PRINTER'S NO. 559

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 519 Session of 1979


        INTRODUCED BY FISCHER, MARCH 6, 1979

        REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE, MARCH 6, 1979

                                     AN ACT

     1  Providing for the acquisition, rehabilitation and resale of
     2     certain homes in certain neighborhoods, imposing additional
     3     powers and duties on the Department of Community Affairs.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the "Neighborhood
     8  Restoration Act."
     9  Section 2.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have, unless the context clearly indicates otherwise, the
    12  meanings given to them in this section:
    13     "Deteriorated property."  Any structure which could be
    14  converted to a family dwelling occupied by up to four family
    15  units and which meets at least one of the following criteria:
    16         (1)  any property which because of physical condition or
    17     use, either individually or collectively constitutes a blight
    18     or nuisance in the neighborhood; or creates fire and health
    19     hazards; or are used for immoral and criminal purposes; or

     1     constitutes unreasonable interferences with the reasonable
     2     and lawful use and enjoyment of other premises in the
     3     neighborhood; or are harmful to the social and economic well-
     4     being of such municipalities; depreciates property values;
     5     and generally jeopardizes the health, safety and welfare of
     6     the public;
     7         (2)  any premises which because of physical condition,
     8     use or occupancy is considered an attractive nuisance to
     9     children, including but not limited to abandoned wells,
    10     shafts, basements, excavations, and unsafe fences or
    11     structures;
    12         (3)  any dwelling which because it is dilapidated,
    13     unsanitary, unsafe, vermin-infested or lacking in the
    14     facilities and equipment required by the housing code has
    15     been designated by the department responsible for enforcement
    16     of the code as unfit for human habitation;
    17         (4)  any structure which is a fire hazard, or is
    18     otherwise dangerous to the safety of persons or property; or
    19         (5)  any structure from which the utilities, plumbing,
    20     heating, sewerage or other facilities have been disconnected,
    21     destroyed, removed, or rendered ineffective so that the
    22     property is unfit for its intended use.
    23     "Family unit."  The term means and includes a father, mother
    24  and any natural or adopted children, a father with any children
    25  or a mother with any children or a married couple without any
    26  children.
    27  Section 3.  Designation of deteriorated property.
    28     The executive head of the municipality responsible for
    29  enforcing the local housing, building, plumbing and related
    30  codes, or any other officer or agency designated by the
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     1  governing bodies of the municipality in writing to the
     2  Department of Community Affairs, must certify to the Department
     3  of Community Affairs the properties which have been found by
     4  such responsible officer or agency to be deteriorated property
     5  as defined in section 2, except that no property shall be
     6  certified to the Department of Community Affairs unless the
     7  owner of the property or an agent designed by him for receipt of
     8  service of notices within the municipality has been served with
     9  notice of the determination that the property is deteriorated,
    10  together with an appropriate order to eliminate the conditions
    11  causing the deterioration and notification that failure to do so
    12  may render the property subject to condemnation under this act.
    13  The notice shall be served upon the owner or his agent in accord
    14  with the provisions of the local ordinance pertaining to service
    15  of notice of determination of a public nuisance or code
    16  violation.
    17  Section 4.  Acquisition of deteriorated property.
    18     (a)  Upon receiving certification of a deteriorated property,
    19  the Department of Community Affairs shall make a determination
    20  on whether to acquire and rehabilitate the property. After an
    21  affirmative determination, the Department of Community Affairs
    22  shall acquire the deteriorated property pursuant to the
    23  provisions of the act of June 22, 1964 (1st Sp.Sess., P.L.84,
    24  No.6), known as the "Eminent Domain Code."
    25     (b)  Title to any property acquired by an authority through
    26  eminent domain shall be an absolute or fee simple title, unless
    27  a lesser title shall be designated in the eminent domain
    28  proceedings. The Department of Community Affairs may exercise
    29  the right of eminent domain in the manner provided by law in the
    30  county in which such property is located. If any of the real
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     1  property in a redevelopment area which is to be acquired, or any
     2  real property which is to be acquired for a community
     3  development activity, has, prior to such acquisition, been
     4  devoted to another public use, it may, nevertheless, be acquired
     5  by condemnation: Provided, That no real property belonging to a
     6  city, county or to the Commonwealth may be acquired without its
     7  consent. No real property belonging to a public utility
     8  corporation may be acquired without the approval of the Public
     9  Utility Commission. In order to facilitate the planning and
    10  programming of the acquisition of property of a Public Utility
    11  Corporation, the Public Utility Commission, shall upon request
    12  of the Department of Community Affairs, render an advisory
    13  letter as to whether there is any substantive reason known that
    14  would preclude the granting of permission by the Public Utility
    15  Commission for the acquisition of the property.
    16  Section 5.  Reoccupation of acquired deteriorated property.
    17     (a)  All property acquired by the Department of Community
    18  Affairs pursuant to section 4 shall be offered for either public
    19  or private sale at its fair market value or the amount paid to
    20  the condemnee, whichever is lesser. All moneys received from the
    21  sale of such property shall be deposited in the State Treasury
    22  to assist the department in further acquisitions of blighted
    23  property.
    24     (b)  The Department of Community Affairs shall provide advice
    25  and assistance to the new owners for the purposes of securing
    26  financing to acquire the property and to restore the property to
    27  a habitable condition.
    28     (c)  Each purchaser of any blighted property offered for sale
    29  by the Department of Community Affairs shall cooperate with such
    30  department in establishing a schedule for the rapid
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     1  rehabilitation of the blighted property.
     2     (d)  All deeds for such property from the Department of
     3  Community Affairs shall contain a restriction which requires
     4  that the property be utilized only for residential dwellings.
     5     (e)  Whenever the Department of Community Affairs determines
     6  that a private sale is in the best interests of the neighborhood
     7  and the implementation of the provisions of this act, the
     8  department shall select a private buyer only after close
     9  consultation with concerned neighborhood groups and residents
    10  surrounding the affected property.
    11  Section 6.  Home improvement loan program.
    12     The Department of Community Affairs shall, in cooperation
    13  with banks, savings and loan institutions and insurance
    14  companies, develop and implement a program which shall provide
    15  limited low interest home improvement loans to enable purchasers
    16  of deteriorated property to restore these homes to livable
    17  conditions.
    18  Section 7.  Appropriation.
    19     The sum of $250,000 or as much thereof as may be necessary is
    20  specifically appropriated to the Department of Community Affairs
    21  for the fiscal year 1978-1979 in order to implement the
    22  provisions of this act.
    23  Section 8.  Effective date.
    24     This act shall take effect in 60 days.




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