Read the full stored bill text
PRINTER'S NO. 1587
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1278
Session of
2026
INTRODUCED BY PICOZZI, STEFANO, BOSCOLA AND SANTARSIERO,
APRIL 14, 2026
REFERRED TO URBAN AFFAIRS AND HOUSING, APRIL 14, 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
shall have the meanings given to them in this section unless the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
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) at least $250,000,000 in 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 reserves
at least 50 units designed for residential occupancy by at least
50 individuals or families living independently from each other.
"Program." The Residential Economic Development District
Grant Program established under section 6302 (relating to
Residential Economic Development District Grant Program).
"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
20260SB1278PN1587 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
sewer connections and extensions for major workforce housing
projects.
(4) Acquiring and readying sites that are ready to be
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 or minimal parking requirements for
developments that include residential units as a matter of
right.
(9) Conducting a traffic study, improving water or sewer
infrastructure, improving roads or permitting both rigid and
flexible pavement types.
(10) Developing 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 duplex, triplex and quadplex dwellings
as a matter of right.
(14) Eliminating height restrictions as a matter of
right.
"Residential economic development district." All parcels of
land within a 20-mile radius of a major economic development
project.
20260SB1278PN1587 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
§ 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 shall establish
guidelines necessary to implement and administer this chapter.
The guidelines shall address application procedures, scoring
metrics and grant distribution.
§ 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 pro-housing-development
policies; and
(2) approve a major workforce housing project.
(b) Award of grants.--The department 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
20260SB1278PN1587 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
applications and determine the amount of each grant awarded in
accordance with scoring metrics that give preference to counties
and municipal corporations that adopt more pro-housing-
development policies in terms of both quantity and impact.
(d) Revocation.--If a county or municipal corporation is
approved for a grant under the program based on imminent plans
to adopt and implement pro-housing-development policies and
approve a major workforce housing project, the department shall
confirm that the county or municipal corporation follows through
with the plans, as described in the grant application, before
disbursing grant funds. The department may revoke approval if
the applicant fails to meet minimum requirements set by the
department.
(e) 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
or other infrastructure projects, including road improvements
and water or sewer connections.
(4) Addressing additional service or public safety needs
due to increases in population, except that expenditures
under this paragraph may not exceed 30% of the grant amount.
(5) Any other purpose deemed appropriate by the
department.
§ 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
20260SB1278PN1587 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(relating to Residential Economic Development District Grant
Program).
(b) Continuing appropriation.--Money in the fund is
appropriated to the department on a continuing basis for the
purpose under subsection (a).
(c) Investment earnings.--All investment earnings of the
fund shall be credited to the fund.
(d) Administrative costs.--The department may use no more
than 10% of money appropriated from the fund under subsection
(b) for costs incurred in administering the program.
Section 2. This act shall take effect in 60 days.
20260SB1278PN1587 - 6 -
1
2
3
4
5
6
7
8
9
10
11