53 Pa.C.S. Ch. 54

in effect

53 Pa.C.S. § 5401 Short title and scope of chapter.

(a) Short title of chapter.--This chapter shall be known and may be cited as the Business Improvement District Act. (b) Scope of chapter.--This chapter applies to municipal corporations.

53 Pa.C.S. § 5402 Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Costs of improvements." Engineering, architectural, attorney or other consulting fees, preliminary planning, feasibility studies, financing costs and other costs necessary and incidental to the completion of the improvement. "Municipal corporation." Any city, borough or incorporated town. (May 5, 1998, P.L.301, No.50, eff. 60 days) 1998 Amendment. Act 50 added the def. of "municipal corporation."

53 Pa.C.S. § 5403 Powers of governing body.

The governing body of every municipal corporation shall have the power: (1) To establish within the municipal corporation an area or areas designated as a business improvement district, which district or districts may be designated as all or part of any community which is zoned commercial or which is used for general commercial purposes. (2) To appropriate and expend those amounts as may be necessary for preliminary planning or feasibility studies to determine needed improvements in business improvement districts, to recommend improvement to individual properties and to provide where required basic design criteria. Public hearings shall be required before passage of the enabling ordinance at which any interested party may be heard. Notice of the hearings shall be advertised at least ten days prior thereto in a newspaper circulating in the municipal corporation. The ordinance shall specify improvements, with respective costs. The ordinance shall not become effective if, before the expiration of 20 days after its enactment, property owners of the proposed district whose property valuation as assessed for taxable purposes amounts to more than 50% of the total property valuation of the district sign and file in the office of the prothonotary of the court of common pleas a written protest against the ordinance. (3) To appropriate and expend in accordance with the specific provisions of the enabling ordinance such amounts as may be required to acquire by purchase or lease real or personal property to effectuate the purposes of the improvement district, including sidewalks, retaining walls, street paving, street lighting, parking lots, parking garages, trees and shrubbery purchased and planted, pedestrian walks, sewers, water lines and rest areas and acquisition and remodeling or demolition of blighted buildings and similar or comparable structures. No improvement shall be made to property which has not been acquired. (4) To acquire by gift, purchase or eminent domain, land, real property or rights-of-way which may be needed for the purposes of the projected improvements within the district. (5) To issue bonds, notes or guarantees in accordance with the provisions of general laws authorizing borrowing by cities of the first class or in accordance with Subpart B of Part VII (relating to indebtedness and borrowing), whichever is applicable, in the amounts and for the periods necessary to finance the projected improvements for any district. Cross References. Section 5403 is referred to in section 5404 of this title.

53 Pa.C.S. § 5404 Administrative services provided by cities of the second class.

In addition to the powers of the governing body established in section 5403 (relating to powers of governing body), cities of the second class shall have the power to provide administrative services: that is, those services which improve the ability of the commercial establishments of the district to serve the consumer, including, but not limited to, free or reduced fee parking for customers, transportation repayments, public relations programs, group advertising and district maintenance and security services.

53 Pa.C.S. § 5405 Assessment authorized.

The governing body may impose an assessment on each benefited property within a business improvement district which shall be determined by the total cost of the improvements in the district but not in excess of the amount legally assessable.

53 Pa.C.S. § 5406 Method and payment of assessment.

(a) Method.--The total cost of the administrative services or improvements in the district shall be assessed to all of the benefited properties in the district by one of the following methods: (1) By an assessment determined by multiplying the total service and improvement cost by the ratio of the assessed value of the benefited property to the total assessed valuation of all benefited properties in the district. (2) By an assessment upon the several properties in the district in proportion to benefits as ascertained by viewers appointed in accordance with law. (3) In the case of improvements by an assessment upon the several properties in the district abutting the improvements or benefiting from the services, or, where more than one type of improvement or service is involved, designated types, by the front-foot method, with equitable adjustments for corner properties and other cases provided for in the assessment ordinance. Any property which cannot be equitably assessed by the front-foot method may be assessed by the method provided in paragraph (2). (b) Payment.--The governing body may by ordinance authorize the payment of the assessment in equal annual or more frequent installments over such time and bearing interest at the rate specified in the ordinance. If bonds have been issued and sold, or notes or guarantees have been given or issued, to provide for the cost of the services and improvements, the assessment in equal installments shall not be payable beyond the term for which the bonds, notes or guarantees are payable. (c) Claims to secure assessments.--Claims to secure the assessments shall be entered in the prothonotary's office at the time and in the form and shall be collected in the manner that municipal claims are filed and collected. If installment payments are authorized pursuant to subsection (b), the ordinance may contain any or all of the following provisions: (1) Notwithstanding the filing of the claims, all assessments which are made payable in installments shall constitute liens and encumbrances upon the respective benefited properties, at the beginning of each calendar year, except as provided in paragraph (2), only in an amount equal to the sum of: (i) the annual or other installments becoming payable in such year, with interest and penalties, if any, thereon; and (ii) the total of all installments, with interest and penalties thereon, which became due during prior years and which remain due and unpaid at the beginning of the current year. (2) In the case of default in the payment of any installment and interest for a period of 90 days after the payment becomes due, the assessment ordinance may provide either for the entire assessment, with accrued interest and penalties to become due and become a lien from the due date of the installment, or may provide solely for the enforcement of the claim as to the overdue installment, with interest and penalties, in which case the ordinance shall further provide that, if any installment or portion thereof remains due and unpaid for one year after it has become due and payable, then the entire assessment with accrued interest and penalties shall become due and become a lien from the due date of the installment. (3) No action taken to enforce a claim for any installment or installments shall affect the status of any subsequent installment of the same assessment, each of which shall continue to become a lien upon the property annually pursuant to paragraph (1). (4) The ordinance may contain any other provision relating to installment assessments which is not inconsistent with applicable law. (d) Payment in full.--Any owner of property against whom an assessment has been made may pay the assessment in full, at any time, with accrued interest and costs thereon, and such a payment shall discharge the lien of the assessment, or installments then constituting a lien, and shall also release the claim to any later installments. (e) Benefits from administrative services.--No residential property shall be assessed under this chapter for any benefit received from administrative services. (f) Construction of chapter.--Any reference in this chapter to services shall mean only those services provided by a city of the second class.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=53Fetched: 10/16/2026