HB 2423 — An Act amending Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes, establishing the Residential Economic Development District Grant Program and the Residential Economic Development District Fund.

PRINTER'S NO.   3224

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2423
                                                 Session of
                                                   2026

     INTRODUCED BY SOLOMON, HOGAN, MAJOR, KHAN, BURGOS, HILL-EVANS,
        SANCHEZ, K. HARRIS, MADDEN, MADSEN, GALLAGHER, CERRATO,
        SHUSTERMAN AND SMITH-WADE-EL, APRIL 17, 2026

     REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
        APRIL 18, 2026


                                    AN ACT
 1   Amending Title 53 (Municipalities Generally) of the Pennsylvania
 2      Consolidated Statutes, establishing the Residential Economic
 3      Development District Grant Program and the Residential
 4      Economic Development District Fund.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.    Title 53 of the Pennsylvania Consolidated
 8   Statutes is amended by adding a chapter to read:
 9                                CHAPTER 63
10               RESIDENTIAL ECONOMIC DEVELOPMENT DISTRICT
11                               GRANT PROGRAM
12   Sec.
13   6301.   Definitions.
14   6302.   Residential Economic Development District Grant Program.
15   6303.   Submission to department.
16   6304.   Residential Economic Development District Fund.
17   § 6301.   Definitions.
18      The following words and phrases when used in this chapter
 1   shall have the meanings given to them in this section unless the
 2   context clearly indicates otherwise:
 3      "Department."    The Department of Community and Economic
 4   Development of the Commonwealth.
 5      "Fund."   The Residential Economic Development District Fund
 6   established under section 6304(a) (relating to Residential
 7   Economic Development District Fund).
 8      "Major economic development project."    A project in this
 9   Commonwealth that meets both of the following criteria:
10          (1)     the project is reasonably expected to create, retain
11      and attract jobs or otherwise improve the economic well-being
12      of the area surrounding the project site; and
13          (2)     significant private investments are committed to
14      establish, expand, renovate or occupy a facility as part of a
15      single project at a designated project site, including
16      investment in new buildings, additions or improvements to
17      existing buildings, machinery, equipment, furniture, fixtures
18      and inventory.
19      "Major workforce housing project."    A project that creates a
20   significant number of housing units.
21      "Pro-housing development policy."    Any of the following:
22          (1)     Having a process in place to increase the rate at
23      which permits for housing developments are reviewed.
24          (2)     Having a preapproval process in place for an
25      expedited review of permits for a diverse range of housing
26      developers.
27          (3)     Subsidizing or decreasing costs related to water or
28      sewer connections and extensions for major workforce housing
29      projects.
30          (4)     Acquiring and readying sites that are ready to be

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 1    financed and built upon by developers.
 2        (5)    Reducing or eliminating impact, inspection and plan
 3    review fees for housing developers.
 4        (6)    Adopting a zoning plan that includes promoting
 5    higher density, small lot size and minimum setback
 6    requirements.
 7        (7)    Developing a comprehensive plan that promotes
 8    diverse residential development options.
 9        (8)    Having no parking requirements for developments that
10    include residential units.
11        (9)    Improving water or sewer infrastructure, improving
12    roads or permitting both rigid and flexible pavement types.
13        (10)     Developing municipal and authority partnerships to
14    expand the provision of sewer and water services to new
15    areas.
16        (11)     Promoting the use of nontraditional building
17    structures such as modular or manufactured homes.
18        (12)     Allowing accessory dwelling units as a matter of
19    right.
20        (13)     Allowing for townhome, duplex, triplex and quadplex
21    dwellings as a matter of right.
22        (14)     Eliminating height restrictions as a matter of
23    right.
24        (15)     Facilitating construction workforce training,
25    apprenticeships, tools, equipment and instructional
26    materials, including transportation assistance and stipends.
27        (16)     Prioritizing municipal engineering review of
28    subdivision, land development and infrastructure plans for
29    housing development projects.
30    "Program."    The Residential Economic Development District

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 1   Grant Program established under section 6302 (relating to
 2   Residential Economic Development District Grant Program).
 3      "Residential economic development district."     All parcels of
 4   land proximate to a major economic development project.
 5   § 6302.    Residential Economic Development District Grant
 6                   Program.
 7      (a)    Establishment.--The Residential Economic Development
 8   District Grant Program is established within the department for
 9   the purpose of encouraging major workforce housing projects in
10   areas of this Commonwealth that otherwise would not attract such
11   developments and to increase home ownership among residents of
12   this Commonwealth.
13      (b)    Applicants.--A county or municipal corporation that is
14   fully or partially located within a residential economic
15   development district may apply for a grant under the program.
16      (c)    Duties of department.--The department may deny,
17   withhold, suspend or recoup grant funds that do not adhere to
18   this chapter.
19   § 6303.    Submission to department.
20      (a)    Application.--A county or municipal corporation may
21   submit an application independently or in collaboration with a
22   housing developer or one or more other counties or municipal
23   corporations. The application shall, at minimum, include
24   documentation or other evidence that proves, to the satisfaction
25   of the department, that the applicant has done or has imminent
26   plans to do both of the following within the district:
27             (1)   adopt and implement, or demonstrate a documented
28      commitment to adopt and implement, at least five pro-housing
29      development policies that apply districtwide or municipality-
30      wide; and

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 1            (2)   approve a major workforce housing project.
 2      (b)   Award of grants.--The department, in coordination with
 3   local municipalities, shall review applications and award grants
 4   under the program on a rolling basis, to the extent that funds
 5   are available.
 6      (c)   Determination.--The department shall evaluate
 7   applications and determine the amount of each grant awarded in
 8   accordance with scoring metrics that give preference to counties
 9   and municipal corporations that adopt pro-housing policies as
10   provided under this chapter.
11      (d)   Limitations.--A grant recipient shall use the funds only
12   for the following purposes:
13            (1)   Providing capital for housing development through
14      grants or loans.
15            (2)   Acquiring and readying sites for development.
16            (3)   Providing financial assistance for housing-related
17      infrastructure projects, including road improvements and
18      water or sewer connections.
19            (4)   Addressing additional human services or public
20      safety needs due to increases in population.
21            (5)   Building capacity at the municipal or regional level
22      to support the planning, application, administration and
23      implementation of grant-funded housing and infrastructure
24      projects, including technical assistance, grant writing,
25      program administration and assistance provided by housing
26      coalitions, redevelopment authorities or other qualified
27      entities.
28            (6)   Any other purpose deemed appropriate by the
29      department in keeping with the intent of this chapter,
30      including traffic infrastructure, school infrastructure,

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 1      recreation centers and health care needs.
 2      (e)    Use of grant funds.--Grant funds shall be used solely
 3   for purposes authorized under this chapter.
 4      (f)    Other department grants.--Adoption of pro-housing
 5   policies under this chapter shall be considered by the
 6   department in awarding other department grants that seek to
 7   further residential housing development or related
 8   infrastructure projects.
 9      (g)    Eligible housing developers.--Eligible housing
10   developers shall include for-profit developers, nonprofit
11   housing developers and nonprofit supportive housing developers.
12      (h)    Eligibility for additional grants.--
13             (1)   Receipt of grant funds under the program shall not
14      disqualify a project from eligibility for any other grant
15      programs.
16             (2)   The department shall encourage projects located
17      within a residential economic development district that
18      receive Redevelopment Assistance Capital Program funding and
19      include a residential component to incorporate workforce
20      housing units or other workforce housing accommodations.
21   § 6304.    Residential Economic Development District Fund.
22      (a)    Establishment.--The Residential Economic Development
23   District Fund is established as a separate fund in the State
24   Treasury for the purpose of providing grants under section 6302
25   (relating to Residential Economic Development District Grant
26   Program).
27      (b)    Continuing appropriation.--Money in the fund shall be
28   appropriated to the department on a continuing basis for the
29   purpose under subsection (a).
30      (c)    Administrative expenses.--Administrative expenses of the

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1   department related to the program may not exceed 5% of money in
2   the fund.
3      Section 2.   This act shall take effect in 60 days.




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