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