Regular Session 2023-2024 Senate Bill 0802 P.N. 0916

PRINTER'S NO. 916

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

802

Session of

2023

INTRODUCED BY FARRY AND PENNYCUICK, JUNE 19, 2023

REFERRED TO URBAN AFFAIRS AND HOUSING, JUNE 19, 2023

AN ACT

Amending the act of April 9, 1929 (P.L.343, No.176), entitled

"An act relating to the finances of the State government;

providing for cancer control, prevention and research, for

ambulatory surgical center data collection, for the Joint

Underwriting Association, for entertainment business

financial management firms, for private dam financial

assurance and for reinstatement of item vetoes; providing for

the settlement, assessment, collection, and lien of taxes,

bonus, and all other accounts due the Commonwealth, the

collection and recovery of fees and other money or property

due or belonging to the Commonwealth, or any agency thereof,

including escheated property and the proceeds of its sale,

the custody and disbursement or other disposition of funds

and securities belonging to or in the possession of the

Commonwealth, and the settlement of claims against the

Commonwealth, the resettlement of accounts and appeals to the

courts, refunds of moneys erroneously paid to the

Commonwealth, auditing the accounts of the Commonwealth and

all agencies thereof, of all public officers collecting

moneys payable to the Commonwealth, or any agency thereof,

and all receipts of appropriations from the Commonwealth,

authorizing the Commonwealth to issue tax anticipation notes

to defray current expenses, implementing the provisions of

section 7(a) of Article VIII of the Constitution of

Pennsylvania authorizing and restricting the incurring of

certain debt and imposing penalties; affecting every

department, board, commission, and officer of the State

government, every political subdivision of the State, and

certain officers of such subdivisions, every person,

association, and corporation required to pay, assess, or

collect taxes, or to make returns or reports under the laws

imposing taxes for State purposes, or to pay license fees or

other moneys to the Commonwealth, or any agency thereof,

every State depository and every debtor or creditor of the

Commonwealth," establishing the Redevelopment Authority

Startup Loan Program and the Redevelopment Authority Startup

Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of April 9, 1929 (P.L.343, No.176), known

as The Fiscal Code, is amended by adding an article to read:

ARTICLE XVI-U

REDEVELOPMENT AUTHORITY STARTUP LOAN PROGRAM

Section 1601-U. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Fund." The Redevelopment Authority Startup Fund established

in this article.

"Qualified county." A county, other than a county of the

first class or county of the second class.

"Qualified redevelopment authority." A public body and body

corporate and politic created and organized in accordance with

the provisions of the act of May 24, 1945 (P.L.991, No.385),

known as the Urban Redevelopment Law, and established in a

qualified county.

"Startup loan." A loan issued to a qualified redevelopment

authority from the fund.

Section 1602-U. (Reserved).

Section 1603-U. Redevelopment Authority Startup Loan Program.

The Redevelopment Authority Startup Loan Program is

established in the department.

Section 1604-U. Application and approval process.

(a) General rule.--A qualified redevelopment authority may

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apply to the department for a startup loan as provided under

this article. An application made under this subsection must be

submitted in a form and manner required by the department.

(b) Application period.--A qualified redevelopment authority

may submit an application to the department for a startup loan

beginning from January 1, 2024, until the earlier of the

following:

(1) the date on which all money appropriated by the

General Assembly to the fund has been awarded as startup

loans; or

(2) January 1, 2026.

the department shall:

(1) Provide a startup loan from the fund to at least one

county of each qualified county classification, if a county

of that classification has applied and the county is in

compliance with all requirements established by the

department.

(2) Give priority to qualified redevelopment authorities

in a county with existing municipal blight programs, if the

county has applied in that qualified county classification.

(d) (Reserved).

(e) Loan amounts.--A startup loan may not exceed $500,000.

Section 1605-U. Startup loans.

(a) Eligible uses.--Except as provided under subsection (b),

a startup loan may be used by a qualified redevelopment

authority only for the following purposes:

(1) The purchase of a residential property or a

commercial property.

(2) The cost of redevelopment residential property or a

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commercial property purchased under paragraph (1) or owned by

the qualified redevelopment authority.

(3) The cost of remediating a residential property or a

commercial property purchased under paragraph (1) or owned by

the qualified redevelopment authority.

(4) The necessary costs or administrative expenses to

execute the activities in paragraph (1), (2) or (3), not to

exceed 5% of the amount of the startup loan.

(b) Ineligible uses.--A startup loan may not be used to pay

for any of the following:

(1) The operating expenses of the qualified

redevelopment authority.

(2) The refinancing or reduction of a debt or obligation

incurred prior to the award of the startup loan.

that is awarded a startup loan must enter into a contract for

the repayment of the startup loan in accordance with the terms

provided under subsection (d).

(d) Repayment terms.--A startup loan shall be subject to the

following terms and conditions:

(1) The term of the startup loan may not exceed 10

years.

(2) The interest rate of the startup loan may not exceed

2% per year.

(3) The qualified redevelopment authority may be

required by the department to enter into a security agreement

sufficient to protect the Commonwealth's interests in the

startup loan.

(e) Deposit of repayment amounts.--The amount of principal

and interest repaid by a qualified redevelopment authority shall

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be deposited into the fund.

Section 1606-U. Redevelopment Authority Startup Fund.

(a) Establishment.--The Redevelopment Authority Startup Fund

is established in the State Treasury as a revolving loan fund.

The money in the fund is appropriated to the department on a

continuing basis for the purpose of making startup loans under

this article and paying administrative expenses under subsection

(d).

(b) Deposits.--The following shall be deposited into the

fund:

(1) Amounts appropriated or transferred by act of the

General Assembly to the fund.

(2) Amounts repaid under section 1605-U(e).

$10,000,000 from the General Fund to the Redevelopment Authority

Startup Fund.

(d) Administrative expenses.--The amount of administrative

expenses of the department paid from the fund in any fiscal year

may not exceed 2% of the amount of startup loans awarded in that

fiscal year.

Section 2. This act shall take effect in 60 days.

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