PRINTER'S NO. 920
No. 862 Session of 1999
INTRODUCED BY TANGRETTI, GEORGE, MARKOSEK, READSHAW, BELFANTI,
HERMAN, WOJNAROSKI, WILT, BAKER, HALUSKA, PISTELLA, LAUGHLIN,
CORRIGAN, CURRY, WALKO, PESCI, TRELLO, MICHLOVIC, STABACK,
ARGALL, MICOZZIE, TIGUE, GIGLIOTTI, MELIO, RAMOS, McCALL,
SOLOBAY, M. COHEN, JAMES, BELARDI, YOUNGBLOOD, PETRARCA,
CIVERA AND HARHAI, MARCH 10, 1999
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY
PREPAREDNESS, MARCH 10, 1999
AN ACT
1 Establishing the State Disaster Assistance Program to provide
2 disaster and emergency relief; further providing for the
3 powers and duties of the Pennsylvania Emergency Management
4 Agency and for the Pennsylvania Housing Finance Agency; and
5 making an appropriation.
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 State
10 Disaster Assistance Program Act.
11 Section 2. Legislative intent.
12 The General Assembly finds that:
13 (1) This Commonwealth, because of its topography,
14 population areas and socioeconomic base, is susceptible to a
15 wide range of disasters and emergencies. It is in the best
16 interest of the Commonwealth to be prepared for the impact
17 these events might have on the public by having disaster and
1 emergency relief available through a Statewide loan program.
2 (2) Homeowners should be encouraged to secure and
3 maintain appropriate and adequate insurance coverage against
4 disasters and emergencies.
5 Section 3. Definitions.
6 The following words and phrases when used in this act shall
7 have the meanings given to them in this section unless the
8 context clearly indicates otherwise:
9 "Agency." The Pennsylvania Housing Finance Agency.
10 "PEMA." The Pennsylvania Emergency Management Agency.
11 "Program." The State Disaster Assistance Program created
12 under section 4.
13 Section 4. State Disaster Assistance Program.
14 The State Disaster Assistance Program is hereby created to
15 provide disaster assistance loans to homeowners who have
16 suffered direct financial or property loss, or both. Disaster
17 assistance loans may be used only to repair damage or to replace
18 essential lost or destroyed possessions. Loans shall be
19 available only in communities where damage does not meet Federal
20 and State requirements for disaster relief.
21 Section 5. Powers and duties.
22 (a) PEMA.--PEMA may do the following:
23 (1) Develop the State Disaster Assistance Program to
24 provide assistance to homeowners who have suffered financial
25 or property loss from a disaster or emergency. The program
26 shall be available only in communities which do not qualify
27 for Federal or State disaster relief.
28 (2) Promulgate regulations to carry out the provisions
29 of this act relating to PEMA.
30 (3) Administer moneys to implement the program.
19990H0862B0920 - 2 -
1 (4) Authorize the issuance of loans generally in
2 communities impacted by disaster or emergency. Authorization
3 may not be granted until after a review and approval of an
4 affected county's written request and of a detailed damage
5 survey report submitted by the governing body of the affected
6 community. Approval shall be based on the degree of damage in
7 relation to a magnitude and severity threshold established by
8 PEMA regulations.
9 (b) Agency.--The agency may:
10 (1) Make disaster assistance loans available to
11 homeowners upon approval of PEMA.
12 (2) Promulgate regulations to carry out the provisions
13 of this act relating to the agency.
14 (3) Enter into agreements with local lending
15 institutions when necessary or appropriate to administer the
16 program within a designated approved area.
17 Section 6. Request for loan authorization.
18 Each county governing body, in cooperation with the governing
19 bodies of political subdivisions affected by disaster or
20 emergency, may submit a written request to PEMA for disaster
21 assistance loans. Requests shall indicate that the disaster or
22 emergency is of such magnitude and severity that State disaster
23 assistance is necessary. In the request, the county shall:
24 (1) Furnish information on:
25 (i) The nature of the disaster.
26 (ii) The type of county resources which have been or
27 will be committed to alleviate the aftermath of the
28 disaster or emergency.
29 (iii) The amount of county resources which have been
30 or will be expended to alleviate the aftermath of the
19990H0862B0920 - 3 -
1 disaster or emergency.
2 (iv) The type of local resources which have been or
3 will be committed to alleviate the aftermath of the
4 disaster or emergency.
5 (v) The amount of local resources which have been or
6 will be expended to alleviate the aftermath of the
7 disaster or emergency.
8 (2) Certify that county and community emergency
9 management plans are in place and have been activated in
10 response to the incident.
11 Section 7. Program eligibility.
12 (a) Damage survey report.--In order for PEMA to approve a
13 county request to authorize State disaster assistance loans, the
14 county shall submit a written, detailed damage survey report
15 that identifies, by name, address and telephone number of the
16 homeowner, each residence that has suffered uninsured loss in
17 excess of 40% of the fair market value of the property. Also,
18 the county shall provide evidence that, within that county, at
19 least five single-family primary residences or owner-occupied
20 residences in a multi-unit cooperative or condominium, or a
21 combination of both, suffered losses directly related to the
22 disaster or emergency.
23 (b) Program administration.--After review and approval of a
24 county request, PEMA shall notify the agency. The agency shall
25 then implement the loan application, review, approval and award
26 process, making use of existing resources and personnel. PEMA
27 shall transfer moneys to the agency to issue State disaster
28 assistance loans.
29 (c) Homeowner eligibility.--A homeowner who lives in an
30 approved region shall be eligible for a State disaster
19990H0862B0920 - 4 -
1 assistance loan under the program. Loans issued under the
2 program shall be supplemental to individual homeowner insurance
3 coverage. When a homeowner's insurance does not adequately cover
4 the cost to repair property damage, the homeowner is eligible
5 under the program for a State disaster assistance loan.
6 (d) Amount of loan.--Loans shall be limited in amount to
7 provide costs necessary to make essential repairs to a
8 homeowner's property and to replace essential personal
9 possessions. Loans shall be issued only after all insurance
10 proceeds are exhausted. The amount a homeowner may borrow may
11 not exceed $50,000.
12 (e) Interest.--Interest on State disaster assistance loans
13 shall be established by regulation. A borrower shall make
14 monthly repayments on principal and interest in accordance with
15 a schedule determined by the agency.
16 (f) Insurance requirement.--As a condition of eligibility
17 for a State disaster assistance loan, the borrower shall agree
18 to purchase and maintain insurance in the amount necessary to
19 rebuild or replace property for which a loan is awarded. This
20 shall include full protection against all hazards. Property
21 located within a designated 100-year flood plain or within a
22 flood-prone area shall be protected by flood insurance. The
23 borrower shall provide the agency with verification of
24 appropriate and adequate insurance protection each year on the
25 anniversary date of the loan. Failure to maintain this insurance
26 shall cause the loan to be declared in default.
27 (g) Limitations.--
28 (1) State disaster assistance loans shall be made
29 available only to homeowners living within a designated
30 county. Loans may not be made under this program if the
19990H0862B0920 - 5 -
1 homeowner is eligible to receive Federal disaster assistance
2 unless that Federal disaster assistance is insufficient to
3 meet the homeowner's need for compensation or the Federal
4 disaster assistance has been exhausted.
5 (2) Eligibility under this program extends only to
6 owner-occupied primary residences.
7 (3) Loans under this program shall be used only to
8 repair damage to the owner-occupied primary residence or to
9 replace essential lost or destroyed possessions.
10 (4) Repairing or replacing damage or loss to
11 landscaping, trees, outbuildings and nonresidential
12 structures detached from the owner-occupied primary residence
13 may not be considered as compensable under the State disaster
14 assistance loan.
15 (5) Each applicant for a State disaster assistance loan
16 may receive only one loan under the program. If property for
17 which a loan was given under the program is damaged in a
18 subsequent disaster, the insurance coverage required under
19 the program shall be deemed sufficient to compensate the
20 homeowner.
21 Section 8. Appropriation.
22 (a) Amount.--The sum of $1,000,000, or as much thereof as
23 may be necessary, is hereby appropriated to the Pennsylvania
24 Housing Finance Agency to carry out the provisions of this act.
25 (b) Restricted account.--This appropriation shall be placed
26 in a restricted account for use only for loans under the State
27 Disaster Assistance Program.
28 (c) Supplementary revenues.--Repayments made to the agency
29 by loan recipients shall be deposited into this restricted
30 account. If annual program activity requires making loans in
19990H0862B0920 - 6 -
1 excess of moneys available in the restricted account, the
2 General Assembly may make supplemental appropriations to restore
3 the restricted account to the amount of $1,000,000.
4 (d) Lapse of excessive amount.--Any amount in the restricted
5 account on June 30 in excess of $1,000,000 shall revert to the
6 General Fund.
7 (e) Administrative expenses.--PEMA and the agency each may
8 use up to 10% of the fund annually for program administration,
9 training, training materials and response to disasters and
10 emergencies under this act.
11 Section 9. Report.
12 PEMA and the agency shall submit a joint annual report to the
13 General Assembly. The report shall state program activity in
14 terms of homeowners who have been assisted and amounts which
15 have been expended.
16 Section 10. Effective date.
17 This act shall take effect in 60 days.
A6L35RLE/19990H0862B0920 - 7 -