The House this week passed House Bill 221, sponsored by Rep. Tangretti (D-Westmoreland) that would create a state grant program for the restoration and commercial or residential use of historic properties.

“These grants would represent a significant economic development tool in Pennsylvania’s older downtown residential and commercial neighborhoods,” Rep. Tangretti said. “Beyond revitalizing residential and commercial neighborhoods and getting many of these properties back on the tax rolls, this program would reinvigorate downtowns with new residents and businesses and help preserve farmland and open space outside our cities and boroughs from development.

Under the program, the state Department of Community and Economic Development would work with the Pennsylvania Historical and Museum Commission to approve and provide the grants. The criteria used to designate properties in Pennsylvania as historically significant also would be used to determine if the owners of those properties qualify for the state grants.

Owners restoring commercial properties would be eligible for grants up to $500,000; owners restoring residential properties would be eligible for grants up to $15,000. The grants would be used to reimburse owners for up to 70 percent of the costs of exterior rehabilitation or restoration work that meets the criteria for historic properties.

To be eligible, properties would have to be listed in the National Register of Historic Places, be located in a National Register historic district, or be located in a designated local government historic district.

Restoration would have to be followed by use as an income-producing business in the case of commercial properties or the primary residence of the owner in the case of residential properties.

The legislation stipulates that at least 31 percent of the total grant money reserved for the program be used for residential applicants, and that DCED take into consideration the geographical distribution of grant funding when making awards. It also would allow for properties in Elm Street, Main Street, enterprise zones and local government historic districts to be given priority.

7/6/2007