Pennsylvania Senate Bill SB802

Pennsylvania 2023-2024 Regular Session

• Introduced: 6/19/23
• Refer: 6/19/23
• Refer: 9/18/23

Caption

Establishing the Redevelopment Authority Startup Loan Program and the Redevelopment Authority Startup Fund.

Impact

The implementation of SB802 is expected to have a significant impact on state laws governing local redevelopment projects. The funding from the Startup Fund will allow redevelopment authorities to tackle blighted properties and improve community aesthetics. Moreover, as the program is structured to prioritize counties with existing municipal blight programs, it underscores the state's commitment to revitalizing distressed areas and addressing urban decay. The loans must be repaid within ten years at a maximum interest rate of 2%, which is designed to make it financially feasible for local authorities to engage in redevelopment activities without imposing undue burdens on their finances.

Summary

Senate Bill 802 establishes the Redevelopment Authority Startup Loan Program and the Redevelopment Authority Startup Fund within the Pennsylvania Department of Community and Economic Development. The bill aims to provide financial support to qualified redevelopment authorities in qualified counties to address issues related to redevelopment and municipal blight. By offering loans up to $500,000, the program seeks to facilitate the purchase, development, and remediation of residential and commercial properties, ultimately promoting economic revitalization in designated areas.

Sentiment

The sentiment surrounding SB802 appears to be largely supportive among legislators and stakeholders who recognize the need for investment in redevelopment. Proponents argue that the bill will offer crucial resources for communities grappling with issues of blight and decline, fostering opportunities for growth and development. However, some concerns have been raised regarding the efficiency of fund allocation and the capacity of local authorities to effectively utilize these loans to achieve tangible results in their communities.

Contention

Notable points of contention regarding SB802 relate to the potential for misuse of funds and the overall effectiveness of the program in achieving its objectives. Critics may question whether the loans will lead to meaningful improvements in communities and if the blight programs could operate efficiently alongside the loan programs without bureaucratic red tape. Overall, legislators are tasked with ensuring that the benefits of the startup fund reach communities that need revitalization while maintaining checks and balances to prevent any fiscal irresponsibility.