PRINTER'S NO. 165
No. 186 Session of 1995
INTRODUCED BY LLOYD, STEELMAN, TIGUE, VAN HORNE, LUCYK, ROONEY,
ITKIN, WOZNIAK, LAUGHLIN, GORDNER, FARGO, M. COHEN, McCALL,
PESCI, HUTCHINSON, DALEY, TRELLO, COY, TRICH, BELARDI,
PETRONE AND BATTISTO, JANUARY 23, 1995
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
JANUARY 23, 1995
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.
1 "Board." The board of directors of the Pennsylvania
2 Infrastructure Investment Authority.
3 "Borough." A borough of this Commonwealth having a
4 population of less than 12,000, as determined by the most recent
5 decennial United States Census.
6 "Community facilities." The term shall include the
7 following:
8 (1) Water facilities, including, but not limited to,
9 pumping stations and distribution facilities.
10 (2) Sewage disposal facilities, including facilities
11 related to collection lines, excluding sewage treatment
12 facilities and storm sewers.
13 (3) Access roads.
14 "County authority." A county authority authorized to service
15 an eligible borough or township.
16 "Eligible project costs." The term includes construction,
17 cost of design and engineering, and legal expenses as may be
18 necessary or incidental to the construction of the community
19 facilities project and the placing of the community facilities
20 project in operation. The term does not include project costs
21 incurred prior to the authority's commitment to the project.
22 "Grant." Community facilities grant.
23 "Municipal authority." An authority created by an eligible
24 borough or township.
25 "Total project cost." The entire project cost, including the
26 sewage collection system and treatment facilities.
27 "Township." A township of this Commonwealth having a
28 population of less than 12,000, as determined by the most recent
29 decennial United States Census.
30 Section 3. Community Facilities Assistance Program.
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1 There is established, under the direction of the authority, a
2 program to be known as the Community Facilities Assistance
3 Program, under which grants shall be made by the authority to
4 eligible applicants for the construction, rehabilitation,
5 alteration, expansion or improvement of community facilities.
6 Section 4. Community facilities grants.
7 (a) Authorization.--The authority is hereby authorized to
8 award grants to eligible applicants following receipt of an
9 application consistent with the criteria specified in this act.
10 Grant proceeds shall be used solely for the purpose of
11 constructing, rehabilitating, altering, expanding or improving
12 community facilities.
13 (b) Eligible applicants.--An eligible applicant for a grant
14 under the provisions of this section shall be a borough,
15 township, municipal authority or county authority.
16 (c) Eligibility criteria.--No grant shall be made in
17 connection with a project unless and until the authority
18 determines that:
19 (1) The project does not conflict with programs of other
20 departments and agencies of the Commonwealth.
21 (2) The project does not conflict with an existing
22 development plan for the community.
23 (3) The project can not otherwise be financed.
24 (4) Completion of the project will either strengthen the
25 income-producing capability of the community or improve the
26 health and safety of the community.
27 (5) The project is necessary to orderly community
28 development.
29 (6) The project does not involve other State funds.
30 (d) Grant agreement.--Executed grant and escrow agreements
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1 between the applicant and the authority shall be required for
2 payment of grants.
3 (e) Grant limitations.--Grants awarded to an eligible
4 applicant under the provisions of this act shall be used solely
5 for the construction, rehabilitation, alteration, expansion or
6 improvement of community facilities and shall be limited to:
7 (1) $75,000 or 75% of the eligible project cost,
8 whichever is less.
9 (2) Projects with a total project cost of $2 million or
10 less.
11 (f) Project account.--A recipient of a grant shall establish
12 two project accounts. Grant funds approved by the authority
13 shall be deposited in a separate community facilities escrow
14 account. Other funds for the specific project shall be deposited
15 or held separately in another special account.
16 (g) Unused grant funds.--If the full amount of the grant is
17 not required for completion of the project, the unused portion
18 of the grant shall be repaid to the authority or shall be used
19 as the authority may so direct.
20 Section 5. Application procedure.
21 (a) Letter of intent.--As a prerequisite to an application
22 for a grant, a letter of intent shall be submitted to the
23 authority by the applicant or by an official designated by the
24 applicant. The letter of intent shall contain the following:
25 (1) A brief description of the project.
26 (2) An estimate of the total project cost.
27 (3) The amount of community facilities grant funds
28 requested.
29 (4) The funding sources, including local share.
30 (5) The estimated date for the project to commence
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1 construction and projected completion date.
2 (6) The number of existing or potential users.
3 (b) Form.--Applications for community facilities grants
4 shall be made to the authority, in a form and manner prescribed
5 by the board. The application shall be properly executed by the
6 applicant or a designated official and shall be notarized.
7 (c) Documentation.--Applications shall contain the
8 following:
9 (1) A resolution from the applicant's governing body
10 officially requesting a community facilities grant and
11 designating the official to file and sign the necessary forms
12 and agreements with the authority.
13 (2) A detailed description of the scope of the project.
14 (3) A detailed map or sketch prepared by an engineer
15 defining the project area, location of the proposed
16 facilities and location of existing residential users and
17 potential future users.
18 (4) An itemization of costs or estimated costs,
19 including, but not limited to, items such as construction,
20 engineering and legal rights-of-way.
21 (5) A statement, attested to and certified by a
22 registered professional engineer or other professionally
23 qualified person, as to the feasibility and accuracy of the
24 scope of the project, the itemization of costs and the
25 estimated project costs.
26 (6) Documented evidence that the applicant has,
27 committed or in escrow, other funds needed to complete the
28 financing of the project, and evidence of the source of other
29 funds committed to the project. Commitment of local funds for
30 the project may be evidenced in the following ways:
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1 (i) A resolution passed by the applicant's governing
2 body irrevocably pledging the local share to the proposed
3 project. The resolution may be worded as to be contingent
4 upon receipt of the community facilities grant.
5 (ii) A certificate to evidence deposit of the actual
6 local share into a special account earmarked for the
7 project.
8 (iii) Evidence from a lending institution indicating
9 its willingness to lend the applicant funds for the
10 proposed project, contingent upon receipt of the
11 community facilities grant.
12 (7) Evidence of Federal, county or other grant and loan
13 funds committed to the project, evidence of which shall be
14 submitted with the community facilities application. In the
15 case of a pending application, a copy of the grant or loan
16 application shall be submitted to the authority. The
17 application shall include a statement of its most current
18 status and an estimated date by which the applicant expects
19 to receive official confirmation from each respective agency.
20 (8) A statement explaining the economic justification
21 and need for the project. The statement shall affirm that the
22 project is necessary to orderly community development and
23 shall include, but may not be limited to, information on how
24 the project will:
25 (i) Strengthen the income-producing capability of
26 the community.
27 (ii) Improve the health and safety of the community.
28 (iii) Alleviate financial hardship of the community.
29 (9) The most recent financial statements and budget of
30 the applicant, including a statement explaining why the
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1 project cannot otherwise be financed. The financial
2 statements shall include a balance sheet and income
3 statement.
4 (10) In the case of water and sewer projects, a
5 statement of the estimated annual rental per customer served,
6 front-foot assessment and tap-in fees with a grant and
7 without grant assistance.
8 (11) A statement as to the ownership of the proposed
9 facilities and the land on which the project is to be
10 constructed.
11 (12) A statement from the local, county or regional
12 planning agency stating that the proposed project conforms
13 with a comprehensive plan of the area and is consistent with
14 both local and regional plans.
15 Section 6. Duties of authority.
16 The authority shall have and may exercise all powers
17 necessary or appropriate to carry out and enforce the provisions
18 of this act. The authority shall:
19 (1) Adopt such rules, regulations and statements of
20 policy as may be necessary for the implementation of the
21 provisions of this act. Such rules and regulations shall
22 include a time frame for confirming the scope and schedule of
23 the project and for periodic inspections by the authority,
24 procedures for deviating or changing the scope, approved
25 design or time schedule of a project and penalties for
26 failing to comply with terms and conditions of a project.
27 (2) Develop grant applications which, among other
28 things, define the terms and conditions under which financial
29 assistance is provided.
30 (3) Develop procedures to expeditiously evaluate grant
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1 applications and award grants for community facility projects
2 which meet the eligibility criteria specified in this act.
3 (4) Notify each applicant in writing of the meeting at
4 which its application will be considered and immediately
5 notify the applicant of the decision.
6 Section 7. Duties of the applicant.
7 An applicant receiving a community facilities grant under the
8 provisions of this act shall maintain full and accurate project
9 progress and financial records and shall ensure that the
10 authority has free access to all project records. The applicant
11 shall:
12 (1) Furnish upon request by the authority data, reports,
13 contracts, documents, financial statements and any other
14 information relevant to the project.
15 (2) Provide the authority with status reports as may
16 from time to time be requested by the authority.
17 (3) Provide prior written notice to the authority of
18 changes in the scope of the project or in the project
19 schedule.
20 (4) Agree to comply with applicable antipollution laws,
21 regulations and standards when performing the project for
22 which the grant is made.
23 (5) Agree to comply with applicable antidiscrimination
24 laws, regulations and standards in carrying out the project
25 for which the grant is made.
26 Section 8. Audit.
27 No later than 60 days after completion of a project, a
28 certified audit of project costs shall be prepared by a
29 certified public accountant and submitted to the authority. The
30 audit shall contain a statement certifying that grant funds were
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1 disbursed and used solely for the purposes provided for in the
2 grant agreement.
3 Section 9. Transfer of functions.
4 The functions, powers and duties of the Department of
5 Commerce with regard to the community facilities program as
6 provided for in 13 Pa. Code Ch. 11 (relating to community
7 facilities) are transferred to and shall be exercised by the
8 authority, and all records, files and property now being used in
9 connection with such function, powers and duties and the
10 unexpended balances of appropriations, allocations and other
11 funds available or to be made available for use in connection
12 with such functions, powers and duties are transferred to the
13 authority.
14 Section 10. Limitations on authorities.
15 In carrying out and enforcing the provisions of this act, the
16 authority shall utilize substantially the same forms and
17 procedures for the submission and review of applications as
18 utilized by the Department of Commerce for the fiscal year
19 ending June 30, 1995. The authority shall not impose any
20 funding, engineering, legal or accounting requirement on an
21 applicant or a grant recipient which is more stringent or
22 burdensome than any similar requirement imposed by the
23 Department of Commerce for the fiscal year ending June 30, 1995.
24 Section 11. Funding.
25 The authority shall expend annually the total sum of
26 $6,000,000 from the Infrastructure Investment Authority account
27 established under the act of March 1, 1988 (P.L.82, No.16),
28 known as the Pennsylvania Infrastructure Investment Authority
29 Act, and from any funds specifically appropriated to implement
30 the provisions of this act.
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1 Section 12. Effective date.
2 This act shall take effect July 1, 1995, or immediately,
3 whichever is later.
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