Pennsylvania HB 359: An Act amending the act of July 11, 1990 (P.L.465, No.113), known as the Tax Increment Financing Act, further providing for definitions, for powers of authorities, for creation of tax increment districts and approval of project plans and for financing of project costs.

Bill Text

PRIOR PRINTER'S NO. 313 PRINTER'S NO. 1582
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 359
Session of
2025
INTRODUCED BY POWELL, SANCHEZ, GIRAL, HILL-EVANS, BRENNAN,
CIRESI, FREEMAN, FLEMING, FRANKEL, DEASY AND GREEN,
JANUARY 27, 2025
AS REPORTED FROM COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 5, 2025
AN ACT
Amending the act of July 11, 1990 (P.L.465, No.113), entitled
"An act providing for the creation of tax increment
districts; providing for additional powers and duties to be
exercised by redevelopment authorities and by industrial and
commercial development authorities; authorizing the creation
and approval of project plans for tax increment financing;
providing for the establishment of a tax increment base;
allocating the payment of positive tax increments; providing
for the financing of project costs; and providing for the
issuance of tax increment bonds and notes," further providing
for definitions, for powers of authorities, for creation of
tax increment districts and approval of project plans and for
financing of project costs.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "project" and "project costs"
in section 3 of the act of July 11, 1990 (P.L.465, No.113),
known as the Tax Increment Financing Act, are amended and the
section is amended by adding definitions to read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Anti-displacement activity." Projects, programs and
operations that prevent or compensate for the effects of
involuntary relocation of a resident or business from the
resident's or business's current location where the resident or
business otherwise would want to remain if not for socioeconomic
and environmental pressures that make staying infeasible or
undesirable.
"Area of impact." The term includes the area of the project
and the proximate surrounding area as outlined in the project
plan approved by the governing body.
* * *
"Project." The undertakings and activities of an authority
in a tax increment district for the elimination and prevention
of the development or spread of blight, which may include
property acquisition, clearance, redevelopment, rehabilitation
or conservation in a tax increment district, or a combination or
part thereof in accordance with a project plan. The term
includes anti-displacement activities in the tax increment
district and area of impact, as described in the project plan.
"Project costs." Any expenditures made or estimated to be
made or monetary obligations incurred or estimated to be
incurred which are listed in a project plan as costs of public
works or improvements or residential, commercial or industrial
development or revitalization or anti-displacement activities
within a tax increment district, plus any costs incidental
thereto. Project costs include, but are not limited to:
(1) Capital costs, including the actual costs of the
construction of public works or improvements or residential,
commercial or industrial development or revitalization, new
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buildings, structures and fixtures; the demolition,
alteration, remodeling, repair or reconstruction of existing
buildings, structures and fixtures; the acquisition, upgrade
or rehabilitation of machinery and equipment; and the
acquisition, clearing and grading of land. Capital costs also
include the actual cost of the construction, rehabilitation
or repair of publicly owned infrastructure improvements
located outside the boundaries of a tax increment district
which are of direct benefit to a project.
(2) Financing costs, including all costs of issuance of
tax increment bonds or notes, reserve funds for tax increment
bonds or notes, all interest paid to holders of evidences of
indebtedness issued to pay for project costs, and any premium
paid over the principal amount thereof because of the
redemption of such obligations prior to maturity.
(3) Real property assembly costs, meaning any deficit
incurred resulting from the sale or lease as lessor by the
authority of real property within a tax increment district
for consideration which is less than its cost to the
authority.
(4) Professional service costs, including those costs
incurred for architectural, planning, engineering and legal
advice and services.
(5) Administrative costs, including reasonable charges
for the time spent by employees of a municipality or an
authority in connection with the implementation of a project
plan.
(6) Relocation [costs.] and anti-displacement activity
costs. Anti-displacement activity costs also include the area
of impact as described in the project plan.
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