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House bill would create redevelopment-authority start-up loan program to clear blight
Summary
A committee advanced House Bill 1574 to create a loan program to help redevelopment authorities acquire, clear title to and rehabilitate blighted properties, with sponsors saying the model can recycle capital to remediate more properties over time.
The Housing & Community Development Committee advanced House Bill 1574, which would create a redevelopment-authority start-up loan program to help local authorities acquire and clear title to blighted properties and then put them back on the market.
Supporters say the program would use repayable loans to seed local redevelopment authorities so they can clear titles, transfer properties to private developers and recycle proceeds back into the fund. Representative Hogan, a co-prime sponsor, said the idea came from a program he worked with in Bucks County, where an initial $185,000 fund was used to clear title on five properties and, he said, ‘‘they've since acquired and rehabilitated, by using private developers, over 50 properties now.’’
The committee discussion emphasized the program's goal of returning existing housing stock to productive use rather than developing new land. Representative Hogan said the loans would be repaid to the Commonwealth under the bill's design: ‘‘it is a loan. So, if something is enacted, the money will be paid back to the Commonwealth, and blight will be remediated throughout.’’
Committee members asked about the program's scope. Committee Chair Ervin asked whether the loans could apply to commercial property, and Hogan replied that the Department of Community and Economic Development (DCED) would set guidelines and that the bill could potentially cover commercial property but was modeled on residential work in Bucks County.
The committee reported the bill out of committee by a recorded tally of 25 to 1; the transcript records the outcome as "reported as committed 25 to 1." No individual no vote was identified in the transcript.
The bill sponsor and committee members framed the program as an approach to remediation and reuse rather than new development; they did not propose specific statutory amendments to restrict eligible property types beyond directing DCED to adopt guidelines. The committee did not adopt amendments during the hearing, and next steps are legislative floor consideration if the bill receives further action.
Reported discussion and votes occurred during the committee hearing; no additional implementation timetable or budget appropriation detail was provided in the transcript.
