Current through Register Vol. 54, No. 45, November 9, 2024
Section 135.41b - Special program prioritiesFor Fiscal Year 1997-98, the special program priorities will be accepted in four categories: Community Development, Comprehensive Services, Affordable Housing Programs and Enterprise Zone Programs. Projects in each category shall relate to activities which will improve the physical and economic environment of low income neighborhoods or which will contribute to neighborhood stabilization by reversing patterns of deterioration and blight. The projects shall demonstrate the local commitment through partnerships of community based organizations, local government and the private sector. The following paragraphs set forth the requirements for the project to be eligible for tax credit valuation of 70%.
(1)Community development program. Required program characteristics include the following:(i) Project activities are eligible for the 50% tax credit program.(ii) Project activities shall be included in a community development plan for the prevention or elimination of physical blight and for educational, social and economic services to aid impoverished people within an urban neighborhood or rural community. A community development project shall include the components of clauses (A) and (B), and two of the remaining components in clauses (C)-(F).(A)Job development-examples.(I) Prevocational counseling of special supportive services for job related problems, such as transporation services, health examinations, social services and training stipends.(II) Strong training components that emphasize learning habits and skills that are transferable to private employment.(III) Activities which support the birth and expansion of small businesses. These activities shall assist the development of small businesses by providing valuable management skills, thereby increasing the effectiveness of community conservation efforts.(IV) Activities which redirect the older displaced workers through retraining programs.(V) Job training which will give low income and minority youth the opportunity to gain initial entry level work experience.(B)Housing examples. Activities which reverse the decline of neighborhoods without displacement of residents, such as: (I) Housing rehabilitation.(II) Historic and neighborhood preservation.(III) Development of low or moderate income housing.(IV) Incentives for greater private investment in neighborhood housing.(V) Housing rehabilitation activities with an emphasis on energy conservation such as the installation of energy conserving heating systems and furnace retrofits.(C)Education-examples.(I) Activities which improve the quality of the labor force through focus on vocational education.(II) Programs to enhance employment opportunities for youth and minorities by improvement in general education through focusing on the applied sciences and technology, career counseling and placement services.(III) General education and continuing education changes which aid in the retraining of older displaced workers.(D)Health-examples.(II) Treatment and rehabilitation centers such as those for victims of drug and alcohol abuse.(E)Recreation-examples.(I) Improvement of nonmunicipal recreational facilities that benefit impoverished persons.(II) Improvement of nonmunicipal recreational facilities that physically improve impoverished areas.(F)Social-examples.(I) Activities which increase the availability of basic human services.(II) Activities which support the development of human resources that will aid new economic growth and conserve the community.(2)Affordable housing programs. Applicants shall be limited to nonprofit neighborhood organizations who produce or preserve through renovation, repair, rehabilitation or new construction affordable housing for low-income persons meeting the following requirements:(i) Project activities shall be eligible for the 50% tax credit programs as set forth in § 135.22 (relating to submission of proposals).(ii) Project activities shall benefit low income persons whose family income is no more than 125% of the official poverty line established by the Federal Office of Management and Budget.(iii) Project activities shall demonstrate the development of local housing partnerships through community based organizations, local government and the private sector.(iv) An applicant who meets the eligibility requirements of subparagraphs (i)-(iii) shall submit a plan for low-income housing rehabilitation, new residential construction or housing consultant support services for low-income persons, which contains the following provisions:(A) Demonstration that upon completion of construction or rehabilitation of low-income rental housing units, rental costs may not exceed 30% of the renters' adjusted gross income.(B) Following the investment of tax credit supported contributions, a provision that the nonprofit organization may not, without Departmental approval, sell, lease or otherwise exchange property constructed, rehabilitated or supported by tax credits.(C) A nondiscrimination clause which includes a provision that both housing and employment opportunities will be provided to minorities.(D) A nondiscrimination clause providing that developers, contractors and subcontractors shall also be bound by the clause which extends employment opportunities to minorities and which is consistent with the nondiscrimination clause in § 135.51 (relating to nondiscrimination).(E) Neighborhood organizations and business firms shall ensure that the opportunity for participation in contracts, subcontracts and service delivery is extended to minority and women owned firms for projects carried out under this program.(v) Projects shall be responsive to members of rural community or urban neighborhoods. Applicants shall demonstrate the participation of low-income persons in the development of the proposed project. Applicants shall document low-income participation in project proposals submitted to the Department.(vi) The proposed project shall include a plan to increase the availability of low-income housing in the affected community. Projects aimed at revitalizing housing shall be based on a survey that clearly provides evidence of distressed and blighted neighborhoods.(vii) Projects shall include a significant commitment beyond contributed cash and materials, as follows: (A) Managerial services such as accounting or financial management.(B) Donation of full-time special personnel such as architects to assist in developing blue prints for constructions.(viii) Projects shall be specifically designed to be able to demonstrate a significant leveraging effect on public and private resources to support projects. Examples include their ability to: (A) Generate additional funds from other sources to aid in alleviating the problem of insufficient housing for low-income persons in the community.(B) Generate community support by involvement of local residents in the planning process.(C) Coordinate other activities with other organizations conducting similar housing programs.(3)Enterprise Development Zone Programs. A project which is participating in Enterprise Zone Programs may be eligible for 70% tax credits. Enterprise zones are identified areas of disadvantaged communities designated by the Department under the Enterprise Zone Program. The program is described in a policy statement in Chapter 121 (relating to enterprise development area initiative-statement of policy). These areas involve private/public partnerships designed to enhance the economic climate and lead to new job creation. A project pertaining solely to land and building rehabilitation or improvement of public infrastructure which may receive tax credits under The Enterprise Zone Tax Credit Program under section 4 of the act (62 P. S. § 2084) may not be eligible for 70% tax credits under this section. To be eligible for 70% tax credits in an enterprise zone, a program shall meet the following requirements. A project activity shall: (i) Be eligible for the 50% tax credit program in § 135.22.(ii) Directly benefit residents of the enterprise zone.(iii) Be developed in consultation with the enterprise zone coordinator for the designated enterprise zone.(4)Comprehensive service programs. A program that proposes to transform a distressed community into a healthy stable community through the long-term joint efforts of a neighborhood/community organization and a major corporate sponsor for the development and implementation of a strategic neighborhood revitalization plan. Required program characteristics include the following:(i) Program activities are eligible for the 50% tax credit program in § 135.22.(ii) Program activities shall benefit low income persons whose family income is no more than 125% of the official poverty line established by the Federal Office of Management and Budget or who are residents of an economically distressed community, or both. The distressed community shall be specified by geographic boundaries in the plan.(iii) The program shall have a major corporate sponsor who makes a significant commitment of contributed cash as well as other in-kind services such as financial advice, legal counsel, public relations, architectural assistance, managerial advice or other expertise that may be available within its corporate structure.(iv) The program shall include the following components and goals for the economically distressed neighborhood: (A)Housing. This component substantially improves housing for residents and provide for them both ownership and rental opportunities.(B)Education. This component raises the educational and job readiness levels of community residents.(C)Health and social services. This component builds the capacity of community/neighborhood based organizations and works creatively with county and State agencies so that social and health services are available for all residents including senior citizens and children.(D)Community development. This component encourages and assists neighborhood based community development, particularly along the commercial districts, which will create jobs for area residents.(E)Job training. This component creates job training and referral services for adults and young people, including summer job programs for "in-school" youth.(F)Crime prevention. This component develops, in cooperation with State and local law enforcement agencies, local school districts, county and State health departments, an educational program for drug prevention and antiviolence initiatives.(G)Community participation. This component enhances volunteer recruitment, training, placement and recognition to support comprehensive service project coalitions so that every resident becomes an active and effective citizen.(v) The program shall include a comprehensive service plan that contains four essential components for the revitalization of a distressed neighborhood. (A)Community partnerships. This component explains how community/neighborhood based organizations will transform a distressed neighborhood into a healthy community by creating significant and lasting partnerships among community based organizations, the private sector, and local and State government and the respective resources available.(B)Strategic neighborhood revitalization plan. This component is designed to provide a cohesive, coordinated plan of action, with strong community support for the project. The plan should include an assessment of needs, identification of resources, assignment of priorities and determination of appropriate course of action and be organized to support a plan of action over a minimum of a 5-year period.(C)Implementation of revitalization plan. This component sets forth the neighborhood's/community's vision for the future and identifies specific activities and resources needed to accomplish the tasks.(D)Evaluation. This component establishes an assessment mechanism for measuring the status and progress of proposed activities in meeting the overall comprehensive service goals for the revitalization of the distressed community.(vi) The program shall include a detailed budget that is a coordinated plan of financial action that supports the development and implementation of the proposed revitalization plan for the community/neighborhood.(5)Limitations. During Fiscal Year 1997-98, the Department will allocate no more than $1.3 million of the available tax credits for valuation at 70%. No more than $1 million dollars of the tax credits will be allocated to the combined applicants for Community Development and Affordable Housing Projects, and no more than $300,000 will be awarded for Comprehensive Service Programs. Approval of projects under special program priorities will be contingent upon the availability of tax credits.(6)Applicability. The special program priorities in this section are applicable to programs implemented during Fiscal Year 1997-98.The provisions of this §135.41b adopted May 15, 1981, effective 5/16/1981, 11 Pa.B. 1647; corrected November 13, 1981, effective 11/14/1981, 11 Pa.B. 4038; amended May 14, 1982, effective 7/1/1981, 12 Pa.B. 1561; amended June 24, 1983, effective 7/1/1982, 13 Pa.B. 1994; amended March 22, 1985, effective 7/1/1983, 15 Pa.B. 1076; amended July 3, 1986, effective immediately and will apply retroactively to July 1, 1985, 16 Pa.B. 2403; amended July 31, 1987, effective 7/1/1986, 17 Pa.B. 3207; amended August 19, 1988, effective upon publication and apply retroactively to July 1, 1987, 18 Pa.B. 3684; amended February 17, 1989, effective upon publication and apply retroactively to July 1, 1988, 19 Pa.B. 635; amended June 8, 1990, effective upon publication and apply retroactively to July 1, 1989, 20 Pa.B. 3056; amended June 29, 1990, effective 6/30/1990, 20 Pa.B. 3592; amended January 25, 1991, effective immediately and apply retroactively to July 1, 1990, 21 Pa.B. 359; amended November 27, 1991, effective 11/30/1991, 21 Pa.B. 5510; amended May 8, 1992, effective 5/9/1992, 22 Pa.B. 2449; amended November 19, 1993, effective 11/20/1993, 23 Pa.B. 5528; amended July 7, 1995, effective 7/8/1995, 25 Pa.B. 2718; amended December 6, 1996, effective 12/7/1996, 26 Pa.B. 5886; amended January 3, 1997, effective 1/4/1997, 27 Pa.B. 18; amended October 2, 1998, effective 10/3/1998, 28 Pa.B. 4893. This section cited in 12 Pa. Code § 135.23 (relating to review of proposals).