SB 62 — 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.   23

                  THE GENERAL ASSEMBLY OF PENNSYLVANIA



                      SENATE BILL
                      No. 62
                                             Session of
                                               2025

     INTRODUCED BY FARRY, SAVAL, PENNYCUICK, FONTANA AND COSTA,
        JANUARY 22, 2025

     REFERRED TO URBAN AFFAIRS AND HOUSING, JANUARY 22, 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
33      other moneys to the Commonwealth, or any agency thereof,
34      every State depository and every debtor or creditor of the
 1      Commonwealth," establishing the Redevelopment Authority
 2      Startup Loan Program and the Redevelopment Authority Startup
 3      Fund; and making an interfund transfer.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.     The act of April 9, 1929 (P.L.343, No.176), known
 7   as The Fiscal Code, is amended by adding an article to read:
 8                              ARTICLE XVIII-B
 9                REDEVELOPMENT AUTHORITY STARTUP LOAN PROGRAM
10   Section 1801-B.    Definitions.
11      The following words and phrases when used in this article
12   shall have the meanings given to them in this section unless the
13   context clearly indicates otherwise:
14      "Department."    The Department of Community and Economic
15   Development of the Commonwealth.
16      "Fund."    The Redevelopment Authority Startup Fund established
17   in this article.
18      "Qualified county."     A county, other than a county of the
19   first class or county of the second class.
20      "Qualified redevelopment authority."      A public body and body
21   corporate and politic created and organized in accordance with
22   the provisions of the act of May 24, 1945 (P.L.991, No.385),
23   known as the Urban Redevelopment Law, and established and
24   located in a qualified county.
25      "Startup loan."    A loan issued to a qualified redevelopment
26   authority from the fund.
27   Section 1802-B.    (Reserved).
28   Section 1803-B.    Redevelopment Authority Startup Loan Program.
29      The Redevelopment Authority Startup Loan Program is
30   established in the department.
31   Section 1804-B.    Application and approval process.


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 1      (a)   Application.--A qualified redevelopment authority may
 2   apply to the department for a startup loan as provided under
 3   this article. An application made under this subsection must be
 4   submitted in a form and manner required by the department.
 5      (b)   Application period.--A qualified redevelopment authority
 6   may submit an application to the department for a startup loan
 7   beginning from January 1, 2026, until the earlier of the
 8   following:
 9            (1)   the date on which all money appropriated by the
10      General Assembly to the fund has been awarded as startup
11      loans; or
12            (2)   January 1, 2028.
13      (c)   Review.--When reviewing applications for startup loans,
14   the department shall:
15            (1)   Provide a startup loan from the fund to one or more
16      qualified redevelopment authorities in one or more qualified
17      counties, if the qualified redevelopment authority or
18      authorities in the qualified county or counties have applied
19      and the qualified county or counties are in compliance with
20      all requirements established by the department.
21            (2)   Give priority to a qualified redevelopment authority
22      in a qualified county with existing municipal blight
23      programs, if the qualified redevelopment authority has
24      applied in that qualified county.
25      (d)   (Reserved).
26      (e)   Loan amounts.--A startup loan may not exceed $500,000.
27   Section 1805-B.    Startup loans.
28      (a)   Eligible uses.--Except as provided under subsection (b),
29   a startup loan may be used by a qualified redevelopment
30   authority only for the following purposes:

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 1            (1)   The purchase of a residential property or a
 2      commercial property by a qualified redevelopment authority.
 3            (2)   The cost of redevelopment of a residential property
 4      or a commercial property purchased under paragraph (1) or
 5      owned by the qualified redevelopment authority.
 6            (3)   The cost of remediating a residential property or a
 7      commercial property purchased under paragraph (1) or owned by
 8      the qualified redevelopment authority.
 9            (4)   The necessary costs or administrative expenses to
10      execute the activities in paragraph (1), (2) or (3), not to
11      exceed 5% of the amount of the startup loan.
12      (b)   Ineligible uses.--A startup loan may not be used to pay
13   for any of the following:
14            (1)   The operating expenses of the qualified
15      redevelopment authority.
16            (2)   The refinancing or reduction of a debt or obligation
17      incurred prior to the award of the startup loan.
18      (c)   Required repayment.--A qualified redevelopment authority
19   that is awarded a startup loan must enter into a contract for
20   the repayment of the startup loan in accordance with the terms
21   provided under subsection (d).
22      (d)   Repayment terms.--A startup loan shall be subject to the
23   following terms and conditions:
24            (1)   The term of the startup loan may not exceed 10
25      years.
26            (2)   The interest rate of the startup loan may not exceed
27      2% per year.
28            (3)   The department may require the qualified
29      redevelopment authority to provide collateral sufficient in
30      the department's determination to protect the Commonwealth's

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 1      interest in the startup loan.
 2      (e)   Deposit of repayment amounts.--The amount of principal
 3   and interest repaid by a qualified redevelopment authority shall
 4   be deposited into the fund.
 5   Section 1806-B.    Redevelopment Authority Startup Fund.
 6      (a)   Establishment.--The Redevelopment Authority Startup Fund
 7   is established in the State Treasury as a revolving loan fund.
 8   The money in the fund is appropriated to the department on a
 9   continuing basis for the purpose of making startup loans under
10   this article and paying administrative expenses under subsection
11   (d).
12      (b)   Deposits.--The following shall be deposited into the
13   fund:
14            (1)   Amounts appropriated or transferred by act of the
15      General Assembly to the fund.
16            (2)   Amounts repaid under section 1805-B(e).
17      (c)   Interfund transfer.--The State Treasurer shall transfer
18   $10,000,000 from the General Fund to the fund.
19      (d)   Administrative expenses.--The amount of administrative
20   expenses of the department paid from the fund in any fiscal year
21   may not exceed 2% of the amount of startup loans awarded in that
22   fiscal year.
23      (e)   Guidelines.--The department may issue guidelines to
24   implement this article.
25      Section 2.     This act shall take effect in 60 days.




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