§ 73.144. Costs.
This section sets forth a comprehensive tabulation of items which may be questionable for PIDA financing, together with conditions for or limitations of eligibility used by PIDA in its project review. For ease of tabulations, items are arranged according to the 16-division grouping of the Construction Specification Institute (CSI) format for building specifications, commonly referred to as the Uniform Construction Index.
(1) General requirements. PIDA will examine unit costs and cost per square foot of building for each project. To establish a uniform standard, ‘‘unit cost’’ refers to unit acquisition cost or unit construction cost, and does not include items such as land, site work, interest, and the like. PIDA will require additional justification if the unit cost appears excessive.
(2) Site work.
(i) Site utilities. Offsite utilities are generally not eligible. Requests for inclusion of offsite utility costs are subject to special review.
(ii) Railroad work. Offsite rail sidings are not generally eligible.
(3) Concrete. There are no requirements in this category.
(4) Masonry. There are no requirements in this category.
(5) Thermal and moisture protection. Roofing bond or warranty, or lack thereof, will affect the term of a PIDA mortgage.
(6) Doors and windows. There are no requirements in this category.
(7) Finishes. There are no requirements in this category.
(8) Specialties.
(i) Identifying devices. Directories, bulletin boards and directional signs are eligible. Commemorative plaques and identification signs will be questioned.
(ii) Lockers. Lockers are not eligible.
(iii) Scales. Scales are not eligible.
(iv) Storage shelving and racks. Storage shelving is generally not eligible. Incidental shelving in utility rooms, janitor’s closets, and the like is eligible. Combination storage rack-structural frame systems, if an integral and nonremovable part of the structure and necessary for a particular building to function may be included.
(9) Equipment. As a general rule, ‘‘equipment’’ as it relates to the owner’s or tenant’s particular operation is an ineligible item, and will be excluded from the project for PIDA loan purposes. Certain types of equipment, however, may be ‘‘built in’’ and be necessary for a particular building to function, and may therefore be included. Portable equipment is ineligible.
(i) Built-in maintenance equipment. It would be possible to justify a powered window-washing system in a multistory research and development facility.
(ii) Food service equipment. Kitchenette units, residential type kitchen appliances and bar units are ineligible.
(iii) Pollution control equipment.
(A) Pollution control equipment related to a manufacturing process, even if required by a Federal, Commonwealth or local regulatory agency is ineligible.
(B) Pollution control equipment related to the operation and maintenance of a building which is required by a Federal, Commonwealth or local regulatory agency will be eligible.
(iv) Laboratory equipment. Built-in casework, counters and the like may be eligible in a research facility.
(v) Parking equipment. Depending upon the location, parking control equipment may be a desirable, if not required, feature of off-street parking areas, and thus will be eligible.
(vi) Waste handling equipment. Built-in rubbish chutes and waste compactors are eligible. Packaged or built-in incinerators are eligible.
(vii) Loading dock equipment. Dock levelers or platforms, seals and bumpers are eligible.
(viii) Material storage silos. Material storage silos are eligible. Mechanical material conveying systems are ineligible. See paragraphs (11)(v) and (12).
(10) Furnishings. Unless otherwise specifically permitted, furnishings, furniture and accessories are ineligible.
(i) Cabinet and storage. Incidental built-in storage shelving is eligible.
(ii) Rugs and mats. Loose rugs indicate a finished floor underneath, and are therefore ineligible. Recessed entry mats are eligible.
(iii) Seating. Bolted-down auditorium type seating is eligible in a research and development facility.
(11) Special construction.
(i) Air-supported structures. The life of these structures in relation to the term of the PIDA mortgage is questionable, and, although their eligibility will be determined on a case by case basis their use is discouraged.
(ii) Special purpose rooms.
(A) Hot and cold rooms are eligible.
(B) Laboratories with pressurization or climate control, or both, are eligible.
(iii) Incinerators. Incinerators are eligible.
(iv) Insulated rooms. Walk-in coolers and freezers, as well as the necessary chilling equipment, are an acceptable part of a food-processing or storage facility.
(v) Prefabricated buildings.
(A) Preengineered metal buildings are eligible. The gauge of roof and sidewall panels, as well as the durability of finish coatings, will affect the term of a PIDA mortgage.
(B) Prefabricated refrigerated buildings are eligible to the extent that they are a necessary part of the owner/tenant’s operation.
(C) Prefabricated security control shelters are eligible, inasmuch as they merely replace structures of conventional construction.
(D) Storage silos, insofar as they replace normal building areas that would otherwise be devoted to storage use, are eligible. If they are portable or easily detachable, however, they are ineligible.
(12) Conveying systems.
(i) Dumbwaiters. Dumbwaiters are generally eligible.
(ii) Elevators. Elevators are eligible.
(iii) Hoists and cranes. Hoists and cranes are not eligible. The crane-ways are eligible inasmuch as they are part of the structural frame of the building.
(iv) Lifts. A man-lift would generally be eligible. Garage, platform and sidewalk-type lifts are not eligible.
(v) Material handling systems. Unusual justifications would have to be provided for material handling systems to be eligible. All components, with the exception of floor pits and trenches, are classed as equipment and, therefore, not eligible. Vacuum piping for the handling of bulk materials is not eligible.
(13) Mechanical.
(i) Pumps and compressors. Air compressors and associated piping are considered equipment and, as such, their cost excluded for PIDA loan purposes.
(ii) Water supply and treatment. Costs in connection with a domestic water system are eligible. Costs in connection with a strictly process water system are not eligible. A combination system is fully eligible if 25% or less is used for process purposes. If over 25% is devoted to process, the eligible cost will be determined by prorating the cost of the system in proportion to the domestic/process ratio.
(iii) Wastewater disposal and treatment.
(A) Sewage ejectors and lift stations, as they relate to a sanitary sewage disposal system, are eligible.
(B) Industrial waste disposal systems are not eligible. A combination system is fully eligible if 25% or less is used for industrial waste disposal. If over 25%, the eligible cost will be determined by prorating the cost in proportion to the sanitary/industrial waste ratio.
(iv) Water coolers. Freestanding or loose water coolers are considered equipment, and their cost will be ineligible. Built-in or permanent water coolers and drinking fountains are eligible.
(v) Fire protection. Items of fire protection are eligible, with the exception of portable hand-held fire extinguishers. These are equipment and, although required by the Department of Labor and Industry, are ineligible for PIDA loan purposes.
(vi) Boilers. Domestic heat boilers are eligible. Strictly process heat boilers are not eligible. The entire cost will be eligible if 25% or less of a combined system capacity is used for process purposes. If over 25% of the system’s capacity is used for process purposes, the eligible cost will be determined by prorating the boiler’s cost in proportion to the domestic/process ratio.
(vii) Refrigeration. See paragraph (11)(ii) and (iv). Any required piping, as well as compressors, condensers, chillers and evaporators necessary to utilize the required cold storage areas are eligible.
(viii) Commercial ice making equipment. Unless commercial ice making equipment is a byproduct of room refrigeration equipment, it will be considered equipment and is, therefore, not eligible.
(ix) Packaged heating and cooling.
(A) Room type, window or thru-the-wall air conditioners are eligible in offices, are not an acceptable means of cooling plant areas.
(B) Computer air conditioning package units, separate and apart from central building air conditioning systems, which are directly involved in the cooling of computers and computer components on a year-round basis, are ineligible for PIDA loan purposes.
(x) Humidity control. Humidity control is generally an acceptable addition to computer rooms, special purpose rooms and critical assembly areas.
(xi) Special ductwork systems and equipment. Sawdust collection systems, including ductwork, blower and collection hopper are considered industrial equipment and are not eligible.
(14) Electrical.
(i) Conductors. Direct and final electrical hookups to manufacturing machinery or process equipment should be part of the machinery installation, and are ineligible.
(ii) Computer power distribution modules. Computer power distribution modules which offer total flexibility in locating and relocating mainframe and peripheral computer components will be excluded for PIDA loan purposes.
(iii) Electrical service. Costs attributable to special power requirements for manufacturing or process equipment are ineligible.
(iv) Uninterruptible power supply. Uninterruptible power supply systems including diesel or gas driven generators, rectifiers, inverters, banks of storage batteries, and the like, which are utilized for any purpose other than to power emergency lights, security systems and fire detection and protection systems, are ineligible for PDIA loan purposes.
(v) Communications. Communication devices and public address systems are not eligible. Closed-circuit television and other types of security systems are considered equipment and are ineligible.
Source The provisions of this § 73.144 amended October 19, 2007, effective October 20, 2007, 37 Pa.B. 5601. Immediately preceding text appears at serial pages (230898) to (230904).
Cross References This section cited in 12 Pa. Code § 73.6 (relating to licensed professional requirement).
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