Building Pennsylvania Program - 64 Pa. Cons. Stat. § 1555

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     § 1555.  Building Pennsylvania Program.
        (a)  Establishment.--There is established a program to be
     known as the Building Pennsylvania Program. The program shall
     provide loans to fund managers for investment in real estate
     projects within this Commonwealth.
        (b)  Requests for proposals.--The board shall issue one or
     more requests for proposals in accordance with 62 Pa.C.S. § 518
     (relating to competitive selection procedures for certain
     services) for fund managers. Each request for proposals shall
     include all of the following:
            (1)  A statement that the service being requested is the
        investment in real estate projects located in this
        Commonwealth which will be acquired and developed,
        redeveloped or revitalized.
            (2)  A request to supply all of the following
        information:
                (i)  The fund manager's name and address.
                (ii)  The resumes of the individuals responsible for
            the investment decisions of the fund manager.
                (iii)  The fund manager's history of investments in
            real estate projects, including the number of previous
            investments, rates of return and capital raised.
                (iv)  A description of the proposed approach by the
            fund manager to investments in real estate projects
            located in this Commonwealth.
                (v)  The fund manager's history of investments in
            this Commonwealth.
                (vi)  The fund manager's understanding of this
            Commonwealth's geography and economic climate.
                (vii)  A statement by the fund manager of the amount
            of the loan being requested.
            (3)  Any other information required by the board.
        (c)  Review of proposals.--The board shall review the
     proposals and determine the fund manager or managers best
     qualified to provide the services described in the request for
     proposals. If the board determines that no fund manager is
     qualified, the board may reissue requests for proposals in
     accordance with this section.
        (d)  Contract negotiations.--The board shall select for
     contract negotiation one or more fund managers who are
     determined to be the best qualified to provide the services
     described in the request for proposals.
        (e)  Award.--The authority may enter into contracts with one
     or more fund managers. The contracts shall include all of the
     following provisions:
            (1)  The terms of repayment of principal and payment of
        interest and other return to the authority.
            (2)  That the fund manager will raise and invest in real
        estate projects located in this Commonwealth at least $1 of
        nonpublic equity for every $1 of loan funds received by the
        fund manager under this section.
            (3)  That the fund manager will exercise the standard of
        care in its responsibilities set forth in subsection (f).
            (4)  That the fund manager will provide the board with
        its annual audited financial statements for the duration of
        the loan. Financial statements shall be prepared in
        accordance with generally accepted accounting principles.
            (5)  That the fund manager will invest in industrial,
        commercial and multiuse real estate projects located in this
        Commonwealth which will be acquired and developed,
        redeveloped or revitalized in accordance with the provisions
        of this section.
            (6)  Any other provisions required by the board.
        (f)  Standard of care.--A fund manager awarded a contract
     under this section shall exercise that degree of judgment, skill
     and care under the circumstances then prevailing which persons
     of prudence, discretion and intelligence who are familiar with
     such matters exercise in the management of their own affairs,
     not in regard to speculation, but in regard to the permanent
     disposition of funds, considering the probable income to be
     derived therefrom as well as the probable safety of their
     capital.
        (g)  Limitations.--
            (1)  At least 50% of the funds made available for the
        program authorized by this section must be utilized for
        projects located in areas other than cities of the first or
        second class.
            (2)  No investments may be made by a fund manager in real
        estate projects which are primarily residential or primarily
        recreational.

        Cross References.  Section 1555 is referred to in section
     1543 of this title.

Last modified: November 27, 2007