PRINTER'S NO. 2838
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2174
Session of
2024
INTRODUCED BY FLEMING, HILL-EVANS, MADDEN, SANCHEZ, SCHLOSSBERG,
SIEGEL, CURRY, BOROWSKI, POWELL, PROBST, MERSKI, KINSEY, KIM,
DALEY, KRAJEWSKI, GREEN, CEPEDA-FREYTIZ, CERRATO, TAKAC AND
KHAN, APRIL 3, 2024
REFERRED TO COMMITTEE ON COMMERCE, APRIL 3, 2024
AN ACT
Amending Title 64 (Public Authorities and Quasi-Public
Corporations) of the Pennsylvania Consolidated Statutes, in
Commonwealth Financing Authority, providing for Mixed-Use
Revitalization Program; and establishing the Mixed-Use
Revitalization Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 64 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 1559. Mixed-Use Revitalization Program.
(a) Establishment.--The Mixed-Use Revitalization Program is
established in the department to:
(1) Increase corridor mixed-use development, including
affordable housing opportunities throughout this
Commonwealth.
(2) Maximize the leveraging of private and public
resources.
(3) Foster sustainable partnerships committed to
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addressing community needs.
(4) Ensure that program resources are used to meet
community needs effectively and efficiently.
(5) Provide grants to projects that involve the
acquisition, redevelopment and revitalization of distressed,
unoccupied and blighted properties, including existing and
former malls.
(b) Eligibility.--To be eligible for a grant, a developer
must agree to provide matching funds of at least 25% of the
grant amount for the development.
(c) Application.--The department shall make available to an
eligible developer an application that requires information as
determined necessary by the department, to verify the need for
the development and to determine the amount of the grant.
(d) Determination.--Upon a determination of eligibility for
a grant, the department shall provide the developer with a
letter of commitment indicating the conditional grant amount.
(e) Advance.--The department shall pay the grant directly to
the municipality in which the project is located, and the
municipality shall disburse the grant to the developer in
accordance with this section. The grant payment shall be
advanced simultaneously on a pro rata basis with the required
matching funds delivered by the developer at the time of closing
or during construction as draw requests which are presented in a
timely manner, whichever occurs first.
(f) Repayment obligation.--By submitting an application for
a grant, the developer agrees that, if the application is
approved and the grant is awarded, the developer shall repay up
to 50% of the principal amount of the grant to the Commonwealth
when the development:
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(1) has achieved stabilization; and
(2) recognizes any excess proceeds available from any
poststabilization refinancing activities. All amounts due
under the applicant's duty of repayment under this subsection
shall be paid to the Commonwealth within 120 days of the end
of the preceding calendar year.
(g) Other funding sources.--The department may not deny
approval of a grant application solely for the reason that the
developer intends to combine the grant money with money from
other available Federal, State, local or county programs.
(h) Reporting.--The department shall provide a report
containing a list of the developments funded through the program
by July 1, 2025, to:
(1) The Governor.
(2) The Auditor General.
(3) The chairperson and minority chairperson of the
Urban Affairs and Housing Committee of the Senate and the
chairperson and minority chairperson of the Housing and
Community Development Committee of the House of
Representatives.
(4) The chairperson and minority chairperson of the
Community, Economic and Recreational Development Committee of
the Senate and the chairperson and minority chairperson of
the Commerce Committee of the House of Representatives.
(i) Establishment of fund.--The Mixed-Use Revitalization
Fund is established in the State Treasury. The fund shall be
used by the department for grants.
(j) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
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"Department." The Department of Community and Economic
Development of the Commonwealth.
"Developer." A person that submits an application for a
grant.
"Development." A planned commercial and mixed-use project
that:
(1) Is situated on at least 15 acres.
(2) Is located in a low-income to moderate-income area.
(3) Contains at least 200,000 square feet of proposed
development that has not received a certificate of occupancy
as of the effective date of this paragraph.
"Grant." A grant awarded under this section.
"Program." The Mixed-Use Revitalization Program established
under this section.
"Stabilization." The point at which a development secures
conventional financing at terms that can support a debt service
coverage ratio of one and three tenths to one.
Section 2. This act shall take effect in 60 days.
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