REDEVELOPMENT AUTHORITIES
Historical and Statutory Notes
Act 1996-58 legislation
Section 301 of Act 1996, June 27, P.L. 403,
No.58, 71 P.S. § 1709.301, provides that the following function of the
Department of Community Affairs is transferred in the Department of Community
and Economic Development: housing, community assistance and other functions
under the act of May 24, 1945 (P.L. 991, No. 385), known as the Urban
Redevelopment Law.
Cross References
Conservation and land development, open space uses of land, see 32 P.S.
§ 5001 et seq.
Local Economic Revitalization Tax Assistance
Act, see 72 P.S. § 4722 et seq.
Pennsylvania Code References
Minority business development authority, see 12 Pa. Code § 81.1 et seq.
§ 1701. Short title
This act shall be known and may be cited as
the “Urban Redevelopment Law."
1945, May 24, P.L. 991, § 1.
Historical
and Statutory Notes
Title of Act:
An Act to promote elimination of blighted areas and
supply sanitary housing in areas throughout the Commonwealth; by declaring
acquisition, sound replanning and redevelopment of
such areas to be for the promotion of health, safety, convenience and welfare;
creating public bodies corporate and politic to be known as Redevelopment
Authorities; authorizing them to engage in the elimination of blighted areas
and to plan and contract with private, corporate or governmental redevelopers
for their redevelopment; providing for the organization of such authorities;
defining and providing for the exercise of their powers and duties, including
the acquisition of property by purchase, gift or eminent domain; the leasing
and selling of property, including borrowing money, issuing bonds and other
obligations, and giving security therefor;
restricting the interest of members and employees of authorities; providing for
notice and hearing; supplying certain mandatory provisions to be inserted in
contracts with redevelopers; prescribing the remedies of obligees
of redevelopment authorities; conferring certain duties upon local planning
commissions, the governing bodies of cities and counties, and on certain State
officers, boards and departments. 1945,
May 24, P .L. 991.
Cross References
Tax Increment Financing Act, see 53 P.S. § 6930.1 et seq.
Notes of
Decisions
Validity 1
1. Validity
The Urban Redevelopment Law does not
violate Const. Art. 2, § 1 on ground that insufficient
standards are set up in the law to guide the authority in exercising powers
with which it is vested. Belovsky v. Redevelopment Authority of City of Philadelphia, 54
A.2d 277,357 Pa. 329, Sup.1947.
The Urban Redevelopment Law is not invalid because of any deficiency in
its title, even though there is no mention of fact that properties
acquired by the authorities pursuant to the law may be sold to private
individuals after the redevelopment has been accomplished, where title does
state that authorities have the power of leasing and selling of property, and
also that they may contract with private redevelopers. Belovsky
v. Redevelopment Authority of City of Philadelphia,
54 A.2d 277, 357 Pa.
329, Sup.1947.
§ 1702. Findings and Declaration of Policy
It is hereby determined and declared as a matter of legislative finding—
(a) That there exist in urban communities in this Commonwealth areas
which have become blighted because of the unsafe, unsanitary, inadequate or
over-crowded condition of the dwellings therein, or because of inadequate
planning of the area, or excessive land coverage by the buildings thereon, or
the lack of proper light and air and open space, or because of the defective
design and arrangement of the buildings thereon, or faulty street or lot
layout, or economically or socially undesirable land uses.
(b) That such conditions or a combination of some or all of them have
and will continue to result in making such areas economic or social
liabilities, harmful to the social and economic well-being of the entire
communities in which they exist, depreciating values therein, reducing tax
revenues, and thereby depreciating further the general community-wide values.
(c) That the foregoing conditions are beyond remedy or control by
regulatory processes in certain blighted areas, or portions thereof, and cannot
be effectively dealt with by private enterprise under existing law without the
additional aids herein granted, and that such conditions exist chiefly in areas
which are so subdivided into small parcels and in divided ownerships that their
assembly for purposes of clearance, replanning and
redevelopment is difficult and impossible without the effective public power of
eminent domain.
(c.l)
That certain blighted areas, or portions thereof, may require total
acquisition, clearance and disposition, subject to continuing controls as
provided in this act, since the prevailing condition of decay may make
impracticable the reclamation of the area by rehabilitation or conservation,
and that other blighted areas, or portion thereof, through the means provided
in this act, may be susceptible to rehabilitation or conservation or a
combination of clearance and disposition and rehabilitation or conservation in
such manner that the conditions and evils hereinbefore enumerated may be
eliminated or remedied.
(d) That the replanning and redevelopment of
such areas in accordance with sound and approved plans for their redevelopment
will promote the public health, safety, convenience and welfare.
(e) That there exist within the Commonwealth both within and outside of
certified redevelopment areas, properties which have become derelict, abandoned
or unfit for human habitation or other use by reasons of age, obsolescence,
prolonged vacancy, dilapidation, deterioration, lack of maintenance and care or
general neglect.
(f) That such derelict properties individually and collectively
constitute a blight and nuisance in the neighborhood; create fire and health
hazards; are used for immoral and criminal purposes; constitute unreasonable
interferences with the reasonable and lawful use and enjoyment of other
premises in the neighborhood; are harmful to the social and economic well-being
of any municipality; depreciate property values; and, generally jeopardize the
health, safety and welfare of the public.
(g) That there exists a serious shortage of decent, safe or sanitary
housing accommodations and for related usages, and that the acquisition of
blighted properties for residential and related uses, by eminent domain is a
proper public purpose which will promote public health, safety and welfare.
(h) That there exists within the Commonwealth, both within and outside
certified redevelopment areas, an inadequate supply of residential
owner-occupied and rental housing due, in part, to the deterioration of older
dwellings, the elimination of substandard dwellings by governmental action, the
increased cost of construction and the unavailability of affordable financing
from the private sector.
(i) That there exists within the
Commonwealth, both within and outside certified redevelopment areas,
deteriorating commercial and industrial areas and/or individual structures,
due, in part, to the fact that there are no private funds available to finance
the purchase, construction, rehabil1tation, demolition or equipping of the
commercial and industrial properties at interest rates that would make the
commercial or industrial project economically feasible. Such commercial or
industrial projects are needed for the social and economic well being of
communities within the field of operation of authorities.
Therefore, it is hereby declared to be the policy of the Commonwealth of
Pennsylvania to promote the health, safety and welfare of the inhabitants
thereof by the creation of bodies corporate and politic to be known as
Redevelopment Authorities, which shall exist and operate for the public
purposes of the elimination of blighted areas through economically and socially
sound redevelopment of such areas, as provided by this act, in conformity with
the comprehensive general plan of their respective municipalities for
residential, recreational, commercial, industrial or other purposes, and
otherwise encouraging the provision of healthful homes, a decent living
environment and adequate places of employment of the people of this
Commonwealth. Such purposes are hereby declared to be public uses for which
public money may be spent and private property may be acquired by the exercise
of the power of eminent domain.
1945, May 24, P.L. 991, § 2. Amended 1957, May
27, P.L. 197, § 1; 1968, June 26, P.L. 263, No.125, § 1; 1978, June 23,
P.L. 556, No.94, § 1, effective in 60 days; 1988, March 30, P.L. 304,
No.39, § 1, imd. effective.
Historical
and Statutory Notes
Act 1988-39 Legislation
The 1988 amendment added subsecs. (h) and (i).
Library
References
Municipal Corporations 
26 7. Westlaw Topic
No.268.
C.J.S.
Municipal Corporations § 957.
Notes of Decisions
Blighted areas 4 Construction and application 2 Jurisdiction 5
Purpose 3 Validity 1
1. Validity
Under statutory declaration of policy of Urban
Redevelopment Law, exclusion of warehouse from redevelopment area was not shown
to be discriminatory. In re Franklin Town Project Philadelphia, 339 A.2d 885, 19 Pa.Cmwlth. 272, Cmwlth. 1975, certiorari dismissed 96 S.Ct. 409, 423 U.S. 992, 46 L.Ed.2d 312, certiorari denied 96 S.Ct. 453, 423 U.S. 1018, 46 L.Ed.2d 389.
The provision of Urban Redevelopment Law
declaring purposes of the law to be public uses for which public money may be
spent and private property acquired by exercise of power of eminent domain,
although subject to judicial review, was entitled to a prima facie acceptance
of its correctness. Belovsky v. Redevelopment
Authority of City of Philadelphia, 54 A.2d 277, 357 Pa. 329, Sup.1947.
2. Construction
and Application
Urban redevelopment law grants enormous powers
and must carefully be examined under facts in each case, in light of
constitutional guaranties which relate to right of private property.
Redevelopment Authority of City of Erie v. Owners or Parties in Interest, 274 A.2d 244, 1 Pa.Cmwlth. 378, Cmwlth.1971.
The Urban Redevelopment Law is to be sharply distinguished from the
Housing Authorities Law (§ 1541 et seq. of this title), in that the latter aims
principally at the elimination of undesirable dwelling houses, whereas
the former is intended to give wide scope to municipalities in redesigning and
rebuilding such areas within their limits as no longer meet the economic and
social needs of modem city life and progress, Oliver v, City of Clairton, 98
A.2d 47, 374 Pa. 333, Sup.1953.
3. Purpose
The fundamental purpose of
both the Urban Redevelopment Law and the Housing Authorities Law (§ 1541 et
seq. of this title) is the same, namely the clearance of slum areas, although
the Housing Authorities Law is aimed more particularly at elimination of
undesirable dwelling houses, whereas the Urban Redevelopment Law is not so
restricted. Schenck
v. City of Pittsburgh, 70 A.2d 612, 364 Pa.
31, Sup. 1950.
The Urban Redevelopment Law
is intended to give wide scope to municipalities in redesigning and rebuilding
such areas within their limits as, by reason of passage of years and enormous
changes in traffic conditions and types of building constructions, no longer
meet economic and social needs of modern city life and progress. Schenck v. City of Pittsburgh,
70 A.2d 612, 364 Pa.
31, Sup. 1950.
4. Blighted Areas
City planning commission's
certification of blight is not "adjudication" under section of Local
Agency Law providing that no adjudication of local agency shall be valid as to
any party unless he has been afforded reasonable notice of hearing an
opportunity to heard; certification of blight does not, in and of itself, have
legal effect on property rights, as it does not necessarily lead to taking of
all, or even any, of property in certified area by eminent domain, and
certification merely sets stage for redevelopment of area. Matter of Condemnation by Urban Redevelopment
Authority of Pittsburgh, 594 A.2d 1375, 527 Pa.
550, Sup. 1991, certiorari denied 112 S. Ct. 638, 502 U.S.
1004, 116 L. Ed. 2d 656.
A planning commission and redevelopment
authority are presumed to act in good faith in declaring an area blighted;
burden of proving fraud or abuse of discretion is a heavy one. In re Condemnation of Premises 130 Court St.,
in City of Reading, Berks County, 388 A.2d 1108, 36 Pa. Cmwlth.,
394, Cmwlth.1978.
Fact that condemnee’s buildings may themselves be structurally sound
is not sufficient to prevent their condemnation when they are located in area
properly determined to be blighted and designated for redevelopment, In re City
of Harrisburg, 373 A.2d 774, 30 Pa. Cmwlth. 273,
Cmwlth.1977.
Court's determination
of factual issue of blight in proceeding challenging condemnation of land for
redevelopment is limited to a review of certification to that effect by the
planning commission and to see that the authority has not acted in good faith
or arbitrarily. Simco
Stores, Inc. v. Redevelopment Authority of City of Philadelphia, 302 A.2d 907,
8 Pa. Cmwlth. 374, Cmwlth. 1973, affirmed 317 A.2d 610, 455 Pa. 438.
Power of discretion
over what areas are to be considered blighted is solely within power of
redevelopment authority. Crawford v.
Redevelopment Authority of Fayette County, 211 A.2d 866, 418 Pa. 549, Sup, 1965.
Determination of urban renewal board that
whole area has taken on character of blight was not arbitrary merely because one small part was free from
blight. Crawford v. Redevelopment
Authority of Fayette County, 211 A.2d 866, 418 Pa. 549, Sup,1965.
In order that city planning commission may
certify an area as blighted, it is not necessary that each and every one of the
conditions which cause areas to
become blighted, as specified in
this section, should exist, but existence of anyone of such conditions is
sufficient to warrant certification and adoption of a redevelopment
project. Oliver v. City of Clairton, 98 A.2d 47, 374 Pa. 333, Sup.1953.
The term
"blight" in the Urban Redevelopment Law signifies a condition
characterized as urban obsolescence beyond salvage by private rehabilitation
and denotes more than physical destruction resulting from a natural disaster
for which there is no power of condemnation under the statute. Condemnation of Elsesser, 12 Pa. D. &
C.3d 25 (1979).
5. Jurisdiction
Public service commission did not have
jurisdiction under the Urban Redevelopment Law over action by city and department
of transportation to compel utility to relocate its utility lines and poles
along city street for highway-widening project. Corn., Dept. of Transp. v. Pennsylvania Power & Light Co., 383 A.2d
1314, 34 Pa.Cmwlth. 594,
Cmwlth.1978.
§ 1703. Definitions
The
following terms where used in this act,1
shall have the following meanings, except where the context clearly indicates a
different meaning.
(a) “Authority” or “Redevelopment Authority.” —A public
body and a body corporate and politic created and organized in accordance with
the provisions of this act.
(b) “Bonds.” —Any bonds, interim
certificates, notes, debentures or other obligations of an Authority issued
pursuant to this act.
(c)
“City.” —Any city of the first, second, second class A or third class.
“The city” shall mean the particular city for which a particular Authority is
created.
(c.l) “Commercial and Industrial
Redevelopment Program.” —The financing of the purchase,
construction, rehabilitation, demolition or equipping of a commercial or an
industrial project as part of the redevelopment of an area designated in the
program as needing such assistance by the Authority and in accordance with the
program.
(c.2) “Commercial or Industrial Project.” —A
commercial or industrial facility, as those terms are used in the zoning
ordinances of the municipality for the Authority's help of operation, within an
area designated in the Commercial and Industrial Redevelopment Program which by
its nature and location has or offers reasonable likelihood of preventing,
slowing or reversing the deterioration of the designated area.
(c.3) “Conservation.” —The process of
preserving or restoring existing buildings, public facilities or other
improvements to an economically and socially sound condition.
(d)
“County.” —Any county of this Commonwealth, other than a county of the
first class. “The county” shall mean the particu1ar county
for which a particular Authority is created.
(e) “Field of Operation.” —The area within the territorial
boundaries of the city or county for which a particular authority is created:
Provided, however, That the field of operation of any county authority shall
not include a city having a redevelopment authority but may include, with the
consent of any such city, parcels of land within the city limits which are
necessary to the corporate purposes of the county authority or necessary to its
successful redevelopment of a redevelopment area: And, provided further, That
the field of operation of any authority may include parcels of land outside the
territorial boundaries of the city or county, as the case may be, which are
necessary to the corporate purposes of the authority or necessary to the
successful redevelopment of a redevelopment area, with the consent of the
governing body of the city or county and the municipality in which the said
parcels are situated, as the case may be: Provided, however, That the field of
operation of any Authority shall not include parcels of land outside the
territorial boundaries of a county unless acquisition thereof has been approved
by a majority of the electors voting in a primary or general election in the
municipality in which said parcels are situated.
(f) “Governing Body.” —In the case of a city, the city councilor
other legislative body thereof, and in the case of a county, the board
of county commissioners or other legislative body thereof.
(g)
“Government.” —Includes the State and Federal Governments or any
subdivision, agency or instrumentality corporate or otherwise of either of
them.
(h) “Municipality.” —Any
county, city, borough or township.
(i) “Obligee of
the Authority” or “Obligee.” —Any bondholder,
trustee or trustees for any bondholders, any lessor
demising property to an Authority used in connection with a redevelopment
project, or any assignee or assignees of such lessor's
interest, or any part thereof, and the Federal Government, when it is a party
to any contract with an Authority.
(j)
“Planning Commission.” —Any planning commission established by law for a
municipality of this Commonwealth. “The Planning Commission” shall mean the
particular planning commission of the city or county in which a particular
Authority operates. Redevelopment authorities shall be substituted for planning
commission in any city or county in which a planning commission does not exist.
(k)
“Real Property.” —Lands, lands under water, structures and any and all
easements, air rights, franchises and incorporeal hereditaments
and every estate and right therein, legal and equitable, including terms for
years and liens by way of judgment, mortgage or otherwise.
(l)
“Redeveloper.” —Any individual, government, partnership or public or
private corporation that shall enter or propose to enter into a contract with
an Authority for the redevelopment of an area, or any portion thereof, or any building or structure thereon, under the
provisions of this act.
(m) “Redevelopment.” —Undertakings and activities for the
elimination of blighted areas. Such undertakings and activities may include the
planning, replanning, acquisition, rehabilitation,
conservation, renewal, improvement, clearance, sale, lease or other disposition
of real property, buildings or other improvements in blighted areas, or
portions thereof, the relocation of businesses and families affected thereby into
or outside of a redevelopment area, or any combination of such undertakings and
activities, the installation, construction or reconstruction of streets,
utilities, parks, playgrounds and other improvements necessary for carrying out
in the blighted area the objectives of this act in accordance with the
redevelopment area plan, and carrying out plans for a program of voluntary
repair, rehabilitation, and conservation of real property; buildings or other
improvements in accordance with the redevelopment area plan.
(n)
“Redevelopment Area.” —Any area, whether improved or unimproved, which a
planning commission may find to be blighted because of the existence of the
conditions enumerated in section two of this act2 so as to
require redevelopment under the provisions of this act.
(o)
“Redevelopment Area Plan.” —A plan for the redevelopment of all or a
part of a redevelopment area made by a planning commission in accordance with
the provisions of section ten of this act.3
(p) “Redevelopment Contract.” —A contract between an Authority and
a redeveloper for the redevelopment of an area under the provisions of this
act.
(q) “Redevelopment Project” or “Project.” —A project undertaken by
a redeveloper under a contract with an Authority in accordance with the provisions
of this act.
(r) “Redevelopment Proposal.” —A proposal, including a copy of the
redevelopment area plan and supporting data submitted for approval to the
governing body by an Authority, for the redevelopment of all or any part of a
redevelopment area.
(s) “Residential Housing Redevelopment Program.” —The financing of
the purchase, construction, rehabilitation, demolition or equipping of a
residential housing project as part of the development of an area designated in
the program as needing such assistance by the Authority and in accordance with
the program.
(t) “Residential Housing
Project.” —A facility within an area designated in the residential housing
redevelopment program which provides residential housing.
1945, May 24, P.L.
991, § 3. Amended 1955, May 31, P.L. 107, § 1; 1957, May 27, P.L. 197, § 1;
1959, Dec. 1, P.L. 1637, No. 603, § 1; 1965, Aug. 17, P.L. 351, § 1; 1968, June
26, P.L. 263, No.125, §§ 2 to 7; 1988, March 30, P.L. 304, No.39, § 2, imd. effective.
135 P.S. § 1701 et seq.
235 P.S. § 1702.
335 P.S. § 1710.
Historical and Statutory Notes
Act 1988-39 legislation
The
1988 amendment redesignated former (c.1) defining: “conservation” as (c.3),
and added definitions of “commercial
and industrial redevelopment program”, “commercial or industrial project”,
“residential housing redevelopment program”,
and “residential housing project”.
Cross References
Tax exemption for improvements to deteriorated
dwellings, see 72 P.S. § 4711-101 et seq.
Notes of Decisions
Redevelopment projects
1
1. Redevelopment Projects
Comprehensive plans of area certified by
planning commission as blighted may, at the discretion of the redevelopment authority, be undertaken in
stages, called projects, Golden Dawn Shops, Inc. v. Redevelopment Authority of City of
Philadelphia, 282 A.2d 395, 3 Pa. Cmwlth. 314,
Cmwlth.1971.
§ 1704. Formation of
Authorities
(a) There are hereby created separate and
distinct bodies corporate and politic, one for each city and one for each
county of the Commonwealth, as herein defined. Each such body shall be known as
the Redevelopment Authority of the city or the county, as the case may be, but
shall in no way be deemed to be an instrumentality of such city or county, or
engaged in the performance of a municipal function. Each such Authority shall
transact no business or otherwise become operative until and unless a finding
is made as hereinafter provided in this section.
(b) At any time after passage of this act the governing body of
any city or county may find and declare by proper ordinance or resolution that
there is need for an Authority to function within the territorial limits of
said city or county, as the case may be.
(c) The governing body shall cause a certified copy of such
ordinance or resolution to be filed with the Department of State and a
duplicate thereof with the Department of Community Affairs; upon receipt of the
said certificate the Secretary of the Commonwealth shall issue a certificate of
incorporation.
(d) In any suit, action or proceeding
involving or relating to the validity or enforcement of any contractor act of
an Authority, a copy of the certificate of incorporation duly certified by the
Department of State shall be admissible in evidence and shall be conclusive
proof of the legal establishment of the Authority.
1945, May 24, P.L. 991, § 4. Amended 1949, May
20, P.L, 1621, § 1; 1968, June 26, P.L, 263, No.125, § 8.
Historical and Statutory Notes
Reorganization Plan No.2 of 1966
Under Reorganization Plan No.2 of 1966,
certain functions of the State Planning Board, transferred to the Department of
Commerce by Reorganization Plan No. 1 of 1955, including those created by subsection (c) of this section, are
transferred from the Department of Commerce to the Department of Community
Affairs and shall be administered by the Secretary of the Department of
Community Affairs. See 71 P.S. § 751-10(1)(b).
Act 1968-125
Legislation
The 1968 amendment in subsec. (c) substituted “Department of Community Affairs” for “State
Planning Board”.
Section 14 of the act of 1968 provided:
“Reorganization
Plan No.1 of 1955, adopted by the House of Representatives June 7, 1955 and by
the Senate on May 23, 1955 [71 P.S. § 751-1], is suspended in so far as it is
inconsistent with the provisions of this act.”
Library
References
Municipal Corporations 3, 5. Westlaw Topic
No.268. C.J.S. Municipal Corporations §§
10 to 12.
Notes of
Decisions
Antitrust actions 4 Immunity 3 Municipalities 2 Nature and scope of authority 1
1. Nature and Scope of Authority
Under Pennsylvania law,
condemnation of parking garage by city’s redevelopment authority triggered a
clear and unambiguous lease provision that allowed city to terminate lease upon
condemnation of garage by “any governmental authority,” and thus, city’s
termination of the garage lease did not constitute breach of the lease
agreement. Adams
Parking Garage, Inc. v. City of Scranton, C.A. 3 (Pa.) 2002, 33 Fed.Appx. 28, 2002 WL 465992, Unreported.
Redevelopment authority
is an agency of Commonwealth and not of local government body. Herriman v. Carducci, 380 A.2d 761, 475 Pa. 359, Sup. 1977.
Redevelopment authority is completely separate
entity from city. Herriman
v. Carducci, 380 A.2d 761, 475 Pa. 359, Sup.1977.
A redevelopment authority created under the
Urban Redevelopment Law for purpose of eliminating and rehabilitating blighted
sections of the municipality is not a “municipal commission” within provision
of Const. Art. 15, § 2, relating to debt limits for a municipal
commission. Belovsky
v. Redevelopment Authority of City of Philadelphia, 54 A.2d 277, 357 Pa. 329, Sup. 1947.
2. Municipalities
Optional
Third Class City Charter Law (53 P.S. § 41101 et seq.) which gives third class cities
ability to organize and regulate
their own internal affairs, does not empower city council to circumvent general
assembly statutory scheme for creation of redevelopment authorities by
investing cities with powers denied to them by the Urban Redevelopment
Law. Herriman
v. Carducci, 380 A.2d 761,
475 Pa. 359, Sup.1977.
Mayor of a third-class
city lacked power to remove from office at his pleasure appointed members of an
authority created under Urban Redevelopmei1L Law. Com. ex rel. Hanson v. Reitz, 170 A.2d 111,403 Pa. 434, Sup.1961.
3. Immunity Although city redevelopment authority was
agent of Commonwealth and not of local governmental body, such authority, which
had localized nature in that its powers were subject to City approval, was not
cloaked in Commonwealths sovereign immunity and thus was required to defend in action brought by plaintiff against
authority for injuries and permanent
disability resulting from accident which occurred while plaintiff was working on property owned by authority when fire
escape collapsed. Greer v. Metropolitan Hospital, 341 A.2d 520, 235 Pa.Super. 266, Super. 1975.
4. Antitrust Actions City redevelopment authority was not part of
Commonwealth and thus could not be considered sovereign when supervising actions of private development
corporation, in order to afford corporation immunity from antitrust liability
pursuant to state action doctrine, where under statutory scheme, redevelopment
authority had fiscal autonomy from city, possessed great degree of autonomy
over operations, and commissioners were appointed by local officials rather
than by Commonwealth, despite fact that redevelopment authority was designated
as “public body, corporate and politic, exercising public powers of Commonwealth.”
Vartan v. Harristown
Development Corp., M.D.Pa.1987, 661 F.Supp. 596,
affirmed 838 F.2d 1208.
Grocery wholesaler's antitrust claims against
local redevelopment authority were not barred by state action exception since
municipal rather than state action was challenged. Jetro
Cash and Carry Enterprises, Inc. v. Food Distribution Center, E.D.Pa.1983, 569 F.Supp. 1404.
State action immunity was controlling, in suit under the Sherman Act with respect to
conduct of city, mayor's development
council, and redevelopment authority and their members with respect to purchase
of property which plaintiff allegedly sought to acquire for construction of a
hotel, despite contention that state action immunity is inapplicable where private enterprise might undertake a
project. Jonnet Development Corp. v. Caliguiri, W.D.Pa. 1983, 558 F.Supp. 962.
§ 1704.1. Dissolution
of City Authorities
If a city authority has never issued any
bonds, or incurred any other debts or contractual obligations, or has paid and
has been released from and discharged of all debts and bonded, contractual and
other obligations, the governing body of the city may, after three years from
the date of the certificate described in subsection (c) of section 4, or
earlier if a proper resolution of the authority requests the action hereinafter
described, find and declare by proper resolution that its functions can be more
properly carried out by a county authority and that there is no longer any need
for the authority created for such city to function. In such case the governing
body shall issue a certificate reciting the adoption of such resolution, and
shall cause such certificate to be filed with the Department of State and two
duplicates thereof with the Department of Community Affairs. Upon such filing the
city authority shall cease to function, and title to any assets held by the authority at that time shall pass to
the city. A copy of the certificate
described in this section shall be admissible 1 in any suit,
action or proceeding and shall be conclusive proof that the authority has
ceased to be in existence.
1945, May 24, P.L. 991, § 4.1, added 1967, Nov. 16, P.L. 498, No.243, §
1.
1 Enrolled bill read “admissible”.
Historical and Statutory Notes
Act 1967-243
Legislation
Section 2 of the act of Nov. 16, 1967, provided:
“Dissolutions of any authority heretofore made
in substantial compliance with the
terms of this act are hereby validated.”
Library References
Municipal
Corporation 
51.
Westlaw Topic No. 268 C.J.S. Municipal Corporations §§ 99 to 103.
Notes of Decisions
Constructions and Application 1
1. Construction
and Application
City
could not dissolve municipal redevelopment authority by passing resolution to
dissolve authority and sending certificate reciting resolutions to Department
of State and Department of Community Affairs; statute establishing procedures
for dissolving redevelopment authorities permits governing body to declare
dissolution only if the authority has paid and has been released from and
discharged of all debts and obligations.
City of Chester v. Chester Redevelopment Authority, 686 A.2d 30, Cmwlth. 1996, reargument denied,
appeal denied 695 A.2d 787, 548 Pa. 650.
§ 1704.2. Dissolution of County Authorities
If
a county authority has never issued any bonds, or incurred any other debts or
contractual obligations, or has paid and has been released from and discharged
of all debts and bonded, contractual and other obligations, the governing body
of the county may, after three years from the date of the certificate described
in subsection (c) of section 4, or earlier if a proper resolution of the
authority requests the action hereinafter described, find and declare by proper
resolution that there is no longer any need for the authority created for such
county to function. In such case the governing body shall issue a certificate
reciting the adoption of such resolution, and shall cause such certificate to
be filed with the Department of State and two duplicates thereof with the
Department of Community Affairs. Upon such filing the county authority shall
cease to function, and title to any assets held by the authority at that time
shall pass to the county. A copy of the certificate described in this section
shall be admissible in any suit, action
or proceeding and shall be conclusive proof that the authority has ceased to be
in existence.
1945, May 24, P.L.
991, § 4.2, added 1967, Nov. 16, P.L. 498, No.243, § 1.
Historical and Statutory Notes
Act 1967-243 Legislation
Section 2 of the act of Nov. 16,
1967, provided:
“Dissolutions of any
authority heretofore made in substantial compliance with the terms of this act
are hereby validated.”
Library References
Municipal Corporations 51.
Westlaw Topic No. 268.
C.J.S. Municipal Corporations §§ 99 to 103.
§ 1705. Appointment and
Qualifications of Members of Authority
Upon certification of a resolution declaring
the need for an Authority to operate in a city or county, the mayor or board of
county commissioners thereof, respectively, shall appoint, as members of the
Authority, five citizens who shall be residents of the city or county in which
the Authority is to operate.
1945, May 24, P.L. 991, § 5.
Library References
Municipal Corporations 
129.
Westlaw Topic No. 268.
C.J.S. Municipal Corporations §§ 350, 353 to
354, 367.
Notes of Decisions
Failure to appoint 1
Municipalities, generally 3
Removal of members 2
1. Failure to
Appoint
Failure
of a mayor to appoint successors to the redevelopment authority when terms of office, expired does not forfeit the mayor’s
appointing power. Com. ex rel.
Sortino v. Singley, 392
A.2d 1337, 481 Pa. 367, Sup.1978.
2. Removal of Members
Newly elected mayor could
not remove two persons from the redevelopment authority who had been appointed
by his predecessor; mayor does not have the right to remove members of the
redevelopment authority at his pleasure. Com. ex rel. Sortino v. Singley, 392 A.2d 1337, 481 Pa.
367, Sup.1978.
Fact
that two persons appointed to the redevelopment authority by the mayor were
inexperienced did not provide cause for their removal on the theory that the
Redevelopment Law, by specifying staggered terms of office, contemplated that
members of a redevelopment authority would have varying degrees of experience
in the office. Com. ex.
rel. Sortino v. Singley, 392 A.2d 1337, 481 Pa. 367, Sup. 1978.
Mayor of a third-class city lacked power to
remove from office at his pleasure appointed members of an authority created
under Urban Redevelopment Law. Com. ex rel. Hanson v. Reitz, 170 A.2d
111, 403 Pa. 434, Sup. 1961.
3. Municipalities, Generally
Optional Third Class
City Charter Law (53 P.S. § 41101 et seq.) which gives third class cities
ability to organize and regulate their own internal affairs, does not empower
city council to circumvent general assembly statutory scheme for creation of
redevelopment authorities by investing cities with powers denied to them by the
Urban Redevelopment Law. Herriman v. Carducci, 380 A.2d 761, 475 Pa. 359, Sup.1977.
Fact
that mayor was authorized to appoint members of redevelopment authority did not
make appointment a matter concerning “internal affairs” of city, within charter empowering city to organize and
regulate its internal affairs, but even if it had, in view of 53 P.S. § 41305
precluding city from exercising power contrary to act of General Assembly if
act applies to all cities, city could not nullify this section which requires
mayors to appoint members of authorities, by ordinance providing that where
appointment is vested in city by statute, appointment shall be with consent of
council; thus mayor's appointment of successor member on authority was valid
without consent of council. Herriman v. Carducci, 380 A.2d 761, 475 Pa. 359, Sup.1977.
§ 1706. Tenure and
Compensation of Members of Authority
The members who are first appointed shall
serve for terms of one, two, three, four and
five years, respectively, from the date of their appointment as shall be
specified at the time of their appointment. Thereafter, the term of office
shall be five years. A member shall hold office until his successor has been
appointed. Vacancies for unexpired terms shall be promptly filled by the
appointing power. A member shall receive no compensation for his
services, but shall be entitled to the necessary expenses, including traveling
expenses, incurred in the discharge of his duties.
1945, May 24, P.L. 991, § 6.
Library References
Municipal Corporations 149, 163.
Suicide 
162.
Westlaw Topic Nos. 268, 368.
C.J.S. Municipal Corporations §§ 361, 382 to 383.
C.J.S. Suicide §§ 6 to
7.
Notes of Decisions
Removal 2
Tenure, Generally 1
1. Tenure,
Generally
Where the
term of a member of the board of a redevelopment authority expires, but he
holds over for several months because of the failure of the appointing
authority to appoint his successor, the successor, when appointed, holds office
only for five years from the date of expiration of his predecessor’s term, and
not for five years from the date he actually takes office. Com. v. Volpe, 69 Pa. D. &
C.2d 107 (1975).
2. Removal
Under
Pennsylvania law, director of real estate department of city redevelopment
authority did not have any property interest in his employment nor did
Pennsylvania Urban Redevelopment Law (§ 1701 et seq. of this title), creating
redevelopment authority, confer any power upon authority to create such a
property right, and thus former director of real estate department was not
entitled to due process protection and his alleged discharge by forced
resignation without hearing and without cause did not constitute denial of due
process. Rosenberg v.
Redevelopment Authority of City of Philadelphia, E.D.Pa. 1977, 428 F.Supp. 498.
Fact that
two persons appointed to the redevelopment authority by the mayor were
inexperienced did not provide cause for their removal on the theory that the
Redevelopment Law, by specifying staggered terms of office, contemplated that
members of a redevelopment authority would have varying degrees or experience
in the office. Com. ex
rel. Sortino v. Singley, 392 A.2d 1337, 481 Pa.
367, Sup. 1978.
Mayor of
a third-class city lacked power to remove from office at his pleasure appointed
members of an authority created under Urban Redevelopment Law. Com. ex rel. Hanson v. Reitz, 170 A.2d 111, 403 Pa.
434, Sup. 1961.
§ 1708. Organization of Authority
The members of an Authority shall select from
among themselves a chairman, a vice-chairman, and such other officers as the
Authority may determine. An Authority may employ a secretary, an executive
director, its own counsel and legal staff, and such technical experts, and such
other agents and employees, permanent or temporary, as it may require, and may
determine the qualifications and fix the compensation of such persons. Three
members of an Authority shall constitute a quorum for its meetings. Members of
an Authority shall not be liable personally on the bonds or other obligations
of the Authority, and the rights of creditors shall be solely against such
Authority. An Authority may delegate to one
or more of its agents or employees such of its powers as it shall deem
necessary to carry out the purposes of this act, subject always to the
supervision and control of the Authority.
1945, May 24, P.L. 991, § 7.
Library References
Municipal
Corporations 83.
Westlaw Topic
No. 268.
C.J.S. Municipal Corporations § 212.
§ 1708. Interest of Members or Employees
No
member or employee of an Authority shall acquire any interest, direct or
indirect, in any redevelopment project or in any property included or planned
to be included in any redevelopment area, or in any area which he may have
reason to believe may be certified to be a redevelopment area, nor shall he
have any interest, direct or indirect, in any contract or proposed contract for
materials or services to be furnished or used by an Authority, or in any
contract with a redeveloper or prospective redeveloper relating, directly or
indirectly, to any redevelopment project. The acquisition of any such interest
in a redevelopment project or in any such property or contract shall constitute
misconduct in office. If any member or employee of an Authority shall already
own or control any interest, direct or indirect, in any property later included
or planned to be included in any redevelopment project under the jurisdiction
of the Authority, or has any such interest in any contract for material or
services to be furnished or used in connection with any redevelopment project,
he shall disclose the same in writing to the Authority and to the Department of
Community Affairs and the local governing body, and such disclosure shall be
entered in writing upon the minute books of the Authority. Failure to make such
disclosure shall constitute misconduct in office.
1945,
May 24, P.L. 991 § 8. Amended 1949, May
20, P.L. 1621, § 1; 1968, June 26, P.L. 263, No. 125, § 8.
Historical
and Statutory Notes
Reorganization Plan No.2 of 1966 Under
Reorganization Plan No. 2 of 1966, certain functions of the State Planning
Board, transferred to the Department of Commerce by Reorganization Plan No. 1
of 1955, including those created by this section, are transferred from the
Department of Commerce to the Department of Commerce to the Department of
Community Affairs and shall be administered by the Secretary of the Department
of Community Affairs. See 71 P.S. §
751-10(1)(b).
Act 1968-125 Legislation
The 1968 amendment in
the penultimate sentence substituted “Department of Community Affairs” for
“State Planning Board”.
Section 14 of the act
of 1968 provided:
“Reorganization Plan
No. 1 of 1955, adopted by the House of Representatives June 7, 1955 and by the
Senate on May 23, 1955 [71 P.S. § 751-1], is suspended in so far as it is
inconsistent with the provisions of this act.”
Library References
Municipal Corporations 231.
Westlaw Topic No.268.
C.J.S. Municipal
Corporations § 906.
Notes of Decisions
Acts of Authority 1
1. Acts of
Authority
Vote
of member of redevelopment authority on resolutions would not be rendered void
or nullified merely because of an undisclosed conflict of interest. In re Certain Parcels of Real Estate in
Lehigh-Washington St. Development Project, in Fifth Ward of City of Easton,
216 A.2d 774, 420 Pa.
289, Sup. 1966.
Inasmuch as final and controlling declaration of taking was authorized and filed by
vote taken by redevelopment authority when certain person was no longer a
member or had any vote, fact that such person at time of his appointment as
member of redevelopment authority and while he was member was under contract to
furnish services to redeveloper selected by authority did not render
declaration of taking invalid. In re
Certain Parcels of Real Estate in Lehigh-Washington St. Development Project, in
Fifth Ward of City of Easton, 216 A.2d 774, 420 Pa. 289, Sup. 1966.
§ 1709. Powers
of an Authority
An Authority shall constitute a public body, corporate and politic,
exercising public powers of the Commonwealth as an agency thereof, which powers
shall include all powers necessary or appropriate to carry out and effectuate
the purposes and provisions of this act, including the following powers in
addition to those herein otherwise granted:
(a) To procure from the planning commission the designation of areas in
need of redevelopment and its recommendations for such redevelopment;
(b) To study the recommendations of the planning commission for
redevelopment of any area and to make its own additional investigations and
recommendations thereon; to initiate preliminary studies of possible
redevelopment areas to make and assist in implementing (1) plans for carrying
out a program of voluntary repair, rehabilitation and conservation of real
property, buildings and improvements, (2) plans for the enforcement of laws,
codes and regulations relating to the use of land and the use and occupancy of
buildings and improvements, (3) plans for the relocation of persons (including
families, business concerns and others) displaced by any other Government
activities related to the purposes of this act or any activities of the
Authority, (4) preliminary plans outlining redevelopment activities for
neighborhoods to embrace two or more redevelopment areas, and (5) preliminary
surveys to determine if the undertaking and carrying out of a redevelopment
project are feasible;
(c)
To cooperate with any government, school district or municipality;
(d) To act as agent of the State or Federal Government or any of its
instrumentalities or agencies for the public purposes set out in this act;
(e) To arrange or contract with any municipality located, in whole or
in part, within the Authority's field of operation, or with the State or
Federal Government for the furnishing planning, replanning,
constructing, installing, opening or closing of streets, roads, roadways,
alleys, sidewalks or other places or facilities, or for the acquisition by such
municipality, or State or Federal Government of property options or property
rights or for the furnishing of property or services in connection with a
redevelopment area;
(f) To arrange or contract with the Commonwealth, its agencies, and any
municipality to the extent that it is within the scope of their, respective
functions —(1) to cause the services customarily provided by each of them to be
rendered for the benefits of such Authority or the occupants of any
redevelopment area; and (2) to provide and maintain parks, recreational
centers, schools, sewerage, transportation, water and other municipal
facilities adjacent to or in connection with redevelopment areas; and (3) to
plan, replan, zone or rezone any part of the
municipality in connection with any redevelopment proposal of the Authority;
(g) To enter upon any building or property in order to make surveys or
soundings;
(h) To assemble, purchase, obtain options upon, acquire by gift, grant,
bequest, devise or otherwise any real or personal property or any interest
therein from any person, firm, corporations, municipality or government:
Provided, That no real property, located outside of a redevelopment area, which
is not necessary to the corporate purposes of the Authority nor necessary to
the successful redevelopment of a redevelopment area, shall be purchased by the
Authority;
(i) To acquire by eminent domain any real
property, including improvements and fixtures for the public purposes set forth
in this act, in the manner herinafter provided,
except real property located outside a redevelopment area;
(j) To own, hold, clear, improve and manage real property;
(k) To sell, lease or otherwise transfer any real property located
outside of a redevelopment area and, subject to approval by the local governing
body, any real property in a redevelopment area: Provided, That with respect to
a redevelopment area the authority finds that the sale, lease or other transfer
of any part will not be prejudicial to the sale or lease of other parts of the
redevelopment area, nor be in any other way prejudicial to the realization of
the redevelopment proposal approved by the governing body;
(l) To reimburse for their reasonable expenses of removal, any persons
(including families, business concerns and others), who have been displaced as
a result of any other Government activities related to the purposes of this act
or any activities of the Authority;
(m) To insure or provide for the insurance of any property or
operations of the Authority against any risks or hazards;
(n) To procure or agree to the procural of
insurance or guarantees from the State or Federal Government of the payments of
any debts or parts thereof incurred by the Authority, and to pay premiums in
connection therewith;
(o) To borrow from private lenders or from the State or Federal
Government funds, as may be necessary, for the operation and work of the
Authority;
(p) To invest any funds held in reserves or sinking funds or any funds
not required for immediate disbursement, in such investments as may be lawful
for executors, administrators, guardians, trustees and other fiduciaries under
the laws of this Commonwealth;
(q)
To sue and be sued;
(r) To adopt a
seal and to alter the same at pleasure;
(s) To have
perpetual succession;
(t) To make and execute contracts and other instruments necessary or
convenient to the exercise of the powers of the Authority; and any contract or
instrument when signed by the chairman or vice-chairman of the Authority, or by
an authorized use of their facsimile signatures, and by the secretary or
assistant secretary, or, treasurer or assistant treasurer of the Authority, or
by an authorized use of their facsimile signatures, shall be held to have been
properly executed for and on its behalf;
(u) To make and
from time to time to amend and repeal by-laws, rules, regulations and
resolutions;
(v)
To conduct examinations and investigations and to hear testimony and take
proof, under oath or affirmation, at public or private hearings, on any
matter material for its information;
(w) To authorize any member or members of the Authority to conduct
hearings and to administer oaths, take affidavits and issue subpoenas;
(x) To issue subpoenas requiring the attendance of witnesses and the
production of books and papers pertinent to any hearing before the Authority,
or before one or more members of the Authority appointed by it to conduct such
hearing;
(y) To, apply to any court having territorial jurisdiction of the
offense to have punished for contempt any witness, who refuses to obey a
subpoena, or who refuses to be sworn or affirmed, or to testify, or, who is
guilty of any contempt after summons to appear;
(z) To make available to
the government or municipality or any appropriate agency, board or commission,
the recommendations of the Authority affecting any area in its field of
operation or property therein, which it may deem likely to promote the public
health, morals, safety or welfare;
(aa) To make, directly or indirectly, secured or
unsecured loans to any purchaser or owner of a residential housing or a
commercial or an industrial project for the purpose of financing the purchase,
construction, rehabilitation, demolition or equipping of a residential housing
or a commercial and industrial redevelopment program;
(bb)
To make loans to or deposits with, at the option of the Authority, without
requiring collateral security therefore, any financial institution, in order to
enable that financial institution to finance the acquisition, construction,
rehabilitation or equipping of a residential housing or a commercial and
industrial redevelopment program. For such purposes, an Authority may make such
loans as the Authority may determine; receive interest on such deposits as may
be agreed to with the financial institution; purchase and hold notes or other
obligations secured by mortgages, deeds of trust or security interests in
residential housing, commercial or industrial projects or property used as
additional security, notwithstanding anything to the contrary elsewhere
contained in this act; sell, assign, pledge or encumber any security, including
mortgages or other security agreements, held by or granted to the Authority or
received in connection with the financing of residential housing or commercial
or industrial projects and grant to any trustee, in addition to any other
rights or remedies contained therein or in any documents granting such
security, such other rights and remedies as may be approved by the Authority. 1945, May 24, P.L. 991, § 9. Amended 1951,
Sept. 29, P.L.1650, § 1; 1953, July 27, P.L. 622, No.179, § 1; 1957,
May27, P.L.197, § 2; 1959, Dec.1, P.L. 1637, No.603, § 2; 1963, June 6,
P.L. 79, § 1; 1968, June 26, P.L.263, No.125, §§ 9 to 12; 1988, March
30, P.L. 304, No.39, § 3, imd.
effective.
Historical and Statutory Notes
Act 1953-179 Legislation
Section 2 of the act of 1953 read as follows:
“All proceedings heretofore had and held by any Redevelopment Authority to sell,
lease or otherwise transfer any of its real property located outside of
a redevelopment area under the provisions of the act to which this is an amendment and the acts amendatory thereof and supplementary thereto be and the same are hereby
ratified, confirmed and made va1id.”
“All of the deeds, leases or other conveyances issued, executed or made
or to be issued, executed or made in pursuance of such proceedings be and the
same are hereby ratified, confirmed and made valid; and the title to such
interest as may be thereby conveyed to any grantee, lessee or other transferee
be and the same is hereby ratified, confirmed and made valid in such grantee,
lessee or other transferee.”
Act 1988-39
Legislation
The
1988 amendment added subsecs. (aa) and (bb).
Library References
Eminent Domain 
17.
Municipal Corporations 57, 221.
Westlaw Topic Nos. 148,268.
C.J.S. Eminent Doman
§§ 52, 55.
C.J.S. Municipal Corporations §§ 104, 106, 108, 110 to 115, 117
to 118, 122, 137 to 138, 143, 145 to 146, 873 to 876, 878 to 879.
Notes of Decisions
In General 2 Blighted Areas, Eminent Domain 4 Contracts 7 Eminent Domain 3-5 In general 3 Blighted
Areas 4 Public Purposes 5 Judicial Review 9 Public Purposes, Eminent Domain 5
Sell, Lease, Transfer 6 Suits, Generally 8 Validity 1
1. Validity
Redevelopment authorities created under Urban
Redevelopment Law are purely administrative bodies and are not “special
commissions” or “private corporations” within provision of Const. Art. 3, § 20
(see, now, Const. Art. 3, § 31) prohibiting legislature from delegating to any
special commission or private corporation any power to make, supervise or
interfere with municipal improvement or perform any municipal functions. Belovsky v. Redevelopment Authority of City of Philadelphia, 54 A.2d 277, 357 Pa. 329, Sup.1947.
The provision of Redevelopment Cooperation Law
(§ 1741 et seq. of this title) that any city, borough, etc., may contract with
a redevelopment authority with respect
to any sums which the authority may agree to pay for special improvements, services, and facilities to be provided
by such city etc for the benefit of the redevelopment does not have any bearing
on the subject of tax exemption of property within the redevelopment so as to
be violative of provision of Const. Art. 9, §§ 1 and
3 (see, now, Const. Art. 8, §§ 1, 2, and 6) requiring all taxes to be uniform
and listing only certain prescribed property which may be exempted from
taxation. Belovsky v. Redevelopment Authority of City
of Philadelphia, 54 A.2d 277, 357 Pa. 329, Sup. 1947.
2. In General
Urban
redevelopment law grants enormous powers and must carefully be examined under
facts in each case, in light of constitutional guaranties which relate to right
of private property. Redevelopment Authority of City of Erie
v. Owners or Parties in Interest, 274 A.2d 244, 1 Pa.
Cmwlth. 378, Cmwlth.1971.
The Urban Redevelopment Authority of
Pittsburgh is a public body exercising public powers of Commonwealth as an agency
thereof, and stands in fiduciary relationship to the public and to taxpayers,
and its conduct must always be guided by rule of good faith, fidelity and
integrity. Schwartz v. Urban Redevelopment Authority of Pittsburgh 192 A.2d 371, 411 Pa. 530, Sup.1963.
Under the Urban Redevelopment Law, the
responsibility of the planning commission to make a study of a purportedly
blighted area may be discharged by the joint effort of the commission and the
Redevelopment Authority. Condemnation of Elsesser,
12 Pa. D. & C.3d 25 (1979).
In compliance with federal laws and
regulations, local housing authorities and redevelopment authorities are
eligible under state law, § 1541 et seq. of this title and § 1701 et seq., to
be sponsors for below-market interest rate mortgages for rental housing. 1968 Op.Atty.Gen. No. 278.
3. Eminent Domain — In General
In the absence of statutory authority under the Urban Redevelopment Law (URL),
county redevelopment authority could not impair its ability to exercise its
power of eminent domain, through contract or agreement with a redeveloper
requiring private-party redeveloper’s prior written consent to commence a
condemnation. In re Condemnation of 110 Washington Street, Borough of
