PRINTER'S NO. 3538
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2515
Session of
2024
INTRODUCED BY PROKOPIAK, KINSEY, HILL-EVANS, KHAN, GIRAL,
SIEGEL, MADSEN, SANCHEZ, PROBST, BRENNAN, BOYD, DONAHUE,
SCHLOSSBERG, BOROWSKI, O'MARA, DALEY AND CEPEDA-FREYTIZ,
JULY 30, 2024
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
JULY 30, 2024
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, providing for Smart Growth Zoning and
Housing Program; and establishing the Smart Growth Zoning
District Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 53 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 63
SMART GROWTH ZONING AND HOUSING PROGRAM
Sec.
6301. Definitions.
6302. Smart Growth Zoning and Housing Program.
6303. Submission to department.
6304. Minimum requirements.
6305. Certificate of compliance.
6306. Payments.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
6307. Design standards.
6308. Approval of projects.
6309. Administration.
6310. Repayment.
§ 6301. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Approved smart growth zoning district." A smart growth
zoning district that has been adopted by a municipality and
approved by the department in accordance with this chapter and
the guidelines of the department, so as to be eligible for the
receipt of financial and other incentives.
"Attainable housing." Housing attainable to and occupied by
individuals and families whose annual income is equal to or less
than 120% of the areawide median income as determined by the
United States Department of Housing and Urban Development.
"Density bonus payment." A one-time payment to a
municipality from the Smart Growth Zoning District Fund or other
money authorized by the General Assembly for each housing unit
of new construction that is created in a smart growth zoning
district.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Developable land area." An area within an roved smart
growth zoning district that can be feasibly developed into
residential or mixed-use development determined in accordance
with guidelines of the department. The term does not include:
(1) Land area that is already substantially developed,
including existing parks and dedicated, perpetual open space
20240HB2515PN3538 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
within a substantially developed portion.
(2) Open space designated by the municipality as
provided in section 6304 (relating to minimum requirements).
(3) Areas exceeding one-half acre of contiguous land
that are unsuitable for development because of topographic
features or for environmental reasons, such as wetlands.
"Duplex housing." A residential building with two dwelling
units separated by a horizontal or vertical wall.
"Dwelling unit." A single unit providing complete
independent living facilities for one or more individuals,
including permanent facilities for cooking, eating, living,
sanitation and sleeping.
"Eligible location." An area that, by virtue of the area's
infrastructure, transportation access, existing underutilized
facilities or location, makes the area a highly suitable
location for residential or mixed-use smart growth zoning
districts, including, without limitation:
(1) Areas near transit stations, including rapid
transit, commuter rail and bus and ferry terminals.
(2) Areas of concentrated development, including town
and city centers and other existing commercial districts.
"Housing production summary." A detailed summary of the
municipality's:
(1) Attainable housing production history.
(2) Housing needs and housing demand assessment.
(3) Analysis of development constraints and capacity.
(4) Current housing goals and strategy for achieving
those goals.
(5) Proposed locations for attainable housing
production.
20240HB2515PN3538 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Mixed-use development." A development containing a mix of
residential uses and nonresidential uses, including, without
limitation, commercial, institutional, industrial or other uses,
all conceived, planned and integrated to create vibrant,
workable, livable and attractive neighborhoods.
"Municipality." A city, borough, incorporated town or
township or home rule municipality.
"New construction." Construction of new housing units, the
substantial rehabilitation of existing buildings or the
conversion to residential use of existing buildings to create
additional housing units, to the extent those units could not
have been constructed or converted without the smart growth
zoning district.
"Program." The Smart Growth Zoning and Housing Program
established under section 6302 (relating to Smart Growth Zoning
and Housing Program).
"Project." A proposed residential or mixed-use development
within a smart growth zoning district.
"Smart growth zoning district." A zoning district adopted by
a municipality under this chapter that replaces or is
superimposed over one or more zoning districts in an eligible
location, in accordance with section 6304.
"Triplex housing." A residential building with three
dwelling units separated by a horizontal or vertical wall.
§ 6302. Smart Growth Zoning and Housing Program.
(a) Establishment.--The Smart Growth Zoning and Housing
Program is established within the department for the purpose of
distributing money to a municipality which has adopted by
ordinance an approved smart growth zoning district.
(b) Creation of district.--By ordinance, a municipality may
20240HB2515PN3538 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
adopt a smart growth zoning district in an eligible location and
may include adjacent areas that are served by existing
infrastructure and utilities and that have safe pedestrian
access to at least one destination of frequent pedestrian use,
such as schools, civic facilities, places of commercial or
business use, places of employment, recreation or transit
stations. In a smart growth zoning district, a municipality
shall zone for primary residential use as of right and may also
permit business, commercial or other uses consistent with
primary residential use. A smart growth zoning district
ordinance shall be adopted by a majority vote of the governing
body of the municipality.
(c) Duties of department.--The department shall establish
guidelines necessary to implement this chapter.
§ 6303. Submission to department.
(a) Application.--The department shall develop and prescribe
a method for a governing body of a municipality to submit to the
department the necessary materials for a determination of
approval for the program. The application shall:
(1) Identify and describe the boundaries of the smart
growth zoning district.
(2) Identify and describe the developable land area
within the smart growth zoning district.
(3) Identify and describe other residential development
opportunities for infill housing and the residential reuse of
existing buildings and underutilized buildings within already
developed areas.
(4) Include a housing production summary, which shall
include an estimate of the projected number of units of new
construction that could be built in the smart growth zoning
20240HB2515PN3538 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
district.
(5) Include a copy of the smart growth zoning district
ordinance.
(6) By narrative and exhibits, establish the elements
under section 6304 (relating to minimum requirements).
(b) Determination.--
(1) The department shall approve an application for the
program if the smart growth zoning district meets the
requirements under section 6304. If approved, the smart
growth zoning district shall be eligible for payments and
incentives under section 6306 (relating to payments).
(2) If the department denies the application, the
department shall inform the applicant of the deficiencies in
the application. A governing body of a municipality may
reapply for approval after addressing any deficiencies in a
prior application.
(3) If the department does not make a determination on a
complete application within 60 days of receipt, the
application shall be deemed approved.
(c) Revocation.--The department may revoke approval if the
municipality fails to meet the minimum requirements for a smart
growth zoning district provided under section 6304.
§ 6304. Minimum requirements.
(a) General rule.--A smart growth zoning district shall
satisfy the following minimum requirements:
(1) Each smart growth zoning district shall be located
in an eligible location.
(2) The zoning for each smart growth zoning district
shall provide for residential use to permit a mix of housing
for families, individuals, persons with special needs and the
20240HB2515PN3538 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
elderly.
(3) Housing density in a smart growth zoning district
shall be at least 20 units per acre for multifamily housing
on the developable land area, eight units per acre for
single-family homes on the developable land area and 12 units
per acre for duplex housing and triplex housing on the
developable land area.
(4) The ordinance for each smart growth zoning district
shall provide that not less than 20% of the residential units
constructed in projects of more than 12 units shall be
attainable housing and shall contain mechanisms to ensure
that not less than 20% of the total residential units
constructed in each smart growth zoning district shall be
attainable housing.
(5) A smart growth zoning district shall permit infill
housing on existing vacant lots and shall allow the provision
of additional housing units in existing buildings, consistent
with neighborhood building and use patterns, building codes
and fire and safety codes.
(6) A smart growth zoning district shall not be subject
to limitation of the issuance of building permits for
residential uses or a local moratorium on the issuance of
such permits.
(7) A smart growth zoning district shall not impose
restrictions on age or any other occupancy restrictions on
the district as a whole or any portion thereof or project
therein. Applicants may pursue the development of specific
projects within a smart growth zoning district that are
exclusively for the elderly, the disabled or for assisted
living. The department shall adopt guidelines limiting the
20240HB2515PN3538 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
percentage of units in the district that qualify the
municipality for density bonus payments under section 6306
(relating to payments) that may be subject to restrictions
that limit occupancy exclusively for the elderly, the
disabled or for assisted living. Not less than 25% of the
housing units in a project that limits occupancy exclusively
for the elderly, the disabled or for assisted living within a
smart growth zoning district shall be attainable housing.
(8) Housing in a smart growth zoning district shall
comply with Federal, State and local fair housing laws.
(9) A smart growth zoning district may not exceed 15% of
the total land area in the municipality. Upon request, the
department may approve a larger land area if the approval
serves the goals and objectives of this chapter.
(10) The aggregate land area of all approved smart
growth zoning districts in the municipality may not exceed
25% of the total land area in the municipality. The
department may approve a larger combined land area if the
department determines that the approval serves the goals and
objectives of this chapter.
(11) Housing density in any smart growth zoning district
shall not overburden infrastructure as it exists or may be
practicably upgraded in light of anticipated density and
other uses to be retained in the district.
(12) A smart growth zoning district ordinance shall
define the manner of review by the municipality in accordance
with section 6308 (relating to approval of projects) and
shall specify the procedure for review in accordance with
guidelines.
(b) Open space.--A smart growth zoning district ordinance
20240HB2515PN3538 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
may modify or eliminate the municipality's dimensional standards
in order to support desired densities, mix of uses and physical
character. The standards that are subject to modification or
waiver may include height, setbacks, lot coverage, parking
ratios and locations and roadway design standards. Modified
requirements may be applied as of right throughout all or a
portion of the smart growth zoning district, or on a project-
specific basis through the smart growth zoning district plan
review process as provided in the ordinance. A municipality may
designate certain areas within a smart growth zoning district as
dedicated perpetual open space as defined in section 2(4) of the
act of January 19, 1968 (1967 P.L.992, No.442), entitled "An act
authorizing the Commonwealth of Pennsylvania and the local
government units thereof to preserve, acquire or hold land for
open space uses." The amount of open space shall not be included
as a developable land area within the smart growth zoning
district. Open space may include an amount of land equal to up
to 10% of what would otherwise be the developable land area if
the developable land area would be less than 50 acres and 20% of
what would otherwise be the developable land area if the
developable land area would be 50 acres or more.
(c) Mixed use.--The smart growth zoning district ordinance
may provide for mixed-use development subject to any limitations
that may be imposed by guidelines of the department.
(d) Historic district.--A smart growth zoning district may
encompass an existing historic district. A municipality, with
the approval of the department, may establish a historic
district in an approved smart growth zoning district in
accordance with the act of June 13, 1961 (P.L.282, No 167),
entitled "An act authorizing counties, cities, boroughs,
20240HB2515PN3538 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
incorporated towns and townships to create historic districts
within their geographic boundaries; providing for the
appointment of Boards of Historical Architectural Review;
empowering governing bodies of political subdivisions to protect
the distinctive historical character of these districts and to
regulate the erection, reconstruction, alteration, restoration,
demolition or razing of buildings within the historic
districts," as long as the establishment of the historic
district meets the requirements for a historic district and does
not render the municipality noncompliant with this chapter, as
determined by the department. The historic districts may be
coterminous or noncoterminous with the smart growth zoning
district. Within any historic district, the requirements of the
historic district may apply to existing and proposed buildings.
(e) Municipal requirements.--A municipality may require more
attainable housing than required by this chapter, both in the
percentage of units that must be attainable housing and in the
levels of income for which the attainable housing must be
accessible, provided that the thresholds may not unduly restrict
opportunities for development.
(f) Density requirement.--With respect to a municipality
with a population of fewer than 10,000, as determined by the
most recent Federal decennial census, for hardship shown, the
department may, in accordance with guidelines adopted under this
chapter, approve zoning for a smart growth zoning district with
lower densities than provided in this chapter if the
municipality satisfies the other requirements under this
section. Approval shall not be withdrawn solely because, in a
future census, the population of the municipality exceeds
10,000.
20240HB2515PN3538 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(g) Amendment or repeal of ordinance.--Any amendment or
repeal of a zoning ordinance affecting an approved smart growth
zoning district shall require the municipality to make the
payment required under section 6310(b) (relating to repayment).
Each amendment or repeal shall be submitted to the department
with an evaluation of the effect on the number of projected
units that will remain developable, if any, in relation to the
number of units that have been built and the number of units
that determined any corresponding zoning incentive payment paid
to the municipality.
(h) Authority.--Nothing in this chapter shall affect a
municipality's authority to amend its ordinances.
§ 6305. Certificate of compliance.
On or before October 1 of each year after the year of
approval of a smart growth zoning district by the department,
the department shall send a smart growth zoning district
certificate of compliance to each municipality with an approved
district. In order to receive a certificate, the municipality
shall verify within the time specified by the department that:
(1) The municipality has adopted an approved smart
growth zoning district ordinance.
(2) The certification has not been revoked by the
department.
(3) The smart growth zoning district is being developed
in a manner that reasonably complies with the applicable
minimum requirements in section 6304 (relating to minimum
requirements).
(4) The municipality has not unreasonably denied plans
for projects or has only denied plans for projects in a
manner consistent with its smart growth zoning district
20240HB2515PN3538 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
ordinance and this chapter.
§ 6306. Payments.
(a) Establishment of fund.--The Smart Growth Zoning District
Fund is established within the State Treasury to provide funding
for the program. The General Assembly may appropriate money to
the Smart Growth Zoning District Fund from the General Fund for
the purpose of awarding incentives and bonus payments through
the program.
(b) General rule.--Each municipality with an approved smart
growth zoning district shall be entitled to payments. The
Commonwealth shall pay from the Smart Growth Zoning District
Fund, or other money authorized by the General Assembly, a
zoning incentive payment to municipalities with an approved
smart growth zoning district. The payments shall be made
according to the following schedule, subject to available money:
Projected Units of New
Construction Payment
Up to 20 $10,000
21 to 100 $75,000
101 to 200 $200,000
201 to 500 $350,000
501 or more $600,000
(b.1) Payment upon approval.--Subject to any conditions
imposed by the department as a condition of approving a smart
growth zoning district, the zoning incentive payment shall be
payable upon confirmation of approval of the smart growth zoning
district by the department. The projected number of units shall
be based upon the zoning adopted in the smart growth zoning
district.
(c) Bonus payment.--The department shall pay from the Smart
20240HB2515PN3538 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Growth Zoning District Fund or other money authorized by the
General Assembly a one-time density bonus payment to each
municipality with an approved smart growth zoning district. The
payment shall be $3,000 for each housing unit of new
construction created in the smart growth zoning district. The
amount due shall be paid on a unit-by-unit basis in accordance
with department guidelines, upon submission by a municipality of
proof of issuance of a building permit for a particular housing
unit or units within the district.
(d) Preference.--The department, the Department of
Environmental Protection and the Department of Transportation
shall, when awarding discretionary money, use a methodology of
awarding money that favors municipalities with approved smart
growth zoning districts and other approved zoning policies or
initiatives that encourage increased attainable housing
production in this Commonwealth, including inclusionary zoning.
§ 6307. Design standards.
(a) Adoption.--A municipality may adopt, in accordance with
program guidelines, design standards applicable to projects
undergoing review by the municipality to ensure that the
physical character of development within the smart growth zoning
district is complementary to adjacent buildings and structures.
The standards shall provide for high-density quality development
consistent with the character of building types, streetscapes
and other municipality features traditionally found in densely
settled areas of the municipality or in the region of the
municipality.
(b) Restrictions.--A design standard shall not be adopted if
it adds unreasonable costs to residential or mixed-use
developments. A design standard shall not unreasonably impair
20240HB2515PN3538 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the economic feasibility of proposed projects. The department
may disapprove a request for a smart growth zoning district on
account of a design standard adding such unreasonable costs or
unreasonably impairing such feasibility.
§ 6308. Approval of projects.
(a) Municipality approval.--A municipality may incorporate
provisions within the smart growth zoning district ordinance
that prescribe contents of an application for approval of a
project. The ordinance may require the applicant to pay for
reasonable consulting fees to provide peer review of the
applications for the benefit of the municipality, which may be
used only for expenses associated with the review of the
development application by outside consultants and any surplus
remaining after the completion of the review, including any
interest accrued, shall be returned to the applicant.
(b) Zoning.--An application to a municipality for approval
under a smart growth zoning district ordinance shall be governed
by the applicable zoning provisions in effect at the time of the
submission, while the plan is being processed, pending any
appeal and for three years after approval. If an application is
denied, the zoning provisions in effect at the time of the
application shall continue in effect with respect to any further
application filed within two years after the date of the denial
except as the applicant may otherwise choose.
(c) Duties of municipalities.--An application for approval
under this section shall be filed by the applicant with the
municipal clerk and a copy of the application, including the
date of filing certified by the municipal clerk, shall be filed
with the municipality. The municipality shall hold a public
hearing for which proper notice has been given. The decision of
20240HB2515PN3538 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the municipality shall be made, and a written notice of the
decision filed with the municipal clerk, within 120 days of the
receipt of the application by the municipal clerk. The required
time limits for the action may be extended by written agreement
between the applicant and the municipality. Failure of the
municipality to take action within the 120-day period or
extended time, if applicable, shall be deemed to be an approval
of the plan.
(d) Additional duty.--The municipality shall issue to the
applicant a copy of its decision containing the name and address
of the owner, identifying the land affected, and the plans that
were the subject of the decision, and certifying that a copy of
the decision has been filed with the municipal clerk and that
all plans referred to in the decision are on file with the
municipality. If 20 days have elapsed after the decision has
been filed in the office of the municipal clerk without an
appeal having been filed or if an appeal, having been filed, is
dismissed or denied, the municipal clerk shall so certify on a
copy of the decision. If the plan is approved by reason of the
failure of the municipality to timely act, the clerk shall make
the certification on a copy of the application.
(e) Conditions.--The project shall be approved by the
municipality subject only to the following conditions, if
necessary:
(1) to ensure substantial compliance of the proposed
project with the requirements of the smart growth zoning
district ordinance; or
(2) to mitigate any extraordinary adverse impacts of the
project on nearby properties.
(f) Denial.--An application may be denied only on the
20240HB2515PN3538 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
grounds that:
(1) the project does not meet the conditions and
requirements under the smart growth zoning district
ordinance;
(2) the applicant failed to submit information and fees
required by the ordinance and necessary for an adequate and
timely review of the design of the project or potential
project impacts; or
(3) it is not possible to adequately mitigate
extraordinary adverse project impacts on nearby properties by
means of suitable conditions.
(g) Appeals.--The court of common pleas in the county shall
hear an appeal of a decision under this section by a party who
is aggrieved by a decision. An appeal may be brought within 20
days after the decision has been filed in the office of the
municipal clerk. Notice of the appeal, with a copy of the
complaint, shall be given to a municipal clerk so as to be
received within 20 days. Review shall be based on the record of
information and plans presented to the municipality.
(h) Run with the land.--A project approval shall remain
valid and shall run with the land indefinitely provided that
construction has commenced within two years after the decision
is issued, which time shall be extended by the time required to
adjudicate an appeal from the approval and if the project
proponent is actively pursuing other required permits for the
project or there is other good cause for the failure to commence
construction, or as may be provided in an approval for a
multiphase project.
§ 6309. Administration.
The department shall be responsible for the administration,
20240HB2515PN3538 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
review and reporting on the program as provided in this chapter.
The department shall undertake or cause to be undertaken an
annual review and the preparation of a report on the program may
require data to be provided by municipalities with smart growth
zoning districts. The report shall:
(1) Be prepared on the basis of the data and made
available to the general public and submitted to the General
Assembly annually, not later than November 15 of each year,
and shall cover the status of the program through the end of
the prior fiscal year.
(2) Identify and describe the status of municipalities
that are actively seeking program approval.
(3) Identify approved smart growth zoning districts and
the amounts and anticipated timing of one-time density bonus
payments during the prior and current fiscal year.
(4) Summarize the amount of land areas zoned for
particular types of projects in both proposed and approved
districts, the number of projects being reviewed by
municipalities under section 6308 (relating to approval of
projects), including the number and type of proposed
residential units, the number of building permits issued, the
number of completed housing units and their type, and set out
the one-time density bonus payments made to each
municipality.
(5) For the then-current and the immediately succeeding
fiscal years, make estimates for the:
(i) Number and size of proposed new districts.
(ii) Potential number of residential units to be
allowed in new districts.
(iii) Anticipated construction activity.
20240HB2515PN3538 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
§ 6310. Repayment.
(a) General rule.--If, within three years, no construction
of an approved project has been started within the smart growth
zoning district, the department shall require the municipalities
to repay to the department all money paid to the municipality
under this chapter for a smart growth zoning district. The three
years shall commence on the date of the payment of the zoning
incentive payment for the smart growth zoning district and may
be extended by the department for good cause in accordance with
the department's guidelines. All money repaid to the department
under this section shall be credited to the funding source from
which the payment originated.
(b) Time.--Within 60 days of enacting an amendment or repeal
of an ordinance affecting an approved smart growth zoning
district in accordance with section 6304(g) (relating to minimum
requirements), the municipality shall repay to the department
any portion of the zoning incentive payment received in excess
of the zoning incentive payment that would have been payable
based on the sum of the number of units that have been built and
the number of units, if any, that will remain developable under
the smart growth zoning district. The department may include any
units that are developable in one or more adopted smart growth
zoning districts for which no zoning incentive payment has been
paid but for which the municipality is nonetheless eligible if
the associated units would have the effect of replacing some or
all of the units that will no longer be developable as a result
of the proposed amendment or repeal. All money repaid to the
department under this section shall be credited to the funding
source from which the payment originated.
Section 2. This act shall take effect in one year.
20240HB2515PN3538 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30