Whats Happening Steelton Borough Council?

Over the last year as part of the NEDC committee, I have been working on updating the current property maintenance code of the Borough of Steelton. One of the items that was part of these changes was what was just voted by Council on October 15th as Ordinance 2018-03 the Fire Insurance Proceeds Escrow.

The PA Act 93 of 1994 allows municipalities to approve such ordinances which set rules on how Insurance companies can pay out fire claims throughout the state where a municipality has passed an Ordinance, such as this one.

When a fire occurs where the insurance payout exceeds $7,500.00 the insurance carrier must contact the state to determine if the municipality has established a Fire Insurance Proceeds Escrow Ordinance.

The insurance carrier must then contact the Borough. The Borough will then provide the insurance carrier a bill for delinquent taxes, assessments, penalties, and user fees (water/sewer bills). The insurance carrier must cover these prior to paying out any adjustment.

If the total claim amounts to 60% or more of the entire policy the carrier must provided and escrow of a portion of the funds to the Borough. This portion is held to be used to repair or demolish the property if the owner abandons it. If the property is repaired or properly demolished these funds are release to the owner.

Prior to this if a property had a fire and the owner receives and insurance payout and abandons the property the residents of Steelton would need to use tax dollars to demolish the property or provide minimal safety repair to protect nearby residents.

Ordinance 2018-03 is tool to fight blighted properties in the Borough of Steelton while protecting the resident from using tax dollars to demolish fire damaged abandoned structures.

The Borough of Steelton now joins other municipalities in Dauphin county who have similar Ordinances:

  • City of Harrisburg
  • Highspire Borough
  • Middletown Boro
  • Susquehanna Twp
  • Millersburg Boro
  • Lykens Boro
  • Williams Twp
  • Williamstown Boro

Additional Infomation

Fire Insurance Escrow Act Act 93 of 1994

Ordinance 2018-03 Public Notice

Council Adopts Fire Escrow Ordinance 2018-03