PRINTER'S NO. 49
No. 39 Session of 1993
INTRODUCED BY LLOYD, DeWEESE, PETRARCA, FEE, PESCI, FAIRCHILD,
KUKOVICH, LAUGHLIN, STEELMAN, SURRA, KING, WOZNIAK, FARGO,
TANGRETTI, LUCYK AND FREEMAN, JANUARY 27, 1993
REFERRED TO COMMITTEE ON RULES, JANUARY 27, 1993
AN ACT
1 Providing for the establishment, implementation and
2 administration of a Community Facilities Assistance Program;
3 establishing a Community Facilities Grant Program; and
4 imposing powers and duties on the Pennsylvania Infrastructure
5 Investment Authority.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Community
10 Facilities Assistance Act.
11 Section 2. Definitions.
12 The following words and phrases when used in this act shall
13 have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Authority." The Pennsylvania Infrastructure Investment
16 Authority created under the provisions of the act of March 1,
17 1988 (P.L.82, No.16), known as the Pennsylvania Infrastructure
18 Investment Authority Act.
19 "Board." The board of directors of the Pennsylvania
1 Infrastructure Investment Authority.
2 "Borough." A borough of this Commonwealth having a
3 population of less than 12,000, as determined by the most recent
4 decennial United States Census.
5 "Community facilities." The term shall include the
6 following:
7 (1) Water facilities, including, but not limited to,
8 pumping stations and distribution facilities.
9 (2) Sewage disposal facilities, including facilities
10 related to collection lines, excluding sewage treatment
11 facilities and storm sewers.
12 (3) Access roads.
13 "County authority." A county authority authorized to service
14 an eligible borough or township.
15 "Eligible project costs." The term includes construction,
16 cost of design and engineering, and legal expenses as may be
17 necessary or incidental to the construction of the community
18 facilities project and the placing of the community facilities
19 project in operation. The term does not include project costs
20 incurred prior to the authority's commitment to the project.
21 "Grant." Community facilities grant.
22 "Municipal authority." An authority created by an eligible
23 borough or township.
24 "Total project cost." The entire project cost, including the
25 sewage collection system and treatment facilities.
26 "Township." A township of this Commonwealth having a
27 population of less than 12,000, as determined by the most recent
28 decennial United States Census.
29 Section 3. Community Facilities Assistance Program.
30 There is established, under the direction of the authority, a
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1 program to be known as the Community Facilities Assistance
2 Program, under which grants shall be made by the authority to
3 eligible applicants for the construction, rehabilitation,
4 alteration, expansion or improvement of community facilities.
5 Section 4. Community facilities grants.
6 (a) Authorization.--The authority is hereby authorized to
7 award grants to eligible applicants following receipt of an
8 application consistent with the criteria specified in this act.
9 Grant proceeds shall be used solely for the purpose of
10 constructing, rehabilitating, altering, expanding or improving
11 community facilities.
12 (b) Eligible applicants.--An eligible applicant for a grant
13 under the provisions of this section shall be a borough,
14 township, municipal authority or county authority.
15 (c) Eligibility criteria.--No grant shall be made in
16 connection with a project unless and until the authority
17 determines that:
18 (1) The project does not conflict with programs of other
19 departments and agencies of the Commonwealth.
20 (2) The project does not conflict with an existing
21 development plan for the community.
22 (3) The project can not otherwise be financed.
23 (4) Completion of the project will either strengthen the
24 income-producing capability of the community or improve the
25 health and safety of the community.
26 (5) The project is necessary to orderly community
27 development.
28 (6) The project does not involve other State funds.
29 (d) Grant agreement.--Executed grant and escrow agreements
30 between the applicant and the authority shall be required for
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1 payment of grants.
2 (e) Grant limitations.--Grants awarded to an eligible
3 applicant under the provisions of this act shall be used solely
4 for the construction, rehabilitation, alteration, expansion or
5 improvement of community facilities and shall be limited to:
6 (1) $75,000 or 75% of the eligible project cost,
7 whichever is less.
8 (2) Projects with a total project cost of $2 million or
9 less.
10 (f) Project account.--A recipient of a grant shall establish
11 two project accounts. Grant funds approved by the authority
12 shall be deposited in a separate community facilities escrow
13 account. Other funds for the specific project shall be deposited
14 or held separately in another special account.
15 (g) Unused grant funds.--If the full amount of the grant is
16 not required for completion of the project, the unused portion
17 of the grant shall be repaid to the authority or shall be used
18 as the authority may so direct.
19 Section 5. Application procedure.
20 (a) Letter of intent.--As a prerequisite to an application
21 for a grant, a letter of intent shall be submitted to the
22 authority by the applicant or by an official designated by the
23 applicant. The letter of intent shall contain the following:
24 (1) A brief description of the project.
25 (2) An estimate of the total project cost.
26 (3) The amount of community facilities grant funds
27 requested.
28 (4) The funding sources, including local share.
29 (5) The estimated date for the project to commence
30 construction and projected completion date.
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1 (6) The number of existing or potential users.
2 (b) Form.--Applications for community facilities grants
3 shall be made to the authority, in a form and manner prescribed
4 by the board. The application shall be properly executed by the
5 applicant or a designated official and shall be notarized.
6 (c) Documentation.--Applications shall contain the
7 following:
8 (1) A resolution from the applicant's governing body
9 officially requesting a community facilities grant and
10 designating the official to file and sign the necessary forms
11 and agreements with the authority.
12 (2) A detailed description of the scope of the project.
13 (3) A detailed map or sketch prepared by an engineer
14 defining the project area, location of the proposed
15 facilities and location of existing residential users and
16 potential future users.
17 (4) An itemization of costs or estimated costs,
18 including, but not limited to, items such as construction,
19 engineering and legal rights-of-way.
20 (5) A statement, attested to and certified by a
21 registered professional engineer or other professionally
22 qualified person, as to the feasibility and accuracy of the
23 scope of the project, the itemization of costs and the
24 estimated project costs.
25 (6) Documented evidence that the applicant has,
26 committed or in escrow, other funds needed to complete the
27 financing of the project, and evidence of the source of other
28 funds committed to the project. Commitment of local funds for
29 the project may be evidenced in the following ways:
30 (i) A resolution passed by the applicant's governing
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1 body irrevocably pledging the local share to the proposed
2 project. The resolution may be worded as to be contingent
3 upon receipt of the community facilities grant.
4 (ii) A certificate to evidence deposit of the actual
5 local share into a special account earmarked for the
6 project.
7 (iii) Evidence from a lending institution indicating
8 its willingness to lend the applicant funds for the
9 proposed project, contingent upon receipt of the
10 community facilities grant.
11 (7) Evidence of Federal, county or other grant and loan
12 funds committed to the project, evidence of which shall be
13 submitted with the community facilities application. In the
14 case of a pending application, a copy of the grant or loan
15 application shall be submitted to the authority. The
16 application shall include a statement of its most current
17 status and an estimated date by which the applicant expects
18 to receive official confirmation from each respective agency.
19 (8) A statement explaining the economic justification
20 and need for the project. The statement shall affirm that the
21 project is necessary to orderly community development and
22 shall include, but may not be limited to, information on how
23 the project will:
24 (i) Strengthen the income-producing capability of
25 the community.
26 (ii) Improve the health and safety of the community.
27 (iii) Alleviate financial hardship of the community.
28 (9) The most recent financial statements and budget of
29 the applicant, including a statement explaining why the
30 project cannot otherwise be financed. The financial
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1 statements shall include a balance sheet and income
2 statement.
3 (10) In the case of water and sewer projects, a
4 statement of the estimated annual rental per customer served,
5 front-foot assessment and tap-in fees with a grant and
6 without grant assistance.
7 (11) A statement as to the ownership of the proposed
8 facilities and the land on which the project is to be
9 constructed.
10 (12) A statement from the local, county or regional
11 planning agency stating that the proposed project conforms
12 with a comprehensive plan of the area and is consistent with
13 both local and regional plans.
14 Section 6. Duties of authority.
15 The authority shall have and may exercise all powers
16 necessary or appropriate to carry out and enforce the provisions
17 of this act. The authority shall:
18 (1) Adopt such rules, regulations and statements of
19 policy as may be necessary for the implementation of the
20 provisions of this act. Such rules and regulations shall
21 include a time frame for confirming the scope and schedule of
22 the project and for periodic inspections by the authority,
23 procedures for deviating or changing the scope, approved
24 design or time schedule of a project and penalties for
25 failing to comply with terms and conditions of a project.
26 (2) Develop grant applications which, among other
27 things, define the terms and conditions under which financial
28 assistance is provided.
29 (3) Develop procedures to expeditiously evaluate grant
30 applications and award grants for community facility projects
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1 which meet the eligibility criteria specified in this act.
2 (4) Notify each applicant in writing of the meeting at
3 which its application will be considered and immediately
4 notify the applicant of the decision.
5 Section 7. Duties of the applicant.
6 An applicant receiving a community facilities grant under the
7 provisions of this act shall maintain full and accurate project
8 progress and financial records and shall ensure that the
9 authority has free access to all project records. The applicant
10 shall:
11 (1) Furnish upon request by the authority data, reports,
12 contracts, documents, financial statements and any other
13 information relevant to the project.
14 (2) Provide the authority with status reports as may
15 from time to time be requested by the authority.
16 (3) Provide prior written notice to the authority of
17 changes in the scope of the project or in the project
18 schedule.
19 (4) Agree to comply with applicable antipollution laws,
20 regulations and standards when performing the project for
21 which the grant is made.
22 (5) Agree to comply with applicable antidiscrimination
23 laws, regulations and standards in carrying out the project
24 for which the grant is made.
25 Section 8. Audit.
26 No later than 60 days after completion of a project, a
27 certified audit of project costs shall be prepared by a
28 certified public accountant and submitted to the authority. The
29 audit shall contain a statement certifying that grant funds were
30 disbursed and used solely for the purposes provided for in the
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1 grant agreement.
2 Section 9. Transfer of functions.
3 The functions, powers and duties of the Department of
4 Commerce with regard to the community facilities program as
5 provided for in 13 Pa. Code Ch. 11 (relating to community
6 facilities) are transferred to and shall be exercised by the
7 authority, and all records, files and property now being used in
8 connection with such function, powers and duties and the
9 unexpended balances of appropriations, allocations and other
10 funds available or to be made available for use in connection
11 with such functions, powers and duties are transferred to the
12 authority.
13 Section 10. Limitations on authorities.
14 In carrying out and enforcing the provisions of this act, the
15 authority shall utilize substantially the same forms and
16 procedures for the submission and review of applications as
17 utilized by the Department of Commerce for the fiscal year
18 ending June 30, 1993. The authority shall not impose any
19 funding, engineering, legal or accounting requirement on an
20 applicant or a grant recipient which is more stringent or
21 burdensome than any similar requirement imposed by the
22 Department of Commerce for the fiscal year ending June 30, 1993.
23 Section 11. Funding.
24 The authority shall expend annually the total sum of
25 $6,000,000 from the Infrastructure Investment Authority account
26 established under the act of March 1, 1988 (P.L.82, No.16),
27 known as the Pennsylvania Infrastructure Investment Authority
28 Act, and from any funds specifically appropriated to implement
29 the provisions of this act.
30 Section 12. Effective date.
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1 This act shall take effect July 1, 1993, or immediately,
2 whichever is later.
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