Land Trust Reimbursement Grant Program [29 Pa.B. 6342] The Department of Agriculture (Department) hereby gives notice that the State Agricultural Land Preservation Board (State Board) has allocated $500,000 from the Supplemental Agricultural Conservation Easement Purchase Account for the purposes of the grant program described in section 1716(a)(3) of The Administrative Code of 1929 (71 P. S. § 456(a)(3)), and for reimbursing the Department the expenses it incurs in administrating this grant program. The allocation was made at the State Board meeting held on December 3, 1999. The grant program funded by this allocation shall be known as the Land Trust Reimbursement Grant Program (Program).
Act 15 of 1999 added a new section--Section 1716 (71 P. S. § 456)--to The Administrative Code of 1929. That section authorizes the State Board to allocate up to $500,000 from the Supplemental Agricultural Conservation Easement Purchase Account for reimbursement grants to be awarded among qualified land trusts and to the Department for expenses it incurs in administering the distribution of these grants. Funds from this allocation may be encumbered through June 30, 2000. Beyond that date, the allocation expires and the Department may no longer encumber these funds for grants under the Program.
An individual grant will reimburse a qualified land trust up to $5,000 of the expenses it has incurred in acquiring an ''agricultural conservation easement,'' as that term is defined in the Agricultural Area Security Law (3 P. S. §§ 901--915). These expenses include appraisal costs, legal services, title searches, document preparation, title insurance, closing fees and survey costs.
The statutory language establishing the Program is self-executing. The following restates the statutory procedures and standards under which grants will be awarded under the Program, and provides references to sources of further information or assistance.
1. Eligible Land Trust. In order to be eligible to register with State Board and to receive reimbursement grants under the Program, a land trust must be a tax-exempt institution under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.A. § 501(c)(3)) and include the acquisition of agricultural conservation easements or other conservation easements in its stated purpose.
2. Registration of Eligible Land Trust. An eligible land trust seeking reimbursement grants under the Program shall register with the State Board. Registration shall be accomplished by delivering a registration letter to the following address: Department of Agriculture, ATTN: Bureau of Farmland Protection, 2301 North Cameron Street, Harrisburg, PA 17110-9408.
3. Contents of Registration Letter. A registration letter shall:
a. Set forth a request that the eligible land trust be registered with the State Board for the purpose of receiving reimbursement grants under the Program;
b. Be signed by the president or other appropriate officer of the land trust;
c. Have enclosed a true and correct copy of the section 501(c)(3) tax-exempt certification issued to the land trust by the Internal Revenue Service, and any other documentation necessary to demonstrate the section 501(c)(3) tax-exempt status of the land trust and that the land trust has the acquisition of agricultural conservation easements or other conservation easements as its stated purpose; and
d. If the land trust seeks to be registered to receive reimbursement grants with respect to agricultural conservation easements it acquires in a county that is an ''eligible county'' under section 3 (3 P. S. § 913) of the Agricultural Area Security Law (an ''eligible county'' is a county whose agricultural conservation easement purchase program has been approved by the State Board), have enclosed a letter from either the Director or the Chairperson of the Agricultural Land Preservation Board in that eligible county verifying that the land trust coordinates its farmland preservation activities with the farmland preservation activities of the county.
4. Acknowledgement of Registration. The Department will promptly provide an eligible land trust that delivers a complete registration letter as described in the preceding paragraph with written confirmation that the eligible land trust is registered to receive reimbursement grants under the Program.
5. Application for Reimbursement Grant--Forms. Reimbursement grant application forms may be downloaded from the Department's website: www.pda.state.pa.us. The Department will also provide reimbursement grant application forms upon written request to the address set forth in paragraph (2) or upon requests telephoned to the Department's Bureau of Farmland Protection, at (717) 783-3167. The Department will also enclose a reimbursement grant application form with any ''Acknowledgement of Registration'' described in paragraph (4).
6. Application for Reimbursement Grant--Timing. If an eligible land trust is registered to receive reimbursement grants under the Program it may, within 60 days of closing on the acquisition of an agricultural conservation easement, deliver to the State Board a written application for a reimbursement grant under the Program. An eligible land trust may submit a reimbursement grant application with respect to an agricultural conservation easement acquisition that predates the publication date of this notice, as long as it meets the referenced 60-day filing deadline.
7. Application for Reimbursement Grant--Content. A reimbursement grant application shall be delivered to the address set forth in paragraph (2) and shall:
a. Request a reimbursement of costs incidental to the acquisition of an agricultural conservation easement;
b. Have enclosed a statement of the costs (such as costs of appraisals, legal services, title searches, document preparation, title insurance, closing fees and surveys) incidental to the acquisition of the agricultural conservation easement; and
c. Have enclosed a true and correct copy of the recorded deed of agricultural conservation easement.
8. State Board Review. The State Board will review any complete, timely application for a reimbursement grant within 60 days of receipt. The Department shall stamp or otherwise identify each complete reimbursement grant application to record the date and the order in which these applications are received. The State Board will consider reimbursement grant applications in the order they are received. The State Board may not approve a reimbursement grant application unless all of the following criteria are met:
a. The application meets the requirements of 71 P. S. § 456.
b. The land use restrictions imposed under the deed of agricultural conservation easement are comparable to restrictions imposed under a deed of agricultural conservation easement acquired in accordance with the Agricultural Area Security Law.
c. The land subject to the agricultural conservation easement is economically viable for agricultural production. A tract of land is economically viable for agricultural production if it meets the criteria set forth in 7 Pa. Code § 138e.16(a) (relating to minimum criteria for applications), which are as follows:
i. The land is in an agricultural security area consisting of 500 acres or more.
ii. The land is contiguous acreage of at least 50 acres in size unless the tract is at least 10 acres in size and is either utilized for a crop unique to the area or is contiguous to a property which has a perpetual conservation easement in place which is held by a ''qualified conservation organization,'' as that term is defined in section 170(h)(3) of the Internal Revenue Code (26 U.S.C.A. § 170(h)(3)).
iii. The land contains at least 50% of soils which are both available for agricultural production and of land capability classes I-IV, as defined by the USDA-NRCS.
iv. The land contains the greater of 50% or 10 acres of harvested cropland, pasture or grazing land.
d. There are sufficient unencumbered funds available to fund the reimbursement grant amount sought in the reimbursement grant application.
9. Notice of Decision. The State Board will, within 10 days of completing its review, mail a reimbursement grant applicant written notice as to whether the reimbursement grant application is approved. If the application is not approved, the written notice will specify the basis for disapproval.
10. Counties that are not ''Eligible Counties.'' Under the Agricultural Area Security Law (at 3 P. S. § 903), an ''eligible county'' is a county whose agricultural conservation easement purchase program has been approved by the State Board. If an eligible land trust that is registered to receive reimbursement grants seeks a reimbursement grant with respect to an agricultural conservation easements it acquires in a county that is not an ''eligible county,'' it must coordinate its farmland preservation activities in that county with the farmland preservation activities of the State Board.
11. Expiration of Allocation/Encumbrance of Allocated Funds. The $500,000 allocation made in this notice is available through June 30, 2000. Allocated funds that are not ''encumbered'' by that date will not be available for distribution under the Program. Allocated funds will be considered encumbered as of the date the Department receives a complete, timely reimbursement grant application and records the date of receipt on the application in accordance with paragraph (8). For example, if an eligible land trust delivers a complete, timely reimbursement grant application to the Department on or before June 30, 2000, and there remain allocated funds for the grant, these allocated funds will be considered encumbered and the grant may subsequently be awarded. If an eligible land trust delivers a complete, timely reimbursement grant application to the Department after June 30, 2000, though, the allocation of funds for reimbursement grants under the Program will have lapsed and no grant may be awarded.
12. No Right or Entitlement to Allocated or Encumbered Funds. The referenced allocation of funds does not create in an eligible land trust a right or entitlement to a grant from these allocated funds. Similarly, the encumbrance of allocated funds does not create such a right or entitlement. State Board approval of a reimbursement grant application is the event that establishes entitlement of the applicant to the grant funds sought, provided allocated funds are available in an amount adequate to fund the grant.
13. Additional Information. Further information may be obtained by contacting the Department of Agriculture, Attn: Raymond C. Pickering, Director, Bureau of Farmland Protection, 2301 North Cameron Street, Harrisburg, PA 17110-9408, (717) 783-3167.
SAMUEL E. HAYES, Jr.,
Secretary[Pa.B. Doc. No. 99-2134. Filed for public inspection December 17, 1999, 9:00 a.m.]
