Community, Economic and Recreational Development Committee
Wednesday, April 13, 2016
Senate Rules Room -Main Capitol
House Bill 1788, Printer’s No. 2734 (White), – Summary, amends the act of December 21, 1998 (P.L.1307, No.174), known as the Community and Economic Improvement Act (CEI Act) that provides for the establishment of Neighborhood Improvement Districts (NID) relating to cities of the first class (Philadelphia) by providing for special financing assessments. More specifically this legislation clarifies the circumstances in which a NID established under the CEI Act overlaps with a Tax Increment Financing District (TIF) established under the act of July 11, 1990 (P.L.465, No.113), known as the Tax Increment Financing District Act (TIF Act).
The proposed changes are administrative in nature and are meant to synchronize existing discrepancies between the various definitions and procedures contained in the CEI Act and TIF Act as follows:
- Coordinate definitions of the district boundaries between the CEI Act and TIF Act.
- Enable the same authority to issue debt under both acts and use certain NID revenues to service TIF debt.
- Enable the same authority to administer the district under both acts.
- Eliminate the requirement for separate plans when the Acts are used in conjunction.
- Rationalize provisions of the CEI Act with debt service requirements of TIF lenders.
- Provide consistency in eligible uses of the funds between the two Acts.
- Letter of Support from John Grady, President (PIDC) to CERD Chairs – HB 1788