1Authorizing the establishment of land bank programs and
2affordable housing programs with the approval of the
3electorate; providing for funding by proceeds from tax on the
4transfer of real property; and specifying the purposes of
5such programs.

6TABLE OF CONTENTS

7Section 1.  Short title.

8Section 2.  Establishment of land bank programs and affordable
9housing programs.

10Section 3.  Initiative of electors.

11Section 4.  Filing of ordinance or petition.

12Section 5.  Form of question for land bank program.

13Section 6.  Form of question for affordable housing program.

14Section 7.  Dual question.

15Section 8.  Dedication of portion of tax.

16Section 9.  Municipal option.

17Section 10.  Establishment of program.

18Section 11.  Special fund.

19Section 12.  Acquisition of open-space land.

1Section 13.  Bond issues for open-space land.

2Section 14.  Conveyance of open-space land.

3Section 15.  Use of affordable housing fund.

4Section 16.  Termination of land bank program or affordable
5housing program.

6Section 17.  Effective date.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1.  Short title.

10This act shall be known and may be cited as the Municipal
11Land Bank and Affordable Housing Act.

12Section 2.  Establishment of land bank programs and affordable
13housing programs.

14The governing body of a municipality may, by ordinance, or
15the electors of a municipality may, by petition, cause to be
16submitted to the qualified voters of the municipality the
17question of whether the municipality should establish a land
18bank program or an affordable housing program, or both, and
19dedicate all or a portion of taxes imposed by the municipality
20on the transfer of real property in the municipality for the
21purpose of funding the program or programs.

22Section 3.  Initiative of electors.

23In order for the question of whether to establish a land bank
24program or an affordable housing program, or both, to be
25initiated by petition of electors, petitions calling for the
26question containing signatures of at least 5% of the electors
27voting for the Office of Governor in the last gubernatorial
28general election in the municipality must be filed with the
29county board of elections.

30Section 4.  Filing of ordinance or petition.

1The ordinance or petition calling for the question of whether
2to establish a land bank program or an affordable housing
3program, or both, that is to be submitted to the electors shall
4be filed with the election officials not later than the 13th
5Tuesday prior to the next primary, municipal or general
6election. The petition and proceedings therein shall be in the
7manner and subject to the provisions of the election laws which
8relate to the signing, filing and adjudication of nomination
9petitions insofar as such provisions are applicable, except that
10no petition shall be signed or circulated prior to the 20th
11Tuesday before the election nor later than the 13th Tuesday
12before the election.

13Section 5.  Form of question for land bank program.

14The question of whether to establish a land bank program
15shall be in substantially the following form:

16"Do you favor the establishment, administration and
17maintenance of a land bank program for the purpose of
18enabling (insert name of municipality) to acquire open-space
19land or interests in such land to conserve natural and scenic
20resources, to preserve agricultural land and to augment
21public recreation opportunities and the dedication of taxes
22imposed by the municipality on the transfer of real property
23in the municipality for funding of the program?"

24Section 6.  Form of question for affordable housing program.

25The question of whether to establish an affordable housing
26program shall be in substantially the following form:

27"Do you favor the establishment and administration of a
28program consisting of the awarding of grants to nonprofit
29organizations, housing authorities and redevelopment
30authorities to provide adequate, safe and affordable housing

1in (insert name of municipality) for low-income individuals
2and families, and the dedication of taxes imposed by the
3municipality on the transfer of real property in the
4municipality for funding of the program?"

5Section 7.  Dual question.

6In the event that the ordinance or petition calls for the
7question of whether to establish both a land bank program and an
8affordable housing program, the questions set forth in sections
95 and 6 may be appropriately combined into one question.

10Section 8.  Dedication of portion of tax.

11The ordinance or petition calling for a question of whether
12to establish a land bank program or an affordable housing
13program, or both, may call for some percentage less than all of
14the tax imposed by the municipality on the transfer of real
15property to be dedicated for the program or programs, in which
16case the question on the ballot shall be revised to indicate the
17portion of the tax to be so dedicated.

18Section 9.  Municipal option.

19In the event that a special fund for purposes of affordable
20housing exists at the county level, a municipality shall have
21the option of dedicating the revenue derived from taxes imposed
22by the municipality on the transfer of real property and
23dedicated for affordable housing purposes to the county fund.
24Moneys so dedicated shall be deposited in the county special
25fund for affordable housing for use by the county in providing
26grants to nonprofit organizations, housing authorities and
27redevelopment authorities to provide adequate, safe and
28affordable housing in the municipality that exercises its option
29under this section.

30Section 10.  Establishment of program.

1If a majority of the electors voting on the question of
2establishing, administering and maintaining a land bank program
3or an affordable housing program, or both, and dedicating taxes
4imposed by the municipality on the transfer of real property
5within the municipality in order to fund the program or programs
6vote in favor of the question, the governing body of the
7municipality within 90 days following the certification of the
8results of the election shall adopt an ordinance or ordinances
9establishing the appropriate program or programs. If both a land
10bank program and an affordable housing program are approved, the
11ordinance or ordinances shall specify the portion of available
12funds allocated to each program.

13Section 11.  Special fund.

14(a)  Establishment.--Unless a municipality exercises its
15option under section 9, all revenue derived from a tax imposed
16by the municipality on the transfer of real property in the
17municipality dedicated for land bank purposes or affordable
18housing purposes, or both, shall be remitted by the county
19recorder of deeds to the municipality and deposited in a special
20fund to be known as a land bank fund, affordable housing fund or
21land bank and affordable housing fund, whichever may be
22appropriate, and used exclusively for the purposes authorized by
23this act.

24(b)  Donations.--The municipality may accept donations from
25any source for the purposes authorized by this act, and any
26funds so received, including any funds which may become
27available from the Federal or State government for the purposes
28stated in this act, all revenues derived from the sale of bonds
29for land bank purposes and interest accrued, shall be deposited
30in the appropriate special fund, including the special county

1fund in the case of a municipality exercising its option under
2section 9.

3(c)  Deposit of proceeds.--All proceeds from the rental,
4lease or sale of any open-space land or an interest therein that
5the municipality acquired through a land bank program shall be
6deposited in the land bank fund.

7Section 12.  Acquisition of open-space land.

8(a)  Moneys in fund.--Moneys in a land bank fund shall be
9used by the municipality for the acquisition and maintenance of
10open-space land and interests in open-space land within the
11municipality and for related administrative expenses, including,
12but not limited to, expenditures for engineering, legal and
13appraisal services and for the repayment of debts incurred
14through the issuance of bonds under section 13.

15(b)  Approval not required.--When a land bank program has
16been established, no additional approval of the electors shall
17be required for the acquisition of open-space land or interests
18therein with money in a land bank fund, nor shall approval of
19the electors be required for the governing body of the
20municipality, on behalf of the municipality, to accept title to
21open-space lands or interests therein which may be donated to
22the municipality.

23(c)  Public notice.--The governing body of the municipality
24shall give public notice of a meeting at which final action on
25an acquisition of open-space land or an interest therein or
26acceptance of a donation of open-space land is to be taken,
27which public notice shall be given in the manner prescribed by
2865 Pa.C.S. Ch. 7 (relating to open meetings) and shall include a
29brief description of the proposed transaction.

30(d)  Advice of commission and advisory council.--The

1governing body of the municipality shall seek the advice of the
2municipality's planning commission and the Environmental
3Advisory Council established under 53 Pa.C.S. Ch. 23 Subch. B
4(relating to environmental advisory councils) if the
5municipality has established such a council with respect to all
6transactions involving open-space land.

7(e)  Appraisals.--At least two independent appraisals shall
8be obtained prior to the purchase by the municipality of any
9open-space land or interest therein.

10(f)  Public purposes.--Any land acquired by a municipality
11under this act shall be deemed to be held and used for public
12purposes.

13(g)  Definition.--As used in this act, the term "open-space 
14land" means land that will be used for any of the following
15purposes:

16(1)  To conserve natural or scenic resources, including,
17but not limited to, soils, beaches, streams, wetlands or
18tidal wetlands.

19(2)  To preserve agricultural land, including the
20preservation of agricultural land through the purchase of
21agricultural conservation easements as provided in the act of
22June 30, 1981 (P.L.128, No.43), known as the Agricultural
23Area Security Law.

24(3)  To enhance the value to the public of abutting or
25neighboring parks, forests, wildlife preserves, nature
26reservations or other public open spaces.

27(4)  To augment public recreation opportunities.

28(5)  To preserve sites of historic, geologic or botanic
29interest.

30Section 13.  Bond issues for open-space land.

1In anticipation of moneys becoming available in a land bank
2fund, the governing body of the municipality may issue bonds for
3the exclusive purpose of acquiring and maintaining open-space
4land or interests therein.

5Section 14.  Conveyance of open-space land.

6(a)  Acquisition of land.--

7(1)  The governing body of the municipality may, by
8competitive bid as provided in subsection (b), and subject to
9the same requirements as provided in section 12(c), (d) and
10(e) for acquisition of open-space land, convey open-space
11land, portions thereof or interests therein subject to a
12protective covenant in the deed of conveyance that the land
13will be used only for the purposes of open-space land, as
14defined in this act, with reversion to the municipality in
15the event the covenant is violated.

16(2)  The protective covenant in the deed of conveyance
17shall state with specificity the use or restrictions on use
18applicable to the land so conveyed.

19(3)  No conveyance of open-space land or an interest
20therein without this protective covenant in the deed shall be
21made without approval of the court of common pleas.

22(4)  The court of common pleas may not approve the
23proposed conveyance without a protective covenant in the deed
24unless the court determines that there is an overriding
25public need that cannot be met through the use of any other
26land within the municipality.

27(b)  Sale of land.--

28(1) Open-space land, portions thereof or interests
29therein may be sold by the municipality to the highest
30bidder, subject to the protective covenant specified in

1subsection (a), after due notice by the advertisement for
2bids in one newspaper of general circulation in the
3municipality. The advertisement shall be published once not
4less than ten days prior to the date fixed for the opening of
5bids, and the date for opening bids shall be announced in the
6advertisement.

7(2)  The acceptance of bids shall be made only by public
8announcement at a regular or special meeting of the governing
9body of the municipality. All bids shall be accepted on the
10condition that payment of the purchase price in full shall be
11made within 90 days of the acceptance of bids.

12(c)  Donation of land.--Notwithstanding any other provision
13of this act, a municipality may donate land or any portion
14thereof or interest therein acquired pursuant to a land bank
15program to a conservancy which possesses a tax-exempt status
16under section 501(c)(3) of the Internal Revenue Code of 1986
17(Public Law 99-514, 26 U.S.C. § 501(c)(3)) and which has as its
18primary purpose preservation of land for historic, recreational,
19scenic, agricultural or open-space opportunities. Prior to this
20donation, the governing body of the municipality shall give
21public notice in the manner provided in section 12(c). This
22donation shall be subject to the protective covenant specified
23in subsection (a).

24Section 15.  Use of affordable housing fund.

25(a)  Grants.--

26(1)  Moneys deposited in an affordable housing fund and
27interest earned on moneys deposited in this fund shall be
28used solely for the purpose of making grants to nonprofit
29organizations, housing authorities and redevelopment
30authorities for affordable housing purposes. Qualifications

1for grants, the manner of making applications for grants and
2authorized uses of grant moneys shall be provided for in the
3ordinance establishing the affordable housing program.

4(2)  Authorized uses of grant moneys may include:

5(i)  Plan preparation.

6(ii)  The acquisition of property.

7(iii)  The construction of new residential buildings.

8(iv)  Demolition of existing buildings.

9(v)  Construction, reconstruction, alteration and
10repair of residential buildings.

11(vi)  Any other associated work, including
12administrative costs and the cost of professional and
13technical assistance.

14(b)  Public notice.--The governing body of the municipality
15shall give public notice of a meeting at which final action on a
16grant from the affordable housing fund is to be taken. The
17public notice shall be given in the manner prescribed by 65 
18Pa.C.S. Ch. 7 (relating to open meetings) and shall include a
19brief description of the proposed project.

20Section 16.  Termination of land bank program or affordable
21housing program.

22(a)  Referendum.--The governing body of a municipality may,
23by ordinance, or the electors of a municipality may, by
24petition, cause to be submitted to the qualified voters of the
25municipality the question of whether the municipality should
26terminate an established land bank program, an established
27affordable housing program, or both.

28(b)  Petition.--A petition by the electors shall be in the
29same manner as provided for the establishment of such programs
30in section 3, and the ordinance or petition shall be filed in

1the same manner as provided in section 4.

2(c)  Question.--The question of whether to terminate an
3established land bank program or an affordable housing program
4shall be in substantially the following form:

5"Do you favor the termination of the existing

6                        program?"

7This question shall be followed by a brief statement of the
8original purpose of the program. If both programs are to be
9considered for termination, the questions may be appropriately
10combined into one question.

11(d)  Election.--If a majority of the electors voting on the
12question vote in favor of termination, the governing body of the
13municipality shall, within 90 days following certification of
14the results of the election, adopt any ordinances necessary to
15terminate the program or programs.

16Section 17.  Effective date.

17This act shall take effect immediately.