Section 3. Disposition and Use of Proceeds.--(a) The proceeds from the sale of bonds issued pursuant to the provisions of this act shall be paid to the State Treasurer and be held in a separate fund to be known as the Disaster Relief Fund.
(b) The moneys in the Disaster Relief Fund are hereby specifically dedicated to meeting the costs of rehabilitation of areas affected by the September, 1971 and June, 1972 and July 1977 disasters, for urban redevelopment assistance. The moneys shall be paid by the State Treasurer to the Department of Community Affairs to pay costs at such time as the department certifies the same to be legally due and payable. ((b) amended Oct. 4, 1978, P.L.969, No.191)
(c) Pending their application to the purposes authorized, moneys held or deposited by the State Treasurer may be invested and reinvested as are other funds in the custody of the State Treasurer in the manner provided by law. All earnings received from the investment or deposit of such funds shall be paid into the State Treasury to the credit of the account in the Disaster Relief Fund to which such funds were originally deposited.
(d) Subject to the total limit of fifty-two million seven hundred eight thousand dollars ($52,708,000), the funds authorized to be borrowed by subclause (ii) of section 1 shall be allocated as follows: (Par. amended June 26, 1981, P.L.126, No.42)
(1) No less than thirty-two million seven hundred eight thousand dollars ($32,708,000) of the funds authorized to be borrowed under this act shall be used for housing demolition, construction, rehabilitation, relocation and services, and other purposes necessary to provide the infrastructure related thereto. The phrase "other purposes necessary to provide the infrastructure related thereto" shall be defined by the Department of Community Affairs. Notwithstanding any other provision of this act or any other act, distribution of funds available for rehabilitation of all real property damaged by the Great Storm and Flood of July, 1977, shall be made to persons owning such real property in such a manner that the income of such persons is not used in any way to determine eligibility for funds under this act. ((1) amended June 26, 1981, P.L.126, No.42)
(2) No more than three million dollars ($3,000,000) of the funds authorized to be borrowed under this act shall be used for public streets, bridges, traffic signalization, curbs, sidewalks, street trees and benches, parks and recreation development.
(3) No more than nine million dollars ($9,000,000) of the funds authorized to be borrowed under this act shall be used for flood protection works, including stream improvements.
(4) No more than six million dollars ($6,000,000) of the funds authorized to be borrowed under this act shall be used for economic development activities, including commercial rehabilitation.
(5) No more than seven million dollars ($7,000,000) of the funds authorized to be borrowed under this act shall be used for sanitary and storm sewers and water lines.
(6) Reasonable planning and administrative expenses, as determined by the Department of Community Affairs, may be expended from the funds authorized to be borrowed under this act by the department and by administering agencies, including requirements contained in the act of May 24, 1945 (P.L.991, No.385), known as the "Urban Redevelopment Law" and the act of June 22, 1964 (Sp.Sess. P.L.84, No.6), known as the "Eminent Domain Code," but not included elsewhere in this section. ((d) added Oct. 4, 1978, P.L.969, No.191)
(e) Moneys in the Disaster Relief Fund not necessary to pay unexpired contracts or to pay potential legal obligations shall be transferred to the Disaster Relief Redemption Fund and shall be used to pay debt service on the existing disaster relief bonds. ((e) added July 9, 1990, P.L.333, No.73)
Compiler's Note: The Department of Community Affairs, referred to in this section, was abolished by Act 58 of 1996 and its functions were transferred to the Department of Community and Economic Development.
Compiler's Note: The act of June 26, 1981, P.L.126, No.42, which amended this section, contained the following implementing provision:
Section 4. The additional $2,708,000 authorized in this act are provided for the completion of acquisition and site clearance of the floodway area in the Borough of Homer City and Center Township, Indiana County.