PRIOR PRINTER'S NO. 1860 PRINTER'S NO. 2447
No. 1291 Session of 2008
INTRODUCED BY RHOADES, PIPPY, EARLL, TOMLINSON, FERLO, WASHINGTON, BAKER, ERICKSON, ORIE, RAFFERTY, O'PAKE, LOGAN, COSTA, BROWNE, KASUNIC, EICHELBERGER, A. WILLIAMS AND STACK, MARCH 26, 2008
SENATOR PIPPY, URBAN AFFAIRS AND HOUSING, AS AMENDED, SEPTEMBER 24, 2008
AN ACT 1 Amending Title 53 (Municipalities Generally) of the Pennsylvania 2 Consolidated Statutes, providing for neighborhood blight 3 reclamation and revitalization. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Title 53 of the Pennsylvania Consolidated 7 Statutes is amended by adding a chapter to read: 8 CHAPTER 61 9 NEIGHBORHOOD BLIGHT RECLAMATION AND REVITALIZATION 10 Subchapter 11 A. Preliminary Provisions 12 B. Actions Against Owner of Blighted Property 13 C. Responsibilities of Mortgage Lenders 14 D. Conservatorship <-- 15 E D. State and Local Government Permit Denials <-- 16 F E. State Blight Data Collection System <-- 17 G F. Grants <--
1 H. Sale of Blighted and Abandoned Properties <-- 2 I G. Miscellaneous Provisions <-- 3 SUBCHAPTER A 4 PRELIMINARY PROVISIONS 5 Sec. 6 6101. Short title of chapter. 7 6102. Legislative findings and declaration of policy. 8 6103. Definitions. 9 § 6101. Short title of chapter. 10 This chapter shall be known and may be cited as the 11 Neighborhood Blight Reclamation and Revitalization Act. 12 § 6102. Legislative findings and declaration of policy. 13 The General Assembly finds and declares as follows: 14 (1) It is the intent of the General Assembly to 15 eliminate neighborhood blight caused by property owners who 16 fail to maintain their property or to comply with municipal 17 property maintenance codes. The General Assembly declares 18 that it is in the best interest of the Commonwealth, its 19 citizens and its municipalities to establish a process as set 20 forth under this chapter to effectively deal with blighted 21 and abandoned properties in order to bring the properties up 22 to code standards, acquire and demolish them or, where cost- 23 effective and structurally sound, rehabilitate them and 24 return them to productive use. This includes constructing new 25 housing on sites that formerly contained blighted properties 26 and rehabilitating blighted buildings which have been 27 determined to be structurally sound and capable of being 28 rehabilitated. 29 (2) Pennsylvania's communities are important to this 30 Commonwealth's economic health and provide a focal point for 20080S1291B2447 - 2 -
1 businesses and services. They also contribute to this 2 Commonwealth's quality of life with their rich histories, 3 culture, heritage and diversity, along with their parks, 4 recreational attributes and historic buildings and 5 architecture. Many of these communities, however, are 6 presently being negatively affected by blighted properties 7 that either are in use in spite of their deteriorated state 8 or have been abandoned. 9 (3) Citizens of this Commonwealth living in its 10 communities are adversely affected by abandoned and blighted 11 residential, commercial and industrial properties, especially 12 individuals living or owning property in close proximity to 13 unsafe, substandard and deteriorated buildings. 14 (4) Substandard, deteriorating and abandoned 15 residential, commercial and industrial structures are not 16 only a public safety threat and nuisance, their blighted 17 condition diminishes property values in the communities in 18 which these properties are located. Nearby property owners 19 lose equity in their properties, and municipalities lose 20 desperately needed property tax revenues for municipal 21 services as a result of lower assessed property values which 22 result from the presence of blighted and abandoned buildings. 23 (5) Blighted properties presently sold at tax sales most 24 times remain blighted. When these blighted properties are not 25 rehabilitated or demolished immediately, they further 26 deteriorate, resulting in increased costs to the Commonwealth 27 and its municipalities to secure and demolish them. 28 (6) Providing a legislative mechanism to transform 29 abandoned and blighted properties into productive reuse 30 provides an opportunity for communities in Pennsylvania to be 20080S1291B2447 - 3 -
1 revitalized while improving the quality of life for 2 individuals who live there. This revitalization includes 3 clearing sites of blighted properties and replacing them with 4 new housing, as well as rehabilitating structurally sound 5 blighted properties. 6 § 6103. Definitions. 7 The following words and phrases when used in this chapter 8 shall have the meanings given to them in this section unless the 9 context clearly indicates otherwise: 10 "Abandoned property." A property on which there is a 11 building that has not been legally occupied for at least the 12 previous 12 months and is a blighted property. 13 "Blighted property." Any of the following: 14 (1) Premises which, because of physical condition or 15 use, are regarded as a public nuisance at common law or have 16 been declared a public nuisance in accordance with the local 17 housing, building, plumbing, fire and related codes and 18 ordinances, including nuisance and dangerous building 19 ordinances. 20 (2) Premises which, because of physical condition, use 21 or occupancy, are considered an attractive nuisance to 22 children, including, but not limited to, abandoned wells, 23 shafts, basements, excavations and unsafe fences or 24 structures. 25 (3) A dwelling which, because it is dilapidated, 26 unsanitary, unsafe, vermin-infested or lacking in the 27 facilities and equipment required under the housing code of 28 the municipality, has been designated by the municipal 29 department responsible for enforcement of the code as unfit 30 for human habitation. 20080S1291B2447 - 4 -
1 (4) A structure which is a fire hazard or is otherwise 2 dangerous to the safety of persons or property. 3 (5) A structure from which the utilities, plumbing, 4 heating, water, sewage or other facilities have been 5 disconnected, destroyed, removed or rendered ineffective so 6 that the property is unfit for its intended use. 7 (6) A vacant or unimproved lot or parcel of ground in a 8 predominantly built-up neighborhood which, by reason of 9 neglect or lack of maintenance, has become a place for 10 accumulation of trash and debris or a haven for rodents or 11 other vermin. 12 (7) An unoccupied property which has been tax delinquent 13 for a period of two years. 14 (8) A property which is vacant but not tax delinquent 15 and which has not been rehabilitated within one year of the 16 receipt of notice to rehabilitate from the appropriate code 17 enforcement agency. 18 "Building." A residential, commercial or industrial building 19 or structure and the land appurtenant to it. 20 "Code." A building, housing, property maintenance, fire, 21 health or other public safety ordinance enacted by a 22 municipality. 23 "Commonwealth agency." The Governor, departments, boards, 24 agencies, commissions, authorities and other officers of the 25 Commonwealth, including those subject to the policy supervision 26 and control of the Governor. The term does not include any court 27 or other officer or agency of the unified judicial system or the 28 General Assembly or any of its officers and agencies. 29 "Competent entity." A person or entity, including a 30 governmental unit, with experience in the rehabilitation of 20080S1291B2447 - 5 -
1 residential, commercial or industrial buildings and the ability 2 to provide or obtain the necessary financing for such 3 rehabilitation. 4 "Consumer." A person who is a named insured, insured or 5 beneficiary of a policy of insurance or any other person who may 6 be affected by the Insurance Department's exercise of or the 7 failure to exercise its authority. 8 "Cost of rehabilitation." Costs and expenses for 9 construction, stabilization, rehabilitation, demolition and 10 reasonable nonconstruction costs associated with any of these 11 projects, including, but not limited to, environmental 12 remediation, architectural, engineering and legal fees, permits, 13 financing fees and a developer's fee consistent with the 14 standards for developer's fees established by the Pennsylvania 15 Housing Finance Agency. 16 "Court." The appropriate court of common pleas. 17 "Department." The Department of Community and Economic 18 Development of the Commonwealth. 19 "Electronically." Utilizing procedures promulgated by the 20 Department of Community and Economic Development to file forms 21 and obtain information electronically, provided the information 22 is available to the requester under the act of June 21, 1957 23 (P.L.390, No.212), referred to as the Right-to-Know Law. 24 "Insurer," "company," "association" or "exchange." As these 25 terms are defined in section 101 of the act of May 17, 1921 26 (P.L.682, No.284), known as The Insurance Company Law of 1921, 27 or any entity subject to Article XXIV of The Insurance Company 28 Law of 1921, the act of December 29, 1972 (P.L.1701, No.364), 29 known as the Health Maintenance Organization Act, or 40 Pa.C.S. 30 Ch. 61 (relating to hospital plan corporations) or 63 (relating 20080S1291B2447 - 6 -
1 to professional health services plan corporations). 2 "License." A permit granted by the Commonwealth or one of 3 its agencies which gives permission to the applicant, EXCLUDING <-- 4 INDIVIDUALS AND BUSINESSES REGULATED BY THE BUREAU OF 5 PROFESSIONAL AND OCCUPATIONAL AFFAIRS, to participate in a 6 certain activity or exercise a certain privilege. 7 "Licensing" or "certification." The issuance of a license or 8 the formal assertion in writing of some fact or qualification 9 from the Commonwealth or one of its agencies, EXCLUDING THE <-- 10 BUREAU OF PROFESSIONAL AND OCCUPATIONAL AFFAIRS. 11 "Municipality." A city, borough, incorporated town, township 12 or home rule, optional plan or optional charter municipality or 13 municipal authority in this Commonwealth. The term also includes 14 any other governmental entity charged with enforcement of 15 municipal housing, building, plumbing, fire and related codes 16 and specifically includes a neighborhood improvement district 17 and nonprofit corporation created under the act of December 20, 18 2000 (P.L.949, No.130), known as the Neighborhood Improvement 19 District Act. 20 "Municipal permits." Privileges relating to real property 21 granted by a municipality, including, but not limited to, 22 building permits, exceptions to zoning ordinances and occupancy 23 permits. 24 "Nonprofit corporation." A nonprofit corporation that has, 25 as one of its purposes, community development activities, 26 including economic development or the promotion or enhancement 27 of affordable housing opportunities. 28 "Owner." The holder or holders of the title to or of a legal 29 or equitable interest in residential, commercial or industrial 30 real estate. The term includes, but is not limited to, heirs, 20080S1291B2447 - 7 -
1 assigns, trustees, beneficiaries and lessees, provided this 2 ownership interest is a matter of public record. 3 "Party in interest." Any person or entity who has a direct <-- 4 and immediate interest in residential, commercial or industrial 5 real estate, including: 6 (1) The owner or owners. 7 (2) Any lienholder and other secured creditors of the 8 owner. 9 (3) A person who resides or owns a business which is 10 located within 500 feet of the real estate. 11 (4) A nonprofit corporation carrying out community 12 development activities within the municipality where the 13 building is located, including, but not limited to, a 14 redevelopment authority. 15 (5) A municipality in which the real estate is located. 16 "Property maintenance code." A municipal ordinance which 17 regulates the maintenance or development of real property. The 18 term includes, but is not limited to, building codes, housing 19 codes and public safety codes. 20 "Property maintenance code violation." A violation of a 21 municipal property maintenance code. 22 "Public nuisance." Property which, because of its physical 23 condition or use, is regarded as a public nuisance at common law 24 or has been declared BY THE APPROPRIATE OFFICIAL a public <-- 25 nuisance in accordance with the local housing, building, health, 26 fire or related code. 27 "Registry." The Property Maintenance Code Violations 28 Registry established under this chapter. 29 "Residential building." A building or structure containing 30 one or more dwelling units and the land appurtenant to it. 20080S1291B2447 - 8 -
1 "Serious violation." A violation of a housing, building, 2 property maintenance or fire safety code that poses an immediate 3 threat to the health and safety of a dwelling occupant, 4 occupants in surrounding structures or passersby. 5 "Substantial step." An affirmative action on the part of a 6 property owner or managing agent, as determined by the 7 municipality, to remedy a violation of a housing, building, 8 property maintenance or fire safety code, including, but not 9 limited to, physical improvements or reparations to the 10 property. 11 "Tax delinquent property." Tax delinquent real property as 12 defined under the act of July 7, 1947 (P.L.1368, No.542), known 13 as the Real Estate Tax Sale Law, located in any municipality in 14 this Commonwealth. 15 SUBCHAPTER B 16 ACTIONS AGAINST OWNER OF BLIGHTED PROPERTY 17 Sec. 18 6111. Building, housing and health code violations. 19 6112. Actions. 20 6113. Asset attachment. 21 6114. Duty of out-of-State owners of real estate in this 22 Commonwealth. 23 6115. Duty of corporate owners. 24 § 6111. Building, housing and health code violations. 25 (a) Cause of action.--Where a building, structure, 26 landscaping or land is or is proposed to be erected, 27 constructed, reconstructed, altered, converted, maintained or 28 used in violation of any building, housing or health ordinance 29 enacted pursuant to law by a municipality, the governing body of 30 the municipality or, with the approval of the governing body, an 20080S1291B2447 - 9 -
1 officer of the municipality, or an aggrieved owner or tenant of 2 real property who shows that his property or person will be 3 substantially affected by the alleged violation, in addition to 4 other remedies, may institute an action or proceeding to 5 prevent, restrain, correct or abate such building, structure, 6 landscaping or land or to prevent, in or about such premises, 7 any act, conduct, business or use constituting a violation. When 8 any such action is instituted by a landowner or tenant, notice 9 of the action shall be served upon the municipality at least 30 10 days prior to the time the action is begun by serving a copy of 11 the complaint on the governing body of the municipality. No such 12 action may be maintained until such notice has been given. 13 (b) Jurisdiction.--Except as provided under 42 Pa.C.S. § 14 1143(a)(3) (relating to jurisdiction and venue), magisterial 15 district judges shall have jurisdiction of actions instituted 16 pursuant to this section. 17 § 6112. Actions. 18 In addition to other remedies, a municipality may institute 19 the following actions against the legal owner or owner of record 20 of any building, housing or land in serious violation of an 21 ordinance regarding a building or housing code: 22 (1) An in personam action may be initiated for a 23 continuing violation for which the legal owner of record 24 takes no substantial step to correct within 60 days following 25 notification of any violation. 26 (2) An action against an owner of record shall be for an 27 amount equal to any penalties imposed against the owner and 28 for the amount expended by the municipality to abate the 29 violation. 30 (3) A proceeding in equity. 20080S1291B2447 - 10 -
1 § 6113. Asset attachment. 2 A lien may be placed against the assets of an owner of 3 unremediated blighted real property after a legal action 4 initiated under section 6112 (relating to actions) is concluded 5 with a finding against the legal owner or owner of record of the 6 property. 7 § 6114. Duty of out-of-State owners of real estate in this 8 Commonwealth. 9 A person who lives or has a principal place of residence 10 outside this Commonwealth, who owns real estate in this 11 Commonwealth against which municipal housing code violations 12 have been cited under 18 Pa.C.S. § 7510 (relating to municipal 13 housing code avoidance), and who has been properly notified of 14 the violations may be extradited to this Commonwealth to face 15 criminal prosecution. 16 § 6115. Duty of corporate owners. <-- 17 (a) Means of identification.--A deed or other instrument of 18 writing involving transfer of title to a corporate owner or 19 corporate officer shall include an attachment setting forth the 20 name and address of each officer of the corporation and a 21 photographic copy of the current driver's license or other photo 22 identification from the state in which anyone who is an officer 23 of the corporation is licensed to drive. 24 (b) Means of service.--Mailing a notice or citation for any 25 § 6115. CORPORATE OWNERS. <-- 26 MAILING A NOTICE OR CITATION FOR ANY property maintenance 27 code violation for any property owned by a corporation to the 28 mailing address of any corporate officer USED FOR TAX COLLECTION <-- 29 PURPOSES shall constitute good service by the municipality. 30 SUBCHAPTER C 20080S1291B2447 - 11 -
1 RESPONSIBILITIES OF MORTGAGE LENDERS 2 Sec. 3 6121. Business or commercial mortgages. 4 6122. Code compliance. 5 6123. Residential mortgages. 6 § 6121. Business or commercial mortgages. 7 This subchapter shall apply to mortgage loans made for 8 residential, business or commercial purposes. 9 § 6122. Code compliance. 10 (a) Liability assumed.--Thirty SIXTY days following the <-- 11 foreclosure of a building due to the owner of record's default 12 on a mortgage loan, the mortgage lender or Federal insurer in 13 possession of the building shall assume legal responsibility and 14 liability as the owner of record for all exterior municipal 15 housing, building and property maintenance code requirements 16 representing the following: 17 (1) Serious violations. 18 (2) Violations which contribute to blight in a 19 neighborhood due to their negative effect on the aesthetic 20 appearance of the structure or the neighborhood. 21 (b) Time period.--The time period provided for under 22 subsection (a) shall be extended to 120 days following the 23 foreclosure of a property due to the owner of record's default 24 on a mortgage loan in cases where the mortgage lender or Federal 25 insurer has executed a contract to sell the property in 26 question. 27 § 6123. Residential mortgages. 28 Entities that may grant or insure residential mortgages or 29 participate in related activities for purposes of this 30 subchapter shall include, but not be limited to, the following: 20080S1291B2447 - 12 -
1 (1) A State-chartered bank, bank and trust company, 2 savings bank, private bank or national bank, a federally 3 chartered or State-chartered savings and loan association, a 4 federally chartered savings bank or a federally chartered or 5 State-chartered credit union. 6 (2) An attorney authorized to practice law in this 7 Commonwealth who acts as a mortgage broker in negotiating or 8 placing a mortgage loan in the normal course of legal 9 practice. 10 (3) A person licensed under the act of February 19, 1980 11 (P.L.15, No.9), known as the Real Estate Licensing and 12 Registration Act, who is principally engaged in a third-party 13 real estate brokerage business, but only to the extent that 14 the person provides information, verbal or written, to or 15 negotiates or places a mortgage loan for a buyer of real 16 estate and is not compensated by the buyer or any other 17 person for providing such information or negotiating or 18 placing such mortgage loan. If the person is compensated for 19 providing the information or negotiating or placing a 20 mortgage loan, the person shall be subject to sections 308, 21 310, 311 and 314(b) of the act of December 22, 1989 (P.L.687, 22 No.90), known as the Mortgage Bankers and Brokers and 23 Consumer Equity Protection Act. 24 (4) A seller of a dwelling if the person has resided in 25 the dwelling at least one year and as part of the purchase 26 price receives a first mortgage executed by the purchaser. 27 (5) A person who either originates or negotiates fewer 28 than 12 mortgage loans in a calendar year in this 29 Commonwealth. 30 (6) Builders, when obtaining mortgages for their own 20080S1291B2447 - 13 -
1 construction or for the sale of their own construction. 2 (7) An agency or instrumentality of the Federal 3 Government or a corporation otherwise created by an act of 4 Congress, including, but not limited to, the Federal National 5 Mortgage Association, the Department of Veterans Affairs, the 6 Federal Home Loan Mortgage Corporation and the Federal 7 Housing Administration. 8 (8) The Pennsylvania Housing Finance Agency. 9 (9) A licensee under the act of April 8, 1937 (P.L.262, 10 No.66), known as the Consumer Discount Company Act, except 11 that a licensee who makes a mortgage loan other than under 12 the provisions of the Consumer Discount Company Act shall be 13 subject to the provisions of sections 304(b)(2) and (3), 308, 14 310 and 314(b) of the Mortgage Bankers and Brokers and 15 Consumer Equity Protection Act, excluding section 308(a)(1). 16 (10) Except for a licensee described under paragraph 17 (9), a subsidiary or affiliate of the following institutions: 18 (i) State-chartered banks, bank and trust companies, 19 savings banks, private banks, savings and loan 20 associations and credit unions. 21 (ii) National banks. 22 (iii) Federally chartered savings and loans 23 associations. 24 (iv) Federally chartered savings banks. 25 (v) Federally chartered credit unions. 26 A subsidiary or affiliate set forth under this paragraph 27 shall be subject to the provisions of sections 308, 28 309(a)(3), 310 and 314(b) of the Mortgage Bankers and Brokers 29 and Consumer Equity Protection Act, excluding section 30 308(a)(1), and shall deliver annually to the Department of 20080S1291B2447 - 14 -
1 Banking copies of financial reports made to all supervisory 2 agencies. 3 (11) An employee of a licensee or a person designated to 4 act on behalf of his employer. 5 (12) An insurance company, association or exchange 6 authorized to transact business in this Commonwealth under 7 the act of May 17, 1921 (P.L.682, No.284), known as The 8 Insurance Company Law of 1921, and any subsidiaries and 9 affiliates thereof. A subsidiary or affiliate shall: 10 (i) be subject to the provisions of sections 308, 11 309(a)(3), 310 and 314(b) of the Mortgage Bankers and 12 Brokers and Consumer Equity Protection Act, excluding 13 section 308(a)(1); and 14 (ii) deliver annually to the Insurance Department 15 copies of financial reports made to all supervisory 16 agencies. 17 SUBCHAPTER D <-- 18 CONSERVATORSHIP 19 Sec. 20 6131. Initiation of action. 21 6132. Appointment of conservator. 22 6133. Powers and duties of conservator. 23 6134. Ownership of property. 24 6135. Incurring indebtedness. 25 6136. Sale of property. 26 6137. Termination of conservatorship. 27 § 6131. Initiation of action. 28 (a) Filing of petition.--A petition for the appointment of a 29 conservator to take possession and to undertake the 30 rehabilitation of a building may be filed by a party in interest 20080S1291B2447 - 15 -
1 in a court in the county in which the building is located. 2 (b) Contents.--The petition submitted to the court shall 3 include a concise statement of the reasons a conservator should 4 be appointed and, to the extent available to the petitioner: 5 (1) A copy of any citation charging the owner with being 6 in violation of municipal code requirements or declaring the 7 building to be a public nuisance. 8 (2) A recommendation as to which person or entity should 9 be appointed conservator. 10 (3) A preliminary plan with initial cost estimates for 11 rehabilitation of the building to bring it into compliance 12 with all municipal codes and duly adopted plans for the area 13 in which the building is located and anticipated funding 14 sources. 15 (c) Notification of owner and lienholders.-- 16 (1) Upon filing the petition with the court, the 17 petitioner shall notify the current owner of the property and 18 all lienholders of the filing by registered or certified mail 19 to the last known address of each and by posting a copy of 20 the notice on the building. 21 (2) In the event the registered or certified mail is 22 returned with notation by the postal authorities that the 23 recipient refused to accept the mail, the petitioner may mail 24 a copy to the recipient at the same address by ordinary mail 25 with the return address of the petitioner appearing thereon. 26 (3) Service by ordinary mail shall be presumed complete 27 if the mail is not returned to the petitioner within 15 days 28 after mailing. 29 (4) In the event the registered or certified mail is 30 returned with the notation by the postal authorities that it 20080S1291B2447 - 16 -
1 was unclaimed, the notice shall be personally served. 2 (5) In the event that the personal service is not able 3 to be made after two such attempts, the petitioner shall mail 4 the petition to the recipient at the same address by ordinary 5 mail with the return address of the petitioner appearing 6 thereon with service by ordinary mail deemed complete if the 7 mail is not returned to the petitioner within 15 days after 8 the mailing. 9 (6) The petitioner shall also notify the owner and each 10 lienholder of the hearing date and provide notice that the 11 owner and lienholders may petition to intervene in the 12 action. 13 § 6132. Appointment of conservator. 14 (a) General rule.--The court shall act upon a petition 15 submitted by holding a hearing within 90 days of receipt of the 16 petition and rendering a decision no later than 30 days after 17 completion of the hearing. 18 (b) Intervention.--Subject to the court's discretion, a 19 party in interest may intervene in the proceeding and be heard 20 with respect to the petition, the requested relief or any other 21 matter which may come before the court in connection with the 22 proceeding. 23 (c) Hearing.--At the hearing, any party in interest shall be 24 permitted to present evidence to support or contest the 25 petition. 26 (d) Conditions for conservatorship.--If a petition is filed 27 under section 6131 (relating to initiation of action), the court 28 may appoint a conservator if the building has not been legally 29 occupied for at least the previous 12 months and has not been 30 actively marketed during the 60 days prior to the date of the 20080S1291B2447 - 17 -
1 petition and the court finds at least two of the following: 2 (1) The building or physical structure is a public 3 nuisance. 4 (2) The building is in need of substantial 5 rehabilitation and no rehabilitation has taken place during 6 the previous 12 months. 7 (3) The building is unfit for human habitation, 8 occupancy or use. 9 (4) The condition and vacancy of the building materially 10 increases the risk of fire to the building and to adjacent 11 properties. 12 (5) The building is subject to unauthorized entry 13 leading to potential health and safety hazards and: 14 (i) the owner has failed to take reasonable and 15 necessary measures to secure the building; or 16 (ii) the municipality has secured the building in 17 order to prevent such hazards after the owner has failed 18 to do so. 19 (6) The property is an attractive nuisance to children, 20 including, but not limited to, the presence of abandoned 21 wells, shafts, basements, excavations and unsafe structures. 22 (7) The presence of vermin or the accumulation of 23 debris, uncut vegetation or physical deterioration of the 24 structure or grounds has created potential health and safety 25 hazards and the owner has failed to take reasonable and 26 necessary measures to remove the hazards. 27 (8) The dilapidated appearance or other condition of the 28 building negatively affects the economic well-being of 29 residents and businesses in close proximity to the building, 30 including decreases in property value and loss of business, 20080S1291B2447 - 18 -
1 and the owner has failed to take reasonable and necessary 2 measures to remedy appearance or the condition. 3 (e) Appointment.-- 4 (1) If the court determines after a hearing that the 5 property has met the conditions of subsection (d), the court 6 may appoint a conservator and grant such other relief as may 7 be just and appropriate. 8 (2) The court may appoint a nonprofit corporation or 9 other competent entity. In appointing a conservator, the 10 court shall consider any recommendations contained in the 11 petition or otherwise presented by a party in interest. 12 (f) Conditional relief.-- 13 (1) If the court finds after a hearing that the 14 conditions for conservatorship set forth under subsection (d) 15 have been established, but the owner represents that the 16 violations or nuisance or emergency condition will be abated 17 in a reasonable period, the court may allow the owner to 18 proceed to remedy the conditions. 19 (2) If the conditions set forth under paragraph (1) have 20 been satisfied, the court shall enter an order providing 21 that, in the event that the violations or nuisance or 22 emergency conditions are not abated by the owner by a 23 specific date or that other specified remedial activities 24 have not occurred by a specific date or dates, an order 25 granting the relief requested in the petition shall be 26 entered. 27 (3) The court may also require the owner to post a bond 28 in the amount of the repair costs estimated in the petition 29 as a condition to retaining possession of the building. 30 (g) Hearing on conservator's final plan for abatement.--At 20080S1291B2447 - 19 -
1 the time the court appoints a conservator, the court shall set a 2 date for a hearing on the conservator's final plan for abatement 3 to be held within 120 days. 4 (h) Conservator's lien.--The conservator shall file a lien 5 against the property in an amount based on the estimated costs 6 to be incurred during the conservatorship. The lien amount may 7 be adjusted from time to time. 8 (i) Immediate possession.--The conservator shall promptly 9 take possession of the building and other property subject to 10 the conservatorship and shall immediately be authorized to 11 exercise all powers of this act. 12 (j) Removal by court.--A conservator may be removed by the 13 court at any time upon the request of the conservator or upon a 14 showing by a party to the action that the conservator is not 15 carrying out its responsibilities under this chapter. 16 § 6133. Powers and duties of conservator. 17 (a) Full powers and duties.--The conservator shall have all 18 powers and duties necessary or desirable, from time to time, for 19 the efficient operation, management and improvement of the 20 building in order to bring it into compliance with all municipal 21 building and housing code requirements and to fulfill the 22 conservator's responsibilities under this chapter. Such powers 23 and duties shall include, but not be limited to, the power to: 24 (1) Take possession and control of the building, 25 appurtenant land and any personal property of the owner used 26 with respect to the building, including any bank or operating 27 account for the building. 28 (2) Collect outstanding accounts receivable. 29 (3) Pursue all claims or causes of action of the owner 30 with respect to the building and all other property subject 20080S1291B2447 - 20 -
1 to the conservator. 2 (4) Contract for the repair and maintenance of the 3 building. The contracts shall be appropriately documented and 4 included in the reports and accounting which the conservator 5 is required to submit or file under the provisions of this 6 chapter. 7 (5) Borrow money and incur credit in accordance with 8 section 6135 (relating to incurring indebtedness). 9 (6) Contract and pay for the maintenance and restoration 10 of utilities to the building. 11 (7) Purchase materials, goods and supplies to accomplish 12 repairs and operate the building. 13 (8) With the court's approval, enter into new rental 14 contracts and leases for a period not to exceed one year. 15 (9) Affirm, renew or enter into contracts providing for 16 insurance coverage on the building. 17 (10) Engage and pay legal, accounting, appraisal and 18 other professionals to aid the conservator in the conduct of 19 the conservatorship. 20 (11) Apply for and receive public grants or loans. 21 (12) Sell the building in accordance with section 6136 22 (relating to sale of property). 23 (13) Exercise all authority that an owner of the 24 building would have to improve, maintain and otherwise manage 25 the building. 26 (b) Affirmative duty.--While in possession of the building, 27 the conservator shall: 28 (1) Maintain, safeguard and insure the building. 29 (2) Apply all revenue generated from the building 30 consistent with the provisions of this chapter. 20080S1291B2447 - 21 -
1 (3) Develop a final plan for abatement of the conditions 2 which caused the petition to be granted or, if no such 3 feasible final plan can be developed, develop alternatives, 4 including the closing, sealing or demolition of all or part 5 of the building. 6 (4) Implement the final plan referred to under paragraph 7 (3) upon approval by the court. 8 (5) Submit a status report to the court and parties to 9 the action annually or more frequently as the court may deem 10 appropriate. The status report shall include: 11 (i) A copy of any contract entered into by the 12 conservator regarding the improvement of the building. 13 (ii) An account of the disposition of all revenue 14 generated from the building. 15 (iii) An account of all expenses and improvements. 16 (iv) The status of developing and implementing the 17 final plan pursuant to this subsection. 18 (v) A description of any proposed actions to be 19 taken in the next six months to improve the building. 20 (c) Submission of final plan.-- 21 (1) The final plan referred to under subsection (b)(3) 22 shall be submitted to the court and to all parties to the 23 action. 24 (2) After notice and an opportunity for a hearing, the 25 court may amend the final plan. 26 (d) Accounting.--Upon the implementation of the final plan 27 approved by the court, the conservator shall file with the court 28 a full accounting of all income and expenditures during the 29 period of time it took to implement the final plan. 30 § 6134. Ownership of property. 20080S1291B2447 - 22 -
1 (a) Ownership interest of conservator.--A conservator 2 appointed under section 6132 (relating to appointment of 3 conservator) shall be deemed to have an ownership interest in 4 and legal control of the property for the purposes of filing 5 plans with public agencies and boards, seeking and obtaining 6 construction permits and other approvals and submitting 7 applications for financing or other assistance to public or 8 private entities. 9 (b) Liability of owner.--Notwithstanding the appointment of 10 a conservator under section 6132, nothing in this chapter shall 11 be construed to relieve the owner of any civil or criminal 12 liability or of any obligation to pay taxes, municipal liens and 13 charges, mortgages, private liens or other fees or charges, 14 whether incurred before or after the appointment of the 15 conservator. 16 § 6135. Incurring indebtedness. 17 (a) Borrowing.--From time to time a conservator may borrow 18 money or incur indebtedness in order to cover the cost of 19 rehabilitation, improvement, preservation, insurance, management 20 or operation of the building or to otherwise fulfill the 21 conservator's obligations under this chapter. 22 (b) Liens.--In order to facilitate the borrowing of funds 23 for the rehabilitation of the building, the court may grant a 24 lien or security interest with priority over all other liens 25 with the exception of municipal or other governmental liens, 26 provided, however, that prior to granting a priority lien, the 27 court has found that: 28 (1) The conservator sought to obtain the necessary 29 financing from the senior lienholder, but the lienholder 30 declined to provide financing on reasonable terms. 20080S1291B2447 - 23 -
1 (2) Lien priority is necessary in order to induce 2 another lender to provide financing on reasonable terms. 3 § 6136. Sale of property. 4 (a) Sale by owner or lienholder.--If a property subject to 5 conservatorship is sold by the owner or foreclosed upon by a 6 lienholder or if any interest in the property is transferred, 7 such sale, foreclosure or transfer shall be subject to the 8 conservatorship. 9 (b) Sale by conservator.--Upon application of the 10 conservator, the court may order the sale of the property if the 11 court finds that: 12 (1) Notice was given to each record owner of the 13 building and each lienholder of record. 14 (2) The conservator has been in control of the building 15 for more than six months and the owner has not successfully 16 petitioned to terminate the conservatorship under section 17 6137 (relating to termination of conservatorship). 18 (c) Sale free and clear.-- 19 (1) The court may authorize the conservator to sell the 20 building free and clear of all liens, claims and 21 encumbrances, provided that the proceeds of the sale are 22 distributed pursuant to subsection (d) at settlement. 23 (2) In the event that the proceeds of the sale are 24 insufficient to pay all existing liens, claims and 25 encumbrances, the proceeds shall be distributed according to 26 the priorities set forth under subsection (d), and all unpaid 27 liens, claims or encumbrances shall be extinguished. 28 (d) Distribution.--The proceeds of the sale shall be applied 29 in accordance with the following priorities to: 30 (1) All court costs. 20080S1291B2447 - 24 -
1 (2) Municipal or other governmental liens. 2 (3) Costs and expenses of sale. 3 (4) Principal and interest on any borrowing or 4 incurrence of indebtedness granted priority over existing 5 liens and security interest under section 6135(b) (relating 6 to incurring indebtedness). 7 (5) Costs of rehabilitation and any fees and expenses 8 incurred by the conservator in connection with the sale or 9 the safeguarding, insuring or maintaining of the property. 10 (6) Valid liens and security interests in accordance 11 with their priority. 12 (7) Any unpaid obligations of the conservator. 13 (8) Costs incurred by the petitioner in requesting the 14 court to place the property in conservatorship. 15 (9) The owner. 16 § 6137. Termination of conservatorship. 17 Upon request of a party in interest or the conservator, the 18 court may order the termination of the conservatorship if it 19 determines: 20 (1) the conditions that were the grounds for the 21 petition and all other code violations have been abated or 22 corrected, the obligations, expenses and improvements of the 23 conservatorship, including all fees and expenses of the 24 conservator, have been fully paid or provided for and the 25 purposes of the conservatorship have been fulfilled; 26 (2) the owner, mortgagee or lienholder has requested the 27 conservatorship be terminated and has provided adequate 28 assurances to the court that the conditions that constituted 29 grounds for the petition will be promptly abated, all 30 obligations, expenses and improvements of the 20080S1291B2447 - 25 -
1 conservatorship, including all fees and expenses of the 2 conservator, have been fully paid or provided for and the 3 purposes of the conservatorship have been fulfilled; 4 (3) the building has been sold by the conservator and 5 the proceeds distributed in accordance with section 6136(d) 6 (relating to sale of property); or 7 (4) the conservator has been unable after diligent 8 effort to present a plan that could be approved under section 9 6133(b)(3) (relating to powers and duties of conservator) or 10 implement a previously approved plan or, for any reason, the 11 purposes of the conservatorship cannot be fulfilled. 12 SUBCHAPTER E D <-- 13 STATE AND LOCAL GOVERNMENT PERMIT DENIALS 14 Sec. 15 6141. State permit denials. 16 6142. Municipal permit denial. 17 § 6141. State permit denials. 18 (a) General rule.--A department, board or commission may <-- 19 deny an applicant a State permit, certification, license or 20 approval for contemplated action requiring such approval, if the 21 applicant owns any real property in this Commonwealth and any of 22 the following apply: 23 (1) The applicant owns real property in a municipality 24 for which taxes, water or sewer or refuse collection charges 25 are delinquent. 26 (2) The applicant owns real property in this 27 Commonwealth that has been determined to be in serious 28 violation of applicable State or municipal housing, building, 29 property maintenance or fire safety code requirements and has 30 not taken substantial steps to bring the property into code 20080S1291B2447 - 26 -
1 compliance. 2 (3) The real property is in violation of an applicable 3 State or municipal housing, building, property maintenance or 4 fire safety code requirement and the property owner has taken 5 no substantial steps to correct within 60 days following 6 notification of the violation. 7 (A) DENIAL.-- <-- 8 (1) A DEPARTMENT, BOARD OR COMMISSION MAY DENY AN 9 APPLICANT A STATE PERMIT, CERTIFICATION, LICENSE OR APPROVAL 10 FOR CONTEMPLATED ACTION REQUIRING SUCH APPROVAL, IF THE 11 APPLICANT OWNS ANY REAL PROPERTY IN THIS COMMONWEALTH AND ANY 12 OF THE FOLLOWING FINAL AND UNAPPEALABLE TAX, WATER, SEWER OR 13 REFUSE COLLECTION DELINQUENCIES OR CODE VIOLATIONS APPLY: 14 (I) THE APPLICANT OWNS REAL PROPERTY IN A 15 MUNICIPALITY FOR WHICH TAXES, WATER, SEWER OR REFUSE 16 COLLECTION CHARGES ARE DELINQUENT. 17 (II) THE APPLICANT OWNS REAL PROPERTY IN THIS 18 COMMONWEALTH THAT HAS BEEN DETERMINED TO BE IN SERIOUS 19 VIOLATION OF APPLICABLE STATE OR MUNICIPAL HOUSING, 20 BUILDING, PROPERTY MAINTENANCE OR FIRE SAFETY CODE 21 REQUIREMENTS AND HAS NOT TAKEN SUBSTANTIAL STEPS TO BRING 22 THE PROPERTY INTO CODE COMPLIANCE. 23 (III) THE REAL PROPERTY IS IN VIOLATION OF AN 24 APPLICABLE STATE OR MUNICIPAL HOUSING, BUILDING, PROPERTY 25 MAINTENANCE OR FIRE SAFETY CODE REQUIREMENT AND THE 26 PROPERTY OWNER HAS TAKEN NO SUBSTANTIAL STEPS TO CORRECT 27 WITHIN 60 DAYS FOLLOWING NOTIFICATION OF THE VIOLATION. 28 (2) THE STATE PERMIT DENIAL SHALL NOT APPLY TO AN 29 APPLICANT'S ACTION TO CORRECT A VIOLATION OF AN APPLICABLE 30 STATE OR MUNICIPAL HOUSING, BUILDING, PROPERTY MAINTENANCE OR 20080S1291B2447 - 27 -
1 FIRE SAFETY CODE FOR WHICH THE STATE PERMIT, CERTIFICATION, 2 LICENSE OR APPROVAL FOR CONTEMPLATED ACTION REQUIRING SUCH 3 APPROVAL IS REQUIRED. 4 (3) THE STATE PERMIT DENIAL SHALL NOT APPLY TO AN 5 APPLICANT'S DELINQUENCY ON TAXES, WATER, SEWER OR REFUSE 6 COLLECTION CHARGES THAT ARE UNDER APPEAL OR OTHERWISE 7 CONTESTED THROUGH A COURT OR ADMINISTRATIVE PROCESS. 8 (b) Proof of compliance.-- 9 (1) A State permit, certification, license or approval 10 may be withheld until the applicant obtains a letter from the 11 appropriate State agency, municipality or school district 12 which indicates the following: 13 (i) The property in question is not presently tax 14 delinquent or does not owe sewer, water or refuse 15 collection charges. 16 (ii) The property in question is now in code 17 compliance. 18 (iii) The property owner of the property in question 19 has taken substantial steps to bring the property into 20 code compliance. 21 (2) Letters required under this subsection shall be 22 verified by the appropriate State officials before the 23 official may issue the applicant a State permit, 24 certification, license or approval. 25 (c) Availability of information.--Information contained in 26 the property maintenance code violation report shall be subject 27 to the provisions of the act of February 14, 2008 (P.L.30, 28 No.3), known as the Right-to-Know Law. 29 § 6142. Municipal permit denial. 30 (a) Denial.--A municipality may deny issuing to an applicant <-- 20080S1291B2447 - 28 -
1 a building permit, zoning permit, zoning variance, municipal 2 license, municipal permit or municipal approval for contemplated 3 action that requires the approval of the municipality, if any of 4 the following apply: 5 (1) The applicant owns real property in any municipality 6 for which taxes or water, sewer or refuse collection charges 7 are delinquent. 8 (2) The applicant owns any property in any municipality 9 that has been determined to be in serious violation of 10 applicable State or municipal housing, building, property 11 maintenance or fire safety code requirements and has not 12 taken substantial steps to bring the property into code 13 compliance. 14 (3) The applicant owns any property in any municipality 15 which is in violation of an applicable State or municipal 16 housing, building, property maintenance or fire safety code 17 requirement and has taken no substantial steps to correct the 18 violation within six months following notification of the 19 violation. 20 (A) DENIAL.-- <-- 21 (1) A MUNICIPALITY MAY DENY ISSUING TO AN APPLICANT A 22 BUILDING PERMIT, ZONING PERMIT, ZONING VARIANCE, MUNICIPAL 23 LICENSE, MUNICIPAL PERMIT OR MUNICIPAL APPROVAL FOR 24 CONTEMPLATED ACTION THAT REQUIRES THE APPROVAL OF THE 25 MUNICIPALITY, IF ANY OF THE FOLLOWING FINAL AND UNAPPEALABLE 26 TAX, WATER, SEWER OR REFUSE COLLECTION DELINQUENCIES OR CODE 27 VIOLATIONS APPLY: 28 (I) THE APPLICANT OWNS REAL PROPERTY IN ANY 29 MUNICIPALITY FOR WHICH TAXES, WATER, SEWER OR REFUSE 30 COLLECTION CHARGES ARE DELINQUENT. 20080S1291B2447 - 29 -
1 (II) THE APPLICANT OWNS REAL PROPERTY IN ANY 2 MUNICIPALITY THAT HAS BEEN DETERMINED TO BE IN SERIOUS 3 VIOLATION OF APPLICABLE STATE OR MUNICIPAL HOUSING, 4 BUILDING, PROPERTY MAINTENANCE OR FIRE SAFETY CODE 5 REQUIREMENTS AND HAS NOT TAKEN SUBSTANTIAL STEPS TO BRING 6 THE PROPERTY INTO CODE COMPLIANCE. 7 (III) THE APPLICANT OWNS ANY PROPERTY IN ANY 8 MUNICIPALITY WHICH IS IN VIOLATION OF AN APPLICABLE STATE 9 OR MUNICIPAL HOUSING, BUILDING, PROPERTY MAINTENANCE OR 10 FIRE SAFETY CODE REQUIREMENT AND HAS TAKEN NO SUBSTANTIAL 11 STEPS TO CORRECT WITHIN SIX MONTHS FOLLOWING NOTIFICATION 12 OF THE VIOLATION. 13 (2) THE MUNICIPAL PERMIT DENIAL SHALL NOT APPLY TO AN 14 APPLICANT'S ACTION TO CORRECT A VIOLATION OF AN APPLICABLE 15 STATE OR MUNICIPAL HOUSING, BUILDING, PROPERTY MAINTENANCE OR 16 FIRE SAFETY CODE FOR WHICH THE BUILDING PERMIT, ZONING 17 PERMIT, ZONING VARIANCE, MUNICIPAL LICENSE, MUNICIPAL PERMIT 18 OR MUNICIPAL APPROVAL FOR CONTEMPLATED ACTION REQUIRING SUCH 19 APPROVAL IS REQUIRED. 20 (3) THE MUNICIPAL PERMIT DENIAL SHALL NOT APPLY TO AN 21 APPLICANT'S DELINQUENCY ON TAXES, WATER, SEWER OR REFUSE 22 COLLECTION CHARGES THAT ARE UNDER APPEAL OR OTHERWISE 23 CONTESTED THROUGH A COURT OR ADMINISTRATIVE PROCESS. 24 (b) Proof of compliance.-- 25 (1) All municipal variances, approvals, permits or 26 licenses may be withheld until an applicant obtains a letter 27 from the appropriate State agency, municipality or school 28 district indicating the following: 29 (i) The property in question is not presently tax 30 delinquent. 20080S1291B2447 - 30 -
1 (ii) The property in question is now in code 2 compliance. 3 (iii) The owner of the property in question has 4 taken substantial steps to bring the property into code 5 compliance. 6 (2) Letters required under this subsection shall be 7 verified by the appropriate municipal officials before 8 issuing to the applicant a municipal variance, approval, 9 permit or license. 10 SUBCHAPTER F E <-- 11 STATE BLIGHT DATA COLLECTION SYSTEM 12 Sec. 13 6151. Property Maintenance Code Violations Registry. 14 6152. Property maintenance code violation reports. 15 6153. Dissemination of information by department. 16 6154. Expungement. 17 6155. Administrative requirements. 18 6156. Audit. 19 6157. Imposition of surcharge. 20 § 6151. Property Maintenance Code Violations Registry. 21 (a) Establishment.--The Property Maintenance Code Violations 22 Registry is hereby established. The department shall implement 23 and administer the registry. 24 (b) Purpose.--The registry shall contain property 25 maintenance code violation reports filed by municipalities under 26 section 6152 (relating to property maintenance code violation 27 reports). 28 § 6152. Property maintenance code violation reports. 29 (a) Municipalities to file.--A municipality shall file a 30 property maintenance code violation report for any person who 20080S1291B2447 - 31 -
1 owns real property within that municipality with current 2 property maintenance code violations that have gone unabated for 3 90 days or more. 4 (b) Forms provided.--Property maintenance code violation 5 reports may be made on forms provided by the department or may 6 be made electronically. 7 (c) Information included.--Property maintenance code 8 violation reports shall include the following information: 9 (1) The name of the convicted property maintenance code 10 violator. 11 (2) Where owned by a corporation, the information on 12 record at the Department of Transportation in connection with 13 the individual drivers' licenses for each officer of the 14 corporation. 15 (3) The legal description of the real property which is 16 in violation of the municipal property maintenance code. 17 (4) A description of the condition of the real property 18 which resulted in the property maintenance code violation. 19 (5) The date of the original property maintenance code 20 violation. 21 (6) The amount of penalties owed or liens attached to 22 the property with maintenance code violations. 23 (7) The name of the municipality filing the report. 24 (d) Duty of municipality.--A municipality that files a 25 property maintenance code violation report shall follow the 26 guidelines for expungement under section 6154 (relating to 27 expungement). 28 § 6153. Dissemination of information by department. 29 (a) Availability of information.--Information contained in 30 the property maintenance code violation report shall be subject 20080S1291B2447 - 32 -
1 to the provisions of the act of February 14, 2008 (P.L. , 2 No.3), known as the Right-to-Know Law. 3 (b) Requests by municipalities.-- 4 (1) Municipalities may request a copy of a property 5 maintenance code violation report on any pending applicant 6 for a municipal permit by submitting a property maintenance 7 code violation report request form to the department or 8 requesting the form electronically. 9 (2) The department shall disseminate all property 10 maintenance code violation reports relating to a municipal 11 permit applicant to the requesting municipality within two 12 weeks of receipt of a property maintenance code violation 13 report request from that municipality. 14 (3) The municipality shall notify an applicant in 15 writing of the reasons for a decision which denies the 16 applicant a municipal permit if the decision is based in 17 whole or in part on information contained in the Property 18 Maintenance Code Violations Registry. 19 (c) Requests by Commonwealth.-- 20 (1) Commonwealth agencies may request a copy of any 21 property maintenance code violation report on any pending 22 applicant for licensing or certification by submitting a 23 property maintenance code violation report request form to 24 the department or requesting the form electronically. 25 (2) The department shall disseminate all property 26 maintenance code violation reports relating to a State 27 license or certification applicant to a requesting 28 Commonwealth agency within two weeks of receipt of a property 29 maintenance code violation report request from the agency. 30 (3) The Commonwealth agency shall notify an applicant in 20080S1291B2447 - 33 -
1 writing of the reasons for a decision which denies the 2 licensing or certification requested by that applicant if the 3 decision is based in whole or in part on information 4 contained in the Property Maintenance Code Violations 5 Registry. 6 (d) Hearing.--If requested by an applicant, a hearing shall 7 be scheduled to appeal a decision made as a result of municipal 8 property maintenance code violation convictions under subsection 9 (b)(3) or (c)(3). If the applicant can show cause why the 10 municipal property maintenance code violation convictions should 11 not be considered, the State shall reevaluate any request by the 12 applicant for a State license or certification, and the 13 municipality shall likewise reevaluate any request by the 14 applicant for a municipal permit. 15 (e) Record of dissemination.--The department shall maintain 16 a listing of Commonwealth agencies and all municipalities that 17 have requested information on a particular real property owner 18 and the date on which the information was disseminated. This 19 listing shall be maintained separate from the registry. 20 (f) Fee.--There shall be no fee assessed for the 21 dissemination of property maintenance code violation 22 information. 23 § 6154. Expungement. 24 A municipality that files a report with the department shall 25 subsequently notify the department when the real property is 26 brought into code compliance. Upon notification by the 27 municipality, the department shall include the information as 28 part of the official record for the specific property and 29 violator. 30 § 6155. Administrative requirements. 20080S1291B2447 - 34 -
1 (a) Regulations.--The department shall establish procedures 2 for the completeness and accuracy of information in the registry 3 and shall promulgate the regulations necessary to carry out its 4 duty of maintaining the registry. 5 (b) Forms.--The department shall develop property 6 maintenance code violation report forms and property maintenance 7 code violation report request forms, as well as procedures to 8 obtain the information electronically. 9 (c) Security requirements.--The department shall ensure the 10 confidentiality and security of the information contained in the 11 registry by providing that: 12 (1) Procedures have been instituted to reasonably 13 protect the registry from theft, fire, sabotage, flood, wind 14 or other natural or manmade disasters. 15 (2) All personnel authorized to have access to registry 16 information are selected, supervised and trained accordingly. 17 § 6156. Audit. 18 (a) Duty of Auditor General.--The Auditor General shall 19 conduct annual performance audits of registry operations. 20 (b) Access to records.--The department shall provide 21 auditors with access to all records, reports and listings 22 required to conduct an audit of property maintenance code 23 violations record information. Persons having supervision of or 24 authorized to receive registry information shall cooperate with 25 auditors and provide requested information. 26 (c) Contents of audit.--The audit shall report in writing 27 any deficiencies and any recommendations for correcting the 28 deficiencies. The department shall respond to the audit 29 recommendations within a reasonable period of time unless the 30 audit report is appealed to the Auditor General and the appeal 20080S1291B2447 - 35 -
1 is upheld. 2 (d) Modification of recommendations.--Upon appeal of the 3 audit recommendations by the department, the Auditor General may 4 modify corrective measures recommended by auditors. 5 § 6157. Imposition of surcharge. 6 There is imposed on each property owner who is in violation 7 of a municipal property maintenance code a surcharge in the 8 amount of $100 for each INSPECTION BY A LOCAL CODES OFFICIAL <-- 9 THAT REVEALS ONE OR MORE municipal property maintenance code 10 violation. This surcharge shall be in addition to any other 11 applicable fees or charges lawfully collected by the 12 municipality and court. The municipality shall collect the 13 surcharge and remit all funds to the department on a quarterly 14 basis. Funds generated by the surcharge shall be used to finance 15 the Statewide implementation of the Property Maintenance Code 16 Violations Registry and to conduct training of the judiciary in 17 accordance with section 6192 (relating to education and training 18 programs for judges). 19 SUBCHAPTER G F <-- 20 GRANTS 21 Sec. 22 6161. Municipal Code Enforcement Grant Program. 23 6162. Regulations. 24 § 6161. Municipal Code Enforcement Grant Program. 25 (a) Establishment.--The department shall issue grants to 26 eligible municipalities for the purpose of reducing blighted 27 property conditions. 28 (b) Purpose.--The purpose of the Municipal Code Enforcement 29 Grant Program is to encourage the establishment of special code 30 enforcement programs to address blighted property and the hiring 20080S1291B2447 - 36 -
1 and training of code enforcement personnel in those 2 municipalities with an existing code enforcement program. 3 (c) Eligibility.--In order to receive a grant under this 4 subchapter, a municipality must submit an application to the 5 department and satisfy the eligibility criteria established by 6 the department. 7 (d) Matching funds.--A municipality shall provide its own 8 funds or in-kind contributions, approved by the department as 9 determined by regulations promulgated by the department under 10 section 6162 (relating to regulations) equal to the amount of 11 the grant provided and shall dedicate and expend those funds for 12 the purpose for which the grant was awarded. 13 (e) Limitation.--Grants provided under this section shall 14 not be provided to the same recipient for more than three 15 consecutive years. 16 § 6162. Regulations. 17 Within 90 days following the effective date of this 18 subchapter, the department shall promulgate rules and 19 regulations to carry out the provisions of this subchapter. The 20 regulations to implement section 6161(b) (relating to Municipal 21 Code Enforcement Grant Program) may include, but not be limited 22 to: 23 (1) The age of the existing housing in the municipality. 24 (2) The municipality's existing tax base. 25 (3) The existing financial condition of the 26 municipality. 27 SUBCHAPTER H <-- 28 SALE OF BLIGHTED AND ABANDONED PROPERTIES 29 Sec. 30 6165. Applicability. 20080S1291B2447 - 37 -
1 6166. Tax sales. 2 6167. Requirements for purchaser of abandoned property. 3 § 6165. Applicability. 4 The provisions of this subchapter shall be in addition to the 5 provisions of the act of July 7, 1947 (P.L.1368, No.542), known 6 as the Real Estate Tax Sale Law. If there is a conflicting 7 provision, this subchapter and not the Real Estate Tax Sale Law 8 shall prevail where the tax sale affects blighted or abandoned 9 property. 10 § 6166. Tax sales. 11 (a) Publication of tax sale properties.--At least 60 days 12 prior to the date scheduled for a tax sale, the county shall 13 make public a list of properties to be offered at the sale. The 14 county shall provide a copy of the list to the mayor, or 15 comparable municipal official, of any municipality in which 16 property scheduled for sale is located. 17 (b) Notification about abandoned properties.--Within 30 days 18 following receipt of the list, the municipality shall notify the 19 county of any properties within its jurisdiction which are 20 abandoned properties. Not less than 15 days prior to the 21 scheduled tax sale, the county shall make public a revised list 22 of properties to be offered for sale indicating which are 23 abandoned. 24 § 6167. Requirements for purchaser of abandoned property. 25 In addition to requirements under the act of May 16, 1923 26 (P.L.207, No.153), referred to as the Municipal Claim and Tax 27 Lien Law, the act of July 7, 1947 (P.L.1368, No.542), known as 28 the Real Estate Tax Sale Law, or the act of October 11, 1984 29 (P.L.876, No.171), known as the Second Class City Treasurer's 30 Sale and Collection Act, a purchaser of an abandoned property 20080S1291B2447 - 38 -
1 shall: 2 (1) Enter into a redevelopment agreement with the 3 municipality in which the property is located, obligating the 4 purchaser to redevelop the property in accordance with all 5 municipal codes and any officially adopted plans for the 6 geographic area in which the property is located. The 7 redevelopment agreement shall include, at a minimum: 8 (i) A specified time by which the redevelopment must 9 be completed, which time shall not be less than 12 10 months. 11 (ii) A description of the redevelopment work to be 12 completed. 13 (iii) Remedies for noncompliance, including the 14 right of the municipality to acquire title to the 15 property if the redevelopment is not completed by the 16 agreed-upon date. 17 (2) Post a bond to ensure compliance with the 18 redevelopment agreement, naming the municipality as the 19 beneficiary. 20 SUBCHAPTER I G <-- 21 MISCELLANEOUS PROVISIONS 22 Sec. 23 6191. Unfair insurance practices. 24 6192. Education and training programs for judges. 25 6193. County housing courts. 26 § 6191. Unfair insurance practices. 27 In addition to the provisions of section 5 of the act of July 28 22, 1974 (P.L.589, No.205), known as the Unfair Insurance 29 Practices Act, the act of refusing to issue or renew an 30 insurance policy on real property on the basis of the condition 20080S1291B2447 - 39 -
1 of surrounding properties or because surrounding properties are 2 unoccupied is prohibited as an unfair method of competition and 3 unfair insurance practices. 4 § 6192. Education and training programs for judges. 5 Funds provided under section 6157 (relating to imposition of 6 surcharge) shall be used to develop and implement annual and 7 ongoing education and training programs for judges, including 8 magisterial district judges, regarding the laws of this 9 Commonwealth relating to blighted and abandoned property and the 10 economic impact that blighted and abandoned properties have upon 11 municipalities. The education and training programs shall 12 include, but not be limited to: 13 (1) The importance and connection of municipal housing 14 code violations and crime. 15 (2) Time-in-fact violations as they relate to property 16 maintenance code violations. 17 (3) Conduct of witnesses in prosecuting property 18 maintenance code violations. 19 (4) Limiting continuances in property maintenance code 20 violations. 21 (5) Use of indigency hearings in the prosecution of 22 property maintenance code violations. 23 § 6193. County housing courts. 24 Upon a request or approval of a resolution by the county 25 commissioners, the president judge of a county may establish a 26 housing court to hear and decide matters arising under this 27 chapter and other laws relating to real property matters. 28 Section 2. This act shall take effect in 90 days. B25L53JAM/20080S1291B2447 - 40 -