HB 2423

                                                  PRINTER'S NO.   3224
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                    HOUSE BILL
                    No. 2423
                                            Session of
                                              2026
INTRODUCED BY SOLOMON, HOGAN, MAJOR, KHAN, BURGOS, HILL-EVANS,
   SANCHEZ, K. HARRIS, MADDEN, MADSEN, GALLAGHER, CERRATO,
   SHUSTERMAN AND SMITH-WADE-EL, APRIL 17, 2026
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
   APRIL 18, 2026
                               AN ACT
1 Amending Title 53 (Municipalities Generally) of the Pennsylvania
2    Consolidated Statutes, establishing the Residential Economic
3    Development District Grant Program and the Residential
4    Economic Development District Fund.
5    The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7    Section 1.    Title 53 of the Pennsylvania Consolidated
8 Statutes is amended by adding a chapter to read:
9CHAPTER 63
10RESIDENTIAL ECONOMIC DEVELOPMENT DISTRICT
11GRANT PROGRAM
12 Sec.
13 6301.   Definitions.
14 6302.   Residential Economic Development District Grant Program.
15 6303.   Submission to department.
16 6304.   Residential Economic Development District Fund.
17 § 6301.   Definitions.
18    The following words and phrases when used in this chapter
1 shall have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3    "Department."    The Department of Community and Economic
4 Development of the Commonwealth.
5    "Fund."   The Residential Economic Development District Fund
6 established under section 6304(a) (relating to Residential
7 Economic Development District Fund).
8    "Major economic development project."    A project in this
9 Commonwealth that meets both of the following criteria:
10(1)     the project is reasonably expected to create, retain
11    and attract jobs or otherwise improve the economic well-being
12    of the area surrounding the project site; and
13(2)     significant private investments are committed to
14    establish, expand, renovate or occupy a facility as part of a
15    single project at a designated project site, including
16    investment in new buildings, additions or improvements to
17    existing buildings, machinery, equipment, furniture, fixtures
18    and inventory.
19    "Major workforce housing project."    A project that creates a
20 significant number of housing units.
21    "Pro-housing development policy."    Any of the following:
22(1)     Having a process in place to increase the rate at
23    which permits for housing developments are reviewed.
24(2)     Having a preapproval process in place for an
25    expedited review of permits for a diverse range of housing
26    developers.
27(3)     Subsidizing or decreasing costs related to water or
28    sewer connections and extensions for major workforce housing
29    projects.
30(4)     Acquiring and readying sites that are ready to be
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1  financed and built upon by developers.
2      (5)    Reducing or eliminating impact, inspection and plan
3  review fees for housing developers.
4      (6)    Adopting a zoning plan that includes promoting
5  higher density, small lot size and minimum setback
6  requirements.
7      (7)    Developing a comprehensive plan that promotes
8  diverse residential development options.
9      (8)    Having no parking requirements for developments that
10  include residential units.
11      (9)    Improving water or sewer infrastructure, improving
12  roads or permitting both rigid and flexible pavement types.
13      (10)     Developing municipal and authority partnerships to
14  expand the provision of sewer and water services to new
15  areas.
16      (11)     Promoting the use of nontraditional building
17  structures such as modular or manufactured homes.
18      (12)     Allowing accessory dwelling units as a matter of
19  right.
20      (13)     Allowing for townhome, duplex, triplex and quadplex
21  dwellings as a matter of right.
22      (14)     Eliminating height restrictions as a matter of
23  right.
24      (15)     Facilitating construction workforce training,
25  apprenticeships, tools, equipment and instructional
26  materials, including transportation assistance and stipends.
27      (16)     Prioritizing municipal engineering review of
28  subdivision, land development and infrastructure plans for
29  housing development projects.
30  "Program."    The Residential Economic Development District
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1 Grant Program established under section 6302 (relating to
2 Residential Economic Development District Grant Program).
3    "Residential economic development district."     All parcels of
4 land proximate to a major economic development project.
5 § 6302.    Residential Economic Development District Grant
6Program.
7    (a)    Establishment.--The Residential Economic Development
8 District Grant Program is established within the department for
9 the purpose of encouraging major workforce housing projects in
10 areas of this Commonwealth that otherwise would not attract such
11 developments and to increase home ownership among residents of
12 this Commonwealth.
13    (b)    Applicants.--A county or municipal corporation that is
14 fully or partially located within a residential economic
15 development district may apply for a grant under the program.
16    (c)    Duties of department.--The department may deny,
17 withhold, suspend or recoup grant funds that do not adhere to
18 this chapter.
19 § 6303.    Submission to department.
20    (a)    Application.--A county or municipal corporation may
21 submit an application independently or in collaboration with a
22 housing developer or one or more other counties or municipal
23 corporations. The application shall, at minimum, include
24 documentation or other evidence that proves, to the satisfaction
25 of the department, that the applicant has done or has imminent
26 plans to do both of the following within the district:
27(1)   adopt and implement, or demonstrate a documented
28    commitment to adopt and implement, at least five pro-housing
29    development policies that apply districtwide or municipality-
30    wide; and
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1(2)   approve a major workforce housing project.
2    (b)   Award of grants.--The department, in coordination with
3 local municipalities, shall review applications and award grants
4 under the program on a rolling basis, to the extent that funds
5 are available.
6    (c)   Determination.--The department shall evaluate
7 applications and determine the amount of each grant awarded in
8 accordance with scoring metrics that give preference to counties
9 and municipal corporations that adopt pro-housing policies as
10 provided under this chapter.
11    (d)   Limitations.--A grant recipient shall use the funds only
12 for the following purposes:
13(1)   Providing capital for housing development through
14    grants or loans.
15(2)   Acquiring and readying sites for development.
16(3)   Providing financial assistance for housing-related
17    infrastructure projects, including road improvements and
18    water or sewer connections.
19(4)   Addressing additional human services or public
20    safety needs due to increases in population.
21(5)   Building capacity at the municipal or regional level
22    to support the planning, application, administration and
23    implementation of grant-funded housing and infrastructure
24    projects, including technical assistance, grant writing,
25    program administration and assistance provided by housing
26    coalitions, redevelopment authorities or other qualified
27    entities.
28(6)   Any other purpose deemed appropriate by the
29    department in keeping with the intent of this chapter,
30    including traffic infrastructure, school infrastructure,
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1    recreation centers and health care needs.
2    (e)    Use of grant funds.--Grant funds shall be used solely
3 for purposes authorized under this chapter.
4    (f)    Other department grants.--Adoption of pro-housing
5 policies under this chapter shall be considered by the
6 department in awarding other department grants that seek to
7 further residential housing development or related
8 infrastructure projects.
9    (g)    Eligible housing developers.--Eligible housing
10 developers shall include for-profit developers, nonprofit
11 housing developers and nonprofit supportive housing developers.
12    (h)    Eligibility for additional grants.--
13(1)   Receipt of grant funds under the program shall not
14    disqualify a project from eligibility for any other grant
15    programs.
16(2)   The department shall encourage projects located
17    within a residential economic development district that
18    receive Redevelopment Assistance Capital Program funding and
19    include a residential component to incorporate workforce
20    housing units or other workforce housing accommodations.
21 § 6304.    Residential Economic Development District Fund.
22    (a)    Establishment.--The Residential Economic Development
23 District Fund is established as a separate fund in the State
24 Treasury for the purpose of providing grants under section 6302
25 (relating to Residential Economic Development District Grant
26 Program).
27    (b)    Continuing appropriation.--Money in the fund shall be
28 appropriated to the department on a continuing basis for the
29 purpose under subsection (a).
30    (c)    Administrative expenses.--Administrative expenses of the
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1 department related to the program may not exceed 5% of money in
2 the fund.
3    Section 2.   This act shall take effect in 60 days.
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