THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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

Providing for the establishment of the Historic Preservation

Incentive Grant Program for historic commercial and

residential sites.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

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

Preservation Incentive Grant Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Applicant."  A commercial applicant or a residential

applicant.

"Commercial applicant."  Any natural person, corporation,

foundation, organization, business trust, estate, limited

liability company, licensed corporation, trust, partnership,

limited liability partnership, association or any other form of

legal business entity that owns an eligible commercial property.

"Commission."  The Pennsylvania Historical and Museum

Commission.

"Department."  The Department of Community and Economic

Development of the Commonwealth.

"Eligible building improvements."  Exterior rehabilitation or

restoration work performed on an eligible commercial property or

an eligible residential property, including work involving

windows, consistent with the Standards for Rehabilitation of the

Secretary of the Interior.

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

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

National Register of Historic Places, is a contributing property

in a National Register historic district or is located in a

local government historic district. The term includes a building

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

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

condominium projects.

"Eligible property."  An eligible commercial property or an

eligible residential property.

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

a building which:

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

principal residence or is a building that is divided into no

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

owner's principal residence;

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

(3)  either:

(i)  is listed on the National Register of Historic

Places or is a contributing property in a National

Register historic district; or

(ii)  is located in a local government historic

district.

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

municipality which has been designated as an Elm Street area by

the Department of Community and Economic Development in

accordance with the terms and conditions of the act of February

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

term includes an area which has exited the official program but

still has a program functioning to revitalize the designated

areas pursuant to the department's program guidelines.

"Enterprise zone."  A geographic area designated by the

Department of Community and Economic Development as an

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

official program but still has a program functioning to

revitalize the designated areas pursuant to the department's

program guidelines.

"Historic district."  A local government historic district or

an area in this Commonwealth which has been designated as a

historic district under the National Historic Preservation Act

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

"Local government historic district."  A historic district

designated by any of the following:

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

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

boroughs, incorporated towns and townships to create historic

districts within their geographic boundaries; providing for

the appointment of Boards of Historical Architectural Review;

empowering governing bodies of political subdivisions to

protect the distinctive historical character of these

districts and to regulate the erection, reconstruction,

alteration, restoration, demolition or razing of buildings

within the historic districts."

(2)  The Historic Preservation Ordinance, Section

14-2007, of the Philadelphia City Code.

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

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

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

Commission for Architectural and Urban Design Review

ordinance.

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

Main Street community by the Department of Community and

Economic Development. The term includes an area that has exited

the official program but still has a program functioning to

revitalize the designated areas pursuant to the department's

program guidelines.

"National Register."  The National Register of Historic

Places established under section 101 of the National Historic

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

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

an eligible residential property.

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

the Treatment of Historic Properties, excluding reconstruction,

set forth at 36 CFR 67.7 (relating to Standards for

Rehabilitation).

Section 3.  Program.

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

department to be known as the Historic Preservation Incentive

Grant Program. The program shall provide grants to owners of

eligible properties located within this Commonwealth that

undertake eligible building improvements.

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

the department requesting a grant for the reimbursement of costs

associated with eligible building improvements to an eligible

property owned by the applicant. The application must be

submitted on a form developed by the department in consultation

with the commission and must include all of the following:

(1)  The name and address of the applicant.

(2)  The location of the property.

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

The applicant may satisfy this requirement by providing

evidence satisfactory to the department that the applicant

will own the property at some point in time following

submission of the application and has sufficient control of

the property at the time of submission to perform the work

described in the application.

(4)  A description of the property providing sufficient

information to establish that the property meets the criteria

for either an eligible commercial property or an eligible

residential property, including information specified in the

commission's guidelines.

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

performed, including plans, drawings and specifications as

appropriate.

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

performed.

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

the payment of all real estate taxes assessed against the

property or evidence that the applicant is contesting the

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

liability in the event the contest fails.

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

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

a loan from a financial institution, the applicant must

provide a copy of the loan application and commitment or

other evidence satisfactory to the department of the

applicant's ability to obtain the necessary financing.

(9)  Any other information required by the department or

the commission.

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

shall forward the application to the commission for review. If

the commission determines that the property qualifies as an

eligible property and that the proposed improvements would

qualify as eligible building improvements, then the commission

may recommend approval of the property for the program and shall

notify the department of its recommendation within 45 days

following receipt of a completed application by the commission.

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

commission's recommendation for approval as provided in

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

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

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

the work, the applicant must file a certification with the

commission stating that the work has been completed. The

certification must be accompanied by photographs showing the

completed project, evidence of the actual expenditures made by

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

from local code enforcement officials, that the property, as

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

health codes. The commission shall complete its review of the

certification within 90 days of receipt of the certification by

the commission. The commission may request additional

information and conduct a site inspection as it deems necessary

to determine compliance with the requirements of the program

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

certification submitted, it shall notify the department of the

approved eligible building improvements. The department shall

calculate the amount of the grant and disburse the grant funds

to the applicant.

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

a grant agreement with the applicant prior to awarding and

disbursing a grant.

(g)  Special rules relating to eligible residential

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

improvements for an eligible residential property must include

one of the following statements from the applicant:

(1)  That the applicant has owned the eligible

residential property for at least five years prior to the

date of submission of the application.

(2)  That the applicant has owned the eligible

residential property for less than five years prior to the

date of submission of the application but agrees to continue

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

Section 4.  Exemption from State taxes.

Grant amounts awarded by the department for eligible

residential properties shall not be considered income to the

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

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

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

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

department from funds authorized for this purpose.

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

exceeds the amount of funds available for the program in any

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

applicants.

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

year shall be reserved by the department for grants to

successful residential applicants. If reserved funds are more

than are needed to satisfy the total amount of such grants

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

for grants to successful commercial applicants.

(d)  Limitations.--

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

subsection, a grant awarded to a successful applicant shall

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

for eligible building improvements.

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

(i)  the applicant is current with respect to all

local real estate taxes assessed against the applicant's

eligible property; or

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

local real estate taxes assessed against the applicant's

eligible property, provides the department with evidence

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

liability in the event the contest fails.

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

applicant in connection with a single project and up to

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

connection with a single project.

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

applicant must complete the project being funded by the grant

within two years of receipt of notification from the

department of the award.

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

in Elm Street areas, Main Street communities, enterprise zones

and local government historic districts. In addition, the

department shall take into account geographical distribution of

grants in making awards.

Section 6.  Administration.

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

develop guidelines for the implementation of the program

established by this act.

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

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

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

expenses incurred in administering the program established by

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

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

for expenses incurred by the commission.

Section 7.  Repayment.

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

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

years following completion of the project, either of the

following occur:

(1)  The owner of the eligible property makes

improvements to the exterior of the property which do not

meet the standards.

(2)  The eligible property is removed from the National

Register, either individually or as a contributing building

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

owner making improvements to the exterior of the property

which do not meet the standards.

(3)  The eligible residential property is transferred in

violation of the agreement made by the owner under the

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

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

otherwise involuntary.

Section 20.  Effective date.

This act shall take effect in 120 days.