35 Pa. Stat. § 1668
The department, subject to the approval of the Governor, shall tentatively allocate to the several areas of the Commonwealth, as designated by the department, such capital grants, as may promote aid, or stimulate the erection of housing or the effectuation of redevelopment within that area.
In the determination of such tentative allocations the department shall be guided by the following standards: population distribution pattern, growth as determined by the department in the period since one thousand nine hundred forty, trends of industry and such evidence of housing or redevelopment needs throughout the State as are available to the department.
The department shall publicize in each area concerned the tentative allocation of State subsidy funds for the stimulation of housing construction or redevelopment in that area, in each case making every reasonable effort to inform officials of political subdivisions and representatives of agencies such as those enumerated in section 4 of this act as possible participants in this program.
Each such political subdivision or agency evidencing within a reasonable period of time, as determined by the department, an interest in participating in the program, with accompanying proof of local housing or redevelopment need, recommendation of a suitable and available site, information as to community attitude and evidence that the municipality is recognizing its housing and redevelopment needs by enforcing the laws concerning building construction and sanitation, and other pertinent supporting data, shall have its request reviewed in the light of other requests from that area and the total amount of tentative allocations for the area. After review by the department, and if a housing project is involved, and if the need and feasibility of the proposed project has been demonstrated and where a suitable site is available and where adequate funds are available for allocation, the department shall accept bids on housing construction and operation proposals covering such number and character of housing units, type of construction, site, rental ranges proposed, and such other requirements as are established by the department. Each bid submitted shall stipulate the amount of State subsidy which would be required by the bidder to construct and operate the housing projects in accordance with the before mentioned requirements of the department.
If the tentative allocation of grants in any area in the State does not energize action resulting in acceptable proposals within a reasonable time, as determined by the department, the department shall have power to reallocate, with the approval of the Governor, these grants to other areas in the Commonwealth, which as determined by the before mentioned standards, have effectively established an urgent need for additional housing facilities or redevelopment programs. Unused portions of these reallocations may be similarly reallocated at later dates so as to effectuate the purposes of this act.
In order to effectuate and enforce the provisions of this act, the department is authorized to promulgate necessary rules and regulations.
35 P.S. § 1668