1555 - Building Pennsylvania Program.

     § 1555.  Building Pennsylvania Program.        (a)  Establishment.--There is established a program to be     known as the Building Pennsylvania Program. The program shall     provide loans to fund managers for investment in real estate     projects within this Commonwealth.        (b)  Requests for proposals.--The board shall issue one or     more requests for proposals in accordance with 62 Pa.C.S. § 518     (relating to competitive selection procedures for certain     services) for fund managers. Each request for proposals shall     include all of the following:            (1)  A statement that the service being requested is the        investment in real estate projects located in this        Commonwealth which will be acquired and developed,        redeveloped or revitalized.            (2)  A request to supply all of the following        information:                (i)  The fund manager's name and address.                (ii)  The resumes of the individuals responsible for            the investment decisions of the fund manager.                (iii)  The fund manager's history of investments in            real estate projects, including the number of previous            investments, rates of return and capital raised.                (iv)  A description of the proposed approach by the            fund manager to investments in real estate projects            located in this Commonwealth.                (v)  The fund manager's history of investments in            this Commonwealth.                (vi)  The fund manager's understanding of this            Commonwealth's geography and economic climate.                (vii)  A statement by the fund manager of the amount            of the loan being requested.            (3)  Any other information required by the board.        (c)  Review of proposals.--The board shall review the     proposals and determine the fund manager or managers best     qualified to provide the services described in the request for     proposals. If the board determines that no fund manager is     qualified, the board may reissue requests for proposals in     accordance with this section.        (d)  Contract negotiations.--The board shall select for     contract negotiation one or more fund managers who are     determined to be the best qualified to provide the services     described in the request for proposals.        (e)  Award.--The authority may enter into contracts with one     or more fund managers. The contracts shall include all of the     following provisions:            (1)  The terms of repayment of principal and payment of        interest and other return to the authority.            (2)  That the fund manager will raise and invest in real        estate projects located in this Commonwealth at least $1 of        nonpublic equity for every $1 of loan funds received by the        fund manager under this section.            (3)  That the fund manager will exercise the standard of        care in its responsibilities set forth in subsection (f).            (4)  That the fund manager will provide the board with        its annual audited financial statements for the duration of        the loan. Financial statements shall be prepared in        accordance with generally accepted accounting principles.            (5)  That the fund manager will invest in industrial,        commercial and multiuse real estate projects located in this        Commonwealth which will be acquired and developed,        redeveloped or revitalized in accordance with the provisions        of this section.            (6)  Any other provisions required by the board.        (f)  Standard of care.--A fund manager awarded a contract     under this section shall exercise that degree of judgment, skill     and care under the circumstances then prevailing which persons     of prudence, discretion and intelligence who are familiar with     such matters exercise in the management of their own affairs,     not in regard to speculation, but in regard to the permanent     disposition of funds, considering the probable income to be     derived therefrom as well as the probable safety of their     capital.        (g)  Limitations.--            (1)  At least 50% of the funds made available for the        program authorized by this section must be utilized for        projects located in areas other than cities of the first or        second class.            (2)  No investments may be made by a fund manager in real        estate projects which are primarily residential or primarily        recreational.        Cross References.  Section 1555 is referred to in section     1543 of this title.