PRINTER'S NO. 2322
No. 1807 Session of 2001
INTRODUCED BY CRUZ, J. WILLIAMS, YOUNGBLOOD, LEDERER, WATERS,
McGEEHAN, HORSEY AND MYERS, JUNE 19, 2001
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 19, 2001
AN ACT
1 Providing authority for urban homesteading and the procedure for
2 establishing an urban homesteading program; expanding local
3 government's authority in dealing with urban blight and
4 decay; and providing exclusions from certain statutes.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Findings.
8 Section 3. Definitions.
9 Section 4. Urban homesteading.
10 Section 5. Qualifications.
11 Section 6. Land trust agreement.
12 Section 7. Homesteaded land free from liens.
13 Section 8. Rehabilitation loans.
14 Section 9. Federal funding.
15 Section 10. Default procedures.
16 Section 11. Code enforcement.
17 Section 12. Eminent domain.
18 Section 13. Assessments.
1 Section 14. Severability.
2 Section 15. Effective date.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Urban
7 Homesteading and Rehabilitation Act.
8 Section 2. Findings.
9 The General Assembly finds and declares as follows:
10 (1) There is a need for strengthening the authority of
11 local government in dealing with the problems of housing.
12 (2) Urban homesteading can be an effective tool in local
13 government's continuing struggle against urban decay.
14 (3) In conjunction with other Federal, State and local
15 programs, urban homesteading offers the unique potential of
16 preserving our architectural heritage in addition to slowing
17 and reversing the loss of existing urban housing units.
18 (4) While the concept of urban homesteading is being
19 investigated by some in Pennsylvania, such programs should
20 have some uniformity of purpose and design.
21 (5) For the concept of urban homesteading to work at an
22 optimum level, such programs should be excluded from certain
23 statutory limitations normally placed on local governments.
24 Section 3. Definitions.
25 The following words and phrases when used in this act shall
26 have the meanings given to them in this section unless the
27 context clearly indicates otherwise:
28 "Code official." The director or individual responsible for
29 the supervision of a bureau of department responsible for code
30 enforcement.
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1 "Council." The elected body of officials governing a
2 municipality.
3 "Department." The Department of Community and Economic
4 Development of the Commonwealth.
5 "Governing body." The elected council of a municipality.
6 "Homestead board" or "board." A board created by section
7 4(b) or an existing authority, board, commission or quasi-
8 governmental nonprofit corporation in existence prior to the
9 effective date of this act to which a council, by ordinance, has
10 assigned the duty to administer the homestead program provided
11 by this act.
12 "Homesteader." An individual, housing cooperative or
13 nonprofit corporation conforming to the provisions and intent of
14 this act.
15 "Housing cooperative." Any five or more persons, who shall
16 have associated themselves together by written articles of
17 association, such as described in 15 Pa.C.S. Pt. II, Subpt. D
18 (relating to cooperative corporations) for the purpose of
19 buying, selling, holding, leasing or improving lands, tenements
20 or buildings.
21 "Major code deficiencies." All those deficiencies enumerated
22 under section 11.
23 "Municipality." A political subdivision of this Commonwealth
24 other than a school district.
25 "Parcel." That tract of land or unit of housing which, under
26 existing local zoning regulations, would accommodate a single-
27 family residence or housing cooperative. The term "parcel,"
28 unmodified by the word "developed," shall include both developed
29 and undeveloped tracts.
30 "Trustee." A board designated by a municipality.
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1 Section 4. Urban homesteading.
2 (a) Program established.--There is hereby established an
3 urban homesteading program to be effective immediately and
4 administered by option of the various municipalities of this
5 Commonwealth, meeting certain requirements set forth in this
6 act, and upon enactment of the necessary ordinances.
7 (b) Homestead board.--
8 (1) A governing body may establish and appoint members
9 to a homestead board, whose purposes shall be to administer
10 the shall be to administer the homestead program, except that
11 nothing in this subsection shall be interpreted to prohibit
12 the governing body from assigning such duties, by ordinance,
13 to an existing authority, board, commission or existing
14 quasi-governmental nonprofit corporation.
15 (2) Except where council has assigned homestead program
16 duties to an existing authority, board, commission or quasi-
17 governmental nonprofit corporation, the homestead board shall
18 be composed of no less than three members. When possible,
19 there shall be an equal representation of minority groups on
20 the board, including at least one representative of a local
21 community action agency, where such an agency exists.
22 (3) When possible, a simple majority of the board
23 members shall have specific experience with municipal
24 housing-related programs and at least one member of the board
25 shall have specific experience with a historic preservation
26 program.
27 (4) Board members shall serve a term of three years and
28 shall be eligible for reappointment.
29 (5) Members of the board shall receive no compensation
30 but shall be reimbursed for expenses actually incurred in
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1 connection with performing the duties prescribed by this act
2 and shall by majority vote appoint a secretary of the board,
3 who may or may not be a member of the board. The secretary
4 shall receive such compensation as may be agreed to by the
5 members of the homestead board.
6 (6) The members of the board may appoint and fix the
7 compensation of such personnel as may be necessary to
8 implement the homestead program, provided council has made
9 funds available for such purposes.
10 (c) Powers and duties.--The board shall:
11 (1) Review and publicize, by newspaper advertising or
12 some other effective method, the availability of homestead
13 program properties and the procedure to apply for the
14 properties. Such announcement shall include an estimated cost
15 of bringing the properties up to municipal code standards.
16 (2) Receive applications, recording thereon the date and
17 time received, and review applications in the order received
18 as to applicants' compliance with criteria established by
19 this act and local ordinance and the regulations promulgated
20 thereunder.
21 (3) In order, according to date and time of receipt of
22 application, approve and certify applicants as to their
23 specific construction skills and ability in general to
24 refurbish the assigned parcel.
25 (4) Recommend, in order, according to date and time of
26 receipt of application, the execution by the governing body
27 of a land trust agreement with the approved applicant. The
28 land trust agreement shall grant a 24-month tax exemption for
29 the assigned parcel and be recorded with the appropriate
30 county officials. If the number of approved applicants
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1 exceeds the number of parcels for which land trust agreements
2 are recommended, agreements shall be negotiated in order,
3 according to date and time of receipt of application, until
4 all available parcels are subject to such agreements.
5 Negotiations with those approved applicants who are without
6 agreements shall be commenced in order, according to the date
7 and time of receipt of application, as additional parcels
8 become available.
9 (5) Approve and recommend the execution by the governing
10 body of all documents necessary to convey fee simple title to
11 the assigned parcel to the applicant upon the applicant's
12 fulfillment of all conditions enumerated in section 6.
13 (6) Utilize the aid and assistance of other relevant
14 municipal agencies in the furtherance of the duties and
15 responsibilities of the board.
16 (7) Promulgate regulations consistent with the purpose
17 and spirit of the homestead program which regulations shall
18 be approved in their entirety by the governing body and by
19 the municipality's solicitor as to form.
20 (8) Give notice to the code official which provides
21 that, pursuant to the authority of the governing body under
22 section 5(b), approved identified homesteaders who are
23 rehabilitating existing structures are exempt from the
24 enforcement of specific sections of the housing and property
25 maintenance code during the period of rehabilitation or
26 construction, except that no section relating to an
27 individual's health and safety shall be waived.
28 (9) Give notice to the code officer who shall thereupon
29 institute public nuisance proceedings against certain
30 deteriorated and blighted structures for demolition or
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1 rehabilitation through homesteading.
2 (10) Provide applicants with a report as to the
3 structural deficiencies of the property and other pertinent
4 information, including an estimate of the costs of bringing
5 the property into compliance with the housing and property
6 maintenance codes.
7 (11) Recommend to the council that a municipality
8 homesteading map be prepared designating the location of
9 properties to be included under the homesteading program to
10 insure that the homesteading program is compatible with
11 existing or proposed programs of other agencies of the
12 municipality.
13 (d) Catalog of property.--In each municipality embarking
14 upon an urban homesteading program, the bureau or department
15 charged with the responsibilities of code enforcement, as
16 specified in this act, shall, in conjunction with the municipal
17 planning commission and its staff under the direction of the
18 homestead board, compile and maintain a catalog of all
19 unoccupied dwellings and vacant lots owned by the municipality
20 or otherwise. From this catalog shall be determined which
21 parcels and structures can be utilized for building or
22 rehabilitation by homesteaders.
23 (e) Approval of governing body.--The governing body, upon
24 recommendation of the municipal planning commission, shall by
25 resolution approve the parcels cataloged under subsection (d)
26 for disposition by the board for the public purpose of improving
27 the quality of housing in accordance with the homestead program.
28 Section 5. Qualifications.
29 (a) Qualifications enumerated.--Homestead program property
30 shall be limited to that property which, when rehabilitated, is
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1 a single-family residence or housing cooperative and which will
2 be offered to qualified applicants at no initial cost on a land
3 trust agreement provided that the applicant:
4 (1) (i) is at least 18 years of age or is the head of a
5 family; and
6 (ii) is a citizen of the United States or a resident
7 alien as determined by the United States Immigration and
8 Naturalization Service, or its successor; or
9 (iii) is a recognized nonprofit community group,
10 corporation or housing cooperative acting as an agent for
11 a homesteader.
12 (2) Has financial resources and the mechanical skills to
13 rehabilitate an existing dwelling or construct a new
14 dwelling, as the case may be.
15 (3) Upon assignment, contractually agrees to
16 rehabilitate, or construct on, as the case may be, the parcel
17 assigned to the applicant and further agrees to:
18 (i) bring the assigned parcel up to housing and
19 property maintenance code standards, as provided in this
20 act, within 18 months after assignment of the parcel to
21 the applicant;
22 (ii) permit quarterly inspections by the code
23 enforcement personnel for determination by the homestead
24 board that reasonable, satisfactory progress is being
25 made by the homesteader in rehabilitating or constructing
26 on the parcel assigned to the applicant; and
27 (iii) live in, occupy and maintain as a single-
28 family dwelling or a housing cooperative to the housing
29 and property maintenance code standards, the parcel
30 assigned to the applicant for a period of not less than
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1 five years.
2 (b) Land trust agreement.--After approval of an applicant
3 pursuant to section 4(c)(3), the governing body shall negotiate
4 and execute a land trust agreement with the prospective
5 homesteader, thereby assigning the parcel. The agreement shall
6 specify, in as much detail as reasonably possible, a schedule of
7 improvements the homesteader shall make to bring the dwelling
8 into conformity with the municipal housing and property
9 maintenance code within 18 months. The agreement shall be in
10 sufficient detail so that a homesteader shall be able to know
11 what actions must be taken and by what date to fulfill the
12 conditions of the agreement.
13 (c) Conveyance upon fulfillment.--If and when the conditions
14 of the land trust agreement are fulfilled, as determined and
15 certified by the code enforcement bureau, the governing body
16 shall execute all documents necessary to convey a fee simple
17 title to the assigned parcel to the homesteader.
18 Section 6. Land trust agreement.
19 The agreement between the homesteader and the governing body
20 shall be a land trust agreement and shall contain the following
21 minimal conditions:
22 (1) The homesteader of the agreement has the first right
23 to the title of the real estate, upon completion of the land
24 trust agreement.
25 (2) The homesteader's interest in the trust agreement
26 shall be considered personal property.
27 (3) The homesteader has the right of possession,
28 management, control and operation of the property.
29 (4) The homesteader has the duty of maintenance and
30 repair of the property in accordance with the provisions of
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1 the agreement.
2 (5) The homesteader takes the property in an "as is"
3 condition.
4 (6) The homesteader, from the time of the execution of
5 the trust agreement, accepts responsibility for all known or
6 unknown conditions, apparent and nonapparent, of the property
7 that were created before the execution of the agreement or
8 are in existence at the time of the execution of the
9 agreement or are coming into or will come into existence
10 either before, during or after the execution of the
11 agreement.
12 (7) The homesteader shall not act as the agent of the
13 trustee.
14 (8) The trustee does not assume any liability for the
15 acts, or omissions to act, of the homesteader that result in
16 injury or damage to other parties or their property.
17 (9) The homesteader shall carry insurance on the
18 property as the board may require. As a minimum, the
19 insurance shall be sufficient to pay off any loans taken in
20 accordance with this act and reimburse the municipality for
21 its costs in acquiring the property. The municipality and
22 lending institutions, if applicable, shall be named as joint
23 beneficiary with the homesteader of this policy.
24 (10) The homesteader, within 18 months after the
25 municipality assigns the homesteader a dwelling, promises and
26 covenants to bring the assigned dwelling up to housing and
27 property maintenance code standards and maintain it at code
28 standards throughout the homestead agreement.
29 (11) The homesteader promises and covenants to permit
30 quarterly inspections, between the hours of 9 a.m. and 4
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1 p.m., or at a mutually agreed time, and at reasonable
2 frequencies, by housing and property maintenance code
3 enforcement personnel for the determination of the
4 municipality that reasonable and satisfactory progress is
5 being made by the homesteader in rehabilitating the dwelling
6 assigned to the homesteader.
7 (12) The homesteader promises and covenants to occupy
8 and live in the dwelling assigned to the homesteader for a
9 period of not less than five years.
10 (13) The homesteader's personal property interest in the
11 possession, management, control and operation of the dwelling
12 may pass according to the rules applicable to personal
13 property except that, before the personal property right
14 passes, the municipality must approve the heir, assign or
15 successor of the original homesteader. The heir, assign or
16 successor of the homesteader, before any personal right vests
17 in that homesteader, must meet the requirements of an
18 applicant for the program and independently agree to be held
19 responsible to the homesteading agreement. An attempt to pass
20 the personal property right in any manner or to any degree
21 without obtaining the required approval and making the
22 required commitment will be void, and the homesteader's
23 personal property right will automatically be extinguished.
24 Approved transferees of the original homesteader may deduct
25 the original homesteader's residence time from the required
26 five years.
27 (14) The homesteader recognizes and agrees that, if the
28 homesteader, after occupying the dwelling, abandons the
29 dwelling for a period of more than 60 days or the dwelling is
30 abandoned 60 days without permission of the urban
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1 homesteading board, the homesteader's right to the
2 possession, management, control and operation of the dwelling
3 will be automatically extinguished.
4 (15) The trustee, after the homesteader has fulfilled
5 the conditions of the land trust agreement, will execute all
6 documents necessary to convey a fee simple title to the
7 homesteader.
8 (16) The board may allow for extenuating circumstances,
9 including, but not limited to, serious illness of the
10 homesteader.
11 (17) The homesteader must elect the person to whom the
12 property will be transferred upon the death of the
13 homesteader. This transfer must be for a consideration of $1.
14 Section 7. Homesteaded land free from liens.
15 During the period of a land trust agreement, the real
16 property being homesteaded shall be free of all liens and
17 encumbrances.
18 Section 8. Rehabilitation loans.
19 (a) Low-interest loans.--To assist local municipalities in
20 the elimination of slums and blighted or deteriorated areas, in
21 preventing the spread of slums, blight or deterioration and in
22 providing maximum opportunity for redevelopment, rehabilitation
23 and conservation of such areas by private enterprise, a
24 governing body may obtain low-interest loans for the
25 rehabilitation of properties designated as suitable for
26 homesteading.
27 (b) Debt authorized.--The municipality may borrow up to
28 $300,000 or $10 per capita, whichever is greater, without
29 considering such debt within the statutory borrowing limitations
30 prescribed by law.
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1 (c) Financing of rehabilitation.--The municipal body
2 administering this act may, through the utilization of local
3 public and private resources where feasible, make financing
4 available through the board, as provided in this act, to the
5 homesteaders in order to finance the rehabilitation of such
6 property. No financing shall be made available under this
7 section unless all of the following are met:
8 (1) Rehabilitation is required to make the property
9 conform to applicable code requirements and to carry out the
10 objectives of a homestead plan for the area.
11 (2) The applicant is unable to secure the necessary
12 funds from other sources upon comparable terms and
13 conditions.
14 (3) The resulting obligation is an acceptable risk
15 taking into consideration the need for the rehabilitation,
16 the security available for the debt and the ability of the
17 applicant to repay the debt.
18 (4) The board has first caused to be prepared a full and
19 complete list of all major code deficiencies and has caused
20 bid specifications and cost estimates for the rectification
21 of these deficiencies to be prepared. Based on those
22 specifications, the board must advertise for bids, either
23 individually or collectively with other homestead properties,
24 all those deficiencies the homesteader indicates cannot be
25 rectified by the homesteader, and if the homesteader agrees
26 to the bid, to be responsible for the payments of the bid.
27 (5) The resulting bids received shall be from the lowest
28 responsible bidder and acceptable to the homesteader.
29 (6) The board has caused to be created an inspection
30 schedule to assure that specifications are being met and that
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1 the work is progressing at a sufficient rate to meet the
2 schedule for code deficiency rectification provided under
3 this act.
4 (7) A contractual agreement, between the board and the
5 approved contractor, and acceptable to the homesteader,
6 stipulating both a performance and payment schedule, as well
7 as any other item determined necessary by the board, has been
8 prepared. Such payments shall be made, or authorized, by the
9 board according to the agreed-to schedule.
10 (d) Limitations.--Rehabilitation financing made under this
11 section shall be subject to the following limitations:
12 (1) The debt shall be subject to such terms and
13 conditions as may be prescribed by the governing body.
14 (2) The term of the debt may not exceed 30 years or
15 three-fourths of the remaining economic life of the structure
16 after rehabilitation, whichever is less.
17 (3) The principal shall bear interest at such rate as
18 determined by the homestead board, but in no case shall it
19 exceed 0.5% per year the interest rate obtained by council,
20 and the board may prescribe such other charges as it finds
21 necessary, including service charges, and appraisal,
22 inspection and other fees.
23 (4) The amount of the debt may not exceed the amount of
24 an obligation which would result in a monthly payment by the
25 applicant of more than 25% of his average monthly income.
26 (e) First payment for occupancy not required.--In no case
27 shall the homesteader's first payment on the financial
28 obligation to the board be required prior to occupancy of the
29 homestead property.
30 Section 9. Federal funding.
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1 (a) Training.--Participants in the homesteading program
2 shall, to the extent possible, take advantage of training
3 programs funded in whole or in part through the Workforce
4 Investment Act of 1998 (Public Law 105-220, 112 Stat. 936).
5 (b) Loans.--Participants shall also take advantage of any
6 grants or loans made available through the Community Services
7 Block Grant Act (Public Law 97-35, 95 Stat. 511), and other
8 sources, as administered by the department.
9 Section 10. Default procedures.
10 (a) Explanation of agreement.--
11 (1) Before the homesteader executes the land trust
12 agreement, the board or its designee shall explain to the
13 homesteader the conditions of the land trust agreement, the
14 homesteader's obligations thereunder, the appeal procedures
15 under this act and the consequences of failure to comply with
16 the conditions of the land trust agreement.
17 (2) After the board or its designee makes the
18 explanation contained in this subsection and the homesteader
19 understands the material explained, the homesteader shall
20 sign a statement that the information contained in this
21 subsection has been explained to the homesteader and that the
22 homesteader understands it and agrees to be bound in
23 accordance thereof.
24 (3) The homesteader's signature shall constitute prima
25 facie evidence that the homesteader knowingly and
26 understandingly executed the land trust agreement. Only clear
27 and convincing evidence to the contrary may rebut this
28 evidence.
29 (b) Noncompliance.--
30 (1) (i) If a code official in a quarterly inspection
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1 determines that the homesteader has not or is not
2 complying with the conditions of the land trust
3 agreement, the code official shall give the homesteader
4 an oral warning that the homesteader is in default of the
5 land trust agreement. Within seven days from the date of
6 the oral warning, the code official shall send a written
7 warning to the homesteader.
8 (ii) The warning shall contain the information that
9 the homesteader is in default and specify, with
10 reasonable particularity, what the homesteader must do to
11 bring the parcel into compliance with the land trust
12 agreement.
13 (iii) The homesteader shall be entitled to not less
14 than 30 nor more than 60 days from the date of the
15 mailing of the written warning to bring the parcel into
16 compliance with the land trust agreement.
17 (iv) The code official shall send a copy of the
18 written warning to the board and maintain at least one
19 copy of the warning with the code enforcement bureau.
20 (v) At the expiration of the time period indicated
21 in the written warning notice, the code official shall
22 again inspect the parcel to verify the homesteader's
23 compliance with the warning and land trust agreement.
24 (2) If the code official determines that the homesteader
25 has complied with or substantially complied with the warning
26 notice and brought the parcel up to the agreed-upon standard,
27 the code official shall so inform the homesteader and file a
28 written report of the compliance in the code enforcement
29 office and with the board and shall send a copy of same to
30 the homesteader.
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1 (3) If the code official determines that the homesteader
2 has not complied with or has not substantially complied with
3 the warning notice and has not brought the parcel up to the
4 agreed-upon standard, the code official shall file a written
5 report with the board. Such report shall specify with
6 reasonable particularity the facts upon which the code
7 official based his decision of noncompliance and shall be
8 delivered to the homesteader at the same time it is filed
9 with the board.
10 (c) Formal hearing.--
11 (1) (i) Within ten days of the receipt of the code
12 official's report of noncompliance, the board shall
13 schedule a hearing and appoint no less than three members
14 from the board to determine whether the urban homesteader
15 has breached the land trust agreement and extinguished
16 his personal property right under the agreement. The
17 decision of the board members so appointed shall have the
18 full force and effect of a decision by the entire
19 membership of the board.
20 (ii) Within three days after the scheduling of the
21 hearing, the board shall cause personal service of a
22 hearing notice to be made either on the homesteader or
23 someone capable of accepting service on the homesteader's
24 behalf, ordering the homesteader to appear before the
25 board and show cause why the board should not declare the
26 homesteader in breach of the agreement and extinguish the
27 homesteader's personal property right in the land trust
28 agreement. The hearing notice shall notify the
29 homesteader of the homesteader's right to be represented
30 by counsel and, if indigent, the homesteader's right to
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1 have counsel appointed on the homesteader's behalf.
2 (2) If the board decides that the homesteader has
3 fulfilled the homesteader's responsibilities under the land
4 trust agreement, it shall so note and provide copies of its
5 decision to the urban homesteader and the code enforcement
6 bureau.
7 (3) If the board decides that the homesteader has not
8 fulfilled the homesteader's responsibilities under the land
9 trust agreement, the board may:
10 (i) declare the homesteader in breach of the land
11 trust agreement and issue a final decision to extinguish
12 the homesteader's personal property right in the land
13 trust agreement and shall so inform the homesteader; or
14 (ii) issue an interim order which grants the
15 homesteader not less than 30 nor more than 60 days from
16 the interim order to bring the parcel into compliance
17 with the land trust agreement.
18 (4) (i) If the board has issued an interim order
19 pursuant to paragraph (3)(ii), the code official shall
20 file a reinspection report with the board within three
21 days of the expiration of the period granted for
22 compliance pursuant to the interim order.
23 (ii) If the code official determines that the
24 homesteader has complied with or substantially complied
25 with the interim order and brought the parcel up to the
26 agreed-upon standard, then the code official shall file
27 with the board a written report so stating and
28 terminating the land trust agreement breach declaration
29 procedure.
30 (iii) If the code official determines that the
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1 homesteader has not complied with the interim order, the
2 code official shall file a written report with the board
3 so stating.
4 (iv) The code official shall provide the homesteader
5 with a copy of all reports filed with the board pursuant
6 to this section.
7 (5) Upon receipt of the code official's report of the
8 homesteader's noncompliance with the board's interim order,
9 the board may proceed as set forth in paragraph (3)(i).
10 (d) Decision and appeal.--
11 (1) After a final decision by the board that the
12 homesteader is in violation of his land trust agreement, the
13 homesteader shall have 14 business days to file an appeal
14 from that decision with the court of common pleas of the
15 county.
16 (2) (i) If within the 14 days the homesteader does not
17 appeal to the court of common pleas, the board shall
18 record its final determination extinguishing the
19 homesteader's personal property interest under the land
20 trust agreement. The board shall, the date it records its
21 final decision, send a copy of the final judgment to the
22 homesteader and notice that, if within 21 days the
23 homesteader does not vacate the premises, the board will
24 initiate summary ejectment procedures against the
25 homesteader.
26 (ii) If within the 21 days the homesteader does not
27 vacate the premises, the board shall initiate summary
28 ejectment proceedings against the homesteader.
29 (3) (i) In case of an appeal to the court of common
30 pleas, the homesteader shall have the right to counsel
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1 and, if the homesteader is indigent, counsel will be
2 appointed in the homesteader's behalf. The court shall
3 hear the homesteader's appeal within 30 days from the
4 date the appeal is filed with the court.
5 (ii) If the court decides that the homesteader has
6 not fulfilled the homesteader's responsibilities under
7 the land trust agreement, it shall affirm the decision of
8 the board and cause copies of its decision to be provided
9 to the urban homesteader, the code enforcement agency and
10 the board. The decision of the court shall be final.
11 (iii) The board, on the date it receives the court
12 decision, shall send a copy to the homesteader together
13 with notice that, if within 21 days the homesteader does
14 not vacate the premises, the board will initiate summary
15 ejectment procedures against the homesteader.
16 (iv) If the homesteader does not vacate the premises
17 within 21 days after the court enters judgment, the board
18 shall initiate summary ejectment proceedings against the
19 homesteader.
20 Section 11. Code enforcement.
21 (a) Housing and property maintenance code requirement.--The
22 municipality or municipalities in which urban homesteading is to
23 be initiated by a homestead board under this act must have a
24 housing and property maintenance code which establishes
25 standards for the protection of the public's health, safety and
26 welfare.
27 (b) Provisions of code.--The housing and property
28 maintenance code shall establish standards for basic equipment
29 and facilities, for light, ventilation and heating, for space,
30 use and location, and for safe and sanitary maintenance of all
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1 dwellings now in existence or thereafter constructed. As minimum
2 requirements, the housing and property maintenance code shall
3 provide that:
4 (1) Dangerous walls shall be replaced or repaired,
5 including the replacement of defective wood lintels and
6 defective wood sills.
7 (2) The property shall be weatherproofed by replacing or
8 repairing any defective siding, shingles or other defects in
9 exterior walls.
10 (3) Gutters and downspouts shall be repaired or replaced
11 if they cause the entry of water into the property or onto
12 adjacent property or cause any public nuisances.
13 (4) Porches or access stairways on the inside or outside
14 of the structure shall be made safe for use. Defective
15 porches or access stairways shall be repaired or replaced.
16 (5) Missing and dangerously defective individual steps
17 shall be replaced or repaired.
18 (6) Chimneys shall be properly lined and repaired to
19 service the connected facilities.
20 (7) Roofs shall be leakproof.
21 (8) Window frames and doors shall fit properly and be
22 operable.
23 (9) The electric service shall be adequate for the type
24 of structure and in a safe and operable condition.
25 (10) Every single-family residence shall have a complete
26 bath consisting of a tub, a toilet and a basin. Each kitchen
27 shall have a sink.
28 (11) Water pipes, drainpipes and soilpipes shall be
29 operable and capable of providing the intended service.
30 (12) Each dwelling shall have a water heater in operable
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1 condition.
2 (13) Every dwelling unit shall have a room or space for
3 the preparation and cooking of food, including space and
4 connections for a stove or other cooking facilities. Adequate
5 electric service shall be provided for connecting electric
6 refrigerators and other electrical kitchen appliances.
7 (14) Rotted and defective load carrying members shall be
8 replaced or repaired.
9 (15) Termite infested wood members shall be properly
10 treated or replaced.
11 (16) Rodent and vermin infestation shall be eliminated
12 and rat-proofing shall be performed, if necessary.
13 (17) Every dwelling shall contain heating facilities,
14 properly designed and installed, in good and safe working
15 condition, capable of heating those rooms and areas to be
16 inhabited. Systems shall be operated to prevent freezing of
17 pipes and plumbing.
18 (18) Habitable rooms shall contain a window opening
19 directly to the outside.
20 (19) The premises shall be maintained in a clean and
21 sanitary condition at all times. Refuse shall be placed in
22 proper receptacles for collection.
23 (c) Administration and enforcement.--The housing and
24 property maintenance code shall also:
25 (1) Establish the responsibilities of owners, operators
26 and occupants of dwellings, including multifamily dwellings.
27 (2) Provide procedures for the administration and
28 enforcement of the housing and property maintenance code,
29 either by the municipality directly or by contractual
30 arrangements with a county, regional or intergovernmental
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1 code enforcement bureau, including penalties for violations.
2 (d) Adoption of other codes.--A municipality may adopt by
3 reference a county housing and property maintenance code which
4 meets the minimum standards required by this section and which
5 may be or is in existence at the time the municipality enters
6 into a homesteading program as provided for in this act.
7 (e) Review of code.--The housing and property maintenance
8 code shall be reviewed every 24 months and shall be in effect at
9 the time the homestead board, municipality or municipalities
10 exercise any provisions of this act.
11 (f) Condemnation.--A property which has been cited by a
12 municipality as being substandard and unfit for human habitation
13 under provisions of a housing and property maintenance code may
14 be subject to condemnation by that municipality or by a
15 homestead board designated by the municipality under the
16 following conditions:
17 (1) A preliminary notice outlining the housing and
18 property maintenance code violations shall be sent by
19 registered mail to the owner or owners of any property found
20 to be unfit for human habitation.
21 (2) If within 30 days the owner or owners make no
22 attempt to correct the violations and bring the property into
23 code compliance or contact the municipality regarding their
24 intentions to do so, a second and final notice shall be
25 forwarded by registered mail to the owner or owners giving
26 them 120 days from the date of the final notice to bring the
27 property into code compliance or, in the case of a hardship,
28 to notify the municipality of same.
29 (3) If, after 120 days of receipt of the final notice,
30 the property owner or owners have not brought the property
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1 into code compliance, the property may be subject to
2 condemnation as provided for in this act either by the
3 municipality or by an acquiring agency designated by the
4 municipality.
5 (4) If the municipality or board determines that the
6 property which is unfit for human habitation has not been
7 brought into code compliance under provisions of the
8 municipality's housing and property maintenance code after
9 150 days, and after proper notification as provided for in
10 this act, and if the municipality determines that the
11 property would be suitable for urban homesteading as set
12 forth in this act, either through rehabilitation and resale
13 of the home or building or through demolition and resale of
14 the land, the municipality or the board may proceed to
15 acquire the property under the act of June 22, 1964
16 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain Code.
17 Section 12. Eminent domain.
18 The act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as
19 the Eminent Domain Code, shall be applicable to acquisitions of
20 property by municipalities for urban homesteading under this
21 act.
22 Section 13. Assessments.
23 (a) Change in assessed valuation.--Notwithstanding the
24 provision of any other law, the proper authorities may change
25 the assessed valuation of real property when a property is being
26 rehabilitated as a homestead property. In such case, the
27 homestead property will be assessed for taxing purposes at 20%
28 of assessed value the second year and at 40%, 60%, 80% and 100%
29 during the successive four years, respectively.
30 (b) Notice of sale.--Whenever a property is sold pursuant to
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1 this act as a homestead property, a notice listing the address
2 of the property and the individual or individuals to whom the
3 property is to be sold shall be forwarded to the office of the
4 chief assessor of the county in which the property is located.
5 The tax on said property shall be computed at the end of each
6 year on the following basis:
7 (1) Year 2 20% of assessed value
8 (2) Year 3 40% of assessed value
9 (3) Year 4 60% of assessed value
10 (4) Year 5 80% of assessed value
11 (5) Year 6 100% of assessed value
12 (c) Construction of section.--This section shall not alter
13 or affect the ratio to market value in effect in any one county
14 but merely changes the base proportionately as the property is
15 rehabilitated, at which time the property is taxed on full
16 market value. All homestead properties shall be assessed prior
17 to the initial sale and then in the third year of ownership and
18 again before title passes following the fifth year of occupancy.
19 (d) Waiver of delinquent taxes.--At the request of any
20 municipality administering a homesteading program, any other
21 taxing bodies shall have the option of waiving any and all
22 delinquent taxes for the express purpose of homesteading the
23 parcel in question for the five-year period as provided for in
24 this act.
25 Section 14. Severability.
26 The provisions of this act are severable. If any provision of
27 this act or its application to any person or circumstance is
28 held invalid, the invalidity shall not affect other provisions
29 or applications of this act which can be given effect without
30 the invalid provision or application.
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1 Section 15. Effective date.
2 This act shall take effect in 60 days.
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