Pennsylvania Code › Title 12 - COMMERCE, TRADE AND LOCAL GOVERNMENT › Part V - Community Affairs and Development › Subpart A - Strategic Planning and Operation › Chapter 117 - LOCAL GOVERNMENT CAPITAL PROJECT LOAN FUND › PROJECT REQUIREMENTS › Section 117.92 - Loans for facilities

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Loan
					 proceeds for facilities may be used for land acquisition, construction,
					 renovation and rehabilitation including planning and design costs.
(b) Loans for construction, renovation or
					 rehabilitation will be approved only under the condition that construction,
					 renovation or rehabilitation begins within 6 months of the loan execution
					 date.
(c) The loan shall be secured
					 by a mortgage which shall be recorded in the office of the recorder of deeds of
					 the county in which the land is located.
(d) Mortgage title insurance in the aggregate
					 amount of the loan, insuring the interest of the Department as mortgagee,
					 subject only to exceptions approved by the Department, shall be procured and
					 paid by the municipality and delivered to the Department.
(e) For construction, renovation or
					 rehabilitation of facilities a copy of the approved plans and specifications
					 shall be submitted to and will be retained by the Department. The municipality
					 is responsible for complying with applicable Federal, State and local laws. If
					 a change to the plans and specifications is required by a governmental agency
					 or similar body, the municipality shall furnish additional labor and materials
					 necessary to complete the project and the improvements in compliance with the
					 changes to the plans and specifications. The municipality shall complete the
					 facility project on or before the completion date as specified in the loan
					 agreement unless an unforeseen condition occurs that prevents completion on the
					 specified date. In this case, the municipality shall notify the Department of
					 the reasons for the delay and the anticipated completion date. Additions or
					 changes may not be made to the plans and specifications or to a construction
					 contract without the prior approval of the original approving agencies. Written
					 notification of these approvals, additions or changes shall be submitted to the
					 Department.
(f) The Department may
					 conduct periodic inspections during construction and will conduct a final
					 inspection after completion and prior to issuance of the final payment from the
					 note proceeds. In lieu of the final inspection, the Department will accept a
					 copy of the official Department of Labor and Industry inspection letter and a
					 copy of the official certificate of occupancy.
(g) Proceeds of loans for the construction,
					 renovation or rehabilitation of facilities will be disbursed to the
					 municipality as follows:
(1) Thirty percent at
					 the time of settlement.
(2) An
					 additional 50% when 50% of the total costs of construction, renovation or
					 rehabilitation (the Facility Project) are completed to the satisfaction of the
					 Department.
(3) The balance of the
					 loan when (the Facility Project) is completed and inspected by the Department.
					 Prior to final disbursement, the Department may require copies of certificates,
					 opinions of counsel, permits, letters, grants, authorizations and resolutions
					 and approvals of government authorities, which the municipality shall procure
					 and retain in its possession including certificates, opinions of counsel,
					 permits, letters, grants, authorizations, and resolutions and approvals from
					 governmental authorities which the municipality shall promote and retain in its
					 possession. The facility project constructed shall comply with applicable
					 building, zoning and planning statutes, ordinances, regulations and
					 restrictions. The facility project shall be completed in accordance with the
					 plans and specifications and the municipality shall provide the Department with
					 a certificate of occupancy prior to final loan disbursement.