City Revitalization and Improvement Zone (CRIZ)

The City Revitalization and Improvement Zone (CRIZ) Program was established under Pennsylvania Act 52 of 2013, with the primary goal of revitalizing cities and municipalities through targeted economic development. It is administered by a tri-agency partnership consisting of the Pennsylvania Department of Revenue, the Pennsylvania Department of Community and Economic Development (DCED), and the Governor’s Office of the Budget. This collaborative structure ensures coordinated oversight of all fiscal and operational aspects of the program. The CRIZ Program specifically aims to stimulate growth and attract private investment in distressed or underutilized areas within eligible Pennsylvania jurisdictions. The program also encompasses a subset of zones referred to as Pilot Zones, defined for boroughs or townships with at least 7,000 residents. Eligible applicants include Pennsylvania cities of the second class A or third class, home rule cities, or municipalities with populations of at least 20,000, based on the most recent U.S. census. Municipalities designated as financially distressed under the Municipalities Financial Recovery Act are excluded from eligibility. The program allows for the designation of up to 130 acres of land as a CRIZ, with the ability to channel state and local tax revenue generated within the zone toward financing development activities. These activities may include construction, renovation, infrastructure development, and site preparation for commercial, recreational, residential, or mixed-use purposes. Importantly, state and local tax funds collected from qualifying businesses are certified and transferred to a zone-specific fund administered by the Pennsylvania Treasurer. To participate, applicants must create or designate a "contracting authority," a new or existing municipal entity authorized under Pennsylvania law to oversee zone development. The contracting authority is responsible for designating the zone, submitting a comprehensive Zone Plan via the DCED’s “Single Application for Assistance” system, holding public hearings, and maintaining transparency by publishing detailed lists of included properties and business entities. The Zone Plan must include a vision statement, project descriptions, infrastructure plans, funding timelines, and economic projections. Additional hard copies of the plan must be mailed to the Department of Revenue and the Office of the Budget in physical binders, accompanied by digital files like Excel parcel maps. Funds from the CRIZ Program are primarily used to repay debt incurred through bonds issued to support zone projects, establish revolving loan or grant programs for local businesses, or cover administrative and audit costs. Importantly, funds cannot be used for maintenance or repairs. For zones designated after July 1, 2024, the state will transfer up to $15 million annually, adjusted for inflation starting July 1, 2025, based on the Consumer Price Index for the Philadelphia-Camden-Wilmington area. These zones must match CRIZ funds with private investment at a 5:1 ratio. Any excess funds not utilized or budgeted within five years must be returned to the state’s General Fund. Matching compliance is audited annually. Applications are reviewed jointly by the DCED, the Revenue Department, and the Office of the Budget. Once approved, the Pennsylvania Treasurer sets up a dedicated City Revitalization and Improvement Zone Fund for the zone. Taxes are certified annually by the Revenue Department and the local taxing authority, with funds being transferred by early November each year. Application materials must include a detailed project plan and meet nondiscrimination and conflict-of-interest requirements. Prevailing Wage Act requirements may apply to construction-related projects. There is no specified application deadline in the current guidelines, indicating the program may be accepting applications on a rolling or periodic basis, subject to DCED’s designation year schedule. The CRIZ Program represents a strategic, long-term economic development initiative that leverages tax revenues generated within targeted urban zones to drive revitalization. By requiring collaboration between government and private sectors and mandating transparency, matching funds, and structured oversight, it ensures accountability while offering substantial opportunities for urban renewal.