PRINTER'S NO. 4476
No. 1774 Session of 2008
INTRODUCED BY J. TAYLOR, PETRONE, ARGALL, CREIGHTON, EVERETT,
GEIST, GOODMAN, HALUSKA, HENNESSEY, JOSEPHS, KOTIK,
LONGIETTI, MANN, R. MILLER, MOYER, MURT, MYERS, PERZEL,
SAYLOR, SIPTROTH, WALKO, YUDICHAK, WATSON, MARSHALL AND
HERSHEY, OCTOBER 3, 2008
REFERRED TO COMMITTEE ON URBAN AFFAIRS, OCTOBER 3, 2008
AN ACT
1 Providing for the creation of land banks for the conversion of
2 vacant or tax-delinquent properties into productive use.
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 Land Banks
7 Authorities Act.
8 Section 2. Legislative findings and purpose.
9 The General Assembly finds and declares as follows:
10 (1) Pennsylvania's communities are important to the
11 social and economic vitality of this Commonwealth. Whether
12 rural, suburban or urban, many communities are struggling to
13 cope with vacant or tax-delinquent properties.
14 (2) Citizens of this Commonwealth are affected adversely
15 by vacant or tax-delinquent properties, including properties
16 that have been vacated due to foreclosure brought about by
1 the national foreclosure crisis.
2 (3) Substandard, deteriorating or vacant structures are
3 a public safety threat and nuisance, and their blighting
4 effect diminishes property values in the communities in which
5 these properties are located.
6 (4) If these buildings remain vacant and further
7 deteriorate, the result will be increased costs to the
8 Commonwealth, municipalities and taxpayers to secure and
9 ultimately demolish them.
10 (5) Providing a mechanism to transform vacant or tax-
11 delinquent buildings into productive reuse is an opportunity
12 for communities to modernize, revitalize and grow and to
13 improve the quality of life for residents.
14 (6) Developers who wish to acquire vacant or tax-
15 delinquent properties and return them to productive use
16 confront a confusing array of agencies and entities that hold
17 property and have unique disposition policies.
18 (7) Land banks provide for the acquisition, management
19 and transferral of ownership of tax-foreclosed properties not
20 reclaimed or redeveloped by market forces, and land banks
21 facilitate the properties' productive reuse through sales and
22 transfers to local government agencies, community development
23 corporations, private developers and adjacent property
24 owners.
25 (8) It is in the best interest of this Commonwealth to
26 authorize the establishment of local land banks to provide an
27 effective and efficient system for communities to convert
28 vacant or tax-delinquent properties into community assets
29 that are consistent with local plans for growth and
30 development.
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1 Section 3. Definitions.
2 The following words and phrases when used in this act shall
3 have the meanings given to them in this section unless the
4 context clearly indicates otherwise:
5 "Agreement." An agreement entered into by parties pursuant
6 to this act.
7 "Authority." A land bank authority established pursuant to
8 this act.
9 "Board of directors" or "board." The board of a land bank
10 authority established in section 5.
11 "Municipality." A city of the first, second, second class A
12 or third class, township of the first or second class, borough,
13 incorporated town or county.
14 "Parties." The parties to an agreement, which may include a
15 municipality, school district or taxing authority of the
16 Commonwealth.
17 "Property." Real property, including any improvements
18 thereon.
19 "Tax delinquent property." A property on which the taxes
20 levied and assessed by any party remain in whole or in part
21 unpaid on the date due.
22 "Vacant." A property that is not occupied legally.
23 Section 4. Land bank authorities.
24 (a) Establishment.--A municipality, school district or
25 taxing authority may enter into an agreement to establish a land
26 bank authority pursuant to this act or may act on its own to
27 establish a land bank authority by charter.
28 (b) Powers.--An authority shall:
29 (1) Be a public body, corporate and politic with the
30 power to sue and be sued, issue deeds in its name and any
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1 other powers necessary and proper to carry out these powers
2 or that may be granted to the authority by the parties.
3 (2) Have all powers assigned to it in the agreement or
4 charter.
5 (3) Have the power to adopt, amend and repeal bylaws for
6 the regulation of its affairs and the conduct of its
7 business.
8 (4) Have the power to acquire vacant or tax-delinquent
9 properties within the jurisdiction of the parties in order to
10 foster the public purpose of returning property that is
11 nontax producing to effective reuse in the provision of
12 housing, business, industry or public purposes.
13 Section 5. Board of directors.
14 (a) Establishment.--An authority shall be governed by a
15 board of directors comprised of one member appointed by each
16 party to the agreement or charter. In the event that there are
17 only two parties to the agreement, each party shall appoint two
18 members so that the board has at least three members. In the
19 event that a party acts on its own to establish an authority, it
20 shall appoint at least three members to the board.
21 (b) Term of office.--Board members shall be appointed within
22 30 days of the signing of the agreement or adoption of the
23 charter. Each member shall serve at the pleasure of the
24 respective appointing authority for a term of four years. No
25 member may serve more than two consecutive terms.
26 (c) Qualifications.--Each board member shall be a resident
27 or employee of its appointing party and shall have experience or
28 education in urban planning, real estate, community development,
29 finance, economic development or related areas.
30 (d) Vacancy.--If a board member vacancy occurs, the
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1 appointing party shall appoint a successor within 45 days of the
2 vacancy. A person appointed to fill a vacant board member
3 position shall serve for the remainder of the unexpired term.
4 (e) Compensation.--Board members shall receive no
5 compensation for services.
6 (f) Chairperson.--The board shall elect a chairperson from
7 among its members. The chairperson shall execute all deeds,
8 leases and contracts of the authority when authorized by the
9 board.
10 (g) Meetings.--The board shall meet as specified in the
11 agreement or charter, but not less than four times per year. The
12 meetings of the authority shall be subject to the provision of
13 65 Pa.C.S. Ch. 7 (relating to open meetings).
14 (h) Quorum.--A majority of the board members shall
15 constitute a quorum. An affirmative vote of the majority of the
16 board members present shall be necessary for any action to be
17 taken by the board.
18 (i) Staff.--The authority may employ its own staff or may
19 utilize employees of the parties, as determined by the agreement
20 or charter.
21 Section 6. Mailing list of interested entities.
22 Upon the establishment of an authority, the authority shall
23 maintain a list of city, county or regional housing authorities,
24 redevelopment authorities and community development corporations
25 that have requested to be notified prior to any action by the
26 authority to dispose of property in its inventory. An interested
27 housing authority, redevelopment authority and community
28 development corporation must provide the authority with the
29 following information:
30 (1) Name of the organization.
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1 (2) Postal or electronic address for the organization.
2 (3) The name and title of a contact person for the
3 organization.
4 Section 7. Acquisition and management of property.
5 (a) General rule.--The acquisition of property by an
6 authority shall not be governed or controlled by any
7 regulations, ordinances or laws of the parties, unless
8 specifically provided in the agreement or charter.
9 (b) Authority deemed to be successful bidder at tax sale.--
10 (1) If any party obtains a judgment against a tax-
11 delinquent property within the county for the taxes, and to
12 satisfy the judgment, the property is ordered sold at a tax
13 sale, and if no person bids an amount equal to the full
14 amount of all tax bills, interest and costs owing on the
15 property at the sale, the authority shall be deemed to have
16 bid the full amount of all tax bills, interest and costs due
17 regardless of whether all parties of the authority are
18 parties to the lawsuit.
19 (2) The authority shall not be required to make actual
20 payment to the court for the amount deemed to have been bid.
21 (3) The court, notwithstanding any other provision of
22 law, shall treat the amount deemed to have been bid as cash
23 received. Upon proper motion by the authority, the court
24 shall make a deed of the property to the authority. The title
25 to the property shall be an absolute estate in fee simple,
26 free and clear of all liens, claims and encumbrances.
27 (c) No accrual of taxes.--When a property is acquired by the
28 authority, all State, county, city and school district taxes
29 shall be extinguished and no taxes shall accrue while the
30 property is owned by the authority.
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1 (d) Title held by authority.--An authority shall hold in its
2 own name, for the benefit of the parties, all properties
3 conveyed to it by the parties, all tax-delinquent properties
4 acquired by it pursuant to this section and all properties
5 otherwise acquired.
6 (e) Administration of properties.--An authority shall
7 administer the properties acquired by it, as follows:
8 (1) All property acquired by the authority shall be
9 inventoried and appraised and the inventory shall be
10 maintained as a public record.
11 (2) The authority shall organize and classify the
12 property on the basis of suitability for use.
13 (3) The authority shall maintain all property held by it
14 in accordance with applicable laws and codes.
15 (4) The authority shall have the power to manage,
16 maintain, protect, rent, lease, repair, insure, alter, sell,
17 transfer, trade, exchange or otherwise dispose of any
18 property on terms and conditions as determined by the board.
19 Section 8. Disposition of property.
20 (a) General rule.--The disposition of property by an
21 authority shall not be governed or controlled by any regulations
22 or laws of the parties, unless specifically provided in the
23 agreement or charter.
24 (b) Prerequisites.--Before an authority may rent, lease,
25 sell, transfer, trade, exchange or otherwise dispose of any
26 property it shall establish:
27 (1) a price for rent or lease purposes;
28 (2) a purchase price for sale purposes; or
29 (3) the conditions for transfer, trade, exchange or
30 other disposition of the property.
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1 (c) Public notice.--
2 (1) An authority shall publish the information required
3 pursuant to subsection (b) on a publicly available Internet
4 website at least 30 days before any property may be disposed
5 of from the inventory.
6 (2) The authority shall also notify by mail or
7 electronic mail all entities on the mailing list established
8 in section 6 of the authority's intent to dispose of a
9 specified property and the established price to rent, lease
10 or purchase the property or the conditions for transfer,
11 trade, exchange or other disposition of the property.
12 (d) Restriction.--
13 (1) No property shall be acquired for investment
14 purposes only and with no intent to use the property other
15 than to transfer the property at a future date for monetary
16 gain.
17 (2) The authority may, at its option, require a
18 purchaser to enter into a written agreement to rehabilitate
19 or otherwise develop the property and may specify the type of
20 development and other terms, including the length of time
21 allowed for development.
22 (e) Specific board member approval.--No property may be
23 sold, transferred, traded, exchanged or otherwise disposed of,
24 unless the transaction is approved by the board member appointed
25 by the affected municipality in which the property is located.
26 (f) Distribution of sale proceeds.--At the time that an
27 authority sells or otherwise disposes of property as part of its
28 land bank program, the proceeds from the sale shall be
29 distributed as follows:
30 (1) The party or parties bringing the action that
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1 resulted in the acquisition of the property by the authority
2 shall be reimbursed, to the extent proceeds are available,
3 for all costs incurred.
4 (2) Any remaining proceeds shall be distributed to the
5 parties in proportion to their respective tax bills as they
6 existed just prior to the time the property was acquired by
7 the authority.
8 (g) Amount of consideration.--Conveyance of a property may
9 be for less than market value or for no consideration.
10 Section 9. Dissolution.
11 Upon the approval of the parties, the board, by a two-thirds
12 vote, may provide for the dissolution of the authority. Upon the
13 dissolution of the authority, any funds within its control shall
14 be paid to any party under section 8(d) to satisfy any written
15 agreement extended under this section. All remaining funds shall
16 be transferred to the parties to the agreement or charter.
17 Section 10. Effective date.
18 This act shall take effect immediately.
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