Title
Amending Title 18 of The Philadelphia Code entitled "Commerce" by renaming the title to read as "Commerce, Economic and Community Development;" and further amending Title 18 by adding a new Chapter 18-300 entitled "Community Development" which reenacts with certain changes the provisions now set forth in Chapter 21-1100 relating to the development, implementation and administration of the Community Development Block Grant plan and program, a new Chapter 18-400 entitled "Community Revitalization and Infrastructure Benefit Fund" which provides for the establishment and administration of a Community Revitalization and Infrastructure Benefit Fund, and a new Chapter 18-500 entitled "Tax Increment Financing Districts" which reenacts the provisions now set forth in Chapter 21-1400 relating to reporting requirements for tax increment financing districts; and repealing Chapter 21-1100 entitled "Community Development" and Chapter 21-1400 entitled "Tax Increment Financing Districts;" all under certain terms and conditions.
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THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. Title 18 of The Philadelphia Code is hereby amended to read as follows:
TITLE 18. COMMERCE, ECONOMIC AND COMMUNITY DEVELOPMENT.
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CHAPTER 18-300. COMMUNITY DEVELOPMENT
§18-301. Intent of City Council.
(1) It is the intent of this Council that the goals, policies, requirements and procedures prescribed by this Chapter shall apply to the funds which the City receives under the Housing and Community Development Act of 1974, as amended, for Community Development funding year ("CD year") 26 and any CD year thereafter. The requirements of Section 18-306 shall apply to all previous CD year funds.
(2) To the extent the Office of Housing and Community Development ("OHCD"), acting on behalf of the City, has performed an obligation required by this Chapter for CD Year 26 prior to the enactment of this Chapter, the City shall be considered in compliance with this Chapter.
§18-302. Low and Moderate Income Beneficiaries.
(1) The Community Development Block Grant Program ("CDBG Program") shall primarily benefit low and moderate income persons and families to the greatest extent possible residing in each councilmanic district in the City. The projects or activities funded by the CDBG Program shall give priority to low income residents in each councilmanic district in the City given the nature and relative severity of their needs. In designing projects and selecting areas in which to carry out activities funded by the CDBG Program, each project shall be consistent with the policies herein set forth and shall be suitable to meeting the respective needs of low and moderate income residents to the greatest extent possible in each councilmanic district in the City.
(2) For purposes of this Chapter the following phrases shall mean the following:
(a) A "low income person or resident" is a person residing in the City having an annual income of not more than fifty percent (50%) of the median income for the Standard Metropolitan Statistical Area of Philadelphia for a family of similar size, as determined under the Housing and Community Development Act of 1974, as amended;
(b) A "moderate income person or resident" is a person residing in the City having an annual income of not more than eighty percent (80%) of the median income for the Standard Metropolitan Statistical Area of Philadelphia for a family of similar size, as determined under the Housing and Community Development Act of 1974, as amended;
(c) A "direct beneficiary" is the social or public service recipient, employee of newly created jobs, employee of jobs retained through the use of CDBG funds, purchaser, recipient or owner occupant of real property, occupant of rental housing, or resident of the block that receives public improvements; and
(d) A "neighborhood revitalization plan" is a plan proposed by OHCD and subsequently reviewed by the City Planning Commission that outlines proposed revitalization projects and activities suitable for meeting the respective community development needs of the residents for a defined neighborhood area. Projects and activities shall be consistent with the provisions of this chapter and shall be developed in consultation with any community development corporation, community-based organization, non-profit or for-profit entity, public/private joint venture entity, or any other entity representing the residents of the proposed revitalization area.
(3) To insure that funds used under the CDBG Program comply with the City policies and goals set forth in subsection (1):
(a) The CD Program Year funds, exclusive of administration and program management costs, will not be considered to primarily benefit low and moderate income persons or give maximum priority to low income persons unless:
(.1) Seventy-five percent (75%) of the CDBG Program Year funds, exclusive of administration and program management costs, directly benefit low and moderate income persons and families to the greatest extent possible residing in each councilmanic district in the City; and
(.2) Priority is given to developing and implementing projects and activities which directly benefit low income persons and families to the greatest extent possible residing in each councilmanic district in the City.
(4) No less than fifty percent (50%) of each CD Program Year's funds, exclusive of administration and program management costs, shall be allocated and spent directly on housing projects or activities which directly relate to providing, maintaining or preserving housing.
(5) In addition to the housing projects and activities detailed in subsection (4) above, CD Program Year funds shall be allocated and spent directly on neighborhood revitalization projects or activities in accordance with the Housing and Community Development Act of 1974, as amended, and any regulations pertaining to CDBG eligible projects or activities related to neighborhood revitalization as provided in 24 CFR Part 570 Subpart C (eligible activities), as amended. Such neighborhood revitalization projects or activities shall be in accordance with a neighborhood revitalization plan.
§18-303. Community Development Plan.
(1) Expenditure of CDBG Program funds shall be made only as specified in the annual Community Development Plan (the "CD Plan"), or any CD Plan amendments properly adopted by Council in compliance with the requirements of Subsections 18-305(3) and (4) of this Chapter. CDBG Program funds shall be allocated and spent in a manner to provide maximum benefit for the community development needs of low and moderate income persons and families residing in each councilmanic district in the City.
(2) The CD Plan shall be prepared by the Office of Housing and Community Development for the City of Philadelphia ("OHCD") and shall contain the following elements:
(a) A description of the geographic boundaries of each project OHCD intends to fund;
(b) A comprehensive assessment of the community development needs of the low and moderate income population in each councilmanic district in the City, including the social, housing, neighborhood and economic characteristics of each area in which CDBG Program funds are to be spent and an enumeration of each neighborhood that will be affected or served by a project the City intends to fund;
(c) An explanation of how low and moderate income residents and families in each area and throughout the particular councilmanic district affected or served will benefit from each project;
(d) An explanation of how minority residents and families in each area and throughout the particular councilmanic district affected or served will benefit from each project;
(e) A detailed Housing Assistance Plan which shall contain an accurate analysis of the housing needs of low and moderate income households of each area and throughout the particular councilmanic district in which CDBG Program funds are to be spent, and an explanation of how CDBG Program funds will be used to meet those needs;
(f) The amount of money allocated for each project;
(g) An estimate of the total general program delivery, program management and administrative costs of the CD plan, and a detailed budget outlining the specific program delivery, program management and administrative costs of OHCD and any other City departments or City-related agencies for each project including, but not limited to: the number of personnel and their job duties for each project; and, an explanation of how the activities of OHCD and any other City departments and City-related agencies in providing specific program delivery, program management and administrative services benefit low and moderate income persons in each project area and throughout each councilmanic district in the City;
(h) An anti-displacement strategy including the program activities and specified measures the City will undertake to either prevent or alleviate the displacement of low and moderate income residents;
(i) An assessment of the yearly needs of the homeless population in the City, and a listing of public and private agencies that provide shelter to the homeless, including, for each such agency, an estimate of the number of people provided for and the geographical area served by council district, if applicable;
(j) A comprehensive and detailed neighborhood revitalization plan(s) by councilmanic district describing the program and project activities to be funded which will provide the maximum benefit in serving the community development needs of low and moderate income residents in each councilmanic district in the City;
(k) An analysis and calculation of the number and percentage of city residents in each councilmanic district who are low and moderate income, and an analysis and calculation of the number and percentage of all low and moderate income city residents by councilmanic district; and
(l) A detailed listing of the funding amount and percentage of funds being utilized by category of all CDBG eligible programs and activities as provided in 24 CFR Part 570 Subpart C (eligible activities), as amended.
§18-304. Citizen Participation.
(1) All City residents shall have the right to participate in and express views and comments at any and all hearings. All public hearings required by this Section and Section 18-305 (City Council Oversight and Plan Approval) shall be held at times and locations convenient to low and moderate income persons.
(2) In order to insure adequate citizen participation in the development of the CDBG Program, the OHCD shall schedule the following public hearings:
(a) Prior to the preparation of the CD Plan draft, neighborhood public hearings in each councilmanic district in the City shall be held to gather input for each year's final CD Plan application; and
(b) Upon completion of the CD Plan draft, OHCD shall hold a city-wide public hearing so that citizens may comment on the CD Plan draft before it is submitted to City Council pursuant to Section 18-305. The CD Plan draft shall be published and copies made available to citizens two weeks before the hearing required by this paragraph is scheduled.
(3) Notice of all public hearings shall be given as follows:
(a) Fourteen (14) days prior to each public hearing, the OHCD shall publish a notice in easily readable type in the non-legal section of at least two City newspapers of general circulation, including at least one minority and at least one non-English language newspapers. Such notice shall indicate the date, time, place and procedures of the hearings and topics to be considered. The OHCD shall also make reasonable efforts to provide notice, in the form of press releases, to neighborhood newspapers or periodicals serving low and moderate income neighborhoods in each councilmanic district in the City.
(b) The OHCD shall take other actions to publicize the hearings widely, such as arranging for public service radio and television announcements.
(c) In the case of non-English language newspapers, the OHCD shall provide or arrange for notice in the appropriate non-English language.
(4) Citizens may at any time submit written comments or proposals regarding the CDBG Program activities and expenditures. The OHCD shall provide a written response within fifteen (15) working days of receipt.
(5) Any community organization located within the City may be placed on an OHCD mailing list on written request. Notice of all hearings related to community development activities shall be mailed by the OHCD to each community organization listed on the mailing list no later than two (2) weeks prior to the date of the event or hearing. Opportunity to be placed on the OHCD mailing list shall be provided at any public hearing required by this Section and Section 18-305.
§18-305. City Council Oversight and Plan Approval.
(1) Upon completion of the public hearings required by Section 18-304 (Citizen Participation) and before submitting to the U.S. Department of Housing and Urban Development ("HUD") its statements of community development objectives or similar required documents, the OHCD shall utilize the views and comments of the citizens from the public hearings in each councilmanic district to prepare, in consultation with City Council, and subsequently submit a final CD Plan to City Council for its authorization. Council may amend the CD Plan as it deems necessary.
(2) Before authorization of the Plan, City Council shall hold a city-wide public hearing in order to take written comments and proposals and hear oral testimony from interested citizens. If the CD Plan is authorized by Council, the CD Plan shall be deemed to conform with this Ordinance.
(3) Council authorization shall be obtained before the OHCD makes any change or changes which alone or in combination with previous changes amount to ten percent (10%) or more in their cumulative effect on the allocation of any year's CDBG Program funds when OHCD proposes to use the funds to undertake one or more new activities or proposes to alter the stated purpose, location or class of beneficiaries of previously authorized activities. Before authorizing such change or changes, Council shall provide, as requested, an opportunity for interested citizens to submit written and oral testimony pertinent to the change or changes then under consideration.
(4) Before seeking Council authorization as provided in subsection (3) above, the OHCD shall mail a notice to all community organizations contained on the mailing list required by Subsection 18-304(5). Such notice shall be mailed two (2) weeks before the OHCD intends to seek Council approval and shall contain a brief description of the change or changes sought including their anticipated impact on affected neighborhoods.
§18-306. Information to be Provided to Council.
(1) The OHCD shall submit regular quarterly performance reports to Council within sixty (60) days of the end of each reporting period. The first quarterly report shall include the period from April 1, 1982 to June 30, 1982 and subsequent quarterly reports shall include each ninety (90) days thereafter. These reports shall contain the following information for each councilmanic district in the City:
(a) For each housing rehabilitation program, a description of activity during the ninety (90) day period including, when applicable, the number of housing units acquired; the manner in which they were acquired; the amount of money spent on acquisition; the location by census tract of each house to be rehabilitated; the dollar amount for each rehabilitation job for which a contract was entered within the ninety (90) day period; the location by census tract of each house where rehabilitation was completed during the ninety (90) day period; the cost per unit of each house for which rehabilitation was completed during the ninety (90) day period; the annual income, race and family size of each recipient of rehabilitation assistance; whether the recipient was a former homeowner or former tenant; and, the selling price of each house.
(b) A description of any programs involving the transfer of non-rehabilitated housing during the ninety (90) day period, including the number of properties acquired, the manner in which they were acquired, the costs of acquisition for each property, the number of applicants, the number of license agreements, the number of deeds conveyed, the census tract in which the house was located and the annual income, race and family size of the persons receiving the license agreement or the deed.
(c) A description of any rental rehabilitation program activity during the ninety (90) day period including the number, the amount, the profit or non-profit status of the recipient of loans or grants, the location by census tract of units receiving assistance, the annual income, race and family size of the tenants of such units.
(d) A description of the activity of any program for abatement of code violations during the ninety (90) day period including the number of houses in which violations have been abated by census tract.
(e) A description of the progress made on each CDBG funded project not already described under Subsection 18-306(1)(a)-(d) during the ninety (90) day period including a description of the amount of service or assistance provided; the location or area where the service or assistance was provided; the total number of beneficiaries including the number of low and moderate income persons receiving the service or assistance; and, a description of the accomplishments of the project.
(f) The total amount of CDBG Program funds expended for each project and activity during the ninety (90) day period including the amount expended for administration, program delivery and program management.
(2) The OHCD shall prepare and submit to Council, at the same time the first quarterly report is due pursuant to Section 18-306(1), a report on the total amount of unspent CDBG Program funds prior to CD Year 26 and each year thereafter including:
(a) The amount of unspent funds which are not allocated to a specific program.
(b) The specific programs and the specific geographic area by Neighborhood Strategy Area ("NSA"), Neighborhood Improvement Area ("NIA"), census tracts or other geographic designation to which all unspent funds are allocated and the CD Year they were allocated.
(.1) The total amount of unspent obligated CDBG funds prior to CD Year 26 and each year thereafter including the specific programs and the specific geographic area by NSA, NIA, census tracts or other geographic designation to which all unspent obligated funds are allocated and the CD Year they were allocated.
(.2) The total amount of unspent unobligated CDBG Program funds prior to CD Year 26 and each year thereafter including:
(.a) The specific programs and the specific geographic area by NSA, NIA, census tracts or other geographic designation to which all unspent unobligated funds are allocated and the CD Year they were allocated; and
(.b) The amount of unspent unobligated funds which are not allocated to a specific program.
(3) After the submission of the report required under subsection (2) above, the OHCD shall submit Quarterly Expenditure Reports to Council covering the same period of time and the same schedule as reported under Section 18-306(1) showing the progress in spending and obligating the monies referred to in subsection (2) above.
(4) At the same time the quarterly performance reports required pursuant to Section 18-306(2) are submitted to Council, an additional report on affirmative action and equal opportunity, which will include information on minority participation in the contracting and sub-contracting of work performed for OHCD, shall also be submitted. In regard to each housing rehabilitation and neighborhood revitalization program the report shall specifically include the number of contracts entered into with contractors, the number and percentage of minority employees for each such contractor, the number of contracts with minority owned businesses, the number of contracts with contractors located in the City of Philadelphia, and the number and percentage of employees of each contractor and sub-contractor who resides in the census tract where the work is to be performed.
(5) No later than the end of the first quarter of any CD Program Year, OHCD shall submit to Council a complete annual report for the previous CD Program Year detailing all spending, projects and programs by councilmanic district and City Council shall hold a city-wide public haring in order to receive citizen evaluation through oral and written testimony of the CD Program Year and the first quarter of the current CD Program Year.
§18-307. Information Available to the Public.
(1) Information from the files of OHCD shall be open to the public at any reasonable time for inspection and copying, at cost, and shall include the Community Development Plan, the CD Plan draft, the annual performance report, the Quarterly Performance Reports, the Quarterly Expenditure Reports, all other documents or reports containing expenditure or other financial data, audits, contracts, OHCD rules and regulations, inspection reports, and copies of all citizen comments and OHCD responses.
(2) The OHCD shall make a reasonable number of copies available free of charge of the Community Development Plan, the CD Plan draft, the annual Performance Report, the Quarterly Performance Reports, the Quarterly Expenditure Reports, OHCD rules and regulations, and this Chapter.
§18-308. Economic Development.
(1) It shall be the policy of the City to require the recipients of CDBG Program funds used for economic development, including Commercial and Industrial development, to directly create or retain jobs for persons who are of low or moderate income. Emphasis shall be given to spend Economic Development funds in low income areas in each councilmanic district in the City.
(2) No more than twenty-five percent (25%) of all program year funds shall be allocated to economic development programs.
(3) To insure compliance with the policy set forth above, the OHCD shall require all recipients of CDBG Program funds used for economic development to submit annual reports for two years following the disbursement of program funds. The recipients' reports shall indicate the name, address or principal residence, and income of each person employed through the use of CDBG Program funds.
(4) The OHCD is authorized to verify the accuracy of the recipient's annual reports at any time by inspection of the recipient's records or any other reasonable method necessary for verification.
(5) To insure the privacy of employees hired through the use of CDBG Program funds, all recipient records required by this Section shall be confidential. Names of individual employees shall be made available to OHCD personnel only for the purpose of verification and inspection of recipient records. Any record containing identification of employees by name is expressly exempt from the public information requirements of Section 18-307.
§18-309. Administrative Costs.
It shall be the policy of the City that, beginning in CDBG Year 26 and each CD year thereafter, no more than fifteen percent (15%) of any year's Community Development Block Grant allocation may be spent on the total combined program delivery, program management and administrative costs of the OHCD and any other City departments or City-related agencies.
§18-310. Rules and Regulations.
(1) The OHCD is authorized to establish and enforce reasonable rules and regulations necessary to promote compliance with the provisions of this Chapter. Any funds received pursuant to any CDBG entitlement program or other community or economic development program fund application shall be used in compliance with all federal, state and city statutes and ordinances applicable to such funds.
(2) In order to further provide for targeted and strategic housing and neighborhood revitalization, the proceeds from any financial securitization or loan sale program for HUD 108 loans to provide additional loan capacity, and the proceeds from any other bond financing for which City general funds are used to provide debt service payments and which require the authorization or approval of City Council shall be allocated and expended in accordance with the provisions of Section 18-302, subject to the development of a utilization plan as approved by ordinance of City Council.
§18-311. Applicability Period.
The provisions of this Chapter shall remain in force and effect until March 18, 2006.
CHAPTER 18-400. COMMUNITY REVITALIZATION AND
INFRASTRUCTURE BENEFIT FUND.
§18-401. Legislative Findings.
The City Council finds that:
(1) The long-term health and vitality of the City is dependent upon healthy, attractive and viable neighborhoods which attract and retain residents, families and local businesses.
(2) Many neighborhoods require varying levels of investment to improve, repair or replace infrastructure (such as curbs, sidewalks and street trees); to revitalize retail and commercial corridors; to replace or upgrade street and pedestrian lighting; and, to improve and beautify neighborhood parks and green spaces.
(3) The same financial strategies and incentives and infrastructure improvements used to reinvigorate the downtown commercial and cultural core of the City in order to retain and attract businesses, jobs and residents should also be employed to retain and attract businesses, jobs and middle income families in the City's neighborhoods.
(4) To the extent that public investments are made for large-scale economic development projects which are predominantly located in and directly benefit the Center City commercial core, a certain percentage of the funds spent on these projects should be directly dedicated to the revitalization of the City's neighborhoods located outside of the central core for the overall benefit of the City.
(5) Many neighborhoods have unmet needs which require a flexible funding stream in order to address the revitalization and infrastructure renewal needs of these neighborhoods.
(6) Public investments in neighborhoods will stimulate private investment by home owners and business owners, thereby generating additional revitalization benefits.
§18-402. Establishment and Administration of Fund.
(1) The Community Revitalization and Infrastructure Benefit Fund (hereinafter referred to as the "CRIB Fund") is hereby established within the City's general fund for administration.
(2) For any development project within the City for which the total project cost is two hundred and fifty million dollars ($250 million) or more and in which the City or any City-related agency or authority contributes twenty percent (20%) or more of the total project funding pursuant to City Council authorization or approval of such project funding amount, an amount no less than five percent (5%) of the total project cost shall be deposited into the CRIB Fund by the City, public developer, public owner, or other public agency or authority responsible for the project starting no later than three (3) years and concluding no later than five (5) years after the opening and use of the development project. For purposes of this paragraph, the percentage of any City or city-related agency or authority funds contributed to the total cost of such a project shall be calculated by determining the total value of any land transfer, site improvements, environmental remediation, infrastructure improvements which benefit the project (including, but not limited to curbs, sidewalks, streets, drainage or water and sewer mains), loans, grants, tax incentives, tax abatements, tax increment financing or any combination thereof of such funding sources, or any other form of public supported financing which in whole or in part is subject to authorization or approval by City Council.
(3) The proceeds from any bond financing or offering undertaken by the City or any City-related agency or authority for the purpose of creating funding sources for community revitalization and infrastructure benefit programs or any funds available pursuant to the provisions of Section 18-402(2) shall be deposited in the CRIB Fund and awarded in accordance with Section 18-403.
§18-403. Eligible Fund Projects and Activities.
(1) The CRIB Fund shall be used to support neighborhood revitalization projects and activities. Priority shall be given to moderate and middle income areas in each councilmanic district to address neighborhoods experiencing incipient blight. For purposes of this chapter, the term "moderate and middle income areas" shall mean neighborhoods where fifty-one percent (51%) of the residents have an annual income that is more than fifty percent (50%) and less than one hundred and twenty percent (120%) of the median income for the Standard Metropolitan Statistical Area. CRIB funds shall be allocated and spent in a manner to provide maximum benefits for the neighborhood revitalization needs of moderate and middle income persons and families residing in each councilmanic district in the City.
(2) The CRIB Fund awards shall be in the form of loans, grants or a combination thereof and may be awarded to for-profit or not-for-profit community development corporations, institutions or corporations, or joint ventures of these entities.
(3) Projects and activities eligible for CRIB Fund awards include, but are not limited to: the repair, replacement and reconstruction of curbs, sidewalks and other neighborhood public infrastructure; the removal and planting of street trees; the repair, replacement and installation of street and pedestrian lighting; the revitalization of retail and commercial corridors; improvements to and beautification of neighborhood parks and green spaces; the acquisition, site preparation and disposition of land for mixed and middle income housing development; and, any other project or activity related to neighborhood revitalization and infrastructure renewal. Such neighborhood revitalization projects or activities shall be in accordance with an approved neighborhood revitalization and infrastructure renewal plan subject to the provisions and procedures established by ordinance of City Council.
CHAPTER 18-500. TAX INCREMENT FINANCING DISTRICTS
§18-501. Definitions.
For purposes of this Chapter the following definitions shall apply:
(1) Tax Increment Financing District. A tax increment financing district created by ordinance of Council in accordance with the Act of July 11, 1990, P.L. 465, No. 113, as amended, (the "Tax Increment Financing Act").
§18-502. Reporting Requirements.
The following reporting requirements shall apply to every Tax Increment Financing District (hereafter referred to as "Districts" or "District"):
(1) During the first five years of the term of any District, the Mayor shall provide an annual report to the Council no later than December 31st. Each such report shall include, but is not limited to: all data on the number of construction and permanent jobs and demographic data on those jobs; the implementation of a plan for the utilization of minority, female and disadvantaged businesses for contracting opportunities created by the establishment of the District; and, any other data that is pertinent to the financial, contracting and employment operations of the District.
(2) During the remaining term of any District which extends beyond five years, the same information as detailed above shall be required and provided every three years, with an annual analysis for each of the three year reporting periods.
SECTION 2. Chapter 21-1100 of The Philadelphia Code, entitled "Community Development," and Chapter 21-1400 of The Philadelphia Code, entitled "Tax Increment Financing Districts," are hereby repealed.
SECTION 3. This Ordinance shall take effect July 1, 2000. The provisions of Title 18 added by Section 1 of this Ordinance, so far as they are the same as the provisions of Title 21 repealed by Section 2 of this Ordinance, shall be construed as a continuation of such provisions and not as new enactments. The provisions of Chapter 18-500 added by Section 1 of this Ordinance shall apply to any Tax Increment Financing District established prior to, on and after the effective date of this Ordinance, and the reporting requirements of Section 18-502 of the Code as added by Section 1 of this Ordinance shall apply to the full term of any Tax Increment Financing District including any years for which such District has been in existence prior to the date this Ordinance becomes law.
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Explanation:
Italics indicate new matter added.
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