PRIOR PRINTER'S NO. 1250 PRINTER'S NO. 1334
No. 1061 Session of 1997
INTRODUCED BY MURPHY, COSTA, WAGNER, BODACK, BRIGHTBILL, EARLL,
GERLACH, KITCHEN, MELLOW, PICCOLA AND ULIANA, JULY 22, 1997
SENATOR ULIANA, URBAN AFFAIRS AND HOUSING, AS AMENDED,
SEPTEMBER 29, 1997
AN ACT
1 Amending the act of October 11, 1984 (P.L.876, No.171), entitled
2 "An act establishing a system for the collection of municipal
3 liens and tax claims in cities of the second class through
4 the sale of real property encumbered by such liens and
5 claims; abolishing the office of solicitor for liens for
6 delinquent taxes, rates, claims and charges in cities of the
7 second class; authorizing the treasurer to conduct
8 treasurer's sales and granting the treasurer certain powers
9 in connection therewith; providing a structure for the
10 conduct of the sale; setting up a system whereby the
11 properties at treasurer's sales are acquired, administered,
12 maintained and resold for the benefit of cojurisdictional
13 taxing bodies; providing for the redemption of the property
14 within 90 days of sale; providing a means for establishing
15 title to real property taken at treasurer's sale; providing
16 for cooperation among cojurisdictional taxing bodies; and
17 preserving rights not specifically repealed," further
18 providing for restrictions on the sale of property in cities <--
19 of the second class.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Section 307 of the act of October 11, 1984 <--
23 (P.L.876, No.171), known as the Second Class City Treasurer's
24 Sale and Collection Act, is amended by adding subsections to
25 read:
26 SECTION 1. SECTIONS 305(C) AND 306 OF THE ACT OF OCTOBER 11, <--
1 1984 (P.L.876, NO.171), KNOWN AS THE SECOND CLASS CITY
2 TREASURER'S SALE AND COLLECTION ACT, ARE AMENDED TO READ:
3 SECTION 305. REPORT AND CONFIRMATION OF SALE.
4 * * *
5 (C) SALE BELOW MINIMUM PRICE.--THE REPORT SHALL LIST
6 SEPARATELY THOSE PROPERTIES FOR WHICH THE MINIMUM PRICE WAS NOT
7 MET. THIS PORTION OF THE REPORT SHALL SET FORTH THAT:
8 (1) PROPERTIES WHICH MAY HAVE BEEN RETAINED BY THE CITY
9 AS AGENT FOR COEXISTING TAXING BODIES MAY BE PUT UP FOR
10 PRIVATE SALE UNDER CHAPTER 5 OR HELD FOR PUBLIC PURPOSES.
11 (2) PROPERTIES WHICH THE CITY HAS RETAINED AS AGENT
12 SHALL BE THE SUBJECT OF A PETITION TO THE COURT TO CLEAR
13 TITLE IN FAVOR OF THE CITY [UNDER SECTION 406, IF NECESSARY].
14 * * *
15 SECTION 306. EXCESS OVER UPSET PRICE.
16 IF THE AMOUNT PAID FOR THE PROPERTY BY THE PURCHASER IS
17 GREATER THAN THE TOTAL OF CLAIMS AND COSTS WHICH GAVE RISE TO
18 THE SALE OF THE PROPERTY, AFTER THE ORDER OF CONFIRMATION HAS
19 BEEN ENTERED BY THE COURT, THE EXCESS SHALL BE HELD FOR THE
20 PERSON WHO OWNED THE PROPERTY JUST PRIOR TO THE TREASURER'S
21 SALE, THAT PERSON'S HEIRS, ASSIGNS OR OTHER LEGAL
22 REPRESENTATIVES OR LIEN HOLDERS OF RECORD AT THE TIME OF THE
23 TREASURER'S SALE. IF A PROPERLY QUALIFIED PARTY FAILS TO MAKE A
24 WRITTEN AND VERIFIED DEMAND TO THE TREASURER WITHIN [TWO YEARS]
25 ONE YEAR FROM THE DATE OF THE SALE, THE TREASURER SHALL CAUSE
26 THE EXCESS TO BE PLACED IN THE AGENCY FUND ESTABLISHED UNDER
27 SECTION 403(B).
28 SECTION 2. SECTION 307 OF THE ACT IS AMENDED BY ADDING
29 SUBSECTIONS TO READ:
30 Section 307. Deed to purchaser.
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1 * * *
2 (d) Restrictions on purchases.--
3 (1) Deeds for any real property exposed for any tax or
4 municipal lien sale in a second class city shall not be
5 exchanged any sooner than 20 90 days nor later than 45 120 <--
6 days after any sale.
7 (2) A city of the second class may, within 15 days of
8 any tax or municipal lien sale of real estate, petition the
9 court of common pleas to prohibit the transfer of any deed
10 for any property exposed for any tax or municipal lien sale
11 which is located in that city to any purchaser who is proven
12 to meet any of the criteria set forth in the city's petition.
13 (3) The petition of the city of the second class shall,
14 at a minimum, allege that the purchaser has over the last
15 three years preceding the filing of the petition exhibited a
16 course of conduct which demonstrates that the purchaser:
17 (i) permitted an uncorrected housing code violation
18 to continue unabated after being convicted of such
19 violation;
20 (ii) failed to maintain the property owned by that
21 purchaser in a reasonable manner such that it posed a
22 threat to health, safety or property;
23 (iii) permitted the use of property in an unsafe,
24 illegal or unsanitary manner such that it posed a threat
25 to health, safety or property; or
26 (iv) acted as an agent for a purchaser who sought to
27 avoid the limitations placed on the purchase of property
28 by this act.
29 Allegations under this paragraph shall be proved by a
30 preponderance of the evidence.
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1 (4) A change of name or business status shall not defeat
2 the purpose of this section.
3 (5) NOTHING IN THIS SECTION SHALL SUPERSEDE ANY <--
4 REGULATION PROMULGATED UNDER THE AUTHORITY OF SECTION 601.
5 (e) Definitions.--As used in this section, the following
6 words and phrases shall have the meanings given to them in this
7 subsection:
8 "Purchaser." Any individual, partner, shareholder, trust,
9 partnership, limited partnership, corporation or any other
10 business association, or any trust, partnership, limited
11 partnership or corporation of any other business association
12 that had any ownership interest or rights in the property.
13 "Uncorrected housing code violation." Any conviction of a
14 violation of the building, housing, property maintenance or fire
15 code of a second class city which is not remedied within six
16 months of conviction.
17 "Violation." Any conviction under a building, housing,
18 property maintenance or fire code which posed a threat to
19 health, safety or property, but not a conviction deemed by a
20 court to be de minimis.
21 SECTION 3. SECTION 503 OF THE ACT IS AMENDED TO READ: <--
22 SECTION 503. ISSUANCE OF DEED.
23 WHEN THE REQUIREMENTS OF THE PRIOR SECTIONS OF THIS CHAPTER
24 HAVE BEEN COMPLIED WITH, THE TREASURER SHALL DELIVER TO THE
25 PURCHASER, AS GRANTEE, A DEED FOR THE RESOLD PROPERTY. THE DEED
26 SHALL BE ACKNOWLEDGED BY THE TREASURER AND ENTERED AND RECORDED
27 BY THE [PROTHONOTARY IN THE TREASURER'S DEED BOOK] RECORDER OF
28 DEEDS OF THE COUNTY WHEREIN THE PROPERTY IS SITUATED. THE
29 PROPERTY SHALL BE TAXABLE IN THE YEAR FOLLOWING ITS SALE BY THE
30 CITY.
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1 Section 2 4. This act shall apply to all sales conducted on <--
2 or after the effective date of this act.
3 Section 3 5. This act shall take effect in 60 days. <--
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