35 Pa. Stat. § 1674
The governing body of a political subdivision may, by formal resolution, inform the department that it desires some or all of the State funds provided by this act and available for allocation in that area for redevelopment or for the prevention or elimination of blight rather than directly on subsidized construction of rental housing. If such action is taken by the governing body, a certified copy of the resolution shall be forwarded to the department and supplemented by a proposal of the governing body, which shall set forth the use to be made of any funds allocated therefor, and the amount of funds required. The use of said funds shall be for the purposes set forth in section 4(b) or section 4(c) of this act and without limiting the generality of the foregoing may be used for local contributions required by any Federal program for redevelopment or program for the prevention or elimination of blight.
Unless and until said resolution is revoked, the department shall not enter into contractual relations regarding housing projects which would otherwise utilize the funds available for allocation in that political subdivision and proposed for expenditure on redevelopment or the prevention or elimination of blight by the governing body of the political subdivision: Provided, however, That if no satisfactory redevelopment proposal or a proposal to prevent and eliminate blight results within a reasonable time, as determined by the department, said funds, after due notice to the governing body of the political subdivision, may be made available for other purposes authorized by this act.
The department shall review the proposal and if satisfied that the proposal is in accordance with the purposes of this act shall, with the approval of the Governor, enter into a grant agreement with the redevelopment authority or with the municipality subject to the condition that the grant be used in accordance with the terms of the proposal. The time of payment of the grant shall be set forth in the grant agreement.
35 P.S. § 1674