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A03867
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1573
Session of
2023
INTRODUCED BY CIRESI, ROZZI, MADDEN, SANCHEZ, BOYD, SMITH-WADE-
EL, PROBST, HILL-EVANS, HARKINS, BURGOS, KULIK, DELLOSO,
HOWARD, SCHLOSSBERG, KINSEY, GUENST, BOROWSKI, PARKER,
D. WILLIAMS, GREEN, NEILSON, FREEMAN, OTTEN, CERRATO, JAMES
AND SAPPEY, JULY 18, 2023
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 20, 2024
AN ACT
Providing for the redevelopment of historic and older buildings;
AND establishing the Historic and Older Building
Redevelopment Assistance Grant Program and the Historic and
Older Building Redevelopment Fund; promulgating regulations;
and making a transfer.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Historic and
Older Building Redevelopment Assistance Grant Program Act.
Section 2. 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:
"Applicant." A person who PROPERTY OWNER OR DEVELOPER THAT
submits an application under section 3(d).
"Application." An application submitted under section 3(d).
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"COMMISSION." THE PENNSYLVANIA HISTORICAL AND MUSEUM
COMMISSION.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Developer." A person whose purpose is the promotion or
construction of THAT PROMOTES OR CONSTRUCTS redevelopment
projects and who is engaged in the development of real estate.
"Fund." The Historic and Older Building Redevelopment Fund
established under section 4(a).
"Grant." A grant awarded under this act.
"Historic" AND "OLDER building." A building located in this
Commonwealth that qualifies as a certified historic structure
under 26 U.S.C. ยง 47(c)(3) (relating to rehabilitation credit).
"Historic nature and traditional style." An older building
or qualified historic building which may include architectural
detailing, engineering achievements, vernacular style or few
modifications affecting the original historic configuration and
appearance of the property which offers commercial, cultural or
community development to the municipality.
"Older building." A building that is no less than 50 years
old. AND DOCUMENTED AS BEING LISTED IN OR ELIGIBLE FOR THE
NATIONAL REGISTER OF HISTORIC PLACES OR CONTRIBUTING TO A
NATIONAL REGISTER LISTED OR ELIGIBLE HISTORIC DISTRICT.
"HISTORIC CHARACTER." ALL OF THE VISUAL ASPECTS AND PHYSICAL
FEATURES THAT COMPRISE THE APPEARANCE OF A HISTORIC AND OLDER
BUILDING SUCH AS THE OVERALL SHAPE OF THE BUILDING, ITS
MATERIALS, CRAFTSMANSHIP, DECORATIVE DETAILS, INTERIOR SPACES
AND FEATURES, AS WELL AS THE VARIOUS ASPECTS OF ITS SITE AND
ENVIRONMENT.
"Program." The Historic and Older Building Redevelopment
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Grant Program established under section 3(a).
"Project." The redevelopment, rehabilitation or enhancement
of a historic or AND older building for which a developer OR A
PROPERTY OWNER seeks a grant under this act.
"Qualified municipality." A municipality with a median year
of structures built in 1955 or earlier.
"PROPERTY OWNER." AN OWNER OF RECORD EVIDENCED BY A PUBLICLY
RECORDED DEED AND AN EQUITABLE OWNER THAT CAN DEMONSTRATE AN
OWNERSHIP INTEREST IN A PROPERTY AS PROVIDED BY LAW, INCLUDING:
(1) AN INHERITED INTEREST IN A PROPERTY;
(2) A PARTY TO AN AGREEMENT OF SALE OR LONG-TERM
LEASEHOLD AGREEMENT;
(3) AN EQUITABLE OWNER OF RECORD PRIOR TO A FRAUDULENT
CONVEYANCE OF THE PROPERTY; AND
(4) A TRUST BENEFICIARY OR A PERSON HOLDING A PARTIAL
OWNERSHIP INTEREST IN THE PROPERTY SUCH AS TENANCY BY THE
ENTIRETY, JOINT TENANCY, TENANCY IN COMMON AND LIFE ESTATE.
"Redevelopment plan." A plan that provides for the
improvement of a historic or AND older building and meets the
requirements under section 3(e).
Section 3. Historic and Older Building Redevelopment Assistance
Grant Program.
(a) Establishment.--The Historic and Older Building
Redevelopment Assistance Grant Program is established within the
department.
(b) Administration.--The program shall be administered by
the department.
(c) Purpose.--The purpose of the program shall be to issue
grants to eligible developers or property owners for the
redevelopment, rehabilitation or enhancement of historic and
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older buildings in qualified municipalities across this
Commonwealth.
(d) Application.--An applicant must submit a written grant
application to the department in a manner prescribed by the
department. The application must include the following
information:
(1) A detailed description of the project and how the
grant would be used, including any private OR PUBLIC sector
participation.
(2) A copy of the redevelopment plan required under
subsection (e).
(3) A statement of the ability to produce income once
the project is complete and an explanation of how the project
will contribute significantly to economic and community
redevelopment or the revitalization of adjacent communities.
(4) An explanation of how the project will provide for
historic preservation or commercial or recreational
opportunities for the public.
(5) If the project includes the purchase of property, an
identification of the intended use of the property and a
timeline for redevelopment of the property.
(6) The total cost of the project.
(7) A detailed description of the practices the
applicant will implement and maintain PERFORM to improve or
maintain the property and improve or maintain the historic
nature and traditional style CHARACTER of the property.
(8) A statement of favorable consideration or
endorsement OF THE PROJECT from a local nonprofit economic or
community development organization.
(9) A STATEMENT FROM THE COMMISSION WITH A DETERMINATION
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THAT THE PROPERTY IS A HISTORIC AND OLDER BUILDING.
(9) (10) Evidence of a firm commitment from the
developer or property owner to use the project upon
completion.
(10) (11) If applicable, how the redevelopment will
increase accessibility for people with disabilities.
(11) (12) Other information that the department may
require.
(e) Redevelopment plan.--An applicant that applies for a
grant shall prepare a redevelopment plan. The redevelopment
plan, at a minimum, shall:
(1) Establish the project use of AS commercial,
industrial, transportation or multifamily residential
purposes in a qualified municipality.
(2) Involve at least one of the following primary
activities:
(i) Mechanical improvements.
(ii) Electrical improvements.
(iii) Plumbing system improvements.
(iv) Fire protection system improvements.
(v) Building egress or accessibility improvements.
(VI) STRUCTURAL IMPROVEMENTS.
(3) Clearly designate the property and areas included
within the redevelopment plan for the property.
(4) Identify the economic impact on the improved area,
the surrounding neighborhood and the municipality in which
the property is located.
(5) IDENTIFY ANY FEDERAL OR STATE LAW APPLICABLE TO
HISTORIC BUILDING PRESERVATION OR RESTORATION AND DISCUSS
PLANS FOR COMPLIANCE.
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(5) (6) Provide any additional information as required
by the department for redevelopment plans.
(f) Publication and notice.--The department shall transmit
notice of the program's availability to the Legislative
Reference Bureau for publication in the next available issue of
the Pennsylvania Bulletin AFTER THE EFFECTIVE DATE OF THIS
SUBSECTION.
(g) Department action.--
(1) The department shall review an application and,
within 30 90 days of receipt of an application, approve or
disapprove the application.
(2) In reviewing grant applications, the department
shall consider the following:
(i) Whether the project proposed to be funded is
authorized under this act.
(ii) Whether the application complies with this act.
(iii) Consistency of the project with the
redevelopment plan required under subsection (e) for the
area in which the property is located.
(iv) Additional historic preservation, commercial or
recreational opportunities for the public provided by the
project.
(v) Significant contribution by the project to the
municipality's economic and community redevelopment or
the revitalization of adjacent communities.
(vi) The viability of the redevelopment plan
required under subsection (e).
(vii) The level of public and private commitment and
other resources available for the project.
(viii) Other criteria that the department considers
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relevant.
(h) Award of grants.--
(1) The department may issue a grant award to an
approved applicant for a project that contributes to the
redevelopment or revitalization of historic and older
buildings throughout this Commonwealth that meet any of the
following purposes:
(i) Provide for activities on the property
consistent with the project's redevelopment plan.
(ii) Provide for the demolition of buildings,
structures or other facilities on the property that ARE
NOT HISTORIC AND OLDER BUILDINGS OR DO NOT CONTRIBUTE TO
THE PROPERTY'S HISTORIC CHARACTER AND are inconsistent
with the project's redevelopment plan.
(iii) Provide for the acquisition of property or the
assembly of property consistent with the project's
redevelopment plan.
(iv) Provide public infrastructure and public
facility improvements to the property consistent with the
project's redevelopment plan.
(v) Provide for the improvement or maintenance of
the historical nature and traditional style of properties
within the municipality.
(2) The department shall award a grant of no less than
$50,000 and no more than $200,000 $500,000 OR AN AMOUNT EQUAL
TO 30% OF THE TOTAL PROJECT COST, WHICHEVER IS LESS, to each
eligible applicant, subject to the availability of funding.
(3) A project must be completed no later than two years
after the date of the grant. The department may grant a
redevelopment plan extension for up to six months.
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Section 4. Historic and Older Building Redevelopment Fund.
(a) Establishment.--The Historic and Older Building
Redevelopment Fund is established as a nonlapsing fund within
the State Treasury. The fund shall be used by the department to
award grants in accordance with this act AND SHALL BE SUBJECT TO
APPROPRIATIONS BY THE GENERAL ASSEMBLY.
(b) Initial transfer.--No later than July 1, 2023,
$25,000,000 shall be transferred from the General Fund to the
fund.
(c) (B) Alternative funding.--The department may solicit and
accept alternative funding, including Federal funds, grants and
donations from any source to assist with the goals of this act.
All money received by the department under this subsection shall
be deposited into the fund.
(d) Appropriation.--All money deposited into the fund and
the interest that the money accrues is appropriated on a
continuing basis to the department to award grants in accordance
with this act.
(C) ADMINISTRATIVE EXPENSES.--
(1) THE COMMISSION MAY USE NO MORE THAN 3% OF FUNDS
ALLOCATED FOR THE PROGRAM FOR ADMINISTRATIVE COSTS ASSOCIATED
WITH THE PROGRAM.
(2) THE DEPARTMENT MAY USE NO MORE THAN 3% OF FUNDS
ALLOCATED FOR THE PROGRAM FOR ADMINISTRATIVE COSTS ASSOCIATED
WITH THE PROGRAM.
(d) Transfer to General Fund.--Any money in the fund that is
unexpended, unencumbered or uncommitted two years after the
effective date of this section shall be transferred to the
General Fund.
SECTION 5. RECAPTURE.
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THE DEPARTMENT MAY RECAPTURE ALL OR A PORTION OF A GRANT
AWARD, AS DETERMINED BY THE DEPARTMENT, IF THE PROJECT IS NOT
TIMELY COMPLETED AS PROVIDED IN SECTION 3(H)(3).
Section 5 6. Reports.
The department shall submit a report to the General Assembly
on expenditures from the fund and the progress of economic
development and rehabilitation of historic and older buildings
throughout this Commonwealth following the expiration of the
grant making authority under this act. The report shall include
the following information:
(1) The number of projects.
(2) The types of projects.
(3) The number and amount of grants.
(4) The economic impact of the program.
(5) Recommendations for the continuation or expansion of
the program.
(6) Any other information required by the department.
Section 6. Rules and regulations.
The department may promulgate rules and regulations necessary
to implement this act.
SECTION 7. GUIDELINES.
THE DEPARTMENT SHALL, IN CONSULTATION WITH THE COMMISSION,
DEVELOP GUIDELINES NECESSARY TO IMPLEMENT THIS ACT.
Section 7 8. Expiration OF GRANT AUTHORITY.
This act shall expire two years following THE DEPARTMENT MAY
NOT AWARD GRANTS BEGINNING TWO YEARS AFTER the effective date of
this section.
Section 8 9. Effective date.
This act shall take effect in 180 days.
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