Bill Text: PA HB54 | 2011-2012 | Regular Session | Introduced


Bill Title: Providing for the establishment of the Historic Preservation Incentive Grant Program for historic commercial and residential sites.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-01-19 - Referred to TOURISM AND RECREATIONAL DEVELOPMENT [HB54 Detail]

Download: Pennsylvania-2011-HB54-Introduced.html

  

 

    

PRINTER'S NO.  25

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

54

Session of

2011

  

  

INTRODUCED BY SCAVELLO, BARRAR, BOYD, CALTAGIRONE, FLECK, GEIST, GEORGE, GINGRICH, HARHART, HARKINS, HESS, HUTCHINSON, KORTZ, KOTIK, MANN, MATZIE, MILLARD, READSHAW, K. SMITH, SONNEY, STURLA, WAGNER, YOUNGBLOOD, FABRIZIO, MICOZZIE, COHEN, JOSEPHS AND J. TAYLOR, JANUARY 19, 2011

  

  

REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT, JANUARY 19, 2011  

  

  

  

AN ACT

  

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Providing for the establishment of the Historic Preservation

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Incentive Grant Program for historic commercial and

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residential sites.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Short title.

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This act shall be known and may be cited as the Historic

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Preservation Incentive Grant Act.

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Section 2.  Definitions.

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The following words and phrases when used in this act shall

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have the meanings given to them in this section unless the

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context clearly indicates otherwise:

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"Applicant."  A commercial applicant or a residential

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applicant.

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"Commercial applicant."  Any natural person, corporation,

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foundation, organization, business trust, estate, limited

 


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liability company, licensed corporation, trust, partnership,

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limited liability partnership, association or any other form of

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legal business entity that owns an eligible commercial property.

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"Commission."  The Pennsylvania Historical and Museum

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Commission.

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"Department."  The Department of Community and Economic

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Development of the Commonwealth.

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"Eligible building improvements."  Exterior rehabilitation or

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restoration work performed on an eligible commercial property or

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an eligible residential property, including work involving

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windows, consistent with the Standards for Rehabilitation of the

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Secretary of the Interior.

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"Eligible commercial property."  A building used or zoned to

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be used for income-producing purposes which is listed on the

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National Register of Historic Places, is a contributing property

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in a National Register historic district or is located in a

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local government historic district. The term includes a building

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used or zoned to be used for commercial purposes which is also

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used for residential purposes. The term also includes for-sale

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condominium projects.

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"Eligible property."  An eligible commercial property or an

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eligible residential property.

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"Eligible residential property."  A single-family dwelling or

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a building which:

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(1)  is a single family dwelling used as the owner's

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principal residence or is a building that is divided into no

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more than four residential units, one of which is used as the

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owner's principal residence;

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(2)  is owned by one or more natural persons; and

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(3)  either:

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(i)  is listed on the National Register of Historic

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Places or is a contributing property in a National

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Register historic district; or

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(ii)  is located in a local government historic

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district.

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"Elm Street area."  A geographically defined portion of a

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municipality which has been designated as an Elm Street area by

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the Department of Community and Economic Development in

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accordance with the terms and conditions of the act of February

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9, 2004 (P.L.61, No.7), known as the Elm Street Program Act. The

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term includes an area which has exited the official program but

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still has a program functioning to revitalize the designated

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areas pursuant to the department's program guidelines.

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"Enterprise zone."  A geographic area designated by the

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Department of Community and Economic Development as an

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enterprise zone. The term includes an area which has exited the

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official program but still has a program functioning to

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revitalize the designated areas pursuant to the department's

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program guidelines.

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"Historic district."  A local government historic district or

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an area in this Commonwealth which has been designated as a

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historic district under the National Historic Preservation Act

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(Public Law 89-665, 16 U.S.C. § 470a).

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"Local government historic district."  A historic district

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designated by any of the following:

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(1)  Section 2 of the act of June 13, 1961 (P.L.282,

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No.167), entitled "An act authorizing counties, cities,

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boroughs, incorporated towns and townships to create historic

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districts within their geographic boundaries; providing for

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the appointment of Boards of Historical Architectural Review;

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empowering governing bodies of political subdivisions to

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protect the distinctive historical character of these

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districts and to regulate the erection, reconstruction,

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alteration, restoration, demolition or razing of buildings

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within the historic districts."

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(2)  The Historic Preservation Ordinance, Section

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14-2007, of the Philadelphia City Code.

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(3)  Title 11 of the Pittsburgh City Code, Chapter 1,

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Section 3, as amended by City Council on July 22, 1997.

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(4)  The City of Scranton under the City of Scranton

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Commission for Architectural and Urban Design Review

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ordinance.

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"Main Street community."  A geographic area designated as a

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Main Street community by the Department of Community and

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Economic Development. The term includes an area that has exited

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the official program but still has a program functioning to

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revitalize the designated areas pursuant to the department's

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program guidelines.

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"National Register."  The National Register of Historic

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Places established under section 101 of the National Historic

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Preservation Act (Public Law 89-665, 16 U.S.C. § 470a).

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"Residential applicant."  One or more natural persons who own

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an eligible residential property.

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"Standards."  The Secretary of the Interior's Standards for

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the Treatment of Historic Properties, excluding reconstruction,

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set forth at 36 CFR 67.7 (relating to Standards for

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Rehabilitation).

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Section 3.  Program.

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(a)  Establishment.--There is established a program in the

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department to be known as the Historic Preservation Incentive

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Grant Program. The program shall provide grants to owners of

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eligible properties located within this Commonwealth that

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undertake eligible building improvements.

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(b)  Application.--An applicant must submit an application to

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the department requesting a grant for the reimbursement of costs

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associated with eligible building improvements to an eligible

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property owned by the applicant. The application must be

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submitted on a form developed by the department in consultation

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with the commission and must include all of the following:

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(1)  The name and address of the applicant.

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(2)  The location of the property.

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(3)  Proof of ownership of the property by the applicant.

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The applicant may satisfy this requirement by providing

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evidence satisfactory to the department that the applicant

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will own the property at some point in time following

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submission of the application and has sufficient control of

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the property at the time of submission to perform the work

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described in the application.

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(4)  A description of the property providing sufficient

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information to establish that the property meets the criteria

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for either an eligible commercial property or an eligible

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residential property, including information specified in the

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commission's guidelines.

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(5)  A detailed description of the proposed work to be

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performed, including plans, drawings and specifications as

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appropriate.

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(6)  A detailed estimate of the cost of the work to be

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performed.

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(7)  Proof that the applicant is current with respect to

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the payment of all real estate taxes assessed against the

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property or evidence that the applicant is contesting the

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taxes in good faith and has set aside sums to cover any tax

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liability in the event the contest fails.

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(8)  Evidence of the source of matching funds to be

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utilized for the project. If the source of matching funds is

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a loan from a financial institution, the applicant must

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provide a copy of the loan application and commitment or

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other evidence satisfactory to the department of the

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applicant's ability to obtain the necessary financing.

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(9)  Any other information required by the department or

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the commission.

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(c)  Review and recommendation by commission.--The department

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shall forward the application to the commission for review. If

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the commission determines that the property qualifies as an

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eligible property and that the proposed improvements would

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qualify as eligible building improvements, then the commission

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may recommend approval of the property for the program and shall

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notify the department of its recommendation within 45 days

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following receipt of a completed application by the commission.

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(d)  Award of grant by department.--Upon receipt of the

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commission's recommendation for approval as provided in

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subsection (c), the department may award the applicant a grant

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and shall notify the applicant and the commission of its action.

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(e)  Certification and disbursement.--Following completion of

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the work, the applicant must file a certification with the

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commission stating that the work has been completed. The

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certification must be accompanied by photographs showing the

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completed project, evidence of the actual expenditures made by

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the applicant and evidence, in the form of a letter or letters

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from local code enforcement officials, that the property, as

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improved, complies with all local building, fire, safety and

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health codes. The commission shall complete its review of the

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certification within 90 days of receipt of the certification by

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the commission. The commission may request additional

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information and conduct a site inspection as it deems necessary

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to determine compliance with the requirements of the program

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established by this act. If the commission is satisfied with the

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certification submitted, it shall notify the department of the

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approved eligible building improvements. The department shall

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calculate the amount of the grant and disburse the grant funds

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to the applicant.

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(f)  Agreement.--The department is not required to enter into

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a grant agreement with the applicant prior to awarding and

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disbursing a grant.

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(g)  Special rules relating to eligible residential

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properties.--An application for a grant for eligible building

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improvements for an eligible residential property must include

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one of the following statements from the applicant:

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(1)  That the applicant has owned the eligible

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residential property for at least five years prior to the

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date of submission of the application.

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(2)  That the applicant has owned the eligible

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residential property for less than five years prior to the

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date of submission of the application but agrees to continue

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to own the property for a total of at least five years.

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Section 4.  Exemption from State taxes.

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Grant amounts awarded by the department for eligible

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residential properties shall not be considered income to the

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applicant under section 303 of the act of March 4, 1971 (P.L.6,

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No.2), known as the Tax Reform Code of 1971.

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Section 5.  Allocation of grant funds; limitations; priorities.

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(a)  Source.--Funds for this program shall be provided to the

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department from funds authorized for this purpose.

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(b)  Proration.--If the total amount of grants to be awarded

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exceeds the amount of funds available for the program in any

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year, the amount of grants may be prorated among the successful

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applicants.

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(c)  Minimum.--At least 31% of the funds available in any

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year shall be reserved by the department for grants to

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successful residential applicants. If reserved funds are more

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than are needed to satisfy the total amount of such grants

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awarded in any year, the department may utilize the excess funds

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for grants to successful commercial applicants.

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(d)  Limitations.--

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(1)  Subject to the other limitations set forth in this

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subsection, a grant awarded to a successful applicant shall

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not be more than 70% of the total amount of expenditures made

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for eligible building improvements.

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(2)  In no event shall any grant be awarded unless:

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(i)  the applicant is current with respect to all

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local real estate taxes assessed against the applicant's

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eligible property; or

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(ii)  the applicant, in good faith, is contesting

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local real estate taxes assessed against the applicant's

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eligible property, provides the department with evidence

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of the contest and has set aside sums to cover any tax

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liability in the event the contest fails.

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(3)  Up to $15,000 may be awarded to a residential

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applicant in connection with a single project and up to

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$500,000 may be awarded to a commercial applicant in

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connection with a single project.

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(4)  In order to receive money from a grant, the

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applicant must complete the project being funded by the grant

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within two years of receipt of notification from the

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department of the award.

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(e)  Priorities.--Priority may be given to properties located

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in Elm Street areas, Main Street communities, enterprise zones

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and local government historic districts. In addition, the

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department shall take into account geographical distribution of

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grants in making awards.

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Section 6.  Administration.

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(a)  Guidelines.--The department and the commission shall

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develop guidelines for the implementation of the program

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established by this act.

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(b)  Expenditures.--The department may utilize up to an

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aggregate of 3% of the funds available for the program annually,

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not to exceed $500,000, as allocated by the Governor, for

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expenses incurred in administering the program established by

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this act. The department and the commission shall enter into an

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agreement for the payment to the commission of a portion of sums

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for expenses incurred by the commission.

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Section 7.  Repayment.

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The department, at its discretion, shall be entitled to a

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return of all grant funds paid to the applicant if, within five

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years following completion of the project, either of the

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following occur:

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(1)  The owner of the eligible property makes

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improvements to the exterior of the property which do not

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meet the standards.

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(2)  The eligible property is removed from the National

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Register, either individually or as a contributing building

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within a historic district, whether or not as a result of the

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owner making improvements to the exterior of the property

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which do not meet the standards.

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(3)  The eligible residential property is transferred in

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violation of the agreement made by the owner under the

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provisions of section 3(g)(2), if applicable, unless the

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transfer occurs as a result of the death of the owner or is

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otherwise involuntary.

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Section 20.  Effective date.

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This act shall take effect in 120 days.

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