This bill amends the Fiscal Code of Pennsylvania to establish the Redevelopment Authority Startup Loan Program and the associated Redevelopment Authority Startup Fund. The new article, designated as ARTICLE XVI-Z.1, outlines definitions and processes related to the program, including the roles of the Department of Community and Economic Development, qualified redevelopment authorities, and qualified land banks. The program allows these entities to apply for startup loans, with a maximum loan amount of $500,000, to be used for purchasing, redeveloping, or remediating residential or commercial properties. The application process is set to begin 60 days after funds are appropriated by the General Assembly and will remain open until all funds are awarded or until January 1, 2028.

The bill also details the terms and conditions for the startup loans, including a repayment period not exceeding 10 years and an interest rate capped at 2% per year. The Redevelopment Authority Startup Fund will serve as a revolving loan fund, with money appropriated on a continuing basis for making loans and covering administrative expenses, which are limited to 2% of the previous year's loan amounts. The fund will receive deposits from appropriations by the General Assembly and repayments from loan recipients. The Department is authorized to issue guidelines for implementing the provisions of this article.

Statutes/Laws affected:
Printer's No. 1862 (Jun 09, 2025): P.L.343, No.176