PRIOR PRINTER'S NOS. 1250, 1334 PRINTER'S NO. 1373
No. 1061 Session of 1997
INTRODUCED BY MURPHY, COSTA, WAGNER, BODACK, BRIGHTBILL, EARLL,
GERLACH, KITCHEN, MELLOW, PICCOLA AND ULIANA, JULY 22, 1997
AS AMENDED ON THIRD CONSIDERATION, OCTOBER 6, 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17 preserving rights not specifically repealed," further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 the sale of property in cities of the second
19 class.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Sections 305(c) and 306 of the act of October 11,
23 1984 (P.L.876, No.171), known as the Second Class City
24 Treasurer's Sale and Collection Act, are amended to read:
25 Section 305. Report and confirmation of sale.
26 * * *
1 (c) Sale below minimum price.--The report shall list
2 separately those properties for which the minimum price was not
3 met. This portion of the report shall set forth that:
4 (1) Properties which may have been retained by the city
5 as agent for coexisting taxing bodies may be put up for
6 private sale under Chapter 5 or held for public purposes.
7 (2) Properties which the city has retained as agent
8 shall be the subject of a petition to the court to clear
9 title in favor of the city [under section 406, if necessary].
10 * * *
11 Section 306. Excess over upset price.
12 If the amount paid for the property by the purchaser is
13 greater than the total of claims and costs which gave rise to
14 the sale of the property, after the order of confirmation has
15 been entered by the court, the excess shall be held for the
16 person who owned the property just prior to the treasurer's
17 sale, that person's heirs, assigns or other legal
18 representatives or lien holders of record at the time of the
19 treasurer's sale. If a properly qualified party fails to make a
20 written and verified demand to the treasurer within [two years]
21 one year from the date of the sale, the treasurer shall cause
22 the excess to be placed in the agency fund established under
23 section 403(b).
24 Section 2. Section 307 of the act is amended by adding
25 subsections to read:
26 Section 307. Deed to purchaser.
27 * * *
28 (d) Restrictions on purchases.--
29 (1) Deeds for any real property exposed for any tax or
30 municipal lien sale in a second class city shall not be
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1 exchanged any sooner than 90 days nor later than 120 days
2 after any sale.
3 (2) A city of the second class may, within 15 days of
4 any tax or municipal lien sale of real estate, petition the
5 court of common pleas to prohibit the transfer of any deed
6 for any property exposed for any tax or municipal lien sale
7 which is located in that city to any purchaser who is proven
8 to meet any of the criteria set forth in the city's petition.
9 (3) The petition of the city of the second class shall,
10 at a minimum, allege that the purchaser has over the last
11 three years preceding the filing of the petition exhibited a
12 course of conduct which demonstrates that the purchaser:
13 (i) permitted an uncorrected housing code violation
14 to continue unabated after being convicted of such
15 violation;
16 (ii) failed to maintain the property owned by that
17 purchaser in a reasonable manner such that it posed a
18 threat to health, safety or property;
19 (iii) permitted the use of property in an unsafe,
20 illegal or unsanitary manner such that it posed a threat
21 to health, safety or property; or
22 (iv) acted as an agent for a purchaser who sought to
23 avoid the limitations placed on the purchase of property
24 by this act.
25 Allegations under this paragraph shall be proved by a
26 preponderance of the evidence.
27 (4) A change of name or business status shall not defeat
28 the purpose of this section.
29 (5) Nothing in this section shall supersede any
30 regulation promulgated under the authority of section 601.
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1 (e) Definitions.--As used in this section, the following
2 words and phrases shall have the meanings given to them in this
3 subsection:
4 "Purchaser." Any individual, partner, shareholder, trust,
5 partnership, limited partnership, corporation or any other
6 business association, or any trust, partnership, limited
7 partnership or corporation of, CORPORATION OR any other business <--
8 association that HAS ANY INDIVIDUAL AS PART OF THE BUSINESS <--
9 ASSOCIATION WHO had any ownership interest or rights in the
10 property.
11 "Uncorrected housing code violation." Any conviction of a
12 violation of the building, housing, property maintenance or fire
13 code of a second class city which is not remedied within six
14 months of conviction.
15 "Violation." Any conviction under a building, housing,
16 property maintenance or fire code which posed a threat to
17 health, safety or property, but not a conviction deemed by a
18 court to be de minimis.
19 Section 3. Section 503 of the act is amended to read:
20 Section 503. Issuance of deed.
21 When the requirements of the prior sections of this chapter
22 have been complied with, the treasurer shall deliver to the
23 purchaser, as grantee, a deed for the resold property. The deed
24 shall be acknowledged by the treasurer and entered and recorded
25 by the [prothonotary in the treasurer's deed book] recorder of
26 deeds of the county wherein the property is situated. The
27 property shall be taxable in the year following its sale by the
28 city.
29 Section 4. This act shall apply to all sales conducted on or
30 after the effective date of this act.
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1 Section 5. This act shall take effect in 60 days.
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