Housing replacement authorization - 26 Pa. Cons. Stat. § 905

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     § 905.  Housing replacement authorization.
        (a)  Short title of section.--This section shall be known and
     may be cited as the Housing Replacement Authorization Act.
        (b)  Housing replacements by acquiring agency as last
     resort.--
            (1)  If comparable replacement sale or rental housing is
        not available in the neighborhood or community in which a
        program or project is located and this housing cannot
        otherwise be made available, the acquiring agency may
        purchase, construct, reconstruct or otherwise provide
        replacement housing by use of funds authorized for the
        program or project. For this purpose, the acquiring agency
        may exercise its power of eminent domain to acquire property
        in fee simple or any lesser estate as it deems advisable.
            (2)  Replacement housing provided under this section may
        be sold, leased or otherwise disposed of by the acquiring
        agency, for or without consideration, to displaced persons or
        to nonprofit, limited dividend or cooperative organizations
        or public bodies, on terms and conditions as the acquiring
        agency deems necessary and proper to effect the relocation of
        persons displaced by a program or project.
            (3)  The acquiring agency may contract with other public
        agencies or any person for the financing, planning,
        acquisition, development, construction, management, sale,
        lease or other disposition of replacement housing provided
        under this section.
        (c)  Planning and other preliminary expenses for replacement
     housing.--
            (1)  A governmental acquiring agency may make loans and
        grants to nonprofit, limited dividend or cooperative
        organizations or public bodies for necessary and reasonable
        expenses, prior to construction, for planning and obtaining
        mortgage financing for the rehabilitation or construction of
        housing for these displaced persons.
            (2)  The loans and grants shall be made prior to the
        availability of financing for items such as preliminary
        surveys and analyses of market needs, preliminary site
        engineering, preliminary architectural fees, legal, appraisal
        and organizational fees, site acquisition, application and
        mortgage commitment fees, construction loan fees and
        discounts and similar items.
            (3)  Loans to an organization established for profit
        shall bear interest at market rate determined by the
        acquiring agency. All other loans and grants shall be without
        interest.
            (4)  The acquiring agency shall require repayment of
        loans and grants made under this section, under any terms and
        conditions it requires, upon completion of the project or
        sooner. However, except in the case of a loan to an
        organization established for profit, the acquiring agency may
        cancel any part or all of a loan and may cancel the repayment
        provisions of a grant if it determines that a permanent loan
        to finance the rehabilitation or the construction of the
        housing cannot be obtained in an amount adequate for
        repayment of the loan.
        (d)  Availability of funds.--Funds, including motor license
     funds and other special funds, appropriated or otherwise
     available to any acquiring agency for a program or project,
     which results in the displacement of any person, shall be
     available also for obligations and expenditures to carry out the
     provisions of this section.

Last modified: November 27, 2007