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CORRECTIVE REPRINT
A03809
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1064
Session of
2023
INTRODUCED BY POWELL, HILL-EVANS, GIRAL, MADDEN, CIRESI,
SANCHEZ, KINKEAD, BENHAM, DEASY, PISCIOTTANO AND GREEN,
APRIL 28, 2023
REFERRED TO COMMITTEE ON FINANCE, APRIL 28, 2023
AN ACT
Amending the act of July 11, 1990 (P.L.465, No.113), entitled
"An act providing for the creation of tax increment
districts; providing for additional powers and duties to be
exercised by redevelopment authorities and by industrial and
commercial development authorities; authorizing the creation
and approval of project plans for tax increment financing;
providing for the establishment of a tax increment base;
allocating the payment of positive tax increments; providing
for the financing of project costs; and providing for the
issuance of tax increment bonds and notes," further providing
for definitions, for creation of tax increment districts and
approval of project plans and for financing of project costs.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "project" and "project costs"
in section 3 of the act of July 11, 1990 (P.L.465, No.113),
known as the Tax Increment Financing Act, are amended and the
section is amended by adding definitions to read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Anti-displacement activities." Projects, programs and
operations that prevent or compensate for the effects of
involuntary relocation of a resident or business from the
resident's or business's current location where the resident or
business otherwise would want to remain if not for socioeconomic
and environmental pressures that make staying infeasible or
undesirable.
"Area of impact." The term includes the area of the project,
and the proximate surrounding area, as outlined in the project
plan approved by the governing body.
* * *
"Project." The undertakings and activities of an authority
in and antidisplacement activities within or outside a tax
increment district for the elimination and prevention of the
development or spread of blight, which may include property
acquisition, clearance, redevelopment, rehabilitation or
conservation in or, in the case of antidisplacement activities,
within or outside a tax increment district, or a combination or
part thereof in accordance with a project plan. This includes
anti-displacement activities in the tax increment district and
area of impact, as described in the project plan.
"Project costs." Any expenditures made or estimated to be
made or monetary obligations incurred or estimated to be
incurred which are listed in a project plan as costs of public
works or improvements or residential, commercial or industrial
development or revitalization [within] or antidisplacement anti-
displacement activities within or outside a tax increment
district, plus any costs incidental thereto. Project costs
include, but are not limited to:
(1) Capital costs, including the actual costs of the
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construction of public works or improvements or residential,
commercial or industrial development or revitalization, new
buildings, structures and fixtures; the demolition,
alteration, remodeling, repair or reconstruction of existing
buildings, structures and fixtures; the acquisition, upgrade
or rehabilitation of machinery and equipment; and the
acquisition, clearing and grading of land. Capital costs also
include the actual cost of the construction, rehabilitation
or repair of publicly owned infrastructure improvements
located outside the boundaries of a tax increment district
which are of direct benefit to a project.
(2) Financing costs, including all costs of issuance of
tax increment bonds or notes, reserve funds for tax increment
bonds or notes, all interest paid to holders of evidences of
indebtedness issued to pay for project costs, and any premium
paid over the principal amount thereof because of the
redemption of such obligations prior to maturity.
(3) Real property assembly costs, meaning any deficit
incurred resulting from the sale or lease as lessor by the
authority of real property within a tax increment district
for consideration which is less than its cost to the
authority.
(4) Professional service costs, including those costs
incurred for architectural, planning, engineering and legal
advice and services.
(5) Administrative costs, including reasonable charges
for the time spent by employees of a municipality or an
authority in connection with the implementation of a project
plan.
(6) Relocation costs[.] and antidisplacement activities,
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including, but not limited to, direct and indirect costs,
for:
(i) The creation or preservation of affordable
housing.
(ii) The creation or preservation of affordable
commercial space.
(iii) Affirmative marketing strategies.
(iv) Land banking activities.
(v) First right of return programs.
(vi) Foreclosure and rental assistance.
(vii) Job linkage and workforce programs.
(viii) Public realm improvements.
(ix) Financial and homeownership counseling. anti-
displacement. Anti-displacement activity costs also
include the area of impact as described in the project
plan.
(7) Organizational costs, including the costs of
conducting environmental impact and other studies and the
costs of informing the public with respect to the creation of
tax increment districts and the implementation of project
plans.
(8) Costs which are found to be necessary or convenient
to the creation of tax increment districts or the
implementation of project plans, or for the reimbursement of
prior expenditures made for any of the costs under this
definition.
* * *
Section 2. Sections 5(a)(6)(ii) and 9(d) of the act are
amended to read:
Section 2. Sections 5(a)(4)(i) and (6)(i) and (ii) and 9(d)
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of the act are amended to read:
Section 5. Creation of tax increment districts and approval of
project plans.
(a) General rule.--A tax increment district shall be created
in the following manner:
* * *
(4) The authority shall prepare a project plan for each
tax increment district and submit the plan to the governing
body of the municipality which will create the district and
to the governing body of any other municipality or school
district that levies property taxes within the boundaries of
the proposed district. The plan shall include the following:
(i) A statement listing the kind, number and
location of all proposed public works or improvements
and/or all residential, commercial or industrial
development and revitalization improvements and anti-
displacement activities.
* * *
(6) In order to create a district and adopt a project
plan, the governing body of the municipality which will
create the tax increment district shall adopt, not earlier
than three weeks after the public hearing described in
paragraph (5) has been held, a resolution or ordinance which:
* * *
(i) Describes the boundaries of a tax increment
district with sufficient definiteness to identify with
ordinary and reasonable certainty the territory included.
The governing body shall take care that the boundaries
include only those whole units of property assessed for
general property tax purposes. The governing body shall
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also describe any area of impact outside the district
where anti-displacement activities may occur.
(ii) Creates the district as of a given date. A tax
increment district may exist for a period not to exceed
[20] 25 years, unless an amendment is made to the project
plan under paragraph (8).
* * *
Section 9. Financing of project costs.
* * *
(d) Amount and term.--Tax increment bonds or notes may not
be issued in an amount exceeding the aggregate project costs.
The bonds or notes shall mature over a period not exceeding [20]
25 years from the date of issue. The principal and interest on
the bonds and notes may be payable at any time and at any place.
The bonds or notes may be payable to bearer or may be registered
as to the principal or principal and interest. The bonds or
notes may be in any denominations. The bonds or notes may be
sold at public or private sale.
* * *
Section 3. This act shall take effect in 60 days.
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