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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY BAKER, BOBACK, STEPHENS, KORTZ, MAJOR AND SAINATO, SEPTEMBER 26, 2011 |
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| REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, SEPTEMBER 26, 2011 |
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| AN ACT |
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1 | Amending Title 35 (Health and Safety) of the Pennsylvania |
2 | Consolidated Statutes, establishing the State Disaster |
3 | Assistance Loan Program; providing for powers and duties of |
4 | the Pennsylvania Emergency Management Agency and the |
5 | Pennsylvania Housing Finance Agency; establishing the State |
6 | Disaster Assistance Loan Fund; providing for funding for the |
7 | State Disaster Assistance Loan Program; and making an |
8 | appropriation. |
9 | The General Assembly of the Commonwealth of Pennsylvania |
10 | hereby enacts as follows: |
11 | Section 1. Chapter 73 of Title 35 of the Pennsylvania |
12 | Consolidated Statutes is amended by adding a subchapter to read: |
13 | SUBCHAPTER G |
14 | DISASTER ASSISTANCE LOANS |
15 | Sec. |
16 | 7391. Legislative findings and purpose. |
17 | 7392. Definitions. |
18 | 7393. State Disaster Assistance Loan Program. |
19 | 7394. Request for loan authorization. |
20 | 7395. Application for and issuance of loan. |
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1 | 7396. Funding. |
2 | § 7391. Legislative findings and purpose. |
3 | (a) Findings.--The General Assembly finds as follows: |
4 | (1) This Commonwealth, because of its topography, |
5 | development and economic base, is susceptible to a wide range |
6 | of disasters and emergencies, including fire, flood and wind |
7 | and technological accidents and emergencies, that threaten |
8 | public health and safety as well as the economic well-being |
9 | of the citizens of this Commonwealth. |
10 | (2) The violent forces of nature and unpredictable man- |
11 | made accidents that occur in this Commonwealth cause damage |
12 | to public and private property and create conditions that |
13 | force families from their homes. These disasters and |
14 | emergencies threaten public health, safety and the general |
15 | welfare of affected communities. |
16 | (3) Disasters which have impact on a large area and |
17 | population often qualify for various forms of aid from the |
18 | Federal Government to help repair and replace damaged |
19 | residences. More localized disasters create identical serious |
20 | hardship and loss for those families directly affected, but |
21 | Federal assistance is not made available to help with |
22 | recovery. |
23 | (4) As a result of extensive repair costs resulting from |
24 | disaster and emergency damages, homeowners without adequate |
25 | insurance coverage may be unable to repair their damaged |
26 | property. |
27 | (5) Failure to expeditiously repair disaster and |
28 | emergency damages may result in a degradation of the quality |
29 | of the community and the creation of unsafe conditions. |
30 | (b) Purpose.--It is the purpose of this subchapter to create |
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1 | a State program to provide limited assistance to homeowners |
2 | directly affected by disasters and emergencies. State assistance |
3 | will be limited to loans to homeowners to help repair damage to |
4 | primary residences. Loans will be made available by the State |
5 | when community conditions exceed a clearly established threshold |
6 | of loss and impact. |
7 | § 7392. Definitions. |
8 | The following words and phrases when used in this subchapter |
9 | shall have the meanings given to them in this section unless the |
10 | context clearly indicates otherwise: |
11 | "Fund." The State Disaster Assistance Loan Fund established |
12 | under this subchapter. |
13 | "Program." The State Disaster Assistance Loan Program |
14 | establsihed under this subchapter. |
15 | § 7393. State Disaster Assistance Loan Program. |
16 | (a) Program established.--The State Disaster Assistance Loan |
17 | Program is establsihed to provide disaster assistance loans to |
18 | homeowners under the provisions of this subchapter. |
19 | (b) Responsibilities of the agency.--The agency is |
20 | authorized to do the following: |
21 | (1) Develop the program with the Pennsylvania Housing |
22 | Finance Agency and other appropriate State and county |
23 | government representatives to provide loans to homeowners |
24 | directly affected by disasters and emergencies when the |
25 | impact upon the community exceeds an established threshold of |
26 | loss and impact. |
27 | (2) Authorize the issuance of State disaster assistance |
28 | loans to homeowners after review and approval of the county's |
29 | written request, submission of a detailed damage survey |
30 | report, compliance with necessary public-funding requirements |
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1 | and certification that no other public funded program exists |
2 | to help affected homeowners. |
3 | (3) Develop and conduct training programs for State and |
4 | county officials and staff to implement the State Disaster |
5 | Assistance Loan Program. Training shall include program |
6 | administration, damage assessment documentation and reporting |
7 | and mitigation identification and implementation. |
8 | § 7394. Request for loan authorization. |
9 | (a) County requests.--County emergency management |
10 | coordinators, in coordination with disaster-affected municipal |
11 | elected officials and local emergency management coordinators, |
12 | shall submit to the agency a request to make State disaster |
13 | assistance loans available to disaster-affected homeowners in |
14 | the county. As required by section 7504(b) (relating to |
15 | coordination, assistance and mutual aid), all requests shall be |
16 | based on a finding that the disaster is of such magnitude and |
17 | severity that State disaster assistance is necessary to |
18 | alleviate the hardships caused to the affected homeowners and |
19 | that no other government-funded programs exist or existing |
20 | programs have been exhausted. |
21 | (b) Program eligibility threshold.--In order for the agency |
22 | to authorize State disaster assistance loans, the county must |
23 | submit a detailed written damage survey report which identifies |
24 | by name and address each residential homeowner who has suffered |
25 | an uninsured loss in excess of 40% of the predisaster fair |
26 | market value of the home. In order for the program to be |
27 | implemented, there must be within that county at least ten |
28 | primary residences of either a single-family residential, |
29 | condominium, apartment or mobile home nature which have suffered |
30 | damage or loss directly caused by the identified disaster or |
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1 | emergency. Camps, cottages or other types of secondary |
2 | residences are not eligible for disaster loan assistance. |
3 | Applicants must show proof that banks and other financial |
4 | institutions will not grant a loan for this purpose or that the |
5 | loan repayment amount is beyond the capability of the homeowner. |
6 | In its written request, the county shall also furnish |
7 | information requested by the agency concerning the nature of the |
8 | disaster or emergency that impacted the county. The county must |
9 | also certify in its report that current county and affected |
10 | political subdivision emergency management plans are current and |
11 | have been activated in response to the disaster or emergency. |
12 | The agency shall review the effectiveness of the plans and |
13 | response and may require changes as it deems necessary in plans |
14 | and procedures. The changes shall be made by local and county |
15 | governments before any loans may be authorized. |
16 | § 7395. Application for and issuance of loan. |
17 | (a) Review of county requests for assistance.--The agency |
18 | shall review and approve all county requests for loan |
19 | assistance. The agency shall then notify the Pennsylvania |
20 | Housing Finance Agency of all approved county requests. The |
21 | Pennsylvania Housing Finance Agency shall then implement the |
22 | loan application, review, approval and award process for the |
23 | individual residential homeowners identified in the county's |
24 | damage survey report. |
25 | (b) Loan application and award.--All loans issued under the |
26 | program are supplemental to a homeowner's residential insurance |
27 | coverage. This program may be authorized when the magnitude and |
28 | severity of the disaster or emergency meets or exceeds program |
29 | eligibility standards as set forth in section 7394(b) (relating |
30 | to request for loan authorization). All requirements of the loan |
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1 | application and award process shall be developed by the agency |
2 | and the Pennsylvania Housing Finance Agency. The Pennsylvania |
3 | Housing Finance Agency shall develop regulations to implement |
4 | the loan requirements. All applications for loans must be |
5 | received by the Pennsylvania Housing Finance Agency within 60 |
6 | days after the agency has approved the county damage survey |
7 | report and request for assistance. |
8 | (c) Homeowner eligibility.--A homeowner residing within a |
9 | county or counties designated by the agency as a State disaster |
10 | emergency area who suffered disaster-related damage to a primary |
11 | residence in excess of the amount described in section 7394 may |
12 | apply for a State disaster assistance loan. |
13 | (d) Interest.--The rate of interest on State disaster |
14 | assistance loans shall be set by the Pennsylvania Housing |
15 | Finance Agency in its regulations. Loans shall be secured by |
16 | mortgages on the real estate and shall be repaid in accordance |
17 | with promissory notes which establish monthly loan principal and |
18 | interest payments. |
19 | (e) Insurance requirement.--As a condition of eligibility |
20 | for a State disaster assistance loan, the loan recipient shall |
21 | agree to purchase and maintain insurance coverage in an amount |
22 | equal to the value of the rebuilt or replaced primary residence |
23 | for which a loan is awarded. The insurance shall include full |
24 | protection against all natural hazards, including fire, wind |
25 | and, where appropriate, flood damage. All primary residences |
26 | located within a designated 100-year flood plain must include |
27 | flood insurance. During the term of the loan, each loan |
28 | recipient must provide written verification of appropriate and |
29 | adequate insurance protection in the form of either premium |
30 | statements, policy renewal notices or copies of the actual |
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1 | insurance policy to the Pennsylvania Housing Finance Agency. The |
2 | insurance policy must list the Pennsylvania Housing Finance |
3 | Agency as the loss payee of the policy. A homeowner's failure to |
4 | maintain appropriate insurance protection shall result in the |
5 | loan being declared in default. |
6 | (f) Limitations.--The following limitations shall apply to |
7 | the program: |
8 | (1) A loan shall not be made to a homeowner who is |
9 | eligible to receive assistance from the Federal Government |
10 | under any Federal disaster assistance and recovery program. A |
11 | homeowner who has received Federal aid in the maximum amount |
12 | allowable under Federal disaster relief law and continues to |
13 | have significant disaster-related damage to a primary |
14 | residence making the home uninhabitable may be eligible to |
15 | apply for a State disaster assistance loan. |
16 | (2) Loans shall be limited to homeowner-occupied primary |
17 | residences that are located within a county that the agency |
18 | has designated as a disaster emergency area. |
19 | (3) Loans are limited to providing for essential repairs |
20 | to the primary residence which are needed to make the |
21 | residence safe, sanitary and habitable for occupancy based on |
22 | applicable State and local building or occupancy codes. Loans |
23 | shall not be authorized for improvements to the value of the |
24 | residence or for other purposes not authorized by this |
25 | section. |
26 | (4) Repairing or replacing loss or damage to |
27 | landscaping, shrubs, trees, out-buildings or any other |
28 | nonresidential structures which are not physically attached |
29 | to the primary residence are not eligible costs for a State |
30 | disaster assistance loan. |
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1 | (5) Loans may be provided for disaster mitigation on the |
2 | property if approved by the agency. |
3 | (6) A homeowner may only apply for one disaster |
4 | assistance loan at a time. While a homeowner's disaster |
5 | assistance loan is in effect, the same homeowner shall be |
6 | ineligible for another loan under the program. If the |
7 | homeowner's primary residence is damaged in a subsequent |
8 | disaster while the disaster assistance loan is in effect, the |
9 | required insurance coverage shall be considered adequate for |
10 | repairs to the residence. |
11 | (7) The maximum amount of a loan is $50,000. The minimum |
12 | amount of any loan is $1,000. |
13 | § 7396. Funding. |
14 | (a) Appropriation.--The sum of $1,000,000 is appropriated to |
15 | the Pennsylvania Housing Finance Agency. |
16 | (b) State Disaster Assistance Loan Fund.--The sum |
17 | appropriated shall be deposited in a State Disaster Assistance |
18 | Loan Fund which is established as a restricted receipts account |
19 | in the State Treasury. Moneys in the fund shall be used solely |
20 | for the purpose of implementing this subchapter. The first |
21 | executive budget submission following the effective date of this |
22 | subchapter shall contain the appropriation provided for in |
23 | subsection (a). Appropriations to the fund shall not lapse. All |
24 | loan payments of principal and interest made to the Pennsylvania |
25 | Housing Finance Agency shall be deposited in the fund. Any |
26 | amount in the fund in excess of $3,000,000 which remains |
27 | unexpended or uncommitted after July 1 of each year, beginning |
28 | with the first fiscal year after the enactment of this |
29 | subchapter, shall be returned to the General Fund. Sufficient |
30 | appropriations shall be made annually in order to maintain a |
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1 | minimum balance of at least $1,000,000. Should annual program |
2 | activity exceed the funds available, the General Assembly may |
3 | supplement the fund to restore it to the full annual |
4 | appropriation. |
5 | (c) Administrative expenses.--The Pennsylvania Housing |
6 | Finance Agency shall annually provide to the Pennsylvania |
7 | Emergency Management Agency 10% of the total amount in the fund |
8 | in order that the agency may provide for program administration, |
9 | State and local damage assessment training and materials, and |
10 | operational, mitigation, preparedness, response and recovery |
11 | costs. |
12 | (d) Diversion of moneys in fund prohibited.--Moneys in the |
13 | fund shall not be diverted to fund other Commonwealth operations |
14 | or programs or be transferred to other funds, and shall be used |
15 | exclusively for the purposes provided for in this subchapter. |
16 | Section 2. This act shall take effect immediately. |
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