PRINTER'S NO. 2392
No. 1834 Session of 2003
INTRODUCED BY GRUCELA, BELARDI, BELFANTI, BROWNE, DALLY, DeLUCA, DeWEESE, FREEMAN, GEIST, GEORGE, GERGELY, GOODMAN, HARHAI, KOTIK, LAUGHLIN, McCALL, McGILL, PETRARCA, READSHAW, REICHLEY, RUBLEY, SHANER, SOLOBAY, STABACK, TANGRETTI, TRAVAGLIO, WALKO, WANSACZ, WASHINGTON, WOJNAROSKI, YOUNGBLOOD AND YUDICHAK, JULY 9, 2003
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JULY 9, 2003
AN ACT 1 Establishing a sinkhole damage assistance program; providing for 2 grants and loans; and making an appropriation. 3 The General Assembly of the Commonwealth of Pennsylvania 4 hereby enacts as follows: 5 Section 1. Short title. 6 This act shall be known and may be cited as the Sinkhole 7 Damage Repair Assistance Law. 8 Section 2. Statement of purpose. 9 By this act, the General Assembly recognizes that the 10 presence of sinkholes and the potential for sinkhole development 11 in many areas of this Commonwealth poses a continued threat to 12 the health and welfare of the residents of those areas and 13 further recognizes that sinkholes damage property, jeopardize 14 public safety and cause economic hardship to property owners. 15 Accordingly, it is the purpose of this act: 16 (1) to establish a program to authorize financial
1 assistance in the form of grants and loans in the event of 2 sinkhole damage to property; 3 (2) to develop recommendations for controlling 4 development which may exacerbate sinkhole damage; and 5 (3) to provide for the surveying and mapping of areas of 6 this Commonwealth subject to sinkhole development. 7 Section 3. Definitions. 8 The following words and phrases when used in this act shall 9 have the meanings given to them in this section unless the 10 context clearly indicates otherwise: 11 "Commercial property." A building or structure which is 12 occupied primarily for the purpose of operating a business, an 13 office, a manufactory or a public accommodation or for any other 14 lawful nonresidential purpose. The term does not include 15 buildings and structures owned by the Federal Government, the 16 Commonwealth or any of its political subdivisions. 17 "Department." The Department of Environmental Protection of 18 the Commonwealth. 19 "Dwelling." A building or structure whose primary use is 20 residential. 21 "Property." A dwelling or commercial property. 22 "Qualified property." Property containing a business, an 23 office, a factory, a public accommodation or other lawful 24 nonresidential enterprise with fewer than 25 employees, provided 25 that the owner can demonstrate hardship in obtaining and 26 repaying a conventional loan and provided that other criteria 27 which may be established by the department are met. The term 28 does not include buildings and structures owned by the Federal 29 Government, the Commonwealth or any of its political 30 subdivisions, except for buildings and structures of school 20030H1834B2392 - 2 -
1 districts used as public school buildings. 2 "Sinkhole." A hole in the land surface which results from 3 the collapse of the roof of a cave or from the subsidence of 4 surface material into a subsurface opening which has been 5 created specifically by the chemical weatherization of carbonate 6 rock. The term shall not include a sinkhole caused by mine 7 subsidence. 8 "Sinkhole damage." Actual physical damage to property 9 arising out of or caused by sudden settlement or collapse of the 10 earth supporting the property, provided that the settlement or 11 collapse results from a sinkhole. 12 "Sinkhole emergency." A situation that occurs when, as a 13 result of sinkhole damage, property is rendered unsafe for human 14 occupancy. 15 Section 4. Sinkhole Damage Revolving Loan Fund. 16 There is established in the State Treasury a special fund to 17 be known as the Sinkhole Damage Revolving Loan Fund. The fund 18 shall be comprised of all money appropriated, allocated or made 19 available to it from any source; the repayment of principal and 20 interest on loans made from this fund; and all interest, 21 earnings, increment and additions to the fund. The assets of the 22 fund shall be used solely for the purposes of the sinkhole 23 damage assistance program, as set forth in section 5. 24 Section 5. Sinkhole damage assistance program. 25 (a) Application for assistance.--Whenever property has 26 sustained sinkhole damage, the owner of the property may apply 27 to the department for financial assistance. The application 28 shall be on a form prepared by the department and shall provide 29 for inspection of the property to determine the nature and 30 extent of the damage. Upon a determination by the department 20030H1834B2392 - 3 -
1 that property has sustained sinkhole damage, the department 2 shall, to the extent funds are made available, grant assistance, 3 as provided in this section. 4 (b) Grants.--Grants may be awarded only to those homeowners 5 whose dwellings are unsafe for occupancy as a result of a 6 sinkhole emergency and may be awarded to move persons whose 7 dwellings are destroyed or endangered until the homes are 8 repaired, until there is no further danger from sinkhole 9 subsidence or until a new permanent replacement residence is 10 found. 11 (c) Loans.--Loans may be approved at interest rates not to 12 exceed 3% for the repair or replacement of sinkhole-damaged 13 property. Property need not be rendered unsafe for human 14 occupancy as a result of a sinkhole emergency, to qualify for a 15 loan under this subsection. The loan shall be in an amount 16 sufficient to cover the cost of repairing the structural damage 17 to the property, but in no event shall be greater than the 18 replacement cost of the property as determined by an appraiser, 19 as provided for in regulations. Loans shall be administered by 20 the department and shall be secured by a lien on the property 21 being repaired or replaced. 22 (d) Priority.--The department shall give preference to 23 grants and loans based on the following: 24 (1) Grants awarded pursuant to subsection (b) shall be 25 made on a priority basis, in accordance with regulations, and 26 considering both the severity of damages and whether the 27 person applying for the grant demonstrates hardship in 28 obtaining and repaying a loan. 29 (2) Loans awarded pursuant to subsection (c) shall be 30 made on a priority basis, in accordance with regulations, and 20030H1834B2392 - 4 -
1 considering the following: 2 (i) That preference shall be given to loans for 3 dwellings. 4 (ii) That, in the case of loans for dwellings, 5 preference shall be given to persons who demonstrate 6 hardship in obtaining and repaying a conventional loan. 7 (iii) That, in the case of loans for commercial 8 property, preference shall be given to qualified 9 property. 10 (iv) That, after establishing priority in accordance 11 with subparagraphs (i), (ii) and (iii), loans shall be 12 made on a priority basis according to the severity of 13 damages. 14 (e) Thresholds.--A grant or loan shall not be awarded 15 pursuant to this section unless the following damage thresholds 16 are met or exceeded: 17 (1) A dwelling must have incurred sinkhole damage of 18 $1,000. 19 (2) Commercial property must have incurred sinkhole 20 damage as follows: 21 (i) $2,000 in the case of qualified property. 22 (ii) $10,000 in the case of commercial property 23 other than qualified property. 24 (f) Municipal ordinance.--In order for an owner of property 25 which has sustained sinkhole damage to be eligible for grants or 26 loans under this act, an ordinance similar in intent and 27 function to the ordinance developed and published by the 28 department pursuant to section 7, to control and regulate land 29 development to reduce sinkhole damage, must be adopted by the 30 municipality in which the property is located. 20030H1834B2392 - 5 -
1 Section 6. Rulemaking. 2 The department shall propose regulations necessary to 3 accomplish the purposes and carry out the provisions of this 4 act, and the Environmental Quality Board shall have the power 5 and duty to adopt regulations necessary to accomplish the 6 purposes and carry out the provisions of this act. 7 Section 7. Guidelines and model ordinances. 8 The department shall also develop and publish nonbinding 9 guidelines and model ordinances for use by counties and other 10 municipalities in addressing the control and regulation of land 11 development in order to reduce property damage caused by 12 sinkholes. 13 Section 8. Geologic survey. 14 Within three years of the effective date of this act, the 15 department shall complete its ongoing survey and mapping of 16 those areas of this Commonwealth subject to sinkhole 17 development. 18 Section 9. Annual appropriation estimate. 19 The department shall submit to the Governor and General 20 Assembly an annual estimate of the amount needed to be 21 appropriated to the department for allocation to the Sinkhole 22 Damage Revolving Loan Fund to insure its fiscal sufficiency to 23 meet the needs of the sinkhole damage assistance program. 24 Section 10. Appropriation. 25 (a) Appropriation.--The sum of $1,150,000, or as much 26 thereof as may be necessary, is hereby appropriated to the 27 Department of Environmental Protection for the fiscal year July 28 1, 2003, to June 30, 2004, to be allocated as follows: 29 (1) The sum of $1,000,000 is allocated to the Sinkhole 30 Damage Revolving Loan Fund. No more than 10% of this sum 20030H1834B2392 - 6 -
1 shall be used for administrative costs. 2 (2) The sum of $150,000 is allocated for the ongoing 3 survey and mapping of areas of this Commonwealth subject to 4 sinkhole development. 5 (b) Nonlapsing.--The appropriation made in subsection (a) 6 shall be a continuing appropriation and shall not lapse. 7 Section 11. Effective date. 8 This act shall take effect immediately. F30L71MRD/20030H1834B2392 - 7 -