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HB 135

An Act amending Title 15 (Corporations and Unincorporated Associations) of the Pennsylvania Consolidated Statutes, in workers' cooperative corporations, further providing for corporations, for articles of incorporation and for directors and officers.

2025-2026 Regular Session Introduced by Elizabeth Fiedler and 15 co-sponsors

LEDA applicants must complete a housing study showing projected housing demand before applying for incentives, and local governments must consider it in awarding funds.

Re-referred to Appropriations
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Bill Summary · HB 135

Summary — HB 135: Housing Study Requirement for LEDA Funds

Status (from bill text/fiscal note): Introduced; no specific appropriation. Because the bill contains no special effective date it would take effect 90 days after adjournment (noted in analysis as June 20, 2025). (User-provided status: action postponed indefinitely.)

Purpose

Require companies seeking Local Economic Development Act (LEDA) funding (through local or regional governments) to prepare a housing study of the county/municipality potentially affected by a proposed economic development project. The goal is to ensure LEDA decisions account for project-driven housing demand and local housing capacity before incentives are approved.

Key provisions

  • Adds a housing‑study requirement to the LEDA application process. An eligible company must complete a housing study for the communities that could be affected by the project prior to applying for LEDA funds via a local or regional government.
  • Defines “housing study” as a multivariable estimate of housing demand created by new employment expected from the project.
  • Bars reliance on a single metric: the housing study “cannot solely rely on a cost burden analysis.”
  • Requires the local or regional government reviewing a LEDA application to consider the housing‑study findings when evaluating the application.
  • No funding for studies is provided in the bill text.

Who would be affected

  • Companies applying for LEDA incentives (especially small or early-stage firms that may lack resources for studies).
  • Local and regional governments that review and decide on LEDA applications (they must consider the studies’ findings).
  • Economic Development Department (EDD) — administrative oversight, though the fiscal note reports no direct EDD budget impact.
  • Community stakeholders, housing developers, and planning entities (studies may influence local decisions about infrastructure, zoning, developer incentives).

Fiscal and operational impacts

  • LFC / EDD analysis: no direct fiscal impact on the EDD’s operating budget.
  • Potential indirect impacts: the requirement may reduce the number of LEDA applications or awards because of added time/cost burdens on applicants.
  • Cost & time estimates provided by EDD: housing studies can take 2 months to 1 year and commonly cost between $10,000 and $75,000 depending on scope — potentially exceeding the value of small LEDA awards (LEDA awards ranged FY24 from ~$50,000 to $18 million).
  • EDD currently collects basic relocation/worker estimates for LEDA projects (including an assumption that 10% of relocating workers build a home), which it views as a reasonable housing-demand proxy in some cases.

Significant issues and alternatives

  • EDD argues housing studies are best produced at the community or regional level (updated periodically) rather than requiring each company to commission one — shifting the burden to businesses may deter projects, especially smaller ones.
  • Existing planning grant programs (e.g., NM Finance Authority, DFA) could fund community studies.
  • Related legislative approach: a proposed Economic Development Site Readiness Act (Senate Bill 169) could create a site‑readiness fund to cover studies and site assessments, which might be a less burdensome alternative.

Practical effects / procedural notes

  • The housing study must be completed prior to application for LEDA funds and will be part of the materials local/regional governments use to evaluate incentive requests.
  • Because the bill does not earmark funding to pay for studies, applicants (or local/regional governments) would bear study costs unless alternative funding sources are identified.

Compiled from official sources — confirm details with the bill’s official record.

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