PRINTER'S NO. 684
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
612
Session of
2015
INTRODUCED BY BAKER, PICKETT, MULLERY, MILLARD, KAVULICH, DAVIS,
SAINATO, MURT, McCARTER, PEIFER, GIBBONS AND WATSON,
FEBRUARY 24, 2015
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY
PREPAREDNESS, FEBRUARY 24, 2015
AN ACT
Amending Title 35 (Health and Safety) of the Pennsylvania
Consolidated Statutes, establishing the State Disaster
Assistance Loan Program; providing for powers and duties of
the Pennsylvania Emergency Management Agency and the
Pennsylvania Housing Finance Agency; establishing the State
Disaster Assistance Loan Fund; providing for funding for the
State Disaster Assistance Loan Program; and making an
appropriation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Chapter 73 of Title 35 of the Pennsylvania
Consolidated Statutes is amended by adding a subchapter to read:
SUBCHAPTER G
DISASTER ASSISTANCE LOANS
Sec.
7391. Legislative findings and purpose.
7392. Definitions.
7393. State Disaster Assistance Loan Program.
7394. Request for loan authorization.
7395. Application for and issuance of loan.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
7396. Funding.
ยง 7391. Legislative findings and purpose.
(a) Findings.--The General Assembly finds as follows:
(1) This Commonwealth, because of its topography,
development and economic base, is susceptible to a wide range
of disasters and emergencies, including fire, flood and wind
and technological accidents and emergencies, that threaten
public health and safety as well as the economic well-being
of the citizens of this Commonwealth.
(2) The violent forces of nature and unpredictable man-
made accidents that occur in this Commonwealth cause damage
to public and private property and create conditions that
force families from their homes. These disasters and
emergencies threaten public health, safety and the general
welfare of affected communities.
(3) Disasters which have an impact on a large area and
population often qualify for various forms of aid from the
Federal Government to help repair and replace damaged
residences. More localized disasters create identical serious
hardship and loss for those families directly affected, but
Federal assistance is not made available to help with
recovery.
(4) As a result of extensive repair costs resulting from
disaster and emergency damages, homeowners without adequate
insurance coverage may be unable to repair their damaged
property.
(5) Failure to expeditiously repair disaster and
emergency damages may result in a degradation of the quality
of the community and the creation of unsafe conditions.
(b) Purpose.--It is the purpose of this subchapter to create
20150HB0612PN0684 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
a State program to provide limited assistance to homeowners
directly affected by disasters and emergencies. State assistance
will be limited to loans to homeowners to help repair damage to
primary residences. Loans will be made available by the State
when community conditions exceed a clearly established threshold
of loss and impact.
ยง 7392. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Fund." The State Disaster Assistance Loan Fund established
under this subchapter.
"Program." The State Disaster Assistance Loan Program
established under this subchapter.
ยง 7393. State Disaster Assistance Loan Program.
(a) Program established.--The State Disaster Assistance Loan
Program is established to provide disaster assistance loans to
homeowners under the provisions of this subchapter.
(b) Responsibilities of agency.--The agency is authorized to
do the following:
(1) Develop the program with the Pennsylvania Housing
Finance Agency and other appropriate State and county
government representatives to provide loans to homeowners
directly affected by disasters and emergencies when the
impact upon the community exceeds an established threshold of
loss and impact.
(2) Authorize the issuance of State disaster assistance
loans to homeowners after review and approval of the county's
written request, submission of a detailed damage survey
report, compliance with necessary public-funding requirements
20150HB0612PN0684 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
and certification that no other public funded program exists
to help affected homeowners.
(3) Develop and conduct training programs for State and
county officials and staff to implement the program. Training
shall include program administration, damage assessment
documentation and reporting and mitigation identification and
implementation.
ยง 7394. Request for loan authorization.
(a) County requests.--County emergency management
coordinators, in coordination with disaster-affected municipal
elected officials and local emergency management coordinators,
shall submit to the agency a request to make State disaster
assistance loans available to disaster-affected homeowners in
the county. As required by section 7504(b) (relating to
coordination, assistance and mutual aid), all requests shall be
based on a finding that the disaster is of such magnitude and
severity that State disaster assistance is necessary to
alleviate the hardships caused to the affected homeowners and
that no other government-funded programs exist or existing
programs have been exhausted.
(b) Program eligibility threshold.--In order for the agency
to authorize State disaster assistance loans, the county must
submit a detailed written damage survey report which identifies
by name and address each residential homeowner who has suffered
an uninsured loss in excess of 40% of the predisaster fair
market value of the home. In order for the program to be
implemented, there must be within that county at least 10
primary residences of either a single-family residential,
condominium, apartment or mobile home nature which have suffered
damage or loss directly caused by the identified disaster or
20150HB0612PN0684 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
emergency. Camps, cottages or other types of secondary
residences are not eligible for disaster loan assistance.
Applicants must show proof that banks and other financial
institutions will not grant a loan for this purpose or that the
loan repayment amount is beyond the capability of the homeowner.
In its written request, the county shall also furnish
information requested by the agency concerning the nature of the
disaster or emergency that impacted the county. The county must
also certify in its report that current county and affected
political subdivision emergency management plans are current and
have been activated in response to the disaster or emergency.
The agency shall review the effectiveness of the plans and
response and may require changes as it deems necessary in plans
and procedures. The changes shall be made by local and county
governments before any loans may be authorized.
ยง 7395. Application for and issuance of loan.
(a) Review of county requests for assistance.--The agency
shall review and approve all county requests for loan
assistance. The agency shall then notify the Pennsylvania
Housing Finance Agency of all approved county requests. The
Pennsylvania Housing Finance Agency shall then implement the
loan application, review, approval and award process for the
individual residential homeowners identified in the county's
damage survey report.
(b) Loan application and award.--All loans issued under the
program are supplemental to a homeowner's residential insurance
coverage. This program may be authorized when the magnitude and
severity of the disaster or emergency meets or exceeds program
eligibility standards as set forth in section 7394(b) (relating
to request for loan authorization). All requirements of the loan
20150HB0612PN0684 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
application and award process shall be developed by the agency
and the Pennsylvania Housing Finance Agency. The Pennsylvania
Housing Finance Agency shall develop regulations to implement
the loan requirements. All applications for loans must be
received by the Pennsylvania Housing Finance Agency within 60
days after the agency has approved the county damage survey
report and request for assistance.
(c) Homeowner eligibility.--A homeowner residing within a
county or counties designated by the agency as a State disaster
emergency area who suffered disaster-related damage to a primary
residence in excess of the amount described in section 7394 may
apply for a State disaster assistance loan.
(d) Interest.--The rate of interest on State disaster
assistance loans shall be set by the Pennsylvania Housing
Finance Agency in its regulations. Loans shall be secured by
mortgages on the real estate and shall be repaid in accordance
with promissory notes which establish monthly loan principal and
interest payments.
(e) Insurance requirement.--As a condition of eligibility
for a State disaster assistance loan, the loan recipient shall
agree to purchase and maintain insurance coverage in an amount
equal to the value of the rebuilt or replaced primary residence
for which a loan is awarded. The insurance shall include full
protection against all natural hazards, including fire, wind
and, where appropriate, flood damage. All primary residences
located within a designated 100-year flood plain must include
flood insurance. During the term of the loan, each loan
recipient must provide written verification of appropriate and
adequate insurance protection in the form of either premium
statements, policy renewal notices or copies of the actual
20150HB0612PN0684 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
insurance policy to the Pennsylvania Housing Finance Agency. The
insurance policy must list the Pennsylvania Housing Finance
Agency as the loss payee of the policy. A homeowner's failure to
maintain appropriate insurance protection shall result in the
loan being declared in default.
(f) Limitations.--The following limitations shall apply to
the program:
(1) A loan shall not be made to a homeowner who is
eligible to receive assistance from the Federal Government
under any Federal disaster assistance and recovery program. A
homeowner who has received Federal aid in the maximum amount
allowable under Federal disaster relief law and continues to
have significant disaster-related damage to a primary
residence making the home uninhabitable may be eligible to
apply for a State disaster assistance loan.
(2) Loans shall be limited to homeowner-occupied primary
residences that are located within a county that the agency
has designated as a disaster emergency area.
(3) Loans are limited to providing for essential repairs
to the primary residence which are needed to make the
residence safe, sanitary and habitable for occupancy based on
applicable State and local building or occupancy codes. Loans
shall not be authorized for improvements to the value of the
residence or for other purposes not authorized by this
section.
(4) Repairing or replacing loss or damage to
landscaping, shrubs, trees, out-buildings or any other
nonresidential structures which are not physically attached
to the primary residence are not eligible costs for a State
disaster assistance loan.
20150HB0612PN0684 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(5) Loans may be provided for disaster mitigation on the
property if approved by the agency.
(6) A homeowner may only apply for one disaster
assistance loan at a time. While a homeowner's disaster
assistance loan is in effect, the same homeowner shall be
ineligible for another loan under the program. If the
homeowner's primary residence is damaged in a subsequent
disaster while the disaster assistance loan is in effect, the
required insurance coverage shall be considered adequate for
repairs to the residence.
(7) The maximum amount of a loan is $50,000. The minimum
amount of any loan is $1,000.
ยง 7396. Funding.
(a) Appropriation.--The sum of $1,000,000 is hereby
appropriated to the Pennsylvania Housing Finance Agency.
(b) State Disaster Assistance Loan Fund.--
(1) The sum appropriated under subsection (a) shall be
transferred to the State Disaster Assistance Loan Fund, which
is established in the State Treasury.
(2) Money in the fund shall be used solely for the
purpose of implementing this subchapter. Appropriations to
the fund shall not lapse.
(3) All loan payments of principal and interest made to
the Pennsylvania Housing Finance Agency shall be deposited in
the fund.
(4) Any amount in the fund in excess of $3,000,000 which
remains unexpended or uncommitted after July 1 of each year,
beginning with the first fiscal year after the effective date
of this subchapter, shall be returned to the General Fund.
(c) Administrative expenses.--The Pennsylvania Housing
20150HB0612PN0684 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Finance Agency shall annually provide to the agency 10% of the
total amount in the fund in order that the agency may provide
for program administration, State and local damage assessment
training and materials and operational, mitigation,
preparedness, response and recovery costs.
(d) Diversion of money in fund prohibited.--Money in the
fund shall not be diverted to fund other Commonwealth operations
or programs or be transferred to other funds and shall be used
exclusively for the purposes provided for in this subchapter.
Section 2. This act shall take effect immediately.
20150HB0612PN0684 - 9 -
1
2
3
4
5
6
7
8
9
10