PRINTER'S NO. 816
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
750
Session of
2017
INTRODUCED BY MURT, BOBACK, D. COSTA, DEASY, DONATUCCI,
DRISCOLL, FREEMAN, JAMES, LONGIETTI, MATZIE, MENTZER,
MILLARD, PEIFER, ROZZI AND SCHWEYER, MARCH 7, 2017
REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT,
MARCH 7, 2017
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." A natural person, corporation,
foundation, organization, business trust, estate, limited
liability company, licensed corporation, trust, partnership,
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
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 that 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 that 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 that:
(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
20170HB0750PN0816 - 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
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 that 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 that 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 that 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 that has been designated as a
historic district under the National Historic Preservation Act
(Public Law 89-665, 80 Stat. 915).
"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
20170HB0750PN0816 - 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
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, 80 Stat. 915).
"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
20170HB0750PN0816 - 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
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
20170HB0750PN0816 - 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
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 the 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
20170HB0750PN0816 - 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
health codes. The commission shall complete 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 the commission
deems necessary to determine compliance with the requirements of
the program established by this act. If the commission is
satisfied with the certification submitted, the commission 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 may 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.
20170HB0750PN0816 - 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
(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 those 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 may 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.
20170HB0750PN0816 - 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
(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 that do not meet
the standards.
(2) The eligible property is removed from the National
Register, either individually or as a contributing building
20170HB0750PN0816 - 9 -
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
within a historic district, whether or not as a result of the
owner making improvements to the exterior of the property
that 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 8. Effective date.
This act shall take effect in 120 days.
20170HB0750PN0816 - 10 -
1
2
3
4
5
6
7
8
9
10