HB 1574 — An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, establishing the Redevelopment Authority Startup Loan Program and the Redevelopment Authority Startup Fund.

PRINTER'S NO.   1862

                  THE GENERAL ASSEMBLY OF PENNSYLVANIA



                      HOUSE BILL
                      No. 1574
                                             Session of
                                               2025

     INTRODUCED BY T. DAVIS, HOGAN, GIRAL, HILL-EVANS, KHAN, POWELL,
        D. WILLIAMS, SANCHEZ, MAYES, MALAGARI AND NEILSON,
        JUNE 6, 2025

     REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
        JUNE 9, 2025


                                  AN ACT
 1   Amending the act of April 9, 1929 (P.L.343, No.176), entitled
 2      "An act relating to the finances of the State government;
 3      providing for cancer control, prevention and research, for
 4      ambulatory surgical center data collection, for the Joint
 5      Underwriting Association, for entertainment business
 6      financial management firms, for private dam financial
 7      assurance and for reinstatement of item vetoes; providing for
 8      the settlement, assessment, collection, and lien of taxes,
 9      bonus, and all other accounts due the Commonwealth, the
10      collection and recovery of fees and other money or property
11      due or belonging to the Commonwealth, or any agency thereof,
12      including escheated property and the proceeds of its sale,
13      the custody and disbursement or other disposition of funds
14      and securities belonging to or in the possession of the
15      Commonwealth, and the settlement of claims against the
16      Commonwealth, the resettlement of accounts and appeals to the
17      courts, refunds of moneys erroneously paid to the
18      Commonwealth, auditing the accounts of the Commonwealth and
19      all agencies thereof, of all public officers collecting
20      moneys payable to the Commonwealth, or any agency thereof,
21      and all receipts of appropriations from the Commonwealth,
22      authorizing the Commonwealth to issue tax anticipation notes
23      to defray current expenses, implementing the provisions of
24      section 7(a) of Article VIII of the Constitution of
25      Pennsylvania authorizing and restricting the incurring of
26      certain debt and imposing penalties; affecting every
27      department, board, commission, and officer of the State
28      government, every political subdivision of the State, and
29      certain officers of such subdivisions, every person,
30      association, and corporation required to pay, assess, or
31      collect taxes, or to make returns or reports under the laws
32      imposing taxes for State purposes, or to pay license fees or
 1      other moneys to the Commonwealth, or any agency thereof,
 2      every State depository and every debtor or creditor of the
 3      Commonwealth," establishing the Redevelopment Authority
 4      Startup Loan Program and the Redevelopment Authority Startup
 5      Fund.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.    The act of April 9, 1929 (P.L.343, No.176), known
 9   as The Fiscal Code, is amended by adding an article to read:
10                              ARTICLE XVI-Z.1
11                REDEVELOPMENT AUTHORITY STARTUP LOAN PROGRAM
12   Section 1601-Z.1.    Definitions.
13      The following words and phrases when used in this article
14   shall have the meanings given to them in this section unless the
15   context clearly indicates otherwise:
16      "Department."    The Department of Community and Economic
17   Development of the Commonwealth.
18      "Fund."     The Redevelopment Authority Startup Fund established
19   in this article.
20      "Qualified land bank."    A public body and a body corporate
21   and politic established under 68 Pa.C.S. Ch. 21 (relating to
22   land banks).
23      "Qualified redevelopment authority."      A public body and body
24   corporate and politic created and organized in accordance with
25   the provisions of the act of May 24, 1945 (P.L.991, No.385),
26   known as the Urban Redevelopment Law, and established in a
27   qualified county.
28      "Startup loan."    A loan issued to a qualified redevelopment
29   authority or a qualified land bank from the fund.
30   Section 1602-Z.1.    (Reserved).
31   Section 1603-Z.1.    Redevelopment Authority Startup Loan Program.
32      The Redevelopment Authority Startup Loan Program is


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 1   established in the department.
 2   Section 1604-Z.1.    Application and approval process.
 3      (a)   Application.--A qualified redevelopment authority or a
 4   qualified land bank may apply to the department for a startup
 5   loan as provided under this article. An application made under
 6   this subsection must be submitted in a form and manner required
 7   by the department.
 8      (b)   Application period.--A qualified redevelopment authority
 9   or a qualified land bank may submit an application to the
10   department for a startup loan beginning 60 days after a transfer
11   of money to the fund as appropriated by the General Assembly
12   until the earlier of the following:
13            (1)   the date on which all money appropriated by the
14      General Assembly to the fund has been awarded as startup
15      loans; or
16            (2)   January 1, 2028.
17      (c)   Review.--When reviewing applications for startup loans,
18   the department:
19            (1)   Shall provide a startup loan from the fund to at
20      least one qualified redevelopment authority located in a
21      county of each classification, if a county of that
22      classification has applied and the county is in compliance
23      with all requirements established by the department.
24            (2)   Shall give priority to qualified redevelopment
25      authorities in a county with existing municipal blight
26      programs, if the county has applied in that county
27      classification.
28            (3)   If no qualified redevelopment authority in any of
29      the county classifications has applied, may provide a loan
30      from the fund to at least one land bank in that county

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 1      classification, giving priority to programs in which there is
 2      an established municipal blight program.
 3      (d)     (Reserved).
 4      (e)     Loan amounts.--A startup loan may not exceed $500,000.
 5   Section 1605-Z.1.    Startup loans.
 6      (a)     Eligible uses.--Except as provided under subsection (b),
 7   a startup loan may be used by a qualified redevelopment
 8   authority or a qualified land bank only for the following
 9   purposes:
10            (1)   The purchase of a residential property or a
11      commercial property by a qualified redevelopment authority or
12      a qualified land bank.
13            (2)   The cost of redevelopment of a residential property
14      or a commercial property purchased under paragraph (1) or
15      owned by the qualified redevelopment authority or the
16      qualified land bank.
17            (3)   The cost of remediating a residential property or a
18      commercial property purchased under paragraph (1) or owned by
19      the qualified redevelopment authority or the qualified land
20      bank.
21            (4)   The necessary costs or administrative expenses to
22      execute the activities in paragraph (1), (2) or (3), not to
23      exceed 5% of the amount of the startup loan.
24      (b)     Ineligible uses.--A startup loan may not be used to pay
25   for any of the following:
26            (1)   The operating expenses of the qualified
27      redevelopment authority or the qualified land bank.
28            (2)   The refinancing or reduction of a debt or obligation
29      incurred prior to the award of the startup loan.
30      (c)     Required repayment.--A qualified redevelopment authority

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 1   or a qualified land bank that is awarded a startup loan must
 2   enter into a contract for the repayment of the startup loan in
 3   accordance with the terms provided under subsection (d).
 4      (d)   Repayment terms.--A startup loan shall be subject to the
 5   following terms and conditions:
 6            (1)   The term of the startup loan may not exceed 10
 7      years.
 8            (2)   The interest rate of the startup loan may not exceed
 9      2% per year.
10            (3)   The department may require a qualified redevelopment
11      authority or a qualified land bank to provide collateral
12      sufficient in the department's determination to protect the
13      Commonwealth's interests in the startup loan.
14      (e)   Deposit of repayment amounts.--The amount of principal
15   repaid by a qualified redevelopment authority or a qualified
16   land bank shall be deposited into the fund.
17   Section 1606-Z.1.    Redevelopment Authority Startup Fund.
18      (a)   Establishment.--The Redevelopment Authority Startup Fund
19   is established in the State Treasury. The fund shall serve as a
20   revolving loan fund in accordance with this article. The money
21   in the fund is appropriated to the department on a continuing
22   basis for the purpose of making startup loans under this article
23   and paying administrative expenses under subsection (c).
24      (b)   Deposits.--The following shall be deposited into the
25   fund:
26            (1)   Amounts appropriated or transferred by act of the
27      General Assembly to the fund.
28            (2)   Amounts repaid under section 1605-Z.1(e).
29      (c)   Administrative expenses.--The amount of administrative
30   expenses of the department paid from the fund in any fiscal year

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1   may not exceed 2% of the amount of startup loans awarded in the
2   prior fiscal year.
3      (d)   Guidelines.--The department may issue guidelines to
4   implement this article.
5      Section 2.   This act shall take effect in 60 days.




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