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        PRIOR PRINTER'S NOS. 594, 1260, 1788          PRINTER'S NO. 1989

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 500 Session of 2003


        INTRODUCED BY FREEMAN, ARGALL, TANGRETTI, HERMAN, CURRY, HARPER,
           STURLA, HENNESSEY, STEIL, GRUCELA, SAMUELSON, ALLEN, BEBKO-
           JONES, BELARDI, BELFANTI, BROWNE, CALTAGIRONE, CASORIO,
           CAWLEY, CORRIGAN, COSTA, DAILEY, DALLY, DeWEESE, EACHUS,
           D. EVANS, FAIRCHILD, FICHTER, FRANKEL, GEIST, GERGELY,
           HALUSKA, HARHAI, HERSHEY, HORSEY, HUTCHINSON, JOSEPHS,
           KELLER, KIRKLAND, LAUGHLIN, LEACH, LEDERER, LEH, LESCOVITZ,
           LEVDANSKY, LEWIS, MANDERINO, MANN, MARKOSEK, McCALL,
           McILHINNEY, MELIO, O'NEILL, PETRARCA, PETRI, PETRONE,
           PISTELLA, PRESTON, READSHAW, ROBERTS, RUBLEY, SAINATO,
           SANTONI, SCHRODER, SCRIMENTI, SHANER, SOLOBAY, STABACK,
           SURRA, THOMAS, TRAVAGLIO, VITALI, WALKO, WANSACZ, WATSON,
           WILLIAMS, WRIGHT, YOUNGBLOOD, YUDICHAK, PALLONE, BISHOP AND
           REICHLEY, FEBRUARY 26, 2003

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 10, 2003

                                     AN ACT

     1  Providing for a residential neighborhood enhancement program to
     2     be administered by the Department of Community and Economic
     3     Development.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Elm Street
     8  Act.
     9  Section 2.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have the meanings given to them in this section unless the
    12  context clearly indicates otherwise:

     1     "Department."  The Department of Community and Economic
     2  Development of the Commonwealth.
     3     "Established residential neighborhood."  A defined geographic
     4  area which has consisted of buildings and structures for housing
     5  individuals and families in CLOSE proximity to a commercial       <--
     6  district and which has existed as a residential neighborhood for  <--
     7  40 or more years SINCE BEFORE 1961.                               <--
     8     "Main Street Program."  The program administered by the
     9  Department of Community and Economic Development designed to
    10  assist a community's downtown economic development effort
    11  through the establishment of a local organization dedicated to
    12  downtown revitalization and management of downtown
    13  revitalization by hiring a full-time professional downtown
    14  coordinator.
    15     "Program."  The Elm Street Program as established in section
    16  3.
    17  Section 3.  Elm Street Program.
    18     (a)  Establishment.--There is established an Elm Street
    19  Program within the department which shall assist municipalities
    20  in preparing a comprehensive plan to develop and revitalize AND   <--
    21  IMPLEMENTING A REVITALIZATION STRATEGY FOR established
    22  residential neighborhoods either in the vicinity of a Main
    23  Street Program project or in CLOSE proximity to an existing       <--
    24  commercial district.
    25     (b)  Applications.--The department shall prepare application
    26  forms for the grant program established in this act and award
    27  grants to municipalities and other eligible entities based on
    28  the requirements in subsection (c). THE DEPARTMENT SHALL REQUIRE  <--
    29  THAT A MAP BE FURNISHED WITH ALL APPLICATIONS CLEARLY
    30  IDENTIFYING THE ESTABLISHED RESIDENTIAL NEIGHBORHOOD AND
    20030H0500B1989                  - 2 -     

     1  DEMONSTRATING ITS CLOSE PROXIMITY TO A COMMERCIAL DISTRICT.
     2     (c)  Program requirements.--The program shall:
     3         (1)  Provide basic grants for a maximum of five years per
     4     project for administrative costs associated with the hiring
     5     of a professional Elm Street Manager, who may serve as an
     6     assistant to the Main Street Manager if a Main Street Program
     7     exists within a municipality.
     8         (2)  Provide residential reinvestment grants for
     9     infrastructure and structural improvements, including, but
    10     not limited to, streets, street lights, trees, exteriors of
    11     buildings and sidewalks or other pedestrian-oriented
    12     features.
    13         (3)  Provide planning and development grants for:
    14             (i)  Marketing and promoting urban residential
    15         living.
    16             (ii)  Leveraging additional private and public
    17         investment.
    18             (iii)  Addressing any social and economic concerns.    <--
    19             (III)  PROMOTING HOME OWNERSHIP AND OTHER HOUSING      <--
    20         OPTIONS.
    21             (IV)  ADDRESSING SOCIAL AND ECONOMIC CONCERNS
    22         INCLUDING, BUT NOT LIMITED TO, CRIME, BLIGHT, EMPLOYMENT
    23         OPPORTUNITIES AND PUBLIC SERVICES AND AMENITIES.
    24             (iv) (V)  Achieving consistency, whenever              <--
    25         appropriate, with any existing commercial and residential  <--
    26         revitalization efforts.
    27         (4)  Provide an assessment of the applying
    28     municipalities' need for the following:
    29             (i)  The establishment of a neighborhood improvement
    30         district as defined in the act of December 20, 2000
    20030H0500B1989                  - 3 -     

     1         (P.L.949, No.130), known as the Neighborhood Improvement
     2         District Act.
     3             (ii)  A review of local comprehensive plans and
     4         zoning and other land use ordinances to foster the
     5         viability of established residential neighborhoods, with
     6         a balanced mix of commercial, civic, employment and
     7         residential uses, with particular attention to a
     8         diversity of housing options.
     9             (iii)  A review of educational and recreational
    10         opportunities and facilities.
    11     (d)  Eligibility.--Municipalities or their designated
    12  agencies must meet the following criteria:
    13         (1)  Have a clearly defined AN ESTABLISHED residential     <--
    14     neighborhood in need of revitalization in CLOSE proximity to   <--
    15     a commercial district.
    16         (2)  Have expressed support by local residents, merchants
    17     and government officials.
    18         (3)  Have ability to provide a minimum of a 10% match in
    19     financial and/or in-kind support for any department grants
    20     from other public or private sources based upon departmental
    21     guidelines. The department may waive or reduce the matching
    22     requirement if it determines such requirement would
    23     constitute a hardship upon the municipality or an agency
    24     designated by the municipality. A HARDSHIP EXISTS IF THE       <--
    25     MUNICIPALITY MEETS ONE OF THE FOLLOWING CRITERIA:
    26         (1)  THE MUNICIPALITY IS DECLARED AS FINANCIALLY
    27     DISTRESSED UNDER THE ACT OF JULY 10, 1987 (P.L.246, NO.47),
    28     KNOWN AS THE MUNICIPALITIES FINANCIAL RECOVERY ACT.
    29         (2)  THE MATCHING REQUIREMENTS FOR THE APPLICATION WOULD
    30     EXCEED 5% OF THE MUNICIPALITY'S ANNUAL OPERATING BUDGET.
    20030H0500B1989                  - 4 -     

     1         (3)  PART OR ALL OF THE ESTABLISHED RESIDENTIAL
     2     NEIGHBORHOOD IDENTIFIED IN THE APPLICATION IS PARTICIPATING
     3     IN THE PENNSYLVANIA WEED AND SEED PROGRAM AS ADMINISTERED BY
     4     THE PENNSYLVANIA COMMISSION ON CRIME AND DELINQUENCY.
     5         (4)  A MINIMUM OF 20% OF THE MUNICIPALITY'S POPULATION
     6     FALLS BELOW 150% OF THE FEDERAL POVERTY LEVEL.
     7     (e)  Multiple projects.--The department may approve more than
     8  one project within the boundaries of a municipality. Multiple
     9  projects may occur simultaneously or at different periods of
    10  time.
    11     (F)  COOPERATIVE PROJECTS.--THE DEPARTMENT MAY CONSIDER        <--
    12  APPLICATIONS SUBMITTED BY TWO OR MORE MUNICIPALITIES AS A SINGLE
    13  APPLICATION FOR A SINGLE PROJECT AREA.
    14     (G)  PRIORITY PROJECTS.--THE DEPARTMENT SHALL GIVE PRIORITY
    15  TO PROJECTS WITH AN ESTABLISHED RESIDENTIAL NEIGHBORHOOD THAT
    16  WAS ALREADY IN EXISTENCE PRIOR TO 1951.
    17     (f) (H)  Limits.--The department shall establish limits on     <--
    18  the amount of money available to each applicant PER PROJECT AREA  <--
    19  so as to distribute the available funds as fairly as possible
    20  throughout this Commonwealth.
    21  Section 4.  Limitations.
    22     (A)  PROGRAM LIMITS.--In no case shall the aggregate amount    <--
    23  of grants in any fiscal year exceed the amount of the
    24  appropriation to the department for the program in that fiscal
    25  year. The provision of grants under this act shall in no way
    26  constitute an entitlement derived from the Commonwealth or a
    27  claim on any other funds of the Commonwealth.
    28     (B)  PROHIBITIONS.--NO FUNDS FROM THIS PROGRAM SHALL BE        <--
    29  EXPENDED TO DEVELOP OR CONVERT FARMLAND TO RESIDENTIAL,
    30  COMMERCIAL OR INDUSTRIAL USES. FARMLAND IS ANY LAND THAT
    20030H0500B1989                  - 5 -     

     1  SUPPORTS, OR LAND WITH A RECENT HISTORY OF SUPPORTING, THE
     2  COMMERCIAL PRODUCTION OF AGRICULTURAL CROPS, LIVESTOCK OR
     3  LIVESTOCK PRODUCTS, POULTRY PRODUCTS, MILK OR DAIRY PRODUCTS,
     4  FRUIT OR OTHER HORTICULTURAL PRODUCTS.
     5  Section 5.  Effective date.
     6     This act shall take effect immediately.
















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