Community revitalization is a complex topic that can be approached with a variety of different legislative tools and at every level of government. The following is a list of sample bills that use various policies in efforts to revitalize communities and refocus development into existing neighborhoods. In order to provide a range of examples, this list includes policy initiatives at the federal and local levels as well as state bills. It is important to note that SERC does not necessarily endorse every aspect of each bill but rather offers them all as examples of legislation that take steps in the right direction.

Moderately Priced Dwelling Unit (MPDU) Program

The Moderately Priced Dwelling Unit (MPDU) Program in Montgomery County, Maryland is a well-known example of effective inclusionary zoning. Inclusionary zoning is a tool states and localities can use to ensure the development of an adequate number of affordable housing units in an area. Inclusionary zoning laws can either require builders to include a certain percentage of affordable units in new developments or can provide developers with incentives to provide affordable housing. Under the program in Montgomery County, 12.5% to 15% of the housing in developments of 50 or more units must be affordable for lower income residents. These units are reserved and can only be purchased by low-income homebuyers or nonprofit organizations that rent to low-income tenants. Since it began in 1974, the MPDU program in Montgomery County has created more than 10,000 affordable housing units.

Montgomery County, Maryland: The Moderately Priced Dwelling Unit Program: Program Summary and Background

Inclusionary zoning sample state legislation from the Center for Policy Alternatives

Historic Preservation Easement Program

The Historic Preservation Easement Program in Charleston, South Carolina illustrates a mechanism that can be used to save historic structures. A preservation easement allows homeowners to prevent inappropriate changes from being made to their historic property. An easement is a legal agreement between a homeowner and Historic Charleston Foundation that establishes perpetual protection for the property. An easement gives Historic Charleston Foundation the ability to work with current and future owners of a historic property to safeguard its historic character, materials and significance. Owners of an easement property are legally obligated to honor the terms of the easement, but retain actual ownership of the property. Easement donors make a gift to current and future generations when they voluntarily place perpetual restrictions on their historic property. When an easement donor makes a “qualified contribution” of an easement, the donor is entitled to an income tax deduction.

South Carolina Department of Archives and History: Preservation Hotline #5: Protecting historic properties with conservation easements

Rehabilitation Subcodes

New Jersey

The New Jersey Rehabilitation Subcode demonstrates how adopting smart building codes can encourage the redevelopment and reuse of existing structures by lowering barriers to rehabilitation. Building codes establish construction standards, such as required materials and the dimensions of stairway widths or pipe diameters. Most codes were written to regulate new construction and are inappropriate and unnecessarily restrictive when applied to redevelopment. Smart codes are designed to free redevelopment efforts from these needless restrictions. The Rehabilitation Subcode in New Jersey has reduced building rehabilitation costs by as much as 50 percent – generating a dramatic rise in historic preservation and downtown revitalization projects. In 1998, the first year of the new Subcode, historic rehabilitation projects totaled $510 million, a 40 percent increase over the previous year. In 1999, rehabilitation totaled almost $600 million, a 60 percent increase from 1997.

State of New Jersey Web Site: Department of Community Affairs: Rules That Make Sense: New Jersey’s Rehabilitation Subcode

Maryland

Maryland adopted legislation modeled after the New Jersey code in 2000. SB 207 allows for rehabilitation to take place in only one area of a building, thereby reducing rehabilitation costs. For more information, see:

• Maryland Building Rehabilitation Code
• Maryland General Assembly: HB 284, HB 285

See SERC’s sample Building Rehabilitation Code Act.

“Live Near Your Work” Program

Maryland’s “Live Near Your Work” Program functions in a similar manner to location efficient mortgages by offering incentives for buying a house in a location that will not require a long car commute. The program offers a $3,000 grant – a third from participating employers, a third from the state, and a third from the local government of the community where the employee works – towards costs associated with a home purchase, with the employee committing a minimum of $1,000 in his or her own funds. The home must be in a neighborhood in the sponsoring jurisdiction, and the beneficiary must agree to stay in the home for a limited period of time (usually three to five years).

Department of Housing and Urban Development: Live Near Your Work Program (LNYW)

“Fix-it-First” Bill

New Jersey Senate Bill 16 (The “Fix-it-First” Bill) received overwhelming bi-partisan support and was signed into law by Governor Whitman on July 20, 2000. The bill re-approved the state Transportation Trust Fund that administers future transportation development, and was amended to include key provisions to revitalize communities and control sprawl. The bill included the adoption of a policy for transportation infrastructure improvements which requires cities to make sure existing roads and transit systems are adequately maintained before new road construction projects can begin.

To view sample legislation similar to New Jersey SB 16, see SERC’s Traffic Congestion Relief Act.

Brownfields Redevelopment Programs

Brownfields redevelopment programs are designed to recycle underused or abandoned industrial sites into valuable property. Brownfields are often environmentally contaminated and are often located in low-income neighborhoods. Brownfield redevelopment eliminates environmental health hazards and boosts neighborhood economies.
For legislation information, see the Bill Text page of SERC’s Cleaning Up Brownfields policy issues package.

Split-Rate Property Tax

Harrisburg, Pennsylvania’s Split-Rate Property Tax divides the burden of property taxes between land and buildings. Unlike most property tax systems which have a single rate that is primarily based on the value of buildings, in Harrisburg land and buildings are taxed at 4.89% and 0.9618% respectively. Shifting the property tax burden off of structures and onto land discourages speculative sprawl and encourages new construction in developed areas. Prior to implementing the land value taxation system in the 1970s, Harrisburg was experiencing serious economic decline. However, the new tax has helped spur new investment and a reversal of decades of decline.