[HISTORY: Adopted by the Borough Council of the Borough of Spring Grove 4-5-1999 by Ord. No. 1-1999 (Ch. 78 of the 1985 Code). Amendments noted where applicable.]
The purpose and intent of this chapter is to comply with the requirements of Act 93 of 1994, Act of October 13, 1994, P.L. 609, 40 P.S. § 638, relating to fire damage to buildings or structures located within the Borough which are at the time of such fire damage insured by an insurance company, association or exchange doing business in the Commonwealth of Pennsylvania.
In the event of fire damage to a building or structure within the Borough, the Borough Treasurer shall, upon written request of the named insured, which written request shall specify the tax description of the property, the name and address of the insurance company, association or exchange, and the date of the receipt of a loss report of a claim, furnish the identified insurance company, within 14 working days of the request, the following:
A certificate or, at the discretion of the Borough, a verbal notification, that, as of the date specified in the request, there are no delinquent taxes, assessments, penalties or user charges against the identified property, and that, as of the date of the Treasurer's certificate or verbal notification, neither the Borough nor any other municipality to the knowledge of the Treasurer, has certified any amount as total costs incurred by the Borough or other municipality for the removal, repair or securing of a building or other structure on the property; or
A certificate and bill showing the amount of delinquent taxes, assessments, penalties and user charges against the property as of the date specified and the requests that have not been paid as of the date of the certificate, and also showing, as of the date of the Treasurer's certificate, the amount of the total costs, if any, certified to the Treasurer that have been incurred by the Borough or any other municipality known to the Treasurer, for the removal, repair or securing of a building or other structure on the property. For purposes of this subsection, the Borough shall certify to the Treasurer the total amount, if any, of such costs.
A tax, assessment, penalty or user charge becomes delinquent for purposes of this section at the time and on the date a lien could otherwise have been filed against the property by the Borough under applicable law.
Upon receipt of a certificate and bill pursuant to Subsection B of this section, the insurance company, association or exchange shall return the bill to the Borough Treasurer and transfer to the Treasurer an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill. The Borough shall receive the amount and apply or credit it to payment of the items shown in the bill.
When the loss as determined by agreement between the insured and the insurance company, association or exchange equals or exceeds 60% of the aggregate limits of liability on all fire policies covering the structure, the insurance company, association or exchange shall transfer from the insurance proceeds to the Treasurer of the Borough in the aggregate $2,000 for each $15,000 and each fraction of that amount of a claim, or, if at the time of a loss report the named insured has submitted a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure in an amount less than the amount calculated under the foregoing transfer formula, the insurance company, association or exchange shall transfer from the insurance proceeds the amount specified in the estimate. In the event that the named insured submits a contractor's signed estimate of the costs of removing, repairing or securing the building or other structure after the transfer authorized in this subsection, then the Borough Treasurer shall return the amount of the fund in excess of the estimate to the named insured if the Borough has not commenced to remove, repair or secure the building or other structure.
Upon receipt of proceeds by the Borough as authorized by this chapter, the Borough Treasurer shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing incurred by the Borough. When transferring the funds as required in § 204-2 of this chapter, an insurance company, association or exchange shall provide the Borough with the name and address of the named insured, whereupon the Borough shall contact the named insured, certify that the proceeds have been received by the Borough, and notify the named insured that the procedures under this section shall be followed.
The fund shall be returned to the named insured when repairs, removal or securing of the building or other structure have been completed, and the required proof received by the Borough secretary or Treasurer has not incurred any costs for repairs, removal or securing. If the Borough has incurred costs for repairs, removal or securing of the building or other structure, the costs shall be paid from the fund, and, if excess funds remain, the Borough shall transfer the remaining funds to the named insured. Nothing in this chapter shall be construed to limit the ability of the Borough to recover any costs for repairs, removal or securing of the building or other structure which exceed the fund provided in § 204-2 of this chapter.
Nothing in this chapter shall be construed to make an insurance company, association or exchange liable for any amount in excess of the proceeds payable under its insurance policy, for any other act performed pursuant to this chapter, or to make the Borough or a public official an insured under a policy of insurance, or to create an obligation to pay delinquent property taxes or unpaid removal liens or expenses other than as provided in this chapter.
Any insurance company, association or exchange making payments of policy proceeds under this chapter shall have the full benefit of such payment, including all rights of subrogation and of assignment.
An exact copy of this chapter shall be filed with the Governor's Center for Local Government Services, which is the designated successor to the Department of Community Affairs, which was the designated recipient in the Act, but which Department has been abolished.