[HISTORY: Adopted by the Borough Council of the Borough of Morrisville 11-15-2004
by Ord. No. 944. Amendments noted where applicable.]
The Borough Manager or his designee is hereby appointed as the designated
officer who is authorized to carry out all responsibilities and duties stated
herein.
As used in this article, the following terms shall have the meanings
indicated:
Any local or county fire marshal, fire chief, engineer or borough
code official or any other official qualified to make a determination regarding
the structural soundness of any building.
A building or structure that has incurred destruction or impairment
structurally by fire or flood or other natural occurrence, or force of collision
of an external object or vehicle.
No insurance company, association or exchange (hereinafter the "insuring
agent") doing business in the Commonwealth of Pennsylvania shall pay a claim
of a named insured for fire damage to a structure located within the Borough
of Morrisville where the amount recoverable for the fire loss to the structure
under all policies exceeds $5,000, unless the named insured or insuring agent
is furnished by the Borough Treasurer with a certificate pursuant to § 508(c)
and (d) of Act 98 of 1992[1] and the provisions of this article.
[1]
Editor's Note: See 40 P.S. § 638 et seq.
A.
Where, pursuant to § 508(b)(1)(ii) of Act 98
of 1992, the Borough Treasurer issues a certificate and bill for delinquent
taxes, assessments, penalties, and user charges against the property and also
the total costs, if any incurred by the Borough for the removal, repair, or
securing of a building or other structure on the property, the insuring agent
shall transfer to the Borough Treasurer an amount from the insurance proceeds
necessary to pay taxes; assessments; penalties; charges and costs as shown
on the bill, which amount shall be applied or credited by the Borough to payment
of the items shown on the bill.
B.
Where, pursuant to § 508(b)(1)(ii) of Act 98
of 1992,[1] the Borough Treasurer issues a certificate indicating that there
are no delinquent taxes, assessments, penalties or user charges against real
property, the insuring agent shall pay the claim of the named insured; provided,
however, that if the loss as agreed upon by the named insured and the insuring
agent equals or exceeds 60% of the aggregate limits of liability on all fire
policies covering the building or structure, the following procedures must
be followed:
(1)
Amount of proceeds to be transferred.
(a)
The insuring agent shall transfer from the insurance
proceeds to the designated officer of the Borough the aggregate sum of $1,000
for each $20,000, and each fraction of that amount, of a claim; or
(b)
If at the time of a proof of loss agreed to between the
named insured and insuring agent, the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the building
or other structure, the insuring agent shall transfer to the Borough from
the insurance proceeds the amount specified in the estimate.
(c)
The transfer of proceeds shall be on a pro-rata basis
by all companies, associations or exchanges insuring the building or other
structure.
(d)
After the transfer of proceeds as set forth above, the
named insured may submit a contractor's signed estimate of the costs
of removing, repairing or securing the building or other structure, and the
designated officer shall return the amount of the funds transferred to the
Borough 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.
(2)
Procedures for securing funds, payment of costs and distributing
proceeds held by Borough.
(a)
The designated officer shall place the proceeds in a
separate fund to be used solely as security against the total costs of removing,
repairing or securing the building or structure that are currently incurred
by the Borough. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the Borough in connection with such
removal, repair or securing of the building or other structure, or any proceedings
related thereto.
(b)
It is the obligation of the insuring agent, when transferring
the proceeds to provide the Borough with the name and address of the named
insured. Upon receipt of the transferred funds and the name and address of
the named insured, the designated officer 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 subsection shall be followed.
(c)
When repairs to, or removal or securing of, the building
or other structure has been completed in accordance with all applicable regulations
and orders of the Borough and the required proof of such completion received
by the designated official, and if the Borough has not incurred any costs
for repairs, removal, or securing, the funds shall be returned to the named
insured. 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.
(d)
To the extent that interest is earned on proceeds held by the
municipality pursuant to this section, but not returned to the named insured,
such interest shall belong to the municipality. To the extent that proceeds
are returned to the named insured, interest earned on such proceeds shall
be distributed to the named insured at the time the proceeds are returned.
[1]
Editor's Note: See 40 P.S. § 638 et seq.
C.
Nothing in this section shall be construed to limit the
ability of the Borough to recover any deficiency. Furthermore, nothing in
this section shall be construed to prohibit the Borough Council and the named
insured from entering into an agreement that permits the transfer of funds
to the named insured if some other reasonable disposition of the damaged property
has been negotiated.
The Borough may from time to time, by resolution, adopt such additional
procedures and regulations as it deems necessary to implement Act 98 or 1992[1] and this article, and may, by resolution, fix reasonable fees
to be charged for municipal activities or services provided pursuant to this
article, including but not limited to issuance of certificates and bills,
performance of inspections and opening separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638 et seq.
Nothing in this article shall be construed to make an insurance company,
association or exchange liable for any amount in excess of proceeds payable
under its insurance policy or for any other act performed pursuant to this
article or to make the Borough, any Borough official, or any other public
official an insured under a policy of insurance or to create an obligation
to pay delinquent property taxes or unpaid liens or expenses other than as
provided for in this article.
An insuring agent, making payment of policy proceeds under this article
for delinquent taxes or structure removal liens or removal expenses incurred
by the Borough, shall have a full benefit of such payment including all rights
of subrogation and of assignment.
This article shall be liberally construed to accomplish its purpose
to deter the commission of arson and related crimes, to discourage the abandonment
of property and to prevent urban blight and deterioration.
The Borough Secretary shall transmit a certified copy of this article
to the Pennsylvania Department of Community and Economic Development.
Any owner of property, any named insured or any insuring agent who or
which violates this article or who shall fail to comply with any of the requirements
hereof shall be subject to a penalty of up to $1,000, plus costs per violation,
and in default of payment of said fine and costs, to a term of imprisonment
not to exceed 30 days. Each day on which an offense continues shall be deemed
a separate offense.
Any building or structure that has been damaged so that it is declared
uninhabitable by an authorized official shall be secured against entry by
any person, vermin, insects or animal within seven days of the date of the
damage.
Any building or structure that has been damaged by more than 75% of
its insured or market value, whichever is less, shall not be repaired or reconstructed
and shall be removed. The authorized official shall, when required for public
safety, determine a time limit for the removal of such building.
Any building or structure that has been damaged by 75% or less of its
insured or market value, whichever is less, may be repaired or reconstructed.
Repair or reconstruction shall commence within six months of the date of the
damage and continue without interruption until completed. An extension of
an additional six months may be granted by the authorized official upon proof
of hardship or extenuating circumstances. Such extension shall be in writing
and, in no case, shall be granted beyond one year of the date of the damage.
All extensions shall be at the sole discretion of the Borough. All repairs
or reconstruction shall be completed within 18 months of the date of the damage.
Any building or structure that is declared uninhabitable or is otherwise
vacant due to damage shall be inspected by the authorized official, upon reasonable
notice to the owner of record or the owner's agent, to verify security
against entry by any unauthorized individual, animal or vermin and to identify
if there is any further damage or deterioration.
Any owner of property or any named insured who violates this article
or who fails to comply with any of the requirements hereof shall be subject
to a penalty of up to $1,000, plus costs, per violation. Each day on which
an offense continues shall be deemed a separate offense.
