formal 26 written request for designation by the nonprofit development 27 corporation to become the NIDMA. 28 (c) Powers.--An NIDMA created under this act shall assume 29 all powers provided for in section 7 immediately upon the 30 effective date of the municipal ordinance enacted under section 19990H1142B4032 - 18 -
1 4 creating an NID. 2 (d) Board.--Every NIDMA shall have an administrative board. 3 (1) Where an authority created pursuant to the 4 Municipality Authorities Act of 1945 serves as the NIDMA, the 5 board shall be appointed pursuant to the Municipality 6 Authorities Act of 1945. 7 (2) Where an existing nonprofit development corporation 8 or other nonprofit corporation is to serve as the NIDMA, the 9 board shall be appointed according to the bylaws of the NIDMA 10 filed with the Department of State. 11 (3) Where a nonprofit development corporation or other 12 nonprofit corporation is established to serve as the NIDMA 13 for an NID, the board shall be comprised of an odd number of 14 members, between five and nine, with at least one member 15 representing the municipal corporation in which the NID is 16 located. 17 (4) In all cases, NIDMA boards shall include a 18 representative of property owners located in the NID, 19 business owners located in the NID and any institutions 20 located in the NID. Institutional members may appoint a 21 designee to represent them. All board members need not be 22 residents of the NID. 23 Section 7. Powers of neighborhood improvement district 24 management association. 25 (a) General powers.--A NIDMA shall have, in addition to any 26 other powers provided pursuant to the act of May 2, 1945 27 (P.L.382, No.164), known as the Municipality Authorities Act of 28 1945, where the NIDMA is an authority, or in addition to any 29 other powers provided pursuant to the charter establishing a 30 nonprofit development corporation or other nonprofit 19990H1142B4032 - 19 -
1 corporation, where the NIDMA is a nonprofit development 2 corporation or other nonprofit corporation, the power to: 3 (1) Sue or be sued, implead or be impleaded, complain 4 and defend in all courts. 5 (2) Employ an executive director or administrator and 6 any necessary supporting staff or contract for the provision 7 of same. 8 (3) Prepare planning or feasibility studies or contract 9 for the preparation of same, to determine needed capital 10 improvements or administrative programs and services within 11 the NID. 12 (4) Make capital improvements or provide administrative 13 programs and services within an NID. 14 (5) Purchase, own, construct, renovate, develop, 15 operate, rehabilitate, manage, sell and/or dispose of real 16 property. 17 (6) Contract with existing businesses within the NID. 18 (7) Contract for the provision of products or services 19 by the NIDMA to clients located inside and outside of the 20 NID, including billing and collection of assessment fees by 21 another NIDMA. 22 (8) Appropriate and expend NID funds which would include 23 any Federal, State or municipal funds received by the NIDMA. 24 The funds shall be expended in accordance with any specific 25 provisions contained in the municipal enabling ordinance 26 establishing the NID and may be used: 27 (i) To acquire by purchase or lease real or personal 28 property to effectuate the purposes of this act, 29 including making common improvements within the NID, 30 including, but not limited to, sidewalks, retaining 19990H1142B4032 - 20 -
1 walls, street paving, parks, recreational equipment and 2 facilities, open space, street lighting, parking lots, 3 parking garages, trees and shrubbery, pedestrian walks, 4 sewers, water lines, rest areas and the acquisition, 5 rehabilitation or demolition of blighted buildings or 6 comparable structures. 7 (ii) To provide free or reduced-fee parking for 8 customers of businesses within the NID; transportation- 9 related expenditures, public relations programs, group 10 advertising and NID maintenance and security services. 11 (iii) To impose special assessment fees. 12 (9) Solicit in-kind services or financial contributions 13 from tax-exempt property owners within the NID in lieu of 14 property assessment fees. This may include entering into 15 voluntary multiyear agreements (VMAs) between the NIDMA and 16 tax-exempt property owners located within an NID, for the 17 provision of same. 18 (10) Impose liens on property for the nonpayment of 19 property assessments. NIDs administered by nonprofit 20 corporations would have any such liens filed by the municipal 21 corporation. 22 (11) Hire additional off-duty police officers or private 23 security officers, whose patrol area responsibilities would 24 be limited to the geographical area incorporated within the 25 designated NID service area and whose responsibility would be 26 to support existing municipal and volunteer efforts aimed at 27 reducing crime and improving security in the NID. 28 (12) Designate a district advisory committee, referred 29 to as the DAC, for each NID established within the 30 municipality. Each DAC shall consist of an odd number of 19990H1142B4032 - 21 -
1 members, between five and nine, who shall be representative 2 of the neighborhood's character, including, but not limited 3 to, age, sex and cultural diversity. 4 (b) Assessments.-- 5 (1) The NIDMA shall, upon approval by the governing body 6 of the municipality, have the power to assess property owners 7 within the NID a special property assessment fee. Revenues 8 from the fee shall be accounted for and used by the NIDMA to 9 make improvements and provide programs and services within 10 the NID as authorized by this act. Where the district 11 established is a BID, the NIDMA shall have the authority to 12 exempt residential property owners from any special 13 assessment fees levied. 14 (2) All assessments authorized under this section shall 15 be calculated using January 1 as the first day of the fiscal 16 year. 17 (3) All special property assessment fees shall be based 18 upon the estimated cost of the programs, improvements or 19 services to be provided in such NID as stated in the final 20 plan under section 5(d). In no case shall the aggregate 21 amount of all fees levied by the NIDMA during the year exceed 22 the estimated cost of proposed programs, improvements and 23 services for the year. 24 (4) In the case of an NID which contains a combination 25 of business, residential, industrial and/or institutional 26 areas and uses, a weighted assessment may be instituted. In 27 such case, the fee levied on property owners generally may be 28 weighted higher for business, industrial or institutional 29 properties than that levied on residential property owners, 30 provided the basis for the calculation of the fee meets the 19990H1142B4032 - 22 -
1 rational nexus test. 2 (5) The total costs of improvements, programs and 3 administrative services provided by the NIDMA shall be 4 assessed to all designated properties within the NID by one 5 of the following methods: 6 (i) An assessment determined by multiplying the 7 total service and improvement costs by the ratio of the 8 assessed value of the benefited property to the total 9 assessed valuation of all designated benefited properties 10 in the NID. 11 (ii) An assessment upon the several properties in 12 the NID in proportion to benefits as ascertained by 13 viewers appointed in accordance with law. 14 (iii) Any method that equitably apportions costs 15 among benefiting properties. 16 (iv) In the case of improvements benefiting 17 properties abutting the NID by the front-foot method, 18 with equitable adjustments for corner properties and 19 other cases provided for in the municipal ordinance. Any 20 property which cannot be equitably assessed by the front- 21 foot method may be assessed by any of the above methods. 22 (c) Payment.--The governing body may by ordinance authorize 23 the payment of the assessment in equal annual or more frequent 24 installments, over such time and bearing interest at the rate 25 specified in the municipal ordinance. If bonds have been issued 26 and sold, or notes or guarantees have been given or issued, to 27 provide for the cost of the services and improvements, the 28 assessment in equal installments shall not be payable beyond the 29 term for which the bonds, notes or guarantees are payable. 30 (d) Liens.-- 19990H1142B4032 - 23 -
1 (1) Notwithstanding the filing of the claims, all 2 assessments which are made payable in installments shall 3 constitute liens and encumbrances upon the respective 4 benefited properties at the beginning of each calendar year, 5 except as provided in subsection (c), and only in an amount 6 equal to the sum of: 7 (i) the annual or other installments becoming 8 payable in such year, with interest and penalties, if 9 any, thereon; and 10 (ii) the total of all installments, with interest 11 and penalties thereon, which became due during prior 12 years and which remain due and unpaid at the beginning of 13 the current year. 14 (2) In the case of default in the payment of any 15 installment and interest for a period of 90 days after the 16 payment becomes due, the assessment ordinance may provide 17 either for the entire assessment, with accrued interest and 18 penalties to become due and become a lien from the due date 19 of the installment, or may provide solely for the enforcement 20 of the claim as to the overdue installment, with interest and 21 penalties, in which case the ordinance shall further provide 22 that, if any installment or portion thereof remains due and 23 unpaid for one year after it has become due and payable, then 24 the entire assessment with accrued interest and penalties 25 shall become due and become a lien from the due date of the 26 installment. 27 (3) No action taken to enforce a claim for any 28 installment or installments shall affect the status of any 29 subsequent installment of the same assessment, each of which 30 shall continue to become a lien upon the property annually 19990H1142B4032 - 24 -
1 pursuant to paragraph (1). 2 (4) The ordinance may contain any other provision 3 relating to installment assessments which is not inconsistent 4 with applicable law. 5 (5) Any owner of property against whom an assessment has 6 been made may pay the assessment in full at any time, with 7 accrued interest and costs thereon, and such a payment shall 8 discharge the lien of the assessment, or installments then 9 constituting a lien, and shall also release the claim to any 10 later installments. 11 (6) Claims to secure the assessments shall be entered in 12 the prothonotary's office of the county at the same time, and 13 in the same form, and collected in the same manner, as 14 municipal tax claims are filed and collected, notwithstanding 15 the provisions of this section as to installment payments. 16 Section 8. Dissolution of neighborhood improvement district 17 management association and neighborhood 18 improvement district. 19 (a) Conveying projects.--When any NIDMA shall have finally 20 paid and discharged all bonds which, together with the interest 21 due thereon, shall have been secured by a pledge of any of the 22 revenues or receipts of a project, it may, subject to any 23 agreements concerning the operation or disposition of such 24 project and the NIDMA bylaws, convey such project or projects to 25 the municipal corporation which established or had established 26 the NIDMA. 27 (b) Request for termination.--Any request for the 28 termination of the NID and NIDMA approved by 51% 40% of the 29 assessed property owners, in numbers, located in the NID, shall 30 be submitted to the governing body of the municipality in 19990H1142B4032 - 25 -
1 writing. The governing body shall hold a hearing on the merits 2 of same, pursuant to section 5(b)(2) as it relates to the 3 required procedure of holding a hearing. Such written request 4 shall be considered by the governing body of the municipality. 5 If the request is approved by the governing body of the 6 municipality, then a resolution to that effect shall be filed 7 with the Secretary of the Commonwealth, and the secretary shall 8 note the termination of the existence on the record of 9 incorporation and return the resolution with his or her approval 10 shown on the resolution to the municipal corporation. Then, the 11 property of the NIDMA shall pass to the municipal corporation, 12 as the case may be, and the NIDMA and NID shall cease to exist. 13 Any request for the termination of the NID and NIDMA by the 14 governing body of the municipality in which the NID is located 15 shall result in a hearing on the merits of same, pursuant to 16 section 5(b)(2) as it relates to the required procedure for 17 holding a hearing. Before the decision to terminate an NID and 18 NIDMA is made, such termination must be approved by 51% 40% of 19 the assessed property owners, in numbers, located in the NID, 20 and shall be submitted to the governing body of the municipality 21 in writing. Such written request shall be considered by the 22 governing body of the municipality. If the request is approved 23 by the governing body of the municipality, then a resolution to 24 that effect shall be filed with the Secretary of the 25 Commonwealth, and the secretary shall note the termination of 26 the existence on the record of incorporation and return the 27 resolution with his or her approval shown to the municipal 28 corporation. The property of the NIDMA shall pass to the 29 municipal corporation, as the case may be, and the NIDMA and NID 30 shall cease to exist. 19990H1142B4032 - 26 -
1 Section 9. Annual audit; report. 2 The NIDMA shall annually: 3 (1) submit an audit of all income and expenditures to 4 the Department of Community and Economic Development and the 5 governing body of the municipality in which the NID is 6 located within 120 days after the end of each fiscal year; 7 and 8 (2) submit a report, including financial and 9 programmatic information, including a summary of audit 10 findings, to the governing body of the municipality in which 11 the NID is located and to all assessed property owners 12 located in the NID. 13 Section 10. Applicability. 14 (a) Existing districts.--Except as provided for in 15 subsection (d), any existing business improvement district or 16 downtown improvement district established prior to the effective 17 date of this act shall remain in existence and shall be governed 18 by the Municipality Authorities Act of 1945, insofar as it 19 relates to business improvement districts or 53 Pa.C.S. Ch. 54 20 (relating to business improvement districts). 21 (b) Districts created subsequently.--Any NID established 22 subsequent to the effective date of this act shall be governed 23 by the provisions of this act. 24 (c) Previously terminated districts.--Any business 25 improvement district or downtown improvement district in 26 existence prior to the effective date of this act which is 27 terminated shall, upon its reestablishment, be governed by the 28 provisions of this act. This shall include any termination 29 resulting from a sunset provision in any municipal agreement or 30 ordinance. 19990H1142B4032 - 27 -
1 (d) Additional requirements.--Any business improvement 2 district or downtown improvement district in existence on the 3 effective date of this act shall: 4 (1) be required to carry out any duty or responsibility 5 imposed on NIDs under this act; and 6 (2) possess any additional power given to NIDs under 7 this act without having to restructure or reorganize under 8 this act. 9 Section 11. Effective date. 10 This act shall take effect in 60 days. 11 SECTION 1. THE TITLE OF THE ACT OF DECEMBER 21, 1998 <-- 12 (P.L.1307, NO.174), KNOWN AS THE COMMUNITY AND ECONOMIC 13 IMPROVEMENT ACT, IS AMENDED TO READ: 14 AN ACT 15 [RELATING TO CITIES OF THE FIRST CLASS, ESTABLISHING] 16 ESTABLISHING NEIGHBORHOOD IMPROVEMENT DISTRICTS; CONFERRING 17 POWERS AND DUTIES ON MUNICIPAL CORPORATIONS AND NEIGHBORHOOD 18 IMPROVEMENT DISTRICTS; AND PROVIDING FOR ANNUAL AUDITS AND 19 FOR TOURISM AND MARKETING. 20 SECTION 2. THE ACT IS AMENDED BY ADDING A CHAPTER TO READ: 21 CHAPTER 1 22 PRELIMINARY PROVISIONS 23 SECTION 101. SHORT TITLE. 24 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE COMMUNITY AND 25 ECONOMIC IMPROVEMENT ACT. 26 SECTION 3. SECTION 1 OF THE ACT IS AMENDED TO READ: 27 [SECTION 1. SHORT TITLE. 28 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE COMMUNITY AND 29 ECONOMIC IMPROVEMENT ACT.] 30 CHAPTER 3 19990H1142B4032 - 28 -
1 CITIES OF THE FIRST CLASS 2 SECTION 301. SCOPE. 3 THE PROVISIONS OF THIS CHAPTER SHALL ONLY APPLY TO CITIES OF 4 THE FIRST CLASS. 5 SECTION 4. SECTION 2 HEADING OF THE ACT IS RENUMBERED TO 6 READ: 7 SECTION [2] 302. LEGISLATIVE FINDINGS. 8 * * * 9 SECTION 5. SECTIONS 3, 4 HEADING, (2) AND (4), 5 HEADING, 10 (A), (B)(1), (C)(2)(X), (F)(2) AND (G)(1), 6 HEADING, (A), (B) 11 (1) AND (C), 7 HEADING, (B)(1) AND (3) AND 8 HEADING AND (B) OF 12 THE ACT ARE AMENDED TO READ: 13 SECTION [3] 303. DEFINITIONS. 14 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS [ACT] 15 CHAPTER SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION 16 UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE: 17 "AUTHORITY." A BODY POLITIC AND CORPORATE, CREATED PURSUANT 18 TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE 19 MUNICIPALITY AUTHORITIES ACT OF 1945. 20 "BENEFITED PROPERTY." THOSE PROPERTIES LOCATED WITHIN A 21 NEIGHBORHOOD IMPROVEMENT DISTRICT WHICH PROFIT FROM DISTRICT 22 IMPROVEMENTS BASED ON A RATIONAL NEXUS TEST. PROPERTIES NEED NOT 23 PROFIT EQUALLY TO BE CONSIDERED TO HAVE BENEFITED. 24 "BONDS." THE TERM SHALL INCLUDE THE NOTES, BONDS AND OTHER 25 EVIDENCE OF INDEBTEDNESS OR OBLIGATIONS WHICH EACH MUNICIPAL 26 CORPORATION IS AUTHORIZED TO ISSUE UNDER SECTION [4(7)] 307(7). 27 "BUSINESS IMPROVEMENT." IN THE CASE OF NEIGHBORHOOD 28 IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATIONS CREATED FOR THE 29 PURPOSE OF MAKING IMPROVEMENTS OR PROVIDING ADMINISTRATIVE 30 SERVICES WITHIN A NEIGHBORHOOD IMPROVEMENT DISTRICT, THE TERM 19990H1142B4032 - 29 -
1 SHALL MEAN THOSE IMPROVEMENTS NEEDED IN SPECIFIC AREAS OR TO 2 INDIVIDUAL PROPERTIES, INCLUDING, BUT NOT LIMITED TO, SIDEWALKS, 3 RETAINING WALLS, STREET PAVING, PARKS, RECREATIONAL EQUIPMENT 4 AND FACILITIES, OPEN SPACE, STREET LIGHTING, PARKING LOTS, 5 PARKING GARAGES, TREES AND SHRUBBERY, PEDESTRIAN WALKS, SEWERS, 6 WATER LINES, REST AREAS AND THE ACQUISITION AND REHABILITATION 7 OR DEMOLITION OF BLIGHTED BUILDINGS OR STRUCTURES. 8 "BUSINESS IMPROVEMENT DISTRICT." A BUSINESS IMPROVEMENT 9 DISTRICT (BID), CREATED PRIOR TO [THE EFFECTIVE DATE OF THIS 10 ACT] FEBRUARY 19, 1999, GOVERNED BY THE ACT OF MAY 2, 1945 11 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES ACT OF 12 1945, INSOFAR AS IT RELATES TO BUSINESS IMPROVEMENT DISTRICTS OR 13 53 PA.C.S. CH. 54 (RELATING TO BUSINESS IMPROVEMENT DISTRICTS). 14 [ON OR AFTER THE EFFECTIVE DATE OF THIS ACT] AFTER FEBRUARY 18, 15 1999, THE TERM SHALL MEAN A LIMITED GEOGRAPHICAL AREA COMPRISED 16 OF REAL PROPERTY WHICH IS USED FOR ANY FOR-PROFIT ACTIVITY 17 INVOLVING TRADE AND TRAFFIC OR COMMERCE IN GENERAL. 18 "COMMERCIAL." RELATING TO OR ASSOCIATED WITH ANY FOR-PROFIT 19 ACTIVITY INVOLVING TRADE AND TRAFFIC OR COMMERCE IN GENERAL. 20 "CONSTRUCTION EXPENDITURES." PROPERTY AND RIGHT-OF-WAY 21 ACQUISITION COSTS WHERE APPLICABLE. 22 "COSTS OF IMPROVEMENTS." THE TERM INCLUDES ARCHITECTURAL 23 FEES, ENGINEERING FEES, ATTORNEY FEES, CONSULTING FEES, 24 PROFESSIONAL FEES, PRELIMINARY PLANNING EXPENDITURES, 25 FEASIBILITY STUDY EXPENDITURES, FINANCING COSTS AND ANY OTHER 26 EXPENDITURES NECESSARY AND INCIDENTAL TO THE DEVELOPMENT, 27 CONSTRUCTION OR COMPLETION OF THE IMPROVEMENT. 28 "DISTRICT ADVISORY COUNCIL." A COMMITTEE COMPRISED OF 29 PROPERTY OWNERS FROM A NEIGHBORHOOD IMPROVEMENT DISTRICT 30 ESTABLISHED UNDER SECTION [7(A)] 307(A) FOR THE PURPOSE OF 19990H1142B4032 - 30 -
1 PROVIDING GUIDANCE AND DIRECTION TO THE NEIGHBORHOOD IMPROVEMENT 2 DISTRICT MANAGEMENT ASSOCIATION CONCERNING ASSOCIATION 3 ACTIVITIES WITHIN THE DISTRICT. 4 "INDUSTRIAL DISTRICT." A LIMITED GEOGRAPHICAL AREA COMPRISED 5 OF REAL PROPERTY WHICH IS USED PREDOMINANTLY FOR MANUFACTURING, 6 COMMERCIAL OR ANY OTHER ACTIVITY RELATED TO THE DISTRIBUTION OF 7 GOODS AND SERVICES AND INTERMEDIATE AND FINAL PRODUCTS, 8 INCLUDING, BUT NOT LIMITED TO, WAREHOUSING, SHIPPING, 9 TRANSPORTATION, REMANUFACTURING, STOCKPILING OF RAW MATERIALS, 10 REPAIR AND MAINTENANCE OF MACHINERY AND EQUIPMENT, STORAGE, 11 ADMINISTRATION OR BUSINESS ACTIVITIES AND RESEARCH AND 12 DEVELOPMENT. 13 "INSTITUTION." THE TERM INCLUDES, BUT IS NOT LIMITED TO, 14 COLLEGES, UNIVERSITIES, SCHOOLS, HOSPITALS, MUSEUMS, THEATERS, 15 CHURCHES, SYNAGOGUES, ART CENTERS OR SIMILAR FACILITIES. 16 "INSTITUTIONAL DISTRICT." A LIMITED GEOGRAPHICAL AREA 17 COMPRISED PREDOMINANTLY OF REAL PROPERTY ON WHICH EDUCATIONAL, 18 HEALTH-RELATED OR CULTURAL ACTIVITIES OCCUR WITHIN BUILDINGS AND 19 STRUCTURES, INCLUDING, BUT NOT LIMITED TO, COLLEGES, 20 UNIVERSITIES, SCHOOLS, HOSPITALS, MUSEUMS, THEATERS, CHURCHES, 21 SYNAGOGUES AND ART CENTERS. 22 "MIXED-USE DISTRICT." A LIMITED GEOGRAPHICAL AREA COMPRISED 23 OF REAL PROPERTY USED FOR ANY OR ALL PURPOSES CONTAINED WITHIN A 24 BUSINESS, RESIDENTIAL, INDUSTRIAL OR INSTITUTIONAL DISTRICT. 25 "MUNICIPAL CORPORATION." THE BODY OR BOARD AUTHORIZED BY LAW 26 TO ENACT ORDINANCES OR ADOPT RESOLUTIONS FOR A CITY OF THE FIRST 27 CLASS. 28 "MUNICIPALITY." ANY CITY OF THE FIRST CLASS LOCATED WITHIN 29 THIS COMMONWEALTH. 30 "NEIGHBORHOOD." A LIMITED GEOGRAPHIC AREA WITHIN A 19990H1142B4032 - 31 -
1 MUNICIPALITY ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT, 2 THE LIMITS OF WHICH FORM THE NEIGHBORHOOD IMPROVEMENT DISTRICT 3 BOUNDARY. 4 "NEIGHBORHOOD IMPROVEMENT." IMPROVEMENTS NEEDED IN SPECIFIC 5 GEOGRAPHIC AREAS OR TO INDIVIDUAL PROPERTIES WITHIN THOSE AREAS, 6 INCLUDING, BUT NOT LIMITED TO, SIDEWALKS, RETAINING WALLS, 7 STREET PAVING, PARKS, RECREATIONAL EQUIPMENT AND FACILITIES, 8 OPEN SPACE, STREET LIGHTING, PARKING LOTS, TREES AND SHRUBBERY, 9 SEWERS, WATER LINES, REST AREAS AND THE ACQUISITION AND 10 REHABILITATION OR DEMOLITION OF DETERIORATED BUILDINGS OR 11 STRUCTURES. 12 "NEIGHBORHOOD IMPROVEMENT DISTRICT." A LIMITED GEOGRAPHIC 13 AREA WITHIN A MUNICIPALITY, IN WHICH A SPECIAL ASSESSMENT IS 14 LEVIED ON ALL DESIGNATED PROPERTY, OTHER THAN TAX-EXEMPT 15 PROPERTY, FOR THE PURPOSE OF PROMOTING THE ECONOMIC AND GENERAL 16 WELFARE OF THE DISTRICT AND THE MUNICIPALITY, HEREINAFTER 17 REFERRED TO AS NID. SUCH DISTRICTS SHALL BE REFERRED TO 18 GENERALLY AS NEIGHBORHOOD IMPROVEMENT DISTRICT (NID) AND 19 SPECIFICALLY AS BUSINESS IMPROVEMENT DISTRICT (BID), RESIDENTIAL 20 IMPROVEMENT DISTRICT (RID), INDUSTRIAL IMPROVEMENT DISTRICT 21 (IID), INSTITUTIONAL IMPROVEMENT DISTRICT (INID) OR MIXED-USE 22 IMPROVEMENT DISTRICT (MID), DEPENDING ON THE TYPE DISTRICT 23 ESTABLISHED. A DESIGNATED PROPERTY MAY NOT BE INCLUDED IN MORE 24 THAN ONE NEIGHBORHOOD IMPROVEMENT DISTRICT. 25 "NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION." 26 THE GOVERNING BODY WHICH OVERSEES THE MANAGEMENT OF NEIGHBORHOOD 27 IMPROVEMENT DISTRICTS IN A MUNICIPALITY AS ESTABLISHED UNDER 28 SECTION [5] 305, WHICH HEREINAFTER SHALL BE REFERRED TO AS THE 29 NIDMA. SUCH BODY SHALL BE INCORPORATED AS A NONPROFIT 30 CORPORATION IN THIS COMMONWEALTH OR AN AUTHORITY AS ESTABLISHED 19990H1142B4032 - 32 -
1 PURSUANT TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS
2 THE MUNICIPALITY AUTHORITIES ACT OF 1945.
3 "NEIGHBORHOOD IMPROVEMENT DISTRICT PLAN." THE STRATEGIC PLAN
4 FOR NEIGHBORHOOD IMPROVEMENTS REQUIRED BY SECTION [5] 305,
5 HEREINAFTER REFERRED TO AS NIDP, AND ALL PROJECTS, PROGRAMS AND
6 SUPPLEMENTAL SERVICES TO BE PROVIDED WITHIN THE DISTRICT TO
7 IMPLEMENT THE PLAN BY THE NEIGHBORHOOD IMPROVEMENT DISTRICT
8 MANAGEMENT ASSOCIATION.
9 "NEIGHBORHOOD IMPROVEMENT DISTRICT SERVICES." IN THE CASE OF
10 NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATIONS
11 CREATED FOR THE PURPOSE OF MAKING IMPROVEMENTS OR PROVIDING
12 EXPANDED SERVICES WITHIN ANY NEIGHBORHOOD BUSINESS IMPROVEMENT
13 DISTRICTS ESTABLISHED, THE TERM SHALL INCLUDE, BUT NOT BE
14 LIMITED TO, THOSE SERVICES WHICH IMPROVE THE ABILITY OF THE
15 COMMERCIAL ESTABLISHMENTS WITHIN THE DISTRICT TO SERVE THE
16 CONSUMER, SUCH AS FREE OR REDUCED-FEE PARKING FOR CUSTOMERS,
17 TRANSPORTATION-RELATED EXPENSES, PUBLIC RELATIONS PROGRAMS,
18 GROUP ADVERTISING AND DISTRICT MAINTENANCE AND SECURITY
19 SERVICES. FOR SERVICES PROVIDED WITHIN ANY RESIDENTIAL,
20 INDUSTRIAL, INSTITUTIONAL OR MIXED-USE NEIGHBORHOOD IMPROVEMENT
21 DISTRICT, THE TERM SHALL INCLUDE, BUT NOT BE LIMITED TO, THOSE
22 SERVICES WHICH IMPROVE THE ABILITY OF PROPERTY OWNERS TO ENJOY A
23 SAFER AND MORE ATTRACTIVE NEIGHBORHOOD THROUGH THE PROVISION OF
24 INCREASED OR EXPANDED SERVICES, INCLUDING STREET LIGHTING,
25 STREET CLEANING, STREET MAINTENANCE, PARKS, RECREATIONAL
26 EQUIPMENT AND FACILITIES, OPEN SPACE AND/OR SECURITY SERVICES.
27 "NONPROFIT CORPORATION." A LEGAL ENTITY THAT IS INCORPORATED
28 WITHIN THIS COMMONWEALTH AND SPECIFIES IN ITS CHARTER OR BYLAWS
29 THAT NO PART OF THE NET EARNINGS MAY BENEFIT ANY PRIVATE
30 SHAREHOLDER OR INDIVIDUAL HOLDING INTEREST IN SUCH ENTITY.
19990H1142B4032 - 33 -
1 "PRIVATE SECURITY OFFICER." ANY PERSON OR FIRM EMPLOYED BY 2 THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION FOR 3 THE PURPOSE OF PROVIDING INCREASED SECURITY OR PROTECTIVE PATROL 4 SERVICES WITHIN THE NEIGHBORHOOD IMPROVEMENT DISTRICT. THE TERM 5 MAY INCLUDE OFF-DUTY POLICE OFFICERS PROVIDED THAT THE USE OF 6 SUCH OFFICERS FOR THIS PURPOSE IS APPROVED BY THE GOVERNING BODY 7 OF THE MUNICIPALITY IN WHICH THE NEIGHBORHOOD IMPROVEMENT 8 DISTRICT IS LOCATED OR THE MUNICIPALITY WHERE THE OFFICER IS 9 EMPLOYED IF DIFFERENT. 10 "PROJECT." THE ACQUISITION, DEVELOPMENT, CONSTRUCTION, 11 IMPROVEMENT, REHABILITATION, OPERATION AND/OR MAINTENANCE OF ANY 12 BUILDING, FACILITY, EQUIPMENT OR STRUCTURE, BY PURCHASE, LEASE 13 OR CONTRACT, BY A NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT 14 ASSOCIATION TO FACILITATE NEIGHBORHOOD AND BUSINESS IMPROVEMENTS 15 AS AUTHORIZED BY THIS [ACT] CHAPTER. 16 "RATIONAL NEXUS." THE LEGAL PRINCIPLE WHICH REQUIRES THAT 17 THERE IS A RATIONAL, DEFINABLE BENEFIT WHICH ACCRUES TO ANY 18 PROPERTY OWNER ASSESSED A FEE FOR SAID BENEFIT IN A NEIGHBORHOOD 19 IMPROVEMENT DISTRICT CREATED UNDER THIS [ACT] CHAPTER. ALL 20 PROPERTY OWNERS WITHIN A DESIGNATED NEIGHBORHOOD IMPROVEMENT 21 DISTRICT PAYING A SPECIAL ASSESSMENT FEE MUST BENEFIT DIRECTLY 22 OR INDIRECTLY FROM FACILITIES OR SERVICES PROVIDED BY A 23 NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION WITHIN 24 THE NEIGHBORHOOD IMPROVEMENT DISTRICT, PROVIDED, HOWEVER, THAT 25 PROPERTY OWNERS NEED NOT BENEFIT EQUALLY. 26 "REGIONAL ATTRACTIONS MARKETING AGENCY." THE AGENCY 27 DESIGNATED BY THE COUNCIL OF THE CITY IN WHICH THE CONVENTION 28 CENTER IS LOCATED TO SERVE AS THE REGIONAL MARKETING 29 ORGANIZATION FOR TOURISM AND RELATED MATTERS. IN CITIES OF THE 30 FIRST CLASS, THE GREATER PHILADELPHIA TOURISM MARKETING 19990H1142B4032 - 34 -
1 CORPORATION SHALL SERVE AS THE REGIONAL ATTRACTIONS MARKETING 2 AGENCY. 3 "RESIDENTIAL DISTRICT." A LIMITED GEOGRAPHICAL AREA 4 COMPRISED OF REAL PROPERTY CONSISTING PREDOMINANTLY OF BUILDINGS 5 AND STRUCTURES FOR HOUSING INDIVIDUALS AND FAMILIES, INCLUDING, 6 BUT NOT LIMITED TO, SINGLE-FAMILY DETACHED HOMES, SINGLE-FAMILY 7 SEMIDETACHED HOMES, TOWNHOUSES, CONDOMINIUMS, APARTMENTS, 8 MANUFACTURED HOMES, MODULAR HOMES OR ANY COMBINATION OF SAME. 9 "SERVICE AREA." THE AREA WITHIN THE BOUNDARIES OF THE 10 NEIGHBORHOOD IMPROVEMENT DISTRICT ESTABLISHED BY A MUNICIPALITY 11 UNDER THIS [ACT] CHAPTER IN WHICH THE NEIGHBORHOOD IMPROVEMENT 12 DISTRICT MANAGEMENT ASSOCIATION PROVIDES PROGRAMS, SERVICES AND 13 IMPROVEMENTS. THE TERM MAY ALSO INCLUDE AN AREA OUTSIDE OF THE 14 NEIGHBORHOOD IMPROVEMENT DISTRICT WHERE SERVICES ARE BEING 15 PROVIDED BY THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT 16 ASSOCIATION UNDER CONTRACT. 17 "SPECIAL ASSESSMENT FEE." THE FEE ASSESSED ON PROPERTY 18 OWNERS WITHIN A NEIGHBORHOOD IMPROVEMENT DISTRICT, LEVIED BY THE 19 MUNICIPALITY ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT 20 UNDER SECTION [4(10)] 304(10), FOR THE PURPOSES OF PROVIDING 21 PROGRAMS, IMPROVEMENTS AND SERVICES UNDER SECTION [7] 307. 22 "SUNSET PROVISION." THE TERM MEANS A PROVISION IN THE 23 NEIGHBORHOOD IMPROVEMENT DISTRICT PLAN UNDER SECTION [5(C)] 24 305(C), ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH 25 PROVIDES FOR THE AUTOMATIC TERMINATION OF THE NEIGHBORHOOD 26 IMPROVEMENT DISTRICT ON A DATE SPECIFIED IN THE NEIGHBORHOOD 27 IMPROVEMENT DISTRICT PLAN AND IN THE MUNICIPAL ORDINANCE 28 ESTABLISHING THE NEIGHBORHOOD IMPROVEMENT DISTRICT. THE 29 NEIGHBORHOOD IMPROVEMENT DISTRICT MAY BE CONTINUED BEYOND THAT 30 DATE, PROVIDED THE MUNICIPAL ENABLING ORDINANCE CREATING THE 19990H1142B4032 - 35 -
1 ORIGINAL NEIGHBORHOOD IMPROVEMENT DISTRICT IS REENACTED, 2 FOLLOWING A REVIEW OF THE NEIGHBORHOOD IMPROVEMENT DISTRICT AND 3 THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION 4 PROGRAMS AND SERVICES PROVIDED WITHIN THE NEIGHBORHOOD 5 IMPROVEMENT DISTRICT BY THE MUNICIPALITY. 6 SECTION [4] 304. POWERS OF MUNICIPAL CORPORATION. 7 EVERY MUNICIPAL CORPORATION SHALL HAVE THE POWER: 8 * * * 9 (2) TO ESTABLISH AN AUTHORITY TO ADMINISTER THE NID OR 10 TO DESIGNATE AN EXISTING COMMUNITY DEVELOPMENT CORPORATION OR 11 OTHER EXISTING NONPROFIT CORPORATION TO ADMINISTER SAME OR TO 12 CREATE A COMMUNITY DEVELOPMENT CORPORATION OR OTHER NONPROFIT 13 CORPORATION TO ADMINISTER SAME UNDER SECTIONS [6] 306 AND [7] 14 307. 15 * * * 16 (4) TO ADVANCE FUNDS TO AN NIDMA AS MAY BE REQUIRED TO 17 CARRY OUT THE PURPOSES OF THIS [ACT] CHAPTER. 18 * * * 19 SECTION [5] 305. CREATION OF NEIGHBORHOOD IMPROVEMENT DISTRICT. 20 (A) ESTABLISHMENT.-- 21 (1) THE GOVERNING BODY OF THE MUNICIPALITY OR ANY 22 MUNICIPAL BUSINESSES OR RESIDENTS OR COMBINATION THEREOF MAY 23 INITIATE ACTION TO ESTABLISH AN NID OR NIDS WITHIN THE 24 MUNICIPALITY UNDER THIS [ACT] CHAPTER. 25 (2) IN THE CASE OF BUSINESSES OR RESIDENTS OR BOTH 26 DESIRING TO ESTABLISH AN NID WHERE THE MUNICIPALITY HAS NOT 27 TAKEN ACTION TO DO SO, THE GOVERNING BODY OF THE MUNICIPALITY 28 MAY BE PETITIONED TO ESTABLISH AN NID UNDER THE PROCEDURES 29 PROVIDED FOR BY THIS [ACT] CHAPTER. 30 (3) IN NO CASE WHERE THE GOVERNING BODY OF A 19990H1142B4032 - 36 -
1 MUNICIPALITY IS PETITIONED TO ESTABLISH AN NID UNDER 2 PARAGRAPH (2) SHALL THE MUNICIPALITY BE REQUIRED TO ESTABLISH 3 AN NID. 4 (B) SPECIFIC PROCEDURES.-- 5 (1) A COPY OF EVERYTHING REQUIRED UNDER THIS SECTION, AS 6 WELL AS THE DATE, LOCATION AND TIME OF ANY PUBLIC HEARING 7 REQUIRED BY THIS [ACT] CHAPTER, SHALL BE PROVIDED BY THE 8 MUNICIPAL CORPORATION TO ALL PROPERTY OWNERS AND LESSEES OF 9 PROPERTY OWNERS LOCATED IN THE PROPOSED NID AT LEAST 30 DAYS 10 PRIOR TO THE FIRST PUBLIC HEARING REQUIRED BY THIS SECTION. 11 * * * 12 (C) CONTENTS OF PRELIMINARY PLAN.--THE PLAN SHALL INCLUDE 13 THE FOLLOWING: 14 * * * 15 (2) A WRITTEN REPORT FROM THE MUNICIPALITY CONTAINING: 16 * * * 17 (X) THE METHOD OF DETERMINING THE AMOUNT OF THE 18 ASSESSMENT FEE TO BE LEVIED ON PROPERTY OWNERS WITHIN THE 19 NID UNDER SECTION [7] 307. 20 * * * 21 (F) VETO OF FINAL PLAN FOR NID.-- 22 * * * 23 (2) IF 51% OR MORE OF THE AFFECTED PROPERTY OWNERS OR 24 PROPERTY OWNERS WHOSE PROPERTY VALUATION AS ASSESSED FOR 25 TAXABLE PURPOSES AMOUNTS TO 51% OF THE TOTAL PROPERTY 26 VALUATION WITHIN THE PROPOSED NID FAIL TO REGISTER THEIR 27 DISAPPROVAL OF THE FINAL PLAN OR AMENDMENT TO THE FINAL PLAN 28 IN WRITING WITH THE CLERK OF THE GOVERNING BODY OF THE 29 MUNICIPALITY IN WHICH THE NID IS PROPOSED, THE GOVERNING BODY 30 OF THE MUNICIPALITY MAY, FOLLOWING THE 45-DAY PERIOD, ENACT A 19990H1142B4032 - 37 -
1 MUNICIPAL ORDINANCE ESTABLISHING AN NID UNDER THIS [ACT] 2 CHAPTER OR, IN THE CASE OF AN AMENDMENT TO THE FINAL PLAN, 3 ADOPT ANY AMENDMENTS TO THE ORDINANCE. 4 (G) AMENDMENTS TO FINAL PLAN.-- 5 (1) THE FINAL PLAN MAY BE AMENDED BY THE NIDMA ANY TIME 6 AFTER THE ESTABLISHMENT OF AN NID, PURSUANT TO THE PROVISIONS 7 OF THIS [ACT] CHAPTER, UPON THE RECOMMENDATION OF THE NIDMA 8 BOARD, PROVIDED THERE IS CONCURRENCE WITH THE OWNERS OF AT 9 LEAST 51% OF THE ASSESSED VALUATION OF ALL PROPERTY WITHIN 10 THE NID OR 51% OF THE PROPERTY OWNERS WITHIN THE NID. 11 * * * 12 SECTION [6] 306. CREATION OF NEIGHBORHOOD IMPROVEMENT DISTRICT 13 MANAGEMENT ASSOCIATION. 14 (A) ASSOCIATION DESIGNATED.--WHEN A MUNICIPALITY ESTABLISHES 15 AN NID UNDER THIS [ACT] CHAPTER, A NEIGHBORHOOD IMPROVEMENT 16 DISTRICT MANAGEMENT ASSOCIATION SHALL BE DESIGNATED BY THE 17 GOVERNING BODY OF THE MUNICIPALITY IN WHICH THE NID IS TO BE 18 LOCATED TO ADMINISTER PROGRAMS, IMPROVEMENTS AND SERVICES WITHIN 19 THE NID. 20 (B) ADMINISTRATION.-- 21 (1) NIDS CREATED PURSUANT TO THIS [ACT] CHAPTER SHALL BE 22 ADMINISTERED BY AN NIDMA WHICH SHALL BE AN AUTHORITY CREATED 23 PURSUANT TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN 24 AS THE MUNICIPALITY AUTHORITIES ACT OF 1945, AN EXISTING 25 NONPROFIT DEVELOPMENT CORPORATION, AN EXISTING NONPROFIT 26 CORPORATION OR A NONPROFIT DEVELOPMENT CORPORATION OR 27 NONPROFIT CORPORATION ESTABLISHED BY THE GOVERNING BODY OR 28 AUTHORIZED TO BE ESTABLISHED BY THE GOVERNING BODY OF THE 29 MUNICIPALITY IN WHICH THE NID IS TO BE LOCATED, TO ADMINISTER 30 THE NIDP. 19990H1142B4032 - 38 -
1 * * * 2 (C) POWERS.--AN NIDMA CREATED UNDER THIS [ACT] CHAPTER SHALL 3 ASSUME ALL POWERS PROVIDED FOR IN SECTION [7] 307 IMMEDIATELY 4 UPON THE EFFECTIVE DATE OF THE MUNICIPAL ORDINANCE ENACTED UNDER 5 SECTION [4] 304 CREATING AN NID. 6 * * * 7 SECTION [7] 307. POWERS OF NEIGHBORHOOD IMPROVEMENT DISTRICT 8 MANAGEMENT ASSOCIATION. 9 * * * 10 (B) ASSESSMENTS.-- 11 (1) THE NIDMA SHALL, UPON APPROVAL BY THE GOVERNING BODY 12 OF THE MUNICIPALITY, HAVE THE POWER TO ASSESS PROPERTY OWNERS 13 WITHIN THE NID A SPECIAL PROPERTY ASSESSMENT FEE. REVENUES 14 FROM THE FEE SHALL BE ACCOUNTED FOR AND USED BY THE NIDMA TO 15 MAKE IMPROVEMENTS AND PROVIDE PROGRAMS AND SERVICES WITHIN 16 THE NID AS AUTHORIZED BY THIS [ACT] CHAPTER. WHERE THE 17 DISTRICT ESTABLISHED IS A BID, THE NIDMA SHALL HAVE THE 18 AUTHORITY TO EXEMPT RESIDENTIAL PROPERTY OWNERS FROM ANY 19 SPECIAL ASSESSMENT FEES LEVIED. 20 * * * 21 (3) ALL SPECIAL PROPERTY ASSESSMENT FEES SHALL BE BASED 22 UPON THE ESTIMATED COST OF THE PROGRAMS, IMPROVEMENTS OR 23 SERVICES TO BE PROVIDED IN SUCH NID AS STATED IN THE FINAL 24 PLAN UNDER SECTION [5(D)] 305(D). IN NO CASE SHALL THE 25 AGGREGATE AMOUNT OF ALL FEES LEVIED BY THE NIDMA DURING THE 26 YEAR EXCEED THE ESTIMATED COST OF PROPOSED PROGRAMS, 27 IMPROVEMENTS AND SERVICES FOR THE YEAR. 28 * * * 29 SECTION [8] 308. DISSOLUTION OF NEIGHBORHOOD IMPROVEMENT 30 DISTRICT MANAGEMENT ASSOCIATION AND NEIGHBORHOOD 19990H1142B4032 - 39 -
1 IMPROVEMENT DISTRICT. 2 * * * 3 (B) REQUEST FOR TERMINATION.--ANY REQUEST FOR THE 4 TERMINATION OF THE NID AND NIDMA APPROVED BY 51% OF THE ASSESSED 5 PROPERTY OWNERS, IN NUMBERS, LOCATED IN THE NID SHALL BE 6 SUBMITTED TO THE GOVERNING BODY OF THE MUNICIPALITY IN WRITING. 7 THE GOVERNING BODY SHALL HOLD A HEARING ON THE MERITS OF SAME 8 PURSUANT TO SECTION [5(B)(2)] 305(B)(2) AS IT RELATES TO THE 9 REQUIRED PROCEDURE OF HOLDING A HEARING. SUCH WRITTEN REQUEST 10 SHALL BE CONSIDERED BY THE GOVERNING BODY OF THE MUNICIPALITY. 11 IF THE REQUEST IS APPROVED BY THE GOVERNING BODY OF THE 12 MUNICIPALITY, THEN A RESOLUTION TO THAT EFFECT SHALL BE FILED 13 WITH THE SECRETARY OF THE COMMONWEALTH, AND THE SECRETARY SHALL 14 NOTE THE TERMINATION OF THE EXISTENCE ON THE RECORD OF 15 INCORPORATION AND RETURN THE RESOLUTION WITH HIS OR HER APPROVAL 16 SHOWN ON THE RESOLUTION TO THE MUNICIPAL CORPORATION. THEN THE 17 PROPERTY OF THE NIDMA SHALL PASS TO THE MUNICIPAL CORPORATION, 18 AS THE CASE MAY BE, AND THE NIDMA AND NID SHALL CEASE TO EXIST. 19 ANY REQUEST FOR THE TERMINATION OF THE NID AND NIDMA BY THE 20 GOVERNING BODY OF THE MUNICIPALITY IN WHICH THE NID IS LOCATED 21 SHALL RESULT IN A HEARING ON THE MERITS OF SAME PURSUANT TO 22 SECTION [5(B)(2)] 305(B)(2) AS IT RELATES TO THE REQUIRED 23 PROCEDURE FOR HOLDING A HEARING. BEFORE THE DECISION TO 24 TERMINATE AN NID AND NIDMA IS MADE, SUCH TERMINATION MUST BE 25 APPROVED BY 51% OF THE ASSESSED PROPERTY OWNERS, IN NUMBERS, 26 LOCATED IN THE NID AND SHALL BE SUBMITTED TO THE GOVERNING BODY 27 OF THE MUNICIPALITY IN WRITING. SUCH WRITTEN REQUEST SHALL BE 28 CONSIDERED BY THE GOVERNING BODY OF THE MUNICIPALITY. IF THE 29 REQUEST IS APPROVED BY THE GOVERNING BODY OF THE MUNICIPALITY, 30 THEN A RESOLUTION TO THAT EFFECT SHALL BE FILED WITH THE 19990H1142B4032 - 40 -
1 SECRETARY OF THE COMMONWEALTH, AND THE SECRETARY SHALL NOTE THE 2 TERMINATION OF THE EXISTENCE ON THE RECORD OF INCORPORATION AND 3 RETURN THE RESOLUTION WITH HIS OR HER APPROVAL SHOWN TO THE 4 MUNICIPAL CORPORATION. THE PROPERTY OF THE NIDMA SHALL PASS TO 5 THE MUNICIPAL CORPORATION, AS THE CASE MAY BE, AND THE NIDMA AND 6 NID SHALL CEASE TO EXIST. 7 SECTION 6. SECTION 9 HEADING OF THE ACT IS RENUMBERED TO 8 READ: 9 SECTION [9] 309. ANNUAL AUDIT; REPORT. 10 * * * 11 SECTION 7. SECTIONS 10, 11 AND 12 OF THE ACT ARE AMENDED TO 12 READ: 13 SECTION [10] 310. TOURISM AND MARKETING TAX. 14 IN ADDITION TO THE HOTEL ROOM RENTAL TAX IMPOSED UNDER 15 SECTION 23 OF THE ACT OF JUNE 27, 1986 (P.L.267, NO.70), KNOWN 16 AS THE PENNSYLVANIA CONVENTION CENTER AUTHORITY ACT, AND UNDER 17 SECTION 202 OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS 18 THE TAX REFORM CODE OF 1971, THE COUNCIL OF THE CITY IN WHICH A 19 CONVENTION CENTER IS LOCATED IS HEREBY AUTHORIZED TO IMPOSE AN 20 EXCISE TAX ON THE CONSIDERATION RECEIVED BY EACH OPERATOR OF A 21 HOTEL WITHIN THE CITY FROM EACH TRANSACTION OF RENTING A ROOM OR 22 ROOMS TO ACCOMMODATE TRANSIENTS. THE TAX SHALL BE COLLECTED BY 23 THE OPERATOR FROM THE PATRON OF THE ROOM AND PAID OVER TO THE 24 CITY PURSUANT TO SECTION [11] 311 AND SHALL BE KNOWN AS THE 25 TOURISM AND MARKETING TAX. THE RATE OF TAX IMPOSED UNDER THIS 26 SECTION BY THE COUNCIL OF THE CITY IN WHICH THE CONVENTION 27 CENTER IS LOCATED SHALL NOT EXCEED 1%. 28 SECTION [11] 311. SPECIAL TOURISM AND MARKETING TAX FUND. 29 THERE SHALL BE DEPOSITED ANNUALLY IN A SPECIAL FUND 30 ESTABLISHED PURSUANT TO SECTION 23(E) OF THE ACT OF JUNE 27, 19990H1142B4032 - 41 -
1 1986 (P.L.267, NO.70), KNOWN AS THE PENNSYLVANIA CONVENTION 2 CENTER AUTHORITY ACT, FOR THE USE OF THE REGIONAL ATTRACTIONS 3 MARKETING AGENCY, ALL REVENUES RECEIVED FROM THE TAX IMPOSED 4 UNDER SECTION [10] 310. ALL EXPENDITURES FROM THE SPECIAL FUND 5 ESTABLISHED UNDER SECTION 23(E) OF THE PENNSYLVANIA CONVENTION 6 CENTER AUTHORITY ACT SHALL BE USED BY THE REGIONAL ATTRACTIONS 7 MARKETING AGENCY FOR DIRECT ADVERTISING EFFORTS DIRECTED TOWARDS 8 ADVERTISING AND PUBLICIZING TOURIST ATTRACTIONS IN THE AREA 9 SERVED BY THE AGENCY, PROMOTING AND ATTRACTING TOURISM TO 10 FACILITIES IN THE AREA SERVED BY THE AGENCY AND PROMOTING AND 11 OTHERWISE ENCOURAGING THE USE OF THE FACILITIES IN THE AREA 12 SERVED BY THE AGENCY BY THE PUBLIC AS A WHOLE. 13 SECTION [12] 312. APPLICABILITY. 14 (A) EXISTING COMMERCIAL BUSINESS IMPROVEMENT DISTRICTS.--THE 15 PROVISIONS OF THIS [ACT] CHAPTER SHALL NOT APPLY TO A BUSINESS 16 IMPROVEMENT DISTRICT ESTABLISHED PURSUANT TO THE ACT OF MAY 2, 17 1945 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES 18 ACT OF 1945, IN EXISTENCE IN WHOLE OR IN PART IN A CITY OF THE 19 FIRST CLASS PRIOR TO [THE EFFECTIVE DATE OF THIS ACT] FEBRUARY 20 19, 1999. 21 (B) EXISTING DISTRICTS.--EXCEPT AS PROVIDED FOR IN 22 SUBSECTION (E), ANY EXISTING BUSINESS IMPROVEMENT DISTRICT OR 23 DOWNTOWN IMPROVEMENT DISTRICT ESTABLISHED PRIOR TO [THE 24 EFFECTIVE DATE OF THIS ACT] FEBRUARY 19, 1999 SHALL REMAIN IN 25 EXISTENCE AND SHALL BE GOVERNED BY THE MUNICIPALITY AUTHORITIES 26 ACT OF 1945 INSOFAR AS IT RELATES TO BUSINESS IMPROVEMENT 27 DISTRICTS OR 53 PA.C.S. CH. 54 (RELATING TO BUSINESS IMPROVEMENT 28 DISTRICTS). 29 (C) DISTRICTS CREATED SUBSEQUENTLY.--ANY NID ESTABLISHED 30 SUBSEQUENT TO [THE EFFECTIVE DATE OF THIS ACT] FEBRUARY 19, 1999 19990H1142B4032 - 42 -
1 SHALL BE GOVERNED BY THE PROVISIONS OF THIS [ACT] CHAPTER. 2 (D) [PREVIOUSLY TERMINATED] TERMINATED DISTRICTS.--ANY 3 BUSINESS IMPROVEMENT DISTRICT OR DOWNTOWN IMPROVEMENT DISTRICT 4 IN EXISTENCE PRIOR TO [THE EFFECTIVE DATE OF THIS ACT] FEBRUARY 5 19, 1999 WHICH IS TERMINATED PURSUANT TO A SUNSET PROVISION 6 CONTAINED IN THE MUNICIPAL ORDINANCE WHICH ESTABLISHED THE 7 BUSINESS IMPROVEMENT DISTRICT OR DOWNTOWN IMPROVEMENT DISTRICT 8 SHALL, UPON ITS REESTABLISHMENT, PROVIDED IT OCCURS WITHIN 12 9 MONTHS OF THE TERMINATION DATE AS SET FORTH IN THE MUNICIPAL 10 ORDINANCE, BE GOVERNED BY THE PROVISIONS OF THIS [ACT. THIS 11 SHALL INCLUDE ANY TERMINATION RESULTING FROM A SUNSET PROVISION 12 IN ANY MUNICIPAL AGREEMENT OR ORDINANCE.] CHAPTER, WITH THE 13 EXCEPTION OF SECTIONS 305 AND 306. 14 (E) ADDITIONAL REQUIREMENTS.--ANY BUSINESS IMPROVEMENT 15 DISTRICT OR DOWNTOWN IMPROVEMENT DISTRICT IN EXISTENCE ON [THE 16 EFFECTIVE DATE OF THIS ACT] FEBRUARY 19, 1999 SHALL: 17 (1) BE REQUIRED TO CARRY OUT ANY DUTY OR RESPONSIBILITY 18 IMPOSED ON NIDS UNDER THIS [ACT] CHAPTER; AND 19 (2) POSSESS ANY ADDITIONAL POWER GIVEN TO NIDS UNDER 20 THIS [ACT] CHAPTER WITHOUT HAVING TO RESTRUCTURE OR 21 REORGANIZE UNDER THIS [ACT] CHAPTER. 22 SECTION 8. SECTION 13 OF THE ACT IS REPEALED. 23 SECTION 9. THE ACT IS AMENDED BY ADDING A CHAPTER TO READ: 24 CHAPTER 5 25 OTHER MUNICIPALITIES 26 SECTION 501. SCOPE OF CHAPTER. 27 THIS CHAPTER SHALL APPLY TO ALL MUNICIPALITIES OTHER THAN 28 CITIES OF THE FIRST CLASS. 29 SECTION 502. LEGISLATIVE FINDINGS. 30 THE GENERAL ASSEMBLY FINDS THAT: 19990H1142B4032 - 43 -
1 (1) EXISTING TAX RATES IN MANY MUNICIPALITIES ARE AT OR 2 NEAR THEIR STATUTORY CAP. 3 (2) THE GENERAL FUND REVENUE DERIVED FROM THESE TAXES 4 MANY TIMES IS NOT SUFFICIENT TO PROVIDE ADEQUATE MUNICIPAL 5 SERVICES OR ADDITIONAL SERVICES NEEDED IN SPECIFIC GEOGRAPHIC 6 AREAS WITHIN THE MUNICIPALITY, INCLUDING, BUT NOT LIMITED TO, 7 DOWNTOWN COMMERCIAL DISTRICTS. 8 (3) AS A RESULT, MUNICIPALITIES SHOULD BE ENCOURAGED TO 9 CREATE, WHERE FEASIBLE AND DESIRED, ASSESSMENT-BASED 10 NEIGHBORHOOD IMPROVEMENT DISTRICTS WHICH WOULD INCLUDE, BUT 11 NOT BE LIMITED TO, DOWNTOWN COMMERCIAL DISTRICTS. DESIGNATED 12 DISTRICT MANAGEMENT ASSOCIATIONS WOULD INITIATE AND 13 ADMINISTER PROGRAMS TO PROMOTE AND ENHANCE MORE ATTRACTIVE 14 AND SAFER COMMERCIAL, INDUSTRIAL, RESIDENTIAL AND MIXED-USE 15 NEIGHBORHOODS; ECONOMIC GROWTH; INCREASED EMPLOYMENT 16 OPPORTUNITIES; AND IMPROVED COMMERCIAL, INDUSTRIAL, BUSINESS 17 DISTRICTS AND BUSINESS CLIMATES. 18 (4) MUNICIPALITIES SHOULD BE GIVEN THE BROADEST POSSIBLE 19 DISCRETION IN ESTABLISHING BY LOCAL ORDINANCE THE TYPE OF 20 ASSESSMENT-BASED PROGRAMS MOST CONSISTENT WITH NEIGHBORHOOD 21 NEEDS, GOALS AND OBJECTIVES, AS DETERMINED AND EXPRESSED BY 22 PROPERTY OWNERS IN THE DESIGNATED DISTRICT. 23 SECTION 503. DEFINITIONS. 24 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER 25 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 26 CONTEXT CLEARLY INDICATES OTHERWISE: 27 "AUTHORITY." A BODY POLITIC AND CORPORATE, CREATED PURSUANT 28 TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE 29 MUNICIPALITY AUTHORITIES ACT OF 1945. 30 "BENEFITED PROPERTY." THOSE PROPERTIES LOCATED WITHIN A 19990H1142B4032 - 44 -
1 NEIGHBORHOOD IMPROVEMENT DISTRICT WHICH PROFIT FROM DISTRICT 2 IMPROVEMENTS BASED ON A RATIONAL NEXUS TEST. PROPERTIES NEED NOT 3 PROFIT EQUALLY TO BE CONSIDERED TO HAVE BENEFITED. 4 "BONDS." THE TERM SHALL INCLUDE THE NOTES, BONDS AND OTHER 5 EVIDENCE OF INDEBTEDNESS OR OBLIGATIONS WHICH EACH MUNICIPAL 6 CORPORATION IS AUTHORIZED TO ISSUE UNDER SECTION 504(7). 7 "BUSINESS IMPROVEMENT." IN THE CASE OF NEIGHBORHOOD 8 IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATIONS CREATED FOR THE 9 PURPOSE OF MAKING IMPROVEMENTS OR PROVIDING ADMINISTRATIVE 10 SERVICES WITHIN A NEIGHBORHOOD IMPROVEMENT DISTRICT, THE TERM 11 SHALL MEAN THOSE IMPROVEMENTS NEEDED IN SPECIFIC AREAS OR TO 12 INDIVIDUAL PROPERTIES, INCLUDING, BUT NOT LIMITED TO, SIDEWALKS, 13 RETAINING WALLS, STREET PAVING, PARKS, RECREATIONAL EQUIPMENT 14 AND FACILITIES, OPEN SPACE, STREET LIGHTING, PARKING LOTS, 15 PARKING GARAGES, TREES AND SHRUBBERY, PEDESTRIAN WALKS, SEWERS, 16 WATER LINES, REST AREAS AND THE ACQUISITION AND REHABILITATION 17 OR DEMOLITION OF BLIGHTED BUILDINGS OR STRUCTURES. 18 "BUSINESS IMPROVEMENT DISTRICT." A BUSINESS IMPROVEMENT 19 DISTRICT (BID) CREATED PRIOR TO THE EFFECTIVE DATE OF THIS 20 CHAPTER GOVERNED BY THE ACT OF MAY 2, 1945 (P.L.382, NO.164), 21 KNOWN AS THE MUNICIPALITY AUTHORITIES ACT OF 1945, INSOFAR AS IT 22 RELATES TO BUSINESS IMPROVEMENT DISTRICTS OR 53 PA.C.S. CH. 54 23 (RELATING TO BUSINESS IMPROVEMENT DISTRICTS). ON OR AFTER THE 24 EFFECTIVE DATE OF THIS CHAPTER, THE TERM SHALL MEAN A LIMITED, 25 GEOGRAPHICAL AREA COMPRISED OF REAL PROPERTY WHICH IS USED FOR 26 ANY FOR-PROFIT ACTIVITY INVOLVING TRADE AND TRAFFIC, OR COMMERCE 27 IN GENERAL. 28 "COMMERCIAL." RELATING TO OR ASSOCIATED WITH ANY FOR-PROFIT 29 ACTIVITY INVOLVING TRADE AND TRAFFIC, OR COMMERCE IN GENERAL. 30 "CONSTRUCTION EXPENDITURES." PROPERTY AND RIGHT-OF-WAY 19990H1142B4032 - 45 -
1 ACQUISITION COSTS WHERE APPLICABLE. 2 "COSTS OF IMPROVEMENTS." THE TERM INCLUDES ARCHITECTURAL 3 FEES, ENGINEERING FEES, ATTORNEY FEES, CONSULTING FEES, 4 PROFESSIONAL FEES, PRELIMINARY PLANNING EXPENDITURES, 5 FEASIBILITY STUDY EXPENDITURES, FINANCING COSTS AND ANY OTHER 6 EXPENDITURES NECESSARY AND INCIDENTAL TO THE DEVELOPMENT, 7 CONSTRUCTION OR COMPLETION OF THE IMPROVEMENT. 8 "DISTRICT ADVISORY COUNCIL." A COMMITTEE COMPRISED OF 9 PROPERTY OWNERS FROM A NEIGHBORHOOD IMPROVEMENT DISTRICT 10 ESTABLISHED UNDER SECTION 507(A), FOR THE PURPOSE OF PROVIDING 11 GUIDANCE AND DIRECTION TO THE NEIGHBORHOOD IMPROVEMENT DISTRICT 12 MANAGEMENT ASSOCIATION CONCERNING ASSOCIATION ACTIVITIES WITHIN 13 THE DISTRICT. 14 "INDUSTRIAL DISTRICT." A LIMITED, GEOGRAPHICAL AREA 15 COMPRISED OF REAL PROPERTY WHICH IS USED PREDOMINANTLY FOR 16 MANUFACTURING, COMMERCIAL OR ANY OTHER ACTIVITY RELATED TO THE 17 DISTRIBUTION OF GOODS AND SERVICES AND INTERMEDIATE AND FINAL 18 PRODUCTS, INCLUDING, BUT NOT LIMITED TO, WAREHOUSING, SHIPPING, 19 TRANSPORTATION, REMANUFACTURING, STOCKPILING OF RAW MATERIALS, 20 REPAIR AND MAINTENANCE OF MACHINERY AND EQUIPMENT, STORAGE, 21 ADMINISTRATION OR BUSINESS ACTIVITIES, AND RESEARCH AND 22 DEVELOPMENT. 23 "INSTITUTION." THE TERM INCLUDES, BUT IS NOT LIMITED TO, 24 COLLEGES, UNIVERSITIES, SCHOOLS, HOSPITALS, MUSEUMS, THEATERS, 25 CHURCHES, SYNAGOGUES, ART CENTERS OR SIMILAR FACILITIES. 26 "INSTITUTIONAL DISTRICT." A LIMITED, GEOGRAPHICAL AREA 27 COMPRISED PREDOMINANTLY OF REAL PROPERTY ON WHICH EDUCATIONAL, 28 HEALTH-RELATED OR CULTURAL ACTIVITIES OCCUR WITHIN BUILDINGS AND 29 STRUCTURES, INCLUDING, BUT NOT LIMITED TO, COLLEGES, 30 UNIVERSITIES, SCHOOLS, HOSPITALS, MUSEUMS, THEATERS, CHURCHES, 19990H1142B4032 - 46 -
1 SYNAGOGUES AND ART CENTERS. 2 "MIXED-USE DISTRICT." A LIMITED, GEOGRAPHICAL AREA COMPRISED 3 OF REAL PROPERTY USED FOR ANY OR ALL PURPOSES CONTAINED WITHIN A 4 BUSINESS, RESIDENTIAL, INDUSTRIAL OR INSTITUTIONAL DISTRICT. 5 "MUNICIPAL CORPORATION." THE BODY OR BOARD AUTHORIZED BY LAW 6 TO ENACT ORDINANCES OR ADOPT RESOLUTIONS FOR THE PARTICULAR 7 MUNICIPALITY. 8 "MUNICIPALITY." ANY CITY, BOROUGH, INCORPORATED TOWN, 9 TOWNSHIP, HOME RULE, OPTIONAL PLAN OR OPTIONAL CHARTER 10 MUNICIPALITY OTHER THAN A CITY OF THE FIRST CLASS, LOCATED 11 WITHIN THIS COMMONWEALTH. 12 "NEIGHBORHOOD." A LIMITED GEOGRAPHIC AREA WITHIN A 13 MUNICIPALITY ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT, 14 THE LIMITS OF WHICH FORM THE NEIGHBORHOOD IMPROVEMENT DISTRICT 15 BOUNDARY. 16 "NEIGHBORHOOD IMPROVEMENT." IMPROVEMENTS NEEDED IN SPECIFIC 17 GEOGRAPHIC AREAS OR TO INDIVIDUAL PROPERTIES WITHIN THOSE AREAS, 18 INCLUDING, BUT NOT LIMITED TO, SIDEWALKS, RETAINING WALLS, 19 STREET PAVING, PARKS, RECREATIONAL EQUIPMENT AND FACILITIES, 20 OPEN SPACE, STREET LIGHTING, PARKING LOTS, TREES AND SHRUBBERY, 21 SEWERS, WATER LINES, REST AREAS AND THE ACQUISITION AND 22 REHABILITATION OR DEMOLITION OF DETERIORATED BUILDINGS OR 23 STRUCTURES. 24 "NEIGHBORHOOD IMPROVEMENT DISTRICT." A LIMITED GEOGRAPHIC 25 AREA WITHIN A MUNICIPALITY, IN WHICH A SPECIAL ASSESSMENT IS 26 LEVIED ON ALL DESIGNATED PROPERTY, OTHER THAN TAX-EXEMPT 27 PROPERTY, FOR THE PURPOSE OF PROMOTING THE ECONOMIC AND GENERAL 28 WELFARE OF THE DISTRICT AND THE MUNICIPALITY, HEREINAFTER 29 REFERRED TO AS NID. SUCH DISTRICTS SHALL BE REFERRED TO 30 GENERALLY AS NEIGHBORHOOD IMPROVEMENT DISTRICT (NID) AND 19990H1142B4032 - 47 -
1 SPECIFICALLY AS: BUSINESS IMPROVEMENT DISTRICT (BID); 2 RESIDENTIAL IMPROVEMENT DISTRICT (RID); INDUSTRIAL IMPROVEMENT 3 DISTRICT (IID); INSTITUTIONAL IMPROVEMENT DISTRICT (INID); OR 4 MIXED-USE IMPROVEMENT DISTRICT (MID) DEPENDING ON THE TYPE 5 DISTRICT ESTABLISHED. A DESIGNATED PROPERTY MAY NOT BE INCLUDED 6 IN MORE THAN ONE NEIGHBORHOOD IMPROVEMENT DISTRICT. 7 "NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION." 8 THE GOVERNING BODY WHICH OVERSEES THE MANAGEMENT OF NEIGHBORHOOD 9 IMPROVEMENT DISTRICTS IN A MUNICIPALITY AS ESTABLISHED UNDER 10 SECTION 505 WHICH HEREINAFTER SHALL BE REFERRED TO AS THE NIDMA. 11 SUCH BODY SHALL BE INCORPORATED AS A NONPROFIT CORPORATION IN 12 THIS COMMONWEALTH OR AN AUTHORITY AS ESTABLISHED PURSUANT TO THE 13 ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY 14 AUTHORITIES ACT OF 1945. 15 "NEIGHBORHOOD IMPROVEMENT DISTRICT PLAN." THE STRATEGIC PLAN 16 FOR NEIGHBORHOOD IMPROVEMENTS REQUIRED BY SECTION 505, 17 HEREINAFTER REFERRED TO AS NIDP, AND ALL PROJECTS, PROGRAMS AND 18 SUPPLEMENTAL SERVICES TO BE PROVIDED WITHIN THE DISTRICT TO 19 IMPLEMENT THE PLAN BY THE NEIGHBORHOOD IMPROVEMENT DISTRICT 20 MANAGEMENT ASSOCIATION. 21 "NEIGHBORHOOD IMPROVEMENT DISTRICT SERVICES." IN THE CASE OF 22 NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATIONS 23 CREATED FOR THE PURPOSE OF MAKING IMPROVEMENTS OR PROVIDING 24 EXPANDED SERVICES WITHIN ANY NEIGHBORHOOD BUSINESS IMPROVEMENT 25 DISTRICTS ESTABLISHED, THE TERM SHALL INCLUDE, BUT NOT BE 26 LIMITED TO, THOSE SERVICES WHICH IMPROVE THE ABILITY OF THE 27 COMMERCIAL ESTABLISHMENTS WITHIN THE DISTRICT TO SERVE THE 28 CONSUMER, SUCH AS FREE OR REDUCED-FEE PARKING FOR CUSTOMERS, 29 TRANSPORTATION-RELATED EXPENSES, PUBLIC RELATIONS PROGRAMS, 30 GROUP ADVERTISING, AND DISTRICT MAINTENANCE AND SECURITY 19990H1142B4032 - 48 -
1 SERVICES. FOR SERVICES PROVIDED WITHIN ANY RESIDENTIAL, 2 INDUSTRIAL, INSTITUTIONAL, OR MIXED-USE NEIGHBORHOOD IMPROVEMENT 3 DISTRICT, THE TERM SHALL INCLUDE, BUT NOT BE LIMITED TO, THOSE 4 SERVICES WHICH IMPROVE THE ABILITY OF PROPERTY OWNERS TO ENJOY A 5 SAFER AND MORE ATTRACTIVE NEIGHBORHOOD THROUGH THE PROVISION OF 6 INCREASED OR EXPANDED SERVICES, INCLUDING STREET LIGHTING, 7 STREET CLEANING, STREET MAINTENANCE, PARKS, RECREATIONAL 8 EQUIPMENT AND FACILITIES, OPEN SPACE AND/OR SECURITY SERVICES. 9 "NONPROFIT CORPORATION." A LEGAL ENTITY THAT IS INCORPORATED 10 WITHIN THIS COMMONWEALTH AND SPECIFIES IN ITS CHARTER OR BYLAWS 11 THAT NO PART OF THE NET EARNINGS MAY BENEFIT ANY PRIVATE 12 SHAREHOLDER OR INDIVIDUAL HOLDING INTEREST IN SUCH ENTITY. 13 "PRIVATE SECURITY OFFICER." ANY PERSON OR FIRM EMPLOYED BY 14 THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION FOR 15 THE PURPOSE OF PROVIDING INCREASED SECURITY OR PROTECTIVE PATROL 16 SERVICES WITHIN THE NEIGHBORHOOD IMPROVEMENT DISTRICT. THE TERM 17 MAY INCLUDE OFF-DUTY POLICE OFFICERS PROVIDED THAT THE USE OF 18 SUCH OFFICERS FOR THIS PURPOSE IS APPROVED BY THE GOVERNING BODY 19 OF THE MUNICIPALITY IN WHICH THE NEIGHBORHOOD IMPROVEMENT 20 DISTRICT IS LOCATED OR THE MUNICIPALITY WHERE THE OFFICER IS 21 EMPLOYED IF DIFFERENT. 22 "PROJECT." THE ACQUISITION, DEVELOPMENT, CONSTRUCTION, 23 IMPROVEMENT, REHABILITATION, OPERATION AND/OR MAINTENANCE OF ANY 24 BUILDING, FACILITY, EQUIPMENT OR STRUCTURE, BY PURCHASE, LEASE 25 OR CONTRACT, BY A NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT 26 ASSOCIATION TO FACILITATE NEIGHBORHOOD AND BUSINESS IMPROVEMENTS 27 AS AUTHORIZED BY THIS CHAPTER. 28 "RATIONAL NEXUS." THE LEGAL PRINCIPLE WHICH REQUIRES THAT 29 THERE IS A RATIONAL, DEFINABLE BENEFIT WHICH ACCRUES TO ANY 30 PROPERTY OWNER ASSESSED A FEE FOR SAID BENEFIT IN A NEIGHBORHOOD 19990H1142B4032 - 49 -
1 IMPROVEMENT DISTRICT CREATED UNDER THIS CHAPTER. ALL PROPERTY 2 OWNERS WITHIN A DESIGNATED NEIGHBORHOOD IMPROVEMENT DISTRICT 3 PAYING A SPECIAL ASSESSMENT FEE MUST BENEFIT DIRECTLY OR 4 INDIRECTLY FROM FACILITIES OR SERVICES PROVIDED BY A 5 NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION WITHIN 6 THE NEIGHBORHOOD IMPROVEMENT DISTRICT, PROVIDED, HOWEVER, THAT 7 PROPERTY OWNERS NEED NOT BENEFIT EQUALLY. 8 "RESIDENTIAL DISTRICT." A LIMITED, GEOGRAPHICAL AREA 9 COMPRISED OF REAL PROPERTY CONSISTING PREDOMINANTLY OF BUILDINGS 10 AND STRUCTURES FOR HOUSING INDIVIDUALS AND FAMILIES, INCLUDING, 11 BUT NOT LIMITED TO, SINGLE FAMILY DETACHED HOMES, SINGLE FAMILY 12 SEMI-DETACHED HOMES, TOWNHOUSES, CONDOMINIUMS, APARTMENTS, 13 MANUFACTURED HOMES, MODULAR HOMES OR ANY COMBINATION OF SAME. 14 "SERVICE AREA." THE AREA WITHIN THE BOUNDARIES OF THE 15 NEIGHBORHOOD IMPROVEMENT DISTRICT ESTABLISHED BY A MUNICIPALITY 16 UNDER THIS CHAPTER, IN WHICH THE NEIGHBORHOOD IMPROVEMENT 17 DISTRICT MANAGEMENT ASSOCIATION PROVIDES PROGRAMS, SERVICES AND 18 IMPROVEMENTS. THE TERM MAY ALSO INCLUDE AN AREA OUTSIDE OF THE 19 NEIGHBORHOOD IMPROVEMENT DISTRICT WHERE SERVICES ARE BEING 20 PROVIDED BY THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT 21 ASSOCIATION UNDER CONTRACT. 22 "SPECIAL ASSESSMENT FEE." THE FEE ASSESSED ON PROPERTY 23 OWNERS WITHIN A NEIGHBORHOOD IMPROVEMENT DISTRICT, LEVIED BY THE 24 MUNICIPALITY ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT, 25 UNDER SECTION 504(10), FOR THE PURPOSES OF PROVIDING PROGRAMS, 26 IMPROVEMENTS AND SERVICES, UNDER SECTION 507. 27 "SUNSET PROVISION." THE TERM MEANS A PROVISION IN THE 28 NEIGHBORHOOD IMPROVEMENT DISTRICT PLAN, UNDER SECTION 505(C), 29 ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH PROVIDES 30 FOR THE AUTOMATIC TERMINATION OF THE NEIGHBORHOOD IMPROVEMENT 19990H1142B4032 - 50 -
1 DISTRICT ON A DATE SPECIFIED IN THE NEIGHBORHOOD IMPROVEMENT 2 DISTRICT PLAN AND IN THE MUNICIPAL ORDINANCE ESTABLISHING THE 3 NEIGHBORHOOD IMPROVEMENT DISTRICT. THE NEIGHBORHOOD IMPROVEMENT 4 DISTRICT MAY BE CONTINUED BEYOND THAT DATE, PROVIDED THE 5 MUNICIPAL ENABLING ORDINANCE CREATING THE ORIGINAL NEIGHBORHOOD 6 IMPROVEMENT DISTRICT IS REENACTED, FOLLOWING A REVIEW OF THE 7 NEIGHBORHOOD IMPROVEMENT DISTRICT AND THE NEIGHBORHOOD 8 IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION PROGRAMS AND 9 SERVICES PROVIDED WITHIN THE NEIGHBORHOOD IMPROVEMENT DISTRICT, 10 BY THE MUNICIPALITY. 11 SECTION 504. POWERS OF MUNICIPAL CORPORATION. 12 EVERY MUNICIPAL CORPORATION SHALL HAVE THE POWER: 13 (1) TO ESTABLISH WITHIN THE MUNICIPALITY AN AREA OR 14 AREAS DESIGNATED AS AN NID. 15 (2) TO ESTABLISH AN AUTHORITY TO ADMINISTER THE NID OR 16 TO DESIGNATE AN EXISTING COMMUNITY DEVELOPMENT CORPORATION OR 17 OTHER EXISTING NONPROFIT CORPORATION TO ADMINISTER SAME OR TO 18 CREATE A COMMUNITY DEVELOPMENT CORPORATION OR OTHER NONPROFIT 19 CORPORATION TO ADMINISTER SAME, UNDER SECTIONS 506 AND 507. 20 (3) TO APPROPRIATE AND EXPEND, IN ACCORDANCE WITH THE 21 SPECIFIC PROVISIONS OF THE MUNICIPAL ENABLING ORDINANCE, 22 MUNICIPAL FUNDS AS MAY BE REQUIRED TO: 23 (I) ACQUIRE BY PURCHASE OR LEASE REAL OR PERSONAL 24 PROPERTY DEEMED NECESSARY TO EFFECTUATE THE PURPOSES OF 25 THE NID. 26 (II) PREPARE OR HAVE PREPARED PRELIMINARY PLANNING 27 OR FEASIBILITY STUDIES TO DETERMINE NEEDED IMPROVEMENTS 28 IN AN NID, INCLUDING, BUT NOT LIMITED TO, CAPITAL 29 IMPROVEMENTS, TRADITIONAL STREETSCAPE AND BUILDING 30 RENOVATIONS, RETAINING WALLS, STREET PAVING, STREET 19990H1142B4032 - 51 -
1 LIGHTING, PARKING LOTS, PARKING GARAGES, TREES AND 2 SHRUBBERY, PEDESTRIAN WALKS, SEWERS, WATER LINES, REST 3 AREAS, ACQUISITION, REHABILITATION OR DEMOLITION OF 4 BLIGHTED BUILDINGS AND STRUCTURES, GRAFFITI REMOVAL, 5 SECURITY, MARKETING, PROMOTIONS, ADVERTISING, BUSINESS 6 RETENTION AND RECRUITMENT ACTIVITIES, MASTER LEASING AND 7 PROPERTY MANAGEMENT, JOINT ADVERTISING, RESEARCH AND 8 PLANNING, AS WELL AS THE PROVISION OF ADDITIONAL SERVICES 9 TO SUPPLEMENT, NOT REPLACE, EXISTING MUNICIPAL SERVICES 10 PROVIDED WITHIN THE NID. 11 (4) TO ADVANCE FUNDS TO A NIDMA AS MAY BE REQUIRED TO 12 CARRY OUT THE PURPOSES OF THIS CHAPTER. 13 (5) TO COLLECT SPECIAL PROPERTY ASSESSMENTS ON BEHALF OF 14 THE NIDMA LEVIED ON DESIGNATED PROPERTY OWNERS WITHIN THE 15 NID, AND TO EMPLOY ANY LEGAL METHODS TO INSURE COLLECTION OF 16 THE ASSESSMENTS. 17 (6) TO ACQUIRE BY GIFT, PURCHASE OR EMINENT DOMAIN, 18 LAND, REAL PROPERTY, OR RIGHTS-OF WAY, WHICH MAY BE NEEDED 19 FOR THE PURPOSES OF MAKING PHYSICAL IMPROVEMENTS WITHIN THE 20 NID. 21 (7) TO ISSUE BONDS, NOTES OR GUARANTEES, IN ACCORDANCE 22 WITH THE PROVISIONS OF GENERAL LAWS IN THE AMOUNTS AND FOR 23 THE PERIODS NECESSARY, TO FINANCE NEEDED IMPROVEMENTS WITHIN 24 ANY NID. 25 (8) TO REVIEW ALL PROPOSED EXPENDITURES OF FUNDS WITHIN 26 NIDS BY NIDMAS AND SUGGEST CHANGES TO SAME WHERE A NONPROFIT 27 CORPORATION IS THE NIDMA. 28 (9) TO INCLUDE A SUNSET PROVISION OF NO LESS THAN FIVE 29 YEARS IN THE MUNICIPAL ENABLING ORDINANCE CREATING THE NID 30 AND IN THE CONTRACT WITH THE NIDMA. 19990H1142B4032 - 52 -
1 (10) TO LEVY AN ASSESSMENT FEE ON PROPERTY OWNERS 2 LOCATED WITHIN AN NID NEEDED TO FINANCE ADDITIONAL 3 SUPPLEMENTAL PROGRAMS, SERVICES AND IMPROVEMENTS TO BE 4 PROVIDED OR MADE BY THE NIDMA. 5 SECTION 505. CREATION OF NEIGHBORHOOD IMPROVEMENT DISTRICT. 6 (A) ESTABLISHMENT.-- 7 (1) THE GOVERNING BODY OF THE MUNICIPALITY, OR ANY 8 MUNICIPAL BUSINESSES, OR RESIDENTS, OR COMBINATION THEREOF, 9 MAY INITIATE ACTION TO ESTABLISH AN NID OR NIDS WITHIN THE 10 MUNICIPALITY, UNDER THIS CHAPTER. 11 (2) IN THE CASE OF BUSINESSES, OR RESIDENTS, OR BOTH 12 DESIRING TO ESTABLISH AN NID, WHERE THE MUNICIPALITY HAS NOT 13 TAKEN ACTION TO DO SO, THE GOVERNING BODY OF THE MUNICIPALITY 14 MAY BE PETITIONED TO ESTABLISH AN NID, UNDER THE PROCEDURES 15 PROVIDED FOR BY THIS CHAPTER. 16 (3) IN NO CASE, WHERE THE GOVERNING BODY OF A 17 MUNICIPALITY IS PETITIONED TO ESTABLISH AN NID UNDER 18 PARAGRAPH (2), SHALL THE MUNICIPALITY BE REQUIRED TO 19 ESTABLISH AN NID. 20 (B) SPECIFIC PROCEDURES.-- 21 (1) A COPY OF EVERYTHING REQUIRED UNDER THIS SECTION, AS 22 WELL AS THE DATE, LOCATION AND TIME OF ANY PUBLIC HEARING 23 REQUIRED BY THIS CHAPTER, SHALL BE PROVIDED BY THE MUNICIPAL 24 CORPORATION TO ALL PROPERTY OWNERS AND LESSEES OF PROPERTY 25 OWNERS LOCATED IN THE PROPOSED NID, AT LEAST 30 DAYS PRIOR TO 26 THE FIRST PUBLIC HEARING REQUIRED BY THIS SECTION. 27 (2) AT LEAST ONE PUBLIC HEARING, NO EARLIER THAN 15 DAYS 28 APART, FOR THE PURPOSE OF RECEIVING PUBLIC COMMENT FROM 29 AFFECTED PROPERTY OWNERS WITHIN THE PROPOSED NID, ON THE 30 PROPOSED NIDP, SHALL BE HELD BY THE MUNICIPALITY BEFORE THE 19990H1142B4032 - 53 -
1 ESTABLISHMENT OF AN NID. NOTICE OF THE HEARING SHALL BE 2 ADVERTISED AT LEAST TEN DAYS PRIOR THERETO IN A NEWSPAPER OF 3 GENERAL CIRCULATION IN THE MUNICIPALITY. 4 (3) ANY OBJECTIONS BY PROPERTY OWNERS WITHIN THE 5 PROPOSED NID MUST BE MADE IN WRITING, BY PERSONS REPRESENTING 6 THE OWNERSHIP OF 40%, IN NUMBERS, OF THE BENEFITED PROPERTIES 7 WITHIN THE NID. OBJECTIONS MUST BE SIGNED BY THE PROPERTY 8 OWNER AND FILED IN THE OFFICE OF THE CLERK FOR THE GOVERNING 9 BODY OF THE MUNICIPALITY IN WHICH THE NID IS PROPOSED. 10 (C) CONTENTS OF PRELIMINARY PLAN.--THE PLAN SHALL INCLUDE 11 THE FOLLOWING: 12 (1) A MAP INDICATING THE BOUNDARIES BY STREET OF THE 13 PROPOSED NID, HOWEVER, A DESIGNATED PROPERTY MAY NOT BE 14 INCLUDED IN MORE THAN ONE NID. 15 (2) A WRITTEN REPORT FROM THE MUNICIPALITY CONTAINING: 16 (I) THE NAME OF THE PROPOSED DISTRICT. 17 (II) A DETAILED DESCRIPTION OF THE SERVICE AREAS OF 18 THE PROPOSED DISTRICT. 19 (III) A LIST OF ALL PROPERTIES TO BE ASSESSED. 20 (IV) A LIST OF PROPOSED IMPROVEMENTS WITHIN THE NID, 21 AND THEIR ESTIMATED COST. 22 (V) A PROPOSED BUDGET FOR THE FIRST FISCAL YEAR, 23 INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: PERSONNEL 24 AND ADMINISTRATION, PROGRAMS AND SERVICES, MAINTENANCE 25 AND OPERATION, AND CAPITAL EXPENDITURES. 26 (VI) THE PROPOSED REVENUE SOURCES FOR FINANCING ALL 27 PROPOSED IMPROVEMENTS, PROGRAMS AND SERVICES. 28 (VII) THE ESTIMATED TIME FOR IMPLEMENTATION AND 29 COMPLETION OF ALL PROPOSED IMPROVEMENTS, PROGRAMS AND 30 SERVICES. 19990H1142B4032 - 54 -
1 (VIII) A STATEMENT IDENTIFYING THE ADMINISTRATIVE 2 BODY WHICH WILL GOVERN AND ADMINISTER THE NID. 3 (IX) ANY OTHER INFORMATION, INCLUDING THE STATUTORY 4 AUTHORITY, OR, IN THE CASE OF A NONPROFIT CORPORATION, 5 THE BYLAWS, WHICH DESCRIBE THE POWERS AND DUTIES OF AND 6 THE METHOD FOR MAKING DECISIONS BY THE NIDMA. 7 (X) THE METHOD OF DETERMINING THE AMOUNT OF THE 8 ASSESSMENT FEE TO BE LEVIED ON PROPERTY OWNERS WITHIN THE 9 NID UNDER SECTION 507. 10 (3) IN ADDITION, THE PLAN SHALL ALSO: 11 (I) IDENTIFY IN DETAIL THE SPECIFIC DUTIES AND 12 RESPONSIBILITIES OF BOTH THE NIDMA AND THE MUNICIPAL 13 CORPORATION WITH RESPECT TO THE NID. 14 (II) REQUIRE THAT A WRITTEN AGREEMENT BE SIGNED BY 15 THE MUNICIPAL CORPORATION AND THE NIDMA DESCRIBING IN 16 DETAIL THEIR RESPECTIVE DUTIES AND RESPONSIBILITIES. 17 (III) ALLOW FOR AND ENCOURAGE TAX-EXEMPT PROPERTY 18 OWNERS LOCATED WITHIN THE NID TO PROVIDE IN-KIND SERVICES 19 OR A FINANCIAL CONTRIBUTION TO THE NIDMA, IF NOT 20 ASSESSED, IN LIEU OF A PROPERTY ASSESSMENT FEE. 21 (IV) REQUIRE IN THE AGREEMENT BETWEEN THE MUNICIPAL 22 CORPORATION AND THE NIDMA THAT THE MUNICIPALITY MUST 23 MAINTAIN THE SAME LEVEL OF MUNICIPAL PROGRAMS AND 24 SERVICES PROVIDED WITHIN THE NID BEFORE NID DESIGNATION 25 AS AFTER NID DESIGNATION. 26 (V) ALLOW THE MUNICIPAL CORPORATION THE RIGHT TO 27 INCLUDE IN THE AGREEMENT WITH THE NIDMA AND IN THE 28 ENABLING ORDINANCE ESTABLISHING THE NID A SUNSET 29 PROVISION OF NO LESS THAN FIVE YEARS FOR RENEWAL OF THE 30 AGREEMENT. 19990H1142B4032 - 55 -
1 (VI) REQUIRE IN THE AGREEMENT WITH THE NIDMA THAT 2 THE MUNICIPALITY ESTABLISHING AN NID SHALL BE RESPONSIBLE 3 FOR THE COLLECTION OF ALL PROPERTY ASSESSMENT FEES LEVIED 4 WITHIN THE NID, IF SO DESIRED BY THE NIDMA. 5 (VII) PROVIDE THAT A NEGATIVE VOTE OF AT LEAST 40% 6 OF THE PROPERTY OWNERS WITHIN THE NID, PROPOSED IN THE 7 FINAL PLAN, SHALL BE REQUIRED TO DEFEAT THE ESTABLISHMENT 8 OF THE PROPOSED NID BY FILING OBJECTIONS WITH THE CLERK 9 FOR THE GOVERNING BODY OF THE MUNICIPALITY WITHIN 45 DAYS 10 OF PRESENTATION OF THE FINAL PLAN, WHERE THE GOVERNING 11 BODY OF MUNICIPALITY IS INCLINED TO ESTABLISH THE NID. 12 (D) FINAL PLAN.--PRIOR TO THE ESTABLISHMENT OF AN NID, THE 13 MUNICIPALITY SHALL SUBMIT A REVISED FINAL PLAN TO PROPERTY 14 OWNERS LOCATED WITHIN THE PROPOSED NID, WHICH INCORPORATES 15 CHANGES MADE TO THE PLAN, BASED ON COMMENTS FROM AFFECTED 16 PROPERTY OWNERS WITHIN THE NID, PROVIDED AT THE PUBLIC HEARINGS 17 OR AT SOME OTHER TIME. CHANGES TO THE FINAL PLAN, WHICH DIFFER 18 FROM THE PRELIMINARY PLAN, SHALL ALSO BE SO INDICATED IN AN 19 EASILY DISCERNIBLE METHOD FOR THE READER, INCLUDING, BUT NOT 20 LIMITED TO, CHANGES BEING IN BOLDFACED OR ITALICIZED TYPE. 21 (E) PUBLIC HEARING.--AT LEAST ONE PUBLIC HEARING FOR THE 22 PURPOSE OF RECEIVING PUBLIC COMMENT ON ANY REVISIONS TO THE 23 PRELIMINARY PLAN MADE FOLLOWING SUGGESTIONS BY AFFECTED PROPERTY 24 OWNERS WITHIN THE PROPOSED NID AND REFLECTED IN THE FINAL NIDP 25 SHALL BE HELD BY THE MUNICIPAL CORPORATION BEFORE ENACTING AN 26 ORDINANCE ESTABLISHING AN NID. NOTICE OF THE HEARING SHALL BE 27 ADVERTISED AT LEAST TEN DAYS PRIOR THERETO IN A NEWSPAPER OF 28 GENERAL CIRCULATION IN THE MUNICIPALITY. 29 (F) VETO OF FINAL PLAN FOR NID.-- 30 (1) FOLLOWING THE LAST PUBLIC HEARING REQUIRED UNDER 19990H1142B4032 - 56 -
1 SUBSECTION (E) OR UNDER SUBSECTION (G), IF AN AMENDMENT TO 2 THE FINAL PLAN, AFFECTED PROPERTY OWNERS LOCATED WITHIN A 3 PROPOSED NID SHALL HAVE 45 DAYS FROM THE DATE OF THE HEARING 4 TO OBJECT TO AND DISAPPROVE THE FINAL PLAN OR ANY AMENDMENT 5 TO THE FINAL PLAN UNDER THE REQUIREMENTS OF SUBSECTION 6 (B)(3). 7 (2) IF 40% OR MORE OF THE AFFECTED PROPERTY OWNERS 8 WITHIN THE PROPOSED NID FAIL TO REGISTER THEIR DISAPPROVAL OF 9 THE FINAL PLAN OR AMENDMENT TO THE FINAL PLAN IN WRITING WITH 10 THE CLERK OF THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH 11 THE NID IS PROPOSED, THE GOVERNING BODY OF THE MUNICIPALITY 12 MAY, FOLLOWING THE 45-DAY PERIOD, ENACT A MUNICIPAL ORDINANCE 13 ESTABLISHING AN NID UNDER THIS CHAPTER, OR IN THE CASE OF AN 14 AMENDMENT TO THE FINAL PLAN, ADOPT ANY AMENDMENTS TO THE 15 ORDINANCE. 16 (G) AMENDMENTS TO FINAL PLAN.-- 17 (1) THE FINAL PLAN MAY BE AMENDED BY THE NIDMA ANY TIME 18 AFTER THE ESTABLISHMENT OF AN NID, PURSUANT TO THE PROVISIONS 19 OF THIS CHAPTER, UPON THE RECOMMENDATION OF THE NIDMA BOARD, 20 PROVIDED THERE IS CONCURRENCE WITH 60% OF THE PROPERTY OWNERS 21 WITHIN THE NID. 22 (2) AMENDMENTS TO THE FINAL PLAN WHICH ALSO REQUIRE THE 23 APPROVAL OF THE GOVERNING BODY OF THE MUNICIPALITY 24 ESTABLISHING THE NID, INCLUDE: 25 (I) SUBSTANTIALLY CHANGED OR ADDED PROGRAMS, 26 IMPROVEMENTS AND/OR SERVICES TO BE PROVIDED IN THE NID. 27 (II) INCREASED EXPENDITURES AFFECTING MORE THAN 25% 28 OF THE TOTAL NIDMA BUDGET FOR THE FISCAL YEAR. 29 (III) INCURRING INCREASED INDEBTEDNESS. 30 (IV) CHANGING THE ASSESSMENT FEE STRUCTURE LEVIED ON 19990H1142B4032 - 57 -
1 PROPERTY OWNERS IN THE NID. 2 (V) CHANGING THE LEGAL ENTITY (NIDMA) WHICH PROVIDES 3 PROGRAMS, IMPROVEMENTS AND SERVICES WITHIN THE NID. 4 (VI) CHANGING THE NID SERVICE AREA BOUNDARY. 5 PRIOR TO THE GOVERNING BODY OF THE MUNICIPALITY APPROVING ANY 6 OF THE CHANGES IN THIS PARAGRAPH, THE GOVERNING BODY SHALL 7 HOLD AT LEAST ONE PUBLIC HEARING TO DETERMINE THAT SUCH 8 CHANGES ARE IN THE PUBLIC INTEREST AS IT RELATES TO AFFECTED 9 PROPERTY OWNERS WITHIN THE NID. 10 (3) THE MUNICIPALITY SHALL PROVIDE PUBLIC NOTICE OF THE 11 HEARING FOR ANY AMENDMENTS, BY PUBLICATION OF A NOTICE, IN AT 12 LEAST ONE NEWSPAPER HAVING A GENERAL CIRCULATION IN THE NID, 13 SPECIFYING THE TIME AND THE PLACE OF SUCH HEARING AND THE 14 AMENDMENTS TO BE CONSIDERED. THIS NOTICE SHALL BE PUBLISHED 15 ONCE AT LEAST 10 DAYS PRIOR TO THE DATE OF THE HEARING. 16 (4) THE GOVERNING BODY OF THE MUNICIPALITY MAY, WITHIN 17 30 DAYS FOLLOWING THE PUBLIC HEARING AND AT ITS SOLE 18 DISCRETION, APPROVE OR DISAPPROVE OF ANY AMENDMENTS TO THE 19 PLAN. IF APPROVED, SUCH AMENDMENTS SHALL BE EFFECTIVE UPON 20 THE DATE OF SUCH APPROVAL. 21 (5) PRIOR TO THE ADOPTION OF ANY AMENDMENT TO THE NID 22 BOUNDARY WHICH INCREASES THE SIZE OF THE NID, ANY OWNER OF 23 PROPERTY TO BE ADDED TO THE NID SHALL BE NOTIFIED OF THE 24 DATE, TIME AND LOCATION OF THE PUBLIC HEARING ON THE PROPOSED 25 AMENDMENT TO THE FINAL PLAN, AND PROVIDED ALL INFORMATION 26 REQUIRED BY SUBSECTION (C). 27 SECTION 506. CREATION OF NEIGHBORHOOD IMPROVEMENT DISTRICT 28 MANAGEMENT ASSOCIATION. 29 (A) ASSOCIATION DESIGNATED.--WHEN A MUNICIPALITY ESTABLISHES 30 AN NID UNDER THIS CHAPTER, A NEIGHBORHOOD IMPROVEMENT DISTRICT 19990H1142B4032 - 58 -
1 MANAGEMENT ASSOCIATION SHALL BE DESIGNATED BY THE GOVERNING BODY 2 OF THE MUNICIPALITY IN WHICH THE NID IS TO BE LOCATED TO 3 ADMINISTER PROGRAMS, IMPROVEMENTS AND SERVICES WITHIN THE NID. 4 (B) ADMINISTRATION.-- 5 (1) NIDS CREATED PURSUANT TO THIS CHAPTER SHALL BE 6 ADMINISTERED BY AN NIDMA WHICH SHALL BE AN AUTHORITY CREATED 7 PURSUANT TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN 8 AS THE MUNICIPALITY AUTHORITIES ACT OF 1945, AN EXISTING 9 NONPROFIT DEVELOPMENT CORPORATION, AN EXISTING NONPROFIT 10 CORPORATION OR A NONPROFIT DEVELOPMENT CORPORATION OR 11 NONPROFIT CORPORATION ESTABLISHED BY THE GOVERNING BODY OR 12 AUTHORIZED TO BE ESTABLISHED BY THE GOVERNING BODY OF THE 13 MUNICIPALITY IN WHICH THE NID IS TO BE LOCATED, TO ADMINISTER 14 THE NIDP. 15 (2) IF AN ACTIVE NONPROFIT DEVELOPMENT CORPORATION 16 ALREADY EXISTS WITHIN THE GEOGRAPHIC BOUNDARIES OF THE NID 17 AND FORMALLY INDICATES ITS INTEREST TO THE GOVERNING BODY OF 18 THE MUNICIPALITY TO BECOME THE DESIGNATED NIDMA, THE 19 GOVERNING BODY OF THE MUNICIPALITY SHALL GRANT THAT REQUEST 20 UNLESS 40% OR MORE OF THE AFFECTED PROPERTY OWNERS WITHIN THE 21 PROPOSED NID REGISTER THEIR DISAPPROVAL OF THIS DESIGNATION 22 IN WRITING WITH THE CLERK OF THE GOVERNING BODY WITHIN A 45- 23 DAY PERIOD FOLLOWING THE FORMAL WRITTEN REQUEST FOR 24 DESIGNATION BY THE NONPROFIT DEVELOPMENT CORPORATION TO 25 BECOME THE NIDMA. 26 (C) POWERS.--AN NIDMA CREATED UNDER THIS CHAPTER SHALL 27 ASSUME ALL POWERS PROVIDED FOR IN SECTION 507 IMMEDIATELY UPON 28 THE EFFECTIVE DATE OF THE MUNICIPAL ORDINANCE ENACTED UNDER 29 SECTION 504 CREATING AN NID. 30 (D) BOARD.--EVERY NIDMA SHALL HAVE AN ADMINISTRATIVE BOARD. 19990H1142B4032 - 59 -
1 (1) WHERE AN AUTHORITY CREATED PURSUANT TO THE 2 MUNICIPALITY AUTHORITIES ACT OF 1945 SERVES AS THE NIDMA, THE 3 BOARD SHALL BE APPOINTED PURSUANT TO THE MUNICIPALITY 4 AUTHORITIES ACT OF 1945. 5 (2) WHERE AN EXISTING NONPROFIT DEVELOPMENT CORPORATION 6 OR OTHER NONPROFIT CORPORATION IS TO SERVE AS THE NIDMA, THE 7 BOARD SHALL BE APPOINTED ACCORDING TO THE BYLAWS OF THE NIDMA 8 FILED WITH THE DEPARTMENT OF STATE. 9 (3) WHERE A NONPROFIT DEVELOPMENT CORPORATION OR OTHER 10 NONPROFIT CORPORATION IS ESTABLISHED TO SERVE AS THE NIDMA 11 FOR AN NID, THE BOARD SHALL BE COMPRISED OF AN ODD NUMBER OF 12 MEMBERS, BETWEEN FIVE AND NINE, WITH AT LEAST ONE MEMBER 13 REPRESENTING THE MUNICIPAL CORPORATION IN WHICH THE NID IS 14 LOCATED. 15 (4) IN ALL CASES, NIDMA BOARDS SHALL INCLUDE A 16 REPRESENTATIVE OF PROPERTY OWNERS LOCATED IN THE NID, 17 BUSINESS OWNERS LOCATED IN THE NID AND ANY INSTITUTIONS 18 LOCATED IN THE NID. INSTITUTIONAL MEMBERS MAY APPOINT A 19 DESIGNEE TO REPRESENT THEM. ALL BOARD MEMBERS NEED NOT BE 20 RESIDENTS OF THE NID. 21 SECTION 507. POWERS OF NEIGHBORHOOD IMPROVEMENT DISTRICT 22 MANAGEMENT ASSOCIATION. 23 (A) GENERAL POWERS.--A NIDMA SHALL HAVE, IN ADDITION TO ANY 24 OTHER POWERS PROVIDED PURSUANT TO THE ACT OF MAY 2, 1945 25 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES ACT OF 26 1945, WHERE THE NIDMA IS AN AUTHORITY, OR IN ADDITION TO ANY 27 OTHER POWERS PROVIDED PURSUANT TO THE CHARTER ESTABLISHING A 28 NONPROFIT DEVELOPMENT CORPORATION OR OTHER NONPROFIT 29 CORPORATION, WHERE THE NIDMA IS A NONPROFIT DEVELOPMENT 30 CORPORATION OR OTHER NONPROFIT CORPORATION, THE POWER TO: 19990H1142B4032 - 60 -
1 (1) SUE OR BE SUED, IMPLEAD OR BE IMPLEADED, COMPLAIN 2 AND DEFEND IN ALL COURTS. 3 (2) EMPLOY AN EXECUTIVE DIRECTOR OR ADMINISTRATOR AND 4 ANY NECESSARY SUPPORTING STAFF OR CONTRACT FOR THE PROVISION 5 OF SAME. 6 (3) PREPARE PLANNING OR FEASIBILITY STUDIES OR CONTRACT 7 FOR THE PREPARATION OF SAME, TO DETERMINE NEEDED CAPITAL 8 IMPROVEMENTS OR ADMINISTRATIVE PROGRAMS AND SERVICES WITHIN 9 THE NID. 10 (4) MAKE CAPITAL IMPROVEMENTS OR PROVIDE ADMINISTRATIVE 11 PROGRAMS AND SERVICES WITHIN AN NID. 12 (5) PURCHASE, OWN, CONSTRUCT, RENOVATE, DEVELOP, 13 OPERATE, REHABILITATE, MANAGE, SELL AND/OR DISPOSE OF REAL 14 PROPERTY. 15 (6) CONTRACT WITH EXISTING BUSINESSES WITHIN THE NID. 16 (7) CONTRACT FOR THE PROVISION OF PRODUCTS OR SERVICES 17 BY THE NIDMA TO CLIENTS LOCATED INSIDE AND OUTSIDE OF THE 18 NID, INCLUDING BILLING AND COLLECTION OF ASSESSMENT FEES BY 19 ANOTHER NIDMA. 20 (8) APPROPRIATE AND EXPEND NID FUNDS WHICH WOULD INCLUDE 21 ANY FEDERAL, STATE OR MUNICIPAL FUNDS RECEIVED BY THE NIDMA. 22 THE FUNDS SHALL BE EXPENDED IN ACCORDANCE WITH ANY SPECIFIC 23 PROVISIONS CONTAINED IN THE MUNICIPAL ENABLING ORDINANCE 24 ESTABLISHING THE NID AND MAY BE USED: 25 (I) TO ACQUIRE BY PURCHASE OR LEASE REAL OR PERSONAL 26 PROPERTY TO EFFECTUATE THE PURPOSES OF THIS CHAPTER, 27 INCLUDING MAKING COMMON IMPROVEMENTS WITHIN THE NID, 28 INCLUDING, BUT NOT LIMITED TO, SIDEWALKS, RETAINING 29 WALLS, STREET PAVING, PARKS, RECREATIONAL EQUIPMENT AND 30 FACILITIES, OPEN SPACE, STREET LIGHTING, PARKING LOTS, 19990H1142B4032 - 61 -
1 PARKING GARAGES, TREES AND SHRUBBERY, PEDESTRIAN WALKS, 2 SEWERS, WATER LINES, REST AREAS AND THE ACQUISITION, 3 REHABILITATION OR DEMOLITION OF BLIGHTED BUILDINGS OR 4 COMPARABLE STRUCTURES. 5 (II) TO PROVIDE FREE OR REDUCED-FEE PARKING FOR 6 CUSTOMERS OF BUSINESSES WITHIN THE NID; TRANSPORTATION- 7 RELATED EXPENDITURES, PUBLIC RELATIONS PROGRAMS, GROUP 8 ADVERTISING AND NID MAINTENANCE AND SECURITY SERVICES. 9 (III) TO IMPOSE SPECIAL ASSESSMENT FEES. 10 (9) SOLICIT IN-KIND SERVICES OR FINANCIAL CONTRIBUTIONS 11 FROM TAX-EXEMPT PROPERTY OWNERS WITHIN THE NID IN LIEU OF 12 PROPERTY ASSESSMENT FEES. THIS MAY INCLUDE ENTERING INTO 13 VOLUNTARY MULTIYEAR AGREEMENTS (VMAS) BETWEEN THE NIDMA AND 14 TAX-EXEMPT PROPERTY OWNERS LOCATED WITHIN AN NID, FOR THE 15 PROVISION OF SAME. 16 (10) IMPOSE LIENS ON PROPERTY FOR THE NONPAYMENT OF 17 PROPERTY ASSESSMENTS. NIDS ADMINISTERED BY NONPROFIT 18 CORPORATIONS WOULD HAVE ANY SUCH LIENS FILED BY THE MUNICIPAL 19 CORPORATION. 20 (11) HIRE ADDITIONAL OFF-DUTY POLICE OFFICERS OR PRIVATE 21 SECURITY OFFICERS, WHOSE PATROL AREA RESPONSIBILITIES WOULD 22 BE LIMITED TO THE GEOGRAPHICAL AREA INCORPORATED WITHIN THE 23 DESIGNATED NID SERVICE AREA AND WHOSE RESPONSIBILITY WOULD BE 24 TO SUPPORT EXISTING MUNICIPAL AND VOLUNTEER EFFORTS AIMED AT 25 REDUCING CRIME AND IMPROVING SECURITY IN THE NID. 26 (12) DESIGNATE A DISTRICT ADVISORY COMMITTEE, REFERRED 27 TO AS THE DAC, FOR EACH NID ESTABLISHED WITHIN THE 28 MUNICIPALITY. EACH DAC SHALL CONSIST OF AN ODD NUMBER OF 29 MEMBERS, BETWEEN FIVE AND NINE, WHO SHALL BE REPRESENTATIVE 30 OF THE NEIGHBORHOOD'S CHARACTER, INCLUDING, BUT NOT LIMITED 19990H1142B4032 - 62 -
1 TO, AGE, SEX AND CULTURAL DIVERSITY. 2 (B) ASSESSMENTS.-- 3 (1) THE NIDMA SHALL, UPON APPROVAL BY THE GOVERNING BODY 4 OF THE MUNICIPALITY, HAVE THE POWER TO ASSESS PROPERTY OWNERS 5 WITHIN THE NID A SPECIAL PROPERTY ASSESSMENT FEE. REVENUES 6 FROM THE FEE SHALL BE ACCOUNTED FOR AND USED BY THE NIDMA TO 7 MAKE IMPROVEMENTS AND PROVIDE PROGRAMS AND SERVICES WITHIN 8 THE NID AS AUTHORIZED BY THIS CHAPTER. WHERE THE DISTRICT 9 ESTABLISHED IS A BID, THE NIDMA SHALL HAVE THE AUTHORITY TO 10 EXEMPT RESIDENTIAL PROPERTY OWNERS FROM ANY SPECIAL 11 ASSESSMENT FEES LEVIED. 12 (2) ALL ASSESSMENTS AUTHORIZED UNDER THIS SECTION SHALL 13 BE CALCULATED USING JANUARY 1 AS THE FIRST DAY OF THE FISCAL 14 YEAR. 15 (3) ALL SPECIAL PROPERTY ASSESSMENT FEES SHALL BE BASED 16 UPON THE ESTIMATED COST OF THE PROGRAMS, IMPROVEMENTS OR 17 SERVICES TO BE PROVIDED IN SUCH NID AS STATED IN THE FINAL 18 PLAN UNDER SECTION 505(D). IN NO CASE SHALL THE AGGREGATE 19 AMOUNT OF ALL FEES LEVIED BY THE NIDMA DURING THE YEAR EXCEED 20 THE ESTIMATED COST OF PROPOSED PROGRAMS, IMPROVEMENTS AND 21 SERVICES FOR THE YEAR. 22 (4) IN THE CASE OF AN NID WHICH CONTAINS A COMBINATION 23 OF BUSINESS, RESIDENTIAL, INDUSTRIAL AND/OR INSTITUTIONAL 24 AREAS AND USES, A WEIGHTED ASSESSMENT MAY BE INSTITUTED. IN 25 SUCH CASE, THE FEE LEVIED ON PROPERTY OWNERS GENERALLY MAY BE 26 WEIGHTED HIGHER FOR BUSINESS, INDUSTRIAL OR INSTITUTIONAL 27 PROPERTIES THAN THAT LEVIED ON RESIDENTIAL PROPERTY OWNERS, 28 PROVIDED THE BASIS FOR THE CALCULATION OF THE FEE MEETS THE 29 RATIONAL NEXUS TEST. 30 (5) THE TOTAL COSTS OF IMPROVEMENTS, PROGRAMS AND 19990H1142B4032 - 63 -
1 ADMINISTRATIVE SERVICES PROVIDED BY THE NIDMA SHALL BE 2 ASSESSED TO ALL DESIGNATED PROPERTIES WITHIN THE NID BY ONE 3 OF THE FOLLOWING METHODS: 4 (I) AN ASSESSMENT DETERMINED BY MULTIPLYING THE 5 TOTAL SERVICE AND IMPROVEMENT COSTS BY THE RATIO OF THE 6 ASSESSED VALUE OF THE BENEFITED PROPERTY TO THE TOTAL 7 ASSESSED VALUATION OF ALL DESIGNATED BENEFITED PROPERTIES 8 IN THE NID. 9 (II) AN ASSESSMENT UPON THE SEVERAL PROPERTIES IN 10 THE NID IN PROPORTION TO BENEFITS AS ASCERTAINED BY 11 VIEWERS APPOINTED IN ACCORDANCE WITH LAW. 12 (III) ANY METHOD THAT EQUITABLY APPORTIONS COSTS 13 AMONG BENEFITING PROPERTIES. 14 (IV) IN THE CASE OF IMPROVEMENTS BENEFITING 15 PROPERTIES ABUTTING THE NID BY THE FRONT-FOOT METHOD, 16 WITH EQUITABLE ADJUSTMENTS FOR CORNER PROPERTIES AND 17 OTHER CASES PROVIDED FOR IN THE MUNICIPAL ORDINANCE. ANY 18 PROPERTY WHICH CANNOT BE EQUITABLY ASSESSED BY THE FRONT- 19 FOOT METHOD MAY BE ASSESSED BY ANY OF THE ABOVE METHODS. 20 (C) PAYMENT.--THE GOVERNING BODY MAY BY ORDINANCE AUTHORIZE 21 THE PAYMENT OF THE ASSESSMENT IN EQUAL ANNUAL OR MORE FREQUENT 22 INSTALLMENTS, OVER SUCH TIME AND BEARING INTEREST AT THE RATE 23 SPECIFIED IN THE MUNICIPAL ORDINANCE. IF BONDS HAVE BEEN ISSUED 24 AND SOLD, OR NOTES OR GUARANTEES HAVE BEEN GIVEN OR ISSUED, TO 25 PROVIDE FOR THE COST OF THE SERVICES AND IMPROVEMENTS, THE 26 ASSESSMENT IN EQUAL INSTALLMENTS SHALL NOT BE PAYABLE BEYOND THE 27 TERM FOR WHICH THE BONDS, NOTES OR GUARANTEES ARE PAYABLE. 28 (D) LIENS.-- 29 (1) NOTWITHSTANDING THE FILING OF THE CLAIMS, ALL 30 ASSESSMENTS WHICH ARE MADE PAYABLE IN INSTALLMENTS SHALL 19990H1142B4032 - 64 -
1 CONSTITUTE LIENS AND ENCUMBRANCES UPON THE RESPECTIVE 2 BENEFITED PROPERTIES AT THE BEGINNING OF EACH CALENDAR YEAR, 3 EXCEPT AS PROVIDED IN SUBSECTION (C), AND ONLY IN AN AMOUNT 4 EQUAL TO THE SUM OF: 5 (I) THE ANNUAL OR OTHER INSTALLMENTS BECOMING 6 PAYABLE IN SUCH YEAR, WITH INTEREST AND PENALTIES, IF 7 ANY, THEREON; AND 8 (II) THE TOTAL OF ALL INSTALLMENTS, WITH INTEREST 9 AND PENALTIES THEREON, WHICH BECAME DUE DURING PRIOR 10 YEARS AND WHICH REMAIN DUE AND UNPAID AT THE BEGINNING OF 11 THE CURRENT YEAR. 12 (2) IN THE CASE OF DEFAULT IN THE PAYMENT OF ANY 13 INSTALLMENT AND INTEREST FOR A PERIOD OF 90 DAYS AFTER THE 14 PAYMENT BECOMES DUE, THE ASSESSMENT ORDINANCE MAY PROVIDE 15 EITHER FOR THE ENTIRE ASSESSMENT, WITH ACCRUED INTEREST AND 16 PENALTIES TO BECOME DUE AND BECOME A LIEN FROM THE DUE DATE 17 OF THE INSTALLMENT, OR MAY PROVIDE SOLELY FOR THE ENFORCEMENT 18 OF THE CLAIM AS TO THE OVERDUE INSTALLMENT, WITH INTEREST AND 19 PENALTIES, IN WHICH CASE THE ORDINANCE SHALL FURTHER PROVIDE 20 THAT, IF ANY INSTALLMENT OR PORTION THEREOF REMAINS DUE AND 21 UNPAID FOR ONE YEAR AFTER IT HAS BECOME DUE AND PAYABLE, THEN 22 THE ENTIRE ASSESSMENT WITH ACCRUED INTEREST AND PENALTIES 23 SHALL BECOME DUE AND BECOME A LIEN FROM THE DUE DATE OF THE 24 INSTALLMENT. 25 (3) NO ACTION TAKEN TO ENFORCE A CLAIM FOR ANY 26 INSTALLMENT OR INSTALLMENTS SHALL AFFECT THE STATUS OF ANY 27 SUBSEQUENT INSTALLMENT OF THE SAME ASSESSMENT, EACH OF WHICH 28 SHALL CONTINUE TO BECOME A LIEN UPON THE PROPERTY ANNUALLY 29 PURSUANT TO PARAGRAPH (1). 30 (4) THE ORDINANCE MAY CONTAIN ANY OTHER PROVISION 19990H1142B4032 - 65 -
1 RELATING TO INSTALLMENT ASSESSMENTS WHICH IS NOT INCONSISTENT 2 WITH APPLICABLE LAW. 3 (5) ANY OWNER OF PROPERTY AGAINST WHOM AN ASSESSMENT HAS 4 BEEN MADE MAY PAY THE ASSESSMENT IN FULL AT ANY TIME, WITH 5 ACCRUED INTEREST AND COSTS THEREON, AND SUCH A PAYMENT SHALL 6 DISCHARGE THE LIEN OF THE ASSESSMENT, OR INSTALLMENTS THEN 7 CONSTITUTING A LIEN, AND SHALL ALSO RELEASE THE CLAIM TO ANY 8 LATER INSTALLMENTS. 9 (6) CLAIMS TO SECURE THE ASSESSMENTS SHALL BE ENTERED IN 10 THE PROTHONOTARY'S OFFICE OF THE COUNTY AT THE SAME TIME, AND 11 IN THE SAME FORM, AND COLLECTED IN THE SAME MANNER, AS 12 MUNICIPAL TAX CLAIMS ARE FILED AND COLLECTED, NOTWITHSTANDING 13 THE PROVISIONS OF THIS SECTION AS TO INSTALLMENT PAYMENTS. 14 SECTION 508. DISSOLUTION OF NEIGHBORHOOD IMPROVEMENT DISTRICT 15 MANAGEMENT ASSOCIATION AND NEIGHBORHOOD 16 IMPROVEMENT DISTRICT. 17 (A) CONVEYING PROJECTS.--WHEN ANY NIDMA SHALL HAVE FINALLY 18 PAID AND DISCHARGED ALL BONDS WHICH, TOGETHER WITH THE INTEREST 19 DUE THEREON, SHALL HAVE BEEN SECURED BY A PLEDGE OF ANY OF THE 20 REVENUES OR RECEIPTS OF A PROJECT, IT MAY, SUBJECT TO ANY 21 AGREEMENTS CONCERNING THE OPERATION OR DISPOSITION OF SUCH 22 PROJECT AND THE NIDMA BYLAWS, CONVEY SUCH PROJECT OR PROJECTS TO 23 THE MUNICIPAL CORPORATION WHICH ESTABLISHED OR HAD ESTABLISHED 24 THE NIDMA. 25 (B) REQUEST FOR TERMINATION.--ANY REQUEST FOR THE 26 TERMINATION OF THE NID AND NIDMA APPROVED BY 40% OF THE ASSESSED 27 PROPERTY OWNERS, IN NUMBERS, LOCATED IN THE NID, SHALL BE 28 SUBMITTED TO THE GOVERNING BODY OF THE MUNICIPALITY IN WRITING. 29 THE GOVERNING BODY SHALL HOLD A HEARING ON THE MERITS OF SAME, 30 PURSUANT TO SECTION 505(B)(2) AS IT RELATES TO THE REQUIRED 19990H1142B4032 - 66 -
1 PROCEDURE OF HOLDING A HEARING. SUCH WRITTEN REQUEST SHALL BE 2 CONSIDERED BY THE GOVERNING BODY OF THE MUNICIPALITY. IF THE 3 REQUEST IS APPROVED BY THE GOVERNING BODY OF THE MUNICIPALITY, 4 THEN A RESOLUTION TO THAT EFFECT SHALL BE FILED WITH THE 5 SECRETARY OF THE COMMONWEALTH, AND THE SECRETARY SHALL NOTE THE 6 TERMINATION OF THE EXISTENCE ON THE RECORD OF INCORPORATION AND 7 RETURN THE RESOLUTION WITH HIS OR HER APPROVAL SHOWN ON THE 8 RESOLUTION TO THE MUNICIPAL CORPORATION. THEN, THE PROPERTY OF 9 THE NIDMA SHALL PASS TO THE MUNICIPAL CORPORATION, AS THE CASE 10 MAY BE, AND THE NIDMA AND NID SHALL CEASE TO EXIST. ANY REQUEST 11 FOR THE TERMINATION OF THE NID AND NIDMA BY THE GOVERNING BODY 12 OF THE MUNICIPALITY IN WHICH THE NID IS LOCATED SHALL RESULT IN 13 A HEARING ON THE MERITS OF SAME, PURSUANT TO SECTION 505(B)(2) 14 AS IT RELATES TO THE REQUIRED PROCEDURE FOR HOLDING A HEARING. 15 BEFORE THE DECISION TO TERMINATE AN NID AND NIDMA IS MADE, SUCH 16 TERMINATION MUST BE APPROVED BY 40% OF THE ASSESSED PROPERTY 17 OWNERS, IN NUMBERS, LOCATED IN THE NID, AND SHALL BE SUBMITTED 18 TO THE GOVERNING BODY OF THE MUNICIPALITY IN WRITING. SUCH 19 WRITTEN REQUEST SHALL BE CONSIDERED BY THE GOVERNING BODY OF THE 20 MUNICIPALITY. IF THE REQUEST IS APPROVED BY THE GOVERNING BODY 21 OF THE MUNICIPALITY, THEN A RESOLUTION TO THAT EFFECT SHALL BE 22 FILED WITH THE SECRETARY OF THE COMMONWEALTH, AND THE SECRETARY 23 SHALL NOTE THE TERMINATION OF THE EXISTENCE ON THE RECORD OF 24 INCORPORATION AND RETURN THE RESOLUTION WITH HIS OR HER APPROVAL 25 SHOWN TO THE MUNICIPAL CORPORATION. THE PROPERTY OF THE NIDMA 26 SHALL PASS TO THE MUNICIPAL CORPORATION, AS THE CASE MAY BE, AND 27 THE NIDMA AND NID SHALL CEASE TO EXIST. 28 SECTION 509. ANNUAL AUDIT; REPORT. 29 THE NIDMA SHALL ANNUALLY: 30 (1) SUBMIT AN AUDIT OF ALL INCOME AND EXPENDITURES TO 19990H1142B4032 - 67 -
1 THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT AND THE 2 GOVERNING BODY OF THE MUNICIPALITY IN WHICH THE NID IS 3 LOCATED WITHIN 120 DAYS AFTER THE END OF EACH FISCAL YEAR; 4 AND 5 (2) SUBMIT A REPORT, INCLUDING FINANCIAL AND 6 PROGRAMMATIC INFORMATION, INCLUDING A SUMMARY OF AUDIT 7 FINDINGS, TO THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH 8 THE NID IS LOCATED AND TO ALL ASSESSED PROPERTY OWNERS 9 LOCATED IN THE NID. 10 SECTION 510. APPLICABILITY. 11 (A) EXISTING DISTRICTS.--EXCEPT AS PROVIDED FOR IN 12 SUBSECTION (D), ANY EXISTING BUSINESS IMPROVEMENT DISTRICT OR 13 DOWNTOWN IMPROVEMENT DISTRICT ESTABLISHED PRIOR TO THE EFFECTIVE 14 DATE OF THIS CHAPTER, INCLUDING ANY SUCH DISTRICT LOCATED IN 15 PART IN A CITY OF THE FIRST CLASS AND IN PART IN A CONTIGUOUS 16 MUNICIPALITY, SHALL REMAIN IN EXISTENCE AND SHALL BE GOVERNED BY 17 THE MUNICIPALITY AUTHORITIES ACT OF 1945, INSOFAR AS IT RELATES 18 TO BUSINESS IMPROVEMENT DISTRICTS OR 53 PA.C.S. CH. 54 (RELATING 19 TO BUSINESS IMPROVEMENT DISTRICTS). 20 (B) DISTRICTS CREATED SUBSEQUENTLY.--ANY NID ESTABLISHED 21 SUBSEQUENT TO THE EFFECTIVE DATE OF THIS CHAPTER SHALL BE 22 GOVERNED BY THE PROVISIONS OF THIS CHAPTER. 23 (C) TERMINATED DISTRICTS.--ANY BUSINESS IMPROVEMENT DISTRICT 24 OR DOWNTOWN IMPROVEMENT DISTRICT IN EXISTENCE PRIOR TO THE 25 EFFECTIVE DATE OF THIS CHAPTER WHICH IS TERMINATED PURSUANT TO A 26 SUNSET PROVISION CONTAINED IN THE MUNICIPAL ORDINANCE WHICH 27 ESTABLISHED THE BUSINESS IMPROVEMENT DISTRICT OR DOWNTOWN 28 IMPROVEMENT DISTRICT SHALL, UPON ITS REESTABLISHMENT, PROVIDED 29 IT OCCURS WITHIN 12 MONTHS OF THE TERMINATION DATE AS SET FORTH 30 IN THE MUNICIPAL ORDINANCE, BE GOVERNED BY THE PROVISIONS OF 19990H1142B4032 - 68 -
1 THIS CHAPTER, WITH THE EXCEPTIONS OF SECTIONS 505 AND 506. 2 (D) ADDITIONAL REQUIREMENTS.--ANY BUSINESS IMPROVEMENT 3 DISTRICT OR DOWNTOWN IMPROVEMENT DISTRICT IN EXISTENCE ON THE 4 EFFECTIVE DATE OF THIS CHAPTER SHALL: 5 (1) BE REQUIRED TO CARRY OUT ANY DUTY OR RESPONSIBILITY 6 IMPOSED ON NIDS UNDER THIS CHAPTER; AND 7 (2) POSSESS ANY ADDITIONAL POWER GIVEN TO NIDS UNDER 8 THIS CHAPTER WITHOUT HAVING TO RESTRUCTURE OR REORGANIZE 9 UNDER THIS CHAPTER. 10 SECTION 10. THIS ACT SHALL TAKE EFFECT IN 60 DAYS. B11L53JLW/19990H1142B4032 - 69 -