Section 3170.52. Rent

(a) Generally. The Department will participate financially in the costs for buildings and offices rented by the county or county agency for use by the children and youth social service program. The amount of rent charged to a given program shall be prorated in direct relation to the amount of space utilized by that program. The cost of rent or the fair rental value charge of space per square foot shall not exceed the rental rate for similar space in that geographical area.

(b) County/agency-owned buildings. No rental charge may be made for space in debt-free county/county agency-owned buildings. However, maintenance, housekeeping, and utility costs may be charged to the Department on a proportional basis.

(c) Mortgaged real estate. Mortgaged real estate which is owned and operated by a county or county agency may be charged to the Department as a rental expense, except that no rental expense may be charged for a county court house. The amount charged shall be prorated in relationship to the percentage of space used by the county agency. The purchase price, or the total mortgaged value of the property, that is, the sum of mortgages on the real estate—shall not exceed the fair market value of similar real estate in the geographical area. The amount of these charges shall be the lesser of:

(1) The fair rental value of the space; or

(2) Only the actual cost of the principal and interest incurred in the mortgage amortization, including any amortized major renovation costs.

(d) Fair rental value. Fair rental value may be determined by securing an estimate from the local board of realtors or an independent real estate appraiser. Calculation of the fair rental value of real estate may not include the value of minor renovations, assets, or operating costs paid with Departmental funds. Appraisals shall be obtained in writing and shall specify the valuation approaches as well as all other components used in the estimate of fair rental value.

(e) Amortization. Purchased real estate shall be amortized for a minimum of 10 years.

(f) Remortgaging. For the purpose of claiming a rental expense to the Department, debt-free buildings may only be remortgaged when full justification is provided to, and prior written approval is received from, the appropriate regional office.

(g) Major renovation costs. Major renovation as defined in § 3170.73(a) (relating to renovations) may be included as a rental expense to the Department as described in subsection (c). However, the total of the rental expense—that is, the amortized cost of both the mortgage and the renovations—may not exceed the fair rental value of the space used.

Notation

Cross References

This section cited in 55 Pa. Code § 3170.11 (relating to purpose); 55 Pa. Code § 3170.22 (relating to direct provision of services); 55 Pa. Code § 3170.23 (relating to purchase of service); 55 Pa. Code § 3170.73 (relating to renovations); 55 Pa. Code § 3170.77 (relating to ownership); 55 Pa. Code § 3170.83 (relating to establishing rates); and 55 Pa. Code § 3170.85 (relating to responsibility of the county).