PRINTER'S NO. 1552
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1047
Session of
2020
INTRODUCED BY DiSANTO, MENSCH, MARTIN AND BARTOLOTTA,
MARCH 3, 2020
REFERRED TO LOCAL GOVERNMENT, MARCH 3, 2020
AN ACT
Amending the act of July 31, 1968 (P.L.805, No.247), entitled
"An act to empower cities of the second class A, and third
class, boroughs, incorporated towns, townships of the first
and second classes including those within a county of the
second class and counties of the second through eighth
classes, individually or jointly, to plan their development
and to govern the same by zoning, subdivision and land
development ordinances, planned residential development and
other ordinances, by official maps, by the reservation of
certain land for future public purpose and by the acquisition
of such land; to promote the conservation of energy through
the use of planning practices and to promote the effective
utilization of renewable energy sources; providing for the
establishment of planning commissions, planning departments,
planning committees and zoning hearing boards, authorizing
them to charge fees, make inspections and hold public
hearings; providing for mediation; providing for transferable
development rights; providing for appropriations, appeals to
courts and penalties for violations; and repealing acts and
parts of acts," in subdivision and land development, further
providing for completion of improvements or guarantee thereof
prerequisite to final plat approval.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 509(f), (h) and (j) of the act of July
31, 1968 (P.L.805, No.247), known as the Pennsylvania
Municipalities Planning Code, are amended to read:
Section 509. Completion of Improvements or Guarantee Thereof
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Prerequisite to Final Plat Approval.--* * *
(f) The amount of financial security to be posted for the
completion of the required improvements shall be equal to 110%
of the cost of completion estimated as of 90 days following the
date scheduled for completion by the developer. Annually, the
municipality may adjust the amount of the financial security by
comparing the actual cost of the improvements which have been
completed and the estimated cost for the completion of the
remaining improvements as of the expiration of the 90th day
after either the original date scheduled for completion or a
rescheduled date of completion. Subsequent to said adjustment,
the municipality may require the developer to post additional
security in order to assure that the financial security equals
but does not exceed said 110%. Any additional security shall be
posted by the developer in accordance with this subsection.
* * *
(h) If the party posting the financial security requires
more than one year from the date of posting of the financial
security to complete the required improvements, the amount of
financial security may be increased by an additional 10% for
each one-year period beyond the first anniversary date from
posting of financial security [or] to an amount not exceeding
110% of the cost of completing the required improvements as
reestablished on or about the expiration of the preceding one-
year period by using the above bidding procedure.
* * *
(j) As the work of installing the required improvements
proceeds, the party posting the financial security may request
the governing body to release or authorize the release, from
time to time, such portions of the financial security necessary
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for payment to the contractor or contractors performing the
work. Any such requests shall be in writing addressed to the
governing body, and the governing body shall have 45 days from
receipt of such request within which to allow the municipal
engineer to certify, in writing, to the governing body that such
portion of the work upon the improvements has been completed in
accordance with the approved plat. Upon such certification the
governing body shall authorize release by the bonding company or
lending institution of an amount as estimated by the municipal
engineer fairly representing the value of the improvements
completed or, if the governing body fails to act within said 45-
day period, the governing body shall be deemed to have approved
the release of funds as requested. The governing body may, prior
to [final] release at the time of completion and certification
by its engineer, retain 10% of the [original amount of the
posted financial security for the aforesaid] estimated cost of
the remaining improvements.
* * *
Section 2. This act shall take effect in 60 days.
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