SENATE AMENDED
PRIOR PRINTER'S NOS. 1326, 1863, 2483 PRINTER'S NO. 3481
No. 1178 Session of 1987
INTRODUCED BY RICHARDSON, PRESTON, HUGHES, TRUMAN, DEAL,
WIGGINS, HAYDEN, ROEBUCK, EVANS, CARN, OLIVER, GEIST, FOX,
SAURMAN, BARLEY, J. TAYLOR, E. Z. TAYLOR, BLACK, LANGTRY,
JACKSON AND ANGSTADT, APRIL 22, 1987
SENATOR SALVATORE, URBAN AFFAIRS AND HOUSING, IN SENATE, AS
AMENDED, JUNE 14, 1988
AN ACT
1 Providing authority for municipal homesteading and the procedure <--
2 for establishing a municipal homesteading program; expanding
3 local government's authority in dealing with blight and
4 decay; and providing exclusions from certain statutes.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Legislative intent.
8 Section 3. Definitions.
9 Section 4. Municipal homesteading.
10 Section 5. Qualifications.
11 Section 6. Land trust agreement.
12 Section 7. Homesteaded land free from liens.
13 Section 8. Financing of rehabilitation.
14 Section 9. Default procedures.
15 Section 10. Code enforcement.
16 Section 11. Eminent domain.
17 Section 12. Assessments.
1 Section 13. Severability.
2 Section 14. Effective date.
3 ESTABLISHING THE CRITERIA AND PROCEDURES FOR THE EXPENDITURE OF <--
4 COMMONWEALTH FUNDS TO CORRECT HOUSING PROBLEMS CAUSED BY NON-
5 MINE SUBSIDENCE IN A MUNICIPALITY; AND MAKING AN
6 APPROPRIATION.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Short title. <--
10 This act shall be known and may be cited as the Municipal
11 Homesteading and Rehabilitation Act.
12 Section 2. Legislative intent.
13 The General Assembly of the Commonwealth of Pennsylvania
14 recognizes the need for strengthening the authority of local
15 government in dealing with the problems of housing. The General
16 Assembly recognizes that homesteading can be an effective tool
17 in local government's continuing struggle against urban decay.
18 In conjunction with other Federal, State and local programs,
19 homesteading offers the unique potential of preserving our
20 architectural heritage in addition to slowing and reversing the
21 loss of existing housing units. While the concept of
22 homesteading is being investigated by some in Pennsylvania, it
23 is desirable that such programs have some uniformity of purpose
24 and design. For the concept of homesteading to work at an
25 optimum level, it will be necessary for such programs to be
26 excluded from certain statutory limitations normally placed on
27 local governments.
28 Section 3. Definitions.
29 The following words and phrases when used in this act shall
30 have the meanings given to them in this section unless the
31 context clearly indicates otherwise:
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1 "Board." The Homestead Board.
2 "Code official." The director or individual responsible for
3 the supervision of the bureau or department responsible for code
4 enforcement.
5 "Department." The Department of Community Affairs of the
6 Commonwealth.
7 "Governing body." The elected council of the municipality.
8 "Homestead Board." The board created by section 4(b) or an
9 existing authority, board, commission or quasi-governmental
10 nonprofit corporation in existence prior to the effective date
11 of this act to which the municipality, by ordinance, has
12 assigned the duty to administer the homestead program provided
13 by this act.
14 "Homesteader." An individual, his spouse, housing
15 cooperative or nonprofit corporation conforming to the
16 provisions and intent of this act.
17 "Housing cooperative." Any five or more persons, who shall
18 have associated themselves together by written articles of
19 association, such as described in section 1 of the act of June
20 7, 1887 (P.L.365, No.252), entitled "An act to encourage and
21 authorize the formation of cooperative associations, productive
22 and distributive, by farmers, mechanics, laborers, or other
23 persons," for the purpose of buying, selling, holding, leasing
24 or improving lands, tenements or buildings.
25 "Major code deficiencies." All those deficiencies enumerated
26 under section 10.
27 "Municipality." Any county, city, borough, incorporated town
28 or township.
29 "Parcel." That tract of land or unit of housing which, under
30 existing local zoning regulations, would accommodate a single-
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1 family residence or housing cooperative as defined in this act.
2 The term "parcel," unmodified by the word "developed," shall
3 include both developed and undeveloped tracts.
4 "Trustee." The municipality entering into a land trust
5 agreement pursuant to section 5(b).
6 Section 4. Municipal homesteading.
7 (a) Program established.--There is hereby created a
8 homesteading program to be effective immediately and
9 administered by option of the various municipalities of the
10 Commonwealth, meeting certain requirements set forth in this
11 act, and upon enactment of the necessary ordinances.
12 (b) Homestead Board.--The municipality is hereby authorized
13 to create and appoint members of a board to be known as the
14 Homestead Board, whose purposes shall be to administer the
15 homestead program, except that nothing in this subsection shall
16 be interpreted to prohibit the municipality from assigning such
17 duties, by ordinance, to an existing authority, board,
18 commission or existing quasi-governmental nonprofit corporation.
19 Except where a municipality has assigned homestead program
20 duties to an existing authority, board, commission or quasi-
21 governmental nonprofit corporation, the Homestead Board shall be
22 composed of no less than nine, and no more than twelve, members,
23 no less than three of whom shall be members of minority groups
24 and no fewer than one of whom shall be a representative of a
25 local community action agency, where such an agency exists. A
26 simple majority of the board members shall have specific
27 experience with municipal housing or housing-related programs.
28 Board members shall serve a term of three years and shall be
29 eligible for reappointment. Members of the board shall receive
30 no compensation but shall be reimbursed for expenses actually
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1 incurred in connection with performing the duties prescribed by
2 this act and shall by majority vote appoint a secretary of the
3 board, who may or may not be a member of the board. The
4 secretary shall receive such compensation as may be agreed to by
5 the members of the Homestead Board. In addition, the members of
6 the Homestead Board may appoint and fix the compensation of such
7 personnel as may be necessary to implement the homestead
8 program, provided the municipality has made funds available for
9 such purposes.
10 (c) Powers and duties.--The board shall:
11 (1) Review and publicize, by newspaper advertising or
12 some other effective method, the availability of homestead
13 program properties and the procedure to apply for the
14 properties. Such announcement shall include an estimated cost
15 of bringing the aforementioned properties up to municipal
16 code standards. The board shall confirm that residents of
17 those neighborhoods containing parcels to be included under
18 the homesteading program are apprised of the program.
19 (2) Receive applications, recording thereon the date and
20 time received, and review applications in the order received
21 as to applicants' compliance with criteria established by
22 this act and local ordinance and the regulations promulgated
23 thereunder.
24 (3) In order, according to date and time of receipt of
25 application, approve and certify applicants as to their
26 specific construction skills and ability in general to
27 refurbish the assigned parcel, provided that, if otherwise
28 eligible therefor, residents of neighborhoods containing
29 homesteading parcels be given first preference as applicants
30 for participation in the program.
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1 (4) Recommend, in order, according to date and time of
2 receipt of application, the execution by the governing body
3 of a land trust agreement with the approved applicant. The
4 land trust agreement shall be recorded with the appropriate
5 county officials. If the number of approved applicants
6 exceeds the number of parcels for which land trust agreements
7 are recommended, agreements shall be negotiated in order,
8 according to date and time of receipt of application, until
9 all available parcels are subject to such agreements.
10 Negotiations with those approved applicants who are without
11 agreements shall be commenced in order, according to the date
12 and time of receipt of application, as additional parcels
13 become available.
14 (5) Approve and recommend the execution by the governing
15 body of all documents necessary to convey fee simple title to
16 the assigned parcel to the applicant upon the applicant's
17 fulfillment of all conditions enumerated in section 6.
18 (6) Utilize the aid and assistance of other relevant
19 municipal agencies in the furtherance of the duties and
20 responsibilities of the board.
21 (7) Promulgate regulations consistent with the purpose
22 and spirit of the homestead program as outlined herein, said
23 regulations to be approved in their entirety by the municipal
24 governing body and by the municipality's solicitor as to
25 form.
26 (8) Give notice to the code official which provides that
27 pursuant to the authority of the governing body under section
28 5(b), approved identified homesteaders who are rehabilitating
29 existing structures are exempt from the enforcement of
30 specific sections of the housing and property maintenance
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1 code during the period of rehabilitation or construction,
2 except that no section relating to the individual's health
3 and safety shall be waived.
4 (9) Give notice to the code officer who shall thereupon
5 institute public nuisance proceedings against certain
6 deteriorated and blighted structures for demolition or
7 rehabilitation through homesteading.
8 (10) Provide applicants with a report as to the
9 structural deficiencies of the property and other pertinent
10 information, including an estimate of the costs of bringing
11 the property into compliance with the housing and property
12 maintenance codes.
13 (11) Recommend to the governing body that a municipality
14 homesteading map be prepared designating the location of
15 properties to be included under the homesteading program to
16 insure that the homesteading program is compatible with
17 existing or proposed programs of other municipality agencies.
18 (d) Catalog of property.--In each municipality embarking
19 upon a homesteading program, the bureau or department charged
20 with the responsibilities of code enforcement, as specified in
21 this act, shall, in conjunction with the municipal planning
22 commission and its staff under the direction of the Homestead
23 Board, compile and maintain a catalog of all unoccupied
24 dwellings and vacant lots owned by the municipality or
25 otherwise. From this catalog shall be determined which parcels
26 and structures can be utilized for building or rehabilitation by
27 homesteaders.
28 (e) Approval of governing body.--The governing body, upon
29 recommendation of the municipal planning commission, shall by
30 resolution approve the parcels cataloged under subsection (d)
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1 for disposition by the board for the public purpose of improving
2 the quality of housing in accordance with the homestead program.
3 Section 5. Qualifications.
4 (a) Qualifications enumerated.--Homestead program property,
5 for purposes of this act, shall be limited to that property
6 which, when rehabilitated, is a single-family residence or
7 housing cooperative and which will be offered to qualified
8 applicants at no initial cost on a land trust agreement provided
9 that the applicant:
10 (1) Is at least 18 years of age or is the head of a
11 family.
12 (2) Is a citizen of the United States or a resident
13 alien as determined by the United States Immigration and
14 Naturalization Service, or its successor.
15 (3) Is a recognized nonprofit community group,
16 corporation or housing cooperative acting as an agent for a
17 homesteader.
18 (4) Has financial resources to rehabilitate an existing
19 dwelling or construct a new dwelling, as the case may be.
20 (5) Upon assignment, contractually agrees to
21 rehabilitate, or construct on, as the case may be, the parcel
22 assigned to him and further agrees to:
23 (i) bring the assigned parcel up to housing and
24 property maintenance code standards, as provided in this
25 act, within 18 months after assignment of the parcel to
26 him;
27 (ii) permit quarterly inspections by the code
28 enforcement personnel for determination by the board that
29 reasonable, satisfactory progress is being made by the
30 homesteader in rehabilitating or constructing on the
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1 parcel assigned to him; and
2 (iii) live in, occupy, and maintain as a single-
3 family dwelling or a housing cooperative to the housing
4 and property maintenance code standards, the parcel
5 assigned to him for a period of not less than five years.
6 (b) Land trust agreement.--After approval of an applicant
7 pursuant to section 4(c)(3), the governing body of the
8 municipality shall negotiate and execute a land trust agreement
9 with the prospective homesteader, thereby assigning the parcel.
10 The agreement shall specify, in as much detail as reasonably
11 possible, a schedule of improvements the homesteader shall make
12 to bring the dwelling into conformity with the municipal housing
13 and property maintenance code within 18 months. The agreement
14 shall be in sufficient detail so that a homesteader shall be
15 able to know what he must do and by when he must do it to
16 fulfill the conditions of the agreement.
17 (c) Conveyance upon fulfillment.--If and when the conditions
18 of the land trust agreement are fulfilled, as determined and
19 certified by the code enforcement bureau, the governing body of
20 the municipality shall execute all documents necessary to convey
21 a fee simple title to the assigned parcel to the applicant so
22 qualifying.
23 Section 6. Land trust agreement.
24 The agreement between the homesteader and the governing body
25 shall be a land trust agreement and shall contain the following
26 minimal conditions:
27 (1) The homesteader of the agreement has the first right
28 to the title of the real estate, upon completion of the land
29 trust agreement.
30 (2) The homesteader's interest in the trust agreement
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1 shall be considered personal property.
2 (3) The homesteader has the right of possession,
3 management, control and operation of the property.
4 (4) The homesteader has the duty of maintenance and
5 repair of the property in accordance with the provisions of
6 the agreement.
7 (5) The homesteader takes the property in an "as is"
8 condition.
9 (6) The homesteader, from the time of the execution of
10 the trust agreement, accepts responsibility for all known or
11 unknown conditions, apparent and nonapparent, of the property
12 that were created before the execution of the agreement or
13 are in existence at the time of the execution of the
14 agreement or are coming into or will come into existence
15 either before, during or after the execution of the
16 agreement.
17 (7) The homesteader shall not act as the agent of the
18 trustee.
19 (8) The trustee does not assume any liability for the
20 acts, or omissions to act, of the homesteader that result in
21 injury or damage to other parties or their property.
22 (9) The homesteader shall carry insurance on the
23 property as the board may require. As a minimum, the
24 insurance shall be sufficient to pay off any loans taken in
25 accordance with this act and reimburse the municipality for
26 its costs in acquiring the property. The municipality and
27 lending institutions, if applicable, shall be named as joint
28 beneficiary with the homesteader of said policy.
29 (10) The homesteader, within 18 months after the board
30 assigns the homesteader a dwelling, promises and covenants to
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1 bring the assigned dwelling up to housing and property
2 maintenance code standards and maintain it at code standards
3 throughout the homestead agreement.
4 (11) The homesteader promises and covenants to permit
5 quarterly inspections, between the hours of 9 a.m. and 4
6 p.m., or at a mutually agreed time, and at reasonable
7 frequencies, by housing and property maintenance code
8 enforcement personnel for the determination of the
9 municipality that reasonable and satisfactory progress is
10 being made by the homesteader in rehabilitating the dwelling
11 assigned to him.
12 (12) The homesteader promises and covenants to occupy
13 and live in the dwelling assigned to him for a period of not
14 less than five years.
15 (13) The homesteader's personal property interest in the
16 possession, management, control and operation of the dwelling
17 may pass according to the rules applicable to personal
18 property except that before the personal property right
19 passes, the municipality must approve the heir, assign or
20 successor of the original homesteader. The heir, assign or
21 successor of the homesteader, before any personal right vests
22 in him, must meet the requirements of an applicant for the
23 program and independently agree to be held responsible to the
24 homesteading agreement. An attempt to pass the personal
25 property right in any manner or to any degree without
26 obtaining the required approval and making the required
27 commitment is void, and the homesteader's personal property
28 right is automatically extinguished. Approved transferees of
29 the original homesteader may deduct the original
30 homesteader's residence time from the required five years.
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1 (14) The homesteader recognizes and agrees that, if the
2 homesteader, after occupying the dwelling, abandons the
3 dwelling for a period of more than 60 days or the dwelling is
4 abandoned 60 days without permission of the homesteading
5 board, the homesteader's right to the possession, management,
6 control and operation of the dwelling is automatically
7 extinguished.
8 (15) The trustee, after the homesteader has fulfilled
9 the conditions of the land trust agreement, will execute all
10 documents necessary to convey a fee simple title to the
11 homesteader.
12 (16) The board may allow for extenuating circumstances,
13 including, but not limited to, serious illness of the
14 homesteader.
15 (17) The homesteader shall elect the person to whom the
16 property shall be transferred upon the death of the
17 homesteader. This transfer shall be for a consideration of
18 $1.
19 Section 7. Homesteaded land free from liens.
20 During the period of a land trust agreement, the real
21 property being homesteaded shall be free of all liens and
22 encumbrances.
23 Section 8. Financing of rehabilitation.
24 (a) Low interest loans.--To assist local municipalities in
25 the elimination of slums and blighted or deteriorated areas, in
26 preventing the spread of slums, blight or deterioration and in
27 providing maximum opportunity for redevelopment, rehabilitation
28 and conservation of such areas by private enterprise, municipal
29 governing bodies are hereby authorized to obtain low interest
30 loans for the rehabilitation of properties designated as
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1 suitable for homesteading through the United States Department
2 of Housing and Urban Development under section 810 of the
3 Housing and Community Development Act of 1974 (12 U.S.C. §
4 1706(e)).
5 (b) Public grants and loans.--A municipality administering
6 this act shall inform homesteaders of all grants or loans
7 available through the Federal Community Development Block Grant
8 Act, the Federal Community Services Block Grant Act, or other
9 sources administered by the department or municipality.
10 (c) Training.--A municipality administering this act shall
11 inform homesteaders of home repair or construction training
12 programs funded, in whole or in part, through the Job Training
13 Partnership Act (Public Law 97-300, 29 U.S.C. § 1501 et seq.).
14 (d) Financing of rehabilitation.--The municipality
15 administering this act is authorized, through the utilization of
16 local public and private resources where feasible, to make
17 financing available through the board, as herein provided, in
18 the form of grants or loans, to those homesteaders whose annual
19 income is at or below 50% of the Statewide median income to
20 finance the rehabilitation of such property. No financing shall
21 be made available under this section unless all of the following
22 are met:
23 (1) Rehabilitation is required to make the property
24 conform to applicable code requirements and to carry out the
25 objectives of a homestead plan for the area.
26 (2) The homesteader is unable to secure the necessary
27 funds from other sources.
28 (3) The resulting obligation is an acceptable risk
29 taking into consideration the need for the rehabilitation,
30 the security available for the debt and the ability of the
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1 applicant to repay the debt.
2 (4) The board has first caused to be prepared a full and
3 complete list of all major code deficiencies and has caused
4 bid specifications and cost estimates for the rectification
5 of these deficiencies to be prepared. Based on those
6 specifications, the board shall advertise for bids, either
7 individually or collectively with other homestead properties,
8 all those deficiencies the homesteader indicates he cannot
9 rectify by himself, and, if the homesteader agrees to the
10 bid, to be responsible for the payments of said bid.
11 (5) The resulting bids received shall be from the lowest
12 responsible bidder and acceptable to the homesteader.
13 (6) The board has caused to be created an inspection
14 schedule, to assure that specifications are being met and
15 that the work is progressing at a sufficient rate to meet the
16 schedule for code deficiency rectification provided under
17 this act.
18 (7) A contractual agreement, between the board and the
19 approved contractor, and acceptable to the homesteader,
20 stipulating both a performance and payment schedule, as well
21 as any other item determined necessary by the board, has been
22 prepared. Such payments shall be made, or authorized, by the
23 board according to the agreed-to schedule.
24 (e) Debt authorized.--The municipality may borrow up to
25 $300,000 or $10 per capita, whichever is greater, without
26 considering such debt within the statutory borrowing limitations
27 prescribed in the act of July 12, 1972 (P.L.781, No.185), known
28 as the Local Government Unit Debt Act.
29 (f) Limitations.--Rehabilitation financing made under this
30 section shall be subject to the following limitations:
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1 (1) The debt shall be subject to such terms and
2 conditions as may be prescribed by the municipal governing
3 body.
4 (2) The term of the debt may not exceed 30 years or
5 three-fourths of the remaining economic life of the structure
6 after rehabilitation, whichever is less.
7 (3) The principal shall bear interest at such rate as
8 determined by the municipality, but in no case shall it
9 exceed one-half of 1% per year the interest rate obtained by
10 the municipality, and the board may prescribe such other
11 charges as it finds necessary, including service charges, and
12 appraisal, inspection and other fees.
13 (4) The amount of the debt may not exceed the amount of
14 an obligation which would result in a monthly payment by the
15 applicant of more than 25% of his average monthly income.
16 (g) First payment for occupancy not required.--In no case
17 shall the homesteader's first payment on his financial
18 obligation to the board be required prior to occupancy of the
19 homestead property.
20 Section 9. Default procedures.
21 (a) Explanation of agreement.--Before the homesteader
22 executes the land trust agreement, the board or its designee
23 shall explain to the homesteader the conditions of the land
24 trust agreement, his obligations thereunder, the appeal
25 procedures under this act and the consequences of failure to
26 comply with the conditions of the land trust agreement. After
27 the board or its designee makes the explanation contained in
28 this subsection and the homesteader understands the material
29 explained, the homesteader shall sign a statement that the
30 information contained in this subsection has been explained to
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1 him and that he understands it and agrees to be bound in
2 accordance thereof. His signature shall constitute prima facie
3 evidence that he knowingly and understandingly executed the land
4 trust agreement. Only clear and convincing evidence to the
5 contrary may rebut this evidence.
6 (b) Noncompliance.--
7 (1) If a code official in a quarterly inspection
8 determines that the homesteader has not or is not complying
9 with the conditions of the land trust agreement, he shall
10 give the homesteader an oral warning that he is in default of
11 the land trust agreement. Within seven days from the date of
12 the oral warning, the code official shall send a written
13 warning to the homesteader. The warning shall contain the
14 information that the homesteader is in default and specify
15 with reasonable particularity what the homesteader must do to
16 bring the parcel into compliance with the land trust
17 agreement. The code official shall also give the homesteader
18 not less than 30 nor more than 60 days from the date of the
19 mailing of the written warning to bring the parcel into
20 compliance with the land trust agreement. The code official
21 shall send a copy of the written warning to the board and
22 maintain at least one copy of the warning with the code
23 enforcement bureau. At the expiration of the time period
24 indicated in the written warning notice, the code official
25 shall again inspect the parcel to verify the homesteader's
26 compliance with the warning and land trust agreement.
27 (2) If the code official determines that the homesteader
28 has complied with or substantially complied with the warning
29 notice and brought the parcel up to the agreed-upon standard,
30 then he shall so inform the homesteader and file a written
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1 report of the compliance in the code enforcement office and
2 with the board and shall send a copy of same to the
3 homesteader.
4 (3) If the code official determines that the homesteader
5 has not complied with or has not substantially complied with
6 the warning notice and has not brought the parcel up to the
7 agreed-upon standard, he shall give the homesteader written
8 notice that he is still in default of the land trust
9 agreement and that the board will begin procedures to
10 determine if the land trust agreement is to be extinguished.
11 The code official shall then file a written report with the
12 board. Such report shall specify with reasonable
13 particularity the facts upon which the code official based
14 his decision of noncompliance and shall be delivered to the
15 homesteader at the same time it is filed with the board.
16 (c) Formal hearing.--
17 (1) Within ten days of the receipt of the code
18 official's report of noncompliance, the board shall schedule
19 a hearing and appoint no less than three members from the
20 board to determine whether the homesteader has breached the
21 land trust agreement and extinguished his personal property
22 right under the agreement. The decision of the board members
23 so appointed shall have the full force and effect of a
24 decision by the entire membership of the board. Within three
25 days after the scheduling of the hearing, the board shall
26 cause personal service of a hearing notice be made either on
27 the homesteader or someone capable of accepting service on
28 his behalf, ordering him to appear before the board and show
29 cause why the board should not declare him in breach of the
30 agreement and extinguish his personal property right in the
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1 land trust agreement. The hearing notice shall notify the
2 homesteader of his right to be represented by counsel and if
3 indigent, his right to have counsel appointed on his behalf.
4 (2) If the board decides that the homesteader has
5 fulfilled his responsibilities under the land trust
6 agreement, it shall so note and provide copies of its
7 decision to the homesteader and the code enforcement agency.
8 (3) If the board decides that the homesteader has not
9 fulfilled his responsibilities under the land trust
10 agreement, the board may:
11 (i) declare him in breach of the land trust
12 agreement and issue a final decision to extinguish his
13 personal property right in the land trust agreement and
14 shall so inform the homesteader; or
15 (ii) issue an interim order which grants the
16 homesteader not less than 30 nor more than 60 days from
17 the interim order to bring the parcel into compliance
18 with the land trust agreement.
19 (4) If the board has issued an interim order pursuant to
20 paragraph (3)(ii), the code official shall file a
21 reinspection report with the board within three days of the
22 expiration of the period granted for compliance pursuant to
23 the interim order. If the code official determines that the
24 homesteader has complied with or substantially complied with
25 the interim order and brought the parcel up to the agreed-
26 upon standard, then he shall file with the board a written
27 report so stating and terminating the land trust agreement
28 breach declaration procedure. If the code official determines
29 that the homesteader has not complied with the interim order,
30 he shall file a written report with the board so stating. The
19870H1178B3481 - 18 -
1 code official shall provide the homesteader with a copy of
2 all reports filed with the board pursuant to this section.
3 (5) Upon receipt of the code official's report of the
4 homesteader's noncompliance with the board's interim order,
5 the board may proceed as set forth in paragraph (3)(i).
6 (d) Decision and appeal.--
7 (1) After a final decision by the board that the
8 homesteader is in violation of his land trust agreement, the
9 homesteader shall have 14 business days to file an appeal
10 from that decision with the court of common pleas of the
11 county.
12 (2) If within the 14 days the homesteader does not
13 appeal to the court of common pleas, the board shall record
14 its final determination extinguishing the homesteader's
15 personal property interest under the land trust agreement.
16 The board shall, the date it records its final decision, send
17 a copy of the final judgment to the homesteader and notice
18 that if within 21 days he does not vacate the premises, the
19 board will initiate summary ejectment procedures against him.
20 If within the 21 days the homesteader does not vacate the
21 premises, the board shall initiate summary ejectment
22 proceedings against him.
23 (3) In case of an appeal to the court of common pleas,
24 the homesteader shall have the right to counsel and, if the
25 homesteader is indigent, counsel will be appointed in his
26 behalf. The court shall hear the homesteader's appeal within
27 30 days from the date he files it with the court. If the
28 court decides that the homesteader has not fulfilled his
29 responsibilities under the land trust agreement, it shall
30 affirm the decision of the board and cause copies of its
19870H1178B3481 - 19 -
1 decision to be provided to the homesteader, the code
2 enforcement agency and the board. The decision of the court
3 shall be final. The board, on the date it receives the court
4 decision, shall send a copy to the homesteader together with
5 notice that, if within 21 days he does not vacate the
6 premises, the board will initiate summary ejectment
7 procedures against him. If the homesteader does not vacate
8 the premises within 21 days after the court enters judgment,
9 the board shall initiate summary ejectment proceedings
10 against him.
11 Section 10. Code enforcement.
12 (a) Housing and property maintenance code requirement.--The
13 municipality or municipalities in which homesteading is to be
14 initiated under this act shall have a housing and property
15 maintenance code which establishes standards for the protection
16 of the public's health, safety and welfare.
17 (b) Provisions of code.--The housing and property
18 maintenance code shall establish standards for basic equipment
19 and facilities, for light, ventilation and heating, for space,
20 use and location, and for safe and sanitary maintenance of all
21 dwellings now in existence or thereafter constructed. As minimum
22 requirements, the housing and property maintenance code shall
23 provide that:
24 (1) Dangerous walls shall be replaced or repaired. This
25 includes the replacement of defective wood lintels and
26 defective wood sills.
27 (2) The property shall be weatherproofed by replacing or
28 repairing any defective siding, shingles or other defects in
29 exterior walls.
30 (3) Gutters and downspouts shall be repaired or replaced
19870H1178B3481 - 20 -
1 if they cause the entry of water into the property or onto
2 adjacent property or cause any public nuisances.
3 (4) Porches or access stairways (inside or outside the
4 structure) shall be made safe for use. Defective porches or
5 access stairways must be repaired or replaced.
6 (5) Missing and dangerously defective individual steps
7 shall be replaced or repaired.
8 (6) Chimneys shall be properly lined and repaired to
9 service the connected facilities.
10 (7) Roofs shall be leakproof.
11 (8) Window frames and doors shall fit properly and be
12 operable.
13 (9) The electric service shall be adequate for the type
14 of structure and in a safe and operable condition.
15 (10) Every single-family residence shall have a complete
16 bath consisting of a tub, a toilet and a basin. Each kitchen
17 shall have a sink.
18 (11) Water pipes, drainpipes and soilpipes shall be
19 operable and capable of providing the intended service.
20 (12) Each dwelling shall have a water heater in operable
21 condition.
22 (13) Every dwelling unit shall have a room or space for
23 the preparation and cooking of food, including space and
24 connections for a stove or other cooking facilities. Adequate
25 electric service must be provided for connecting electric
26 refrigerators and other electrical kitchen appliances.
27 (14) Rotted and defective load carrying members shall be
28 replaced or repaired.
29 (15) Termite infested wood members shall be properly
30 treated or replaced.
19870H1178B3481 - 21 -
1 (16) Rodent and vermin infestation shall be eliminated
2 and rat-proofing shall be performed, if necessary.
3 (17) Every dwelling shall contain heating facilities,
4 properly designed and installed, in good and safe working
5 condition, capable of heating those rooms and areas to be
6 inhabited. Systems must be operated to prevent freezing of
7 pipes and plumbing.
8 (18) Habitable rooms shall contain a window opening
9 directly to the outside.
10 (19) The premises shall be maintained in a clean and
11 sanitary condition at all times. Refuse should be placed in
12 proper receptacles for collection.
13 (c) Administration and enforcement.--The housing and
14 property maintenance shall also:
15 (1) Establish the responsibilities of owners, operators
16 and occupants of dwellings, including multifamily dwellings.
17 (2) Provide procedures for the administration and
18 enforcement of the housing and property maintenance code,
19 either by the municipality directly or by contractual
20 arrangements with a county, regional or intergovernmental
21 code enforcement bureau, including penalties for violations.
22 (d) Adoption of other codes.--A municipality may adopt by
23 reference a county housing and property maintenance code which
24 meets the aforementioned minimum standards and which may be or
25 is in existence at the time the municipality enters into a local
26 homesteading program as provided for in this act.
27 (e) Review of code.--The housing and property maintenance
28 code shall be reviewed every 24 months and shall be in effect at
29 the time the municipality or municipalities exercise any
30 provisions of this act.
19870H1178B3481 - 22 -
1 (f) Condemnation.--Any property which has been cited by a
2 municipality as being substandard and unfit for human habitation
3 under provisions of a housing and property maintenance code may
4 be subject to condemnation by that municipality under the
5 following conditions:
6 (1) A preliminary notice outlining the housing and
7 property maintenance code violations shall be sent by
8 registered mail to the owner or owners of any property found
9 to be unfit for human habitation.
10 (2) If within 30 days the owner or owners make no
11 attempt to correct the violations and bring the property into
12 code compliance or contact the municipality regarding their
13 intentions to do so, a second and final notice shall be
14 forwarded by registered mail to the owner or owners giving
15 them 120 days from the date of the final notice to bring the
16 property into code compliance or, in the case of a hardship,
17 to notify the municipality of same.
18 (3) If, after 120 days of receipt of the final notice,
19 the property owner or owners have not brought the property
20 into code compliance, the property may be subject to
21 condemnation as provided for in this act.
22 (4) If the municipality determines that the property
23 which is unfit for human habitation has not been brought into
24 code compliance under provisions of the municipality's
25 housing and property maintenance code after 150 days, and
26 after proper notification as provided for in this act, and if
27 the municipality determines that the property would be
28 suitable for homesteading as set forth in this act, either
29 through rehabilitation and resale of the home or building or
30 through demolition and resale of the land, the municipality
19870H1178B3481 - 23 -
1 may proceed to acquire the property under the act of June 22,
2 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain
3 Code.
4 Section 11. Eminent domain.
5 The act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as
6 the Eminent Domain Code, shall be applicable to acquisitions of
7 property by municipalities for urban homesteading under this
8 act.
9 Section 12. Assessments.
10 (a) Change in assessed valuation.--Notwithstanding the
11 provision of any other law, the proper authorities may change
12 the assessed valuation of real property when a property is being
13 rehabilitated as a homestead property. In such case the
14 homestead property will be assessed for taxing purposes at 20%
15 of assessed value the first year and at 40%, 60%, 80%, 100%
16 during the successive four years respectively.
17 (b) Notice of sale.--Whenever a property is sold under the
18 provisions as outlined in this act as a homestead property, a
19 notice listing the address of the property and the individual or
20 individuals to whom the property is to be sold shall be
21 forwarded to the office of the chief assessor of the county in
22 which the property is located. In addition the tax on said
23 property shall be computed at the end of each year on the
24 following basis:
25 (1) Year 1 20% of assessed value
26 (2) Year 2 40% of assessed value
27 (3) Year 3 60% of assessed value
28 (4) Year 4 80% of assessed value
29 (5) Year 5 100% of assessed value
30 (c) Construction of section.--This section shall not alter
19870H1178B3481 - 24 -
1 or affect the ratio to market value in effect in any one county
2 but merely changes the base proportionately as the property is
3 rehabilitated, at which time the property is taxed on full
4 market value. All homestead properties shall be assessed prior
5 to the initial sale and then in the third year of ownership and
6 again before title passes following the fifth year of occupancy.
7 (d) Waiver of delinquent taxes.--At the request of any
8 municipality engaged in a homesteading program, any other taxing
9 bodies shall have the option of waiving any and all delinquent
10 taxes for the express purpose of homesteading the parcel in
11 question for the five-year period as provided for in this act.
12 Section 13. Severability.
13 The provisions of this act are severable. If any provision of
14 this act or its application to any person or circumstance is
15 held invalid, the invalidity shall not affect other provisions
16 or applications of this act which can be given effect without
17 the invalid provision or application.
18 Section 14. Effective date.
19 This act shall take effect in 60 days.
20 SECTION 1. DEFINITIONS. <--
21 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
22 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
23 CONTEXT CLEARLY INDICATES OTHERWISE:
24 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AFFAIRS OF THE
25 COMMONWEALTH.
26 "MUNICIPALITY." ANY CITY OF THE FIRST, SECOND, SECOND CLASS
27 A OR THIRD CLASS, BOROUGH, INCORPORATED TOWN, TOWNSHIP OF THE
28 FIRST OR SECOND CLASS, COUNTY OF THE FIRST, SECOND, SECOND CLASS
29 A THROUGH EIGHTH CLASS, OR ANY SIMILAR GENERAL PURPOSE UNIT OF
30 GOVERNMENT WHICH SHALL HEREAFTER BE CREATED BY THE GENERAL
19870H1178B3481 - 25 -
1 ASSEMBLY.
2 SECTION 2. TERMS AND CONDITIONS.
3 ANY FUNDS OF THE COMMONWEALTH PAID TO ANY MUNICIPALITY
4 FOLLOWING THE EFFECTIVE DATE OF THIS ACT TO RESOLVE HOUSING
5 PROBLEMS CAUSED BY NON-MINE SUBSIDENCE, INCLUDING FUNDS
6 APPROPRIATED BY THE GENERAL ASSEMBLY TO THE DEPARTMENT OF
7 ENVIRONMENTAL RESOURCES AND TO THE DEPARTMENT OF COMMUNITY
8 AFFAIRS FOR HOUSING AND REDEVELOPMENT ASSISTANCE BY THE ACT OF
9 JULY 3, 1987 (P.L.459, NO.9A), KNOWN AS THE GENERAL
10 APPROPRIATION ACT OF 1987, SHALL BE PAID TO THE MUNICIPALITY
11 ONLY ON THE CONDITION THAT THE MUNICIPALITY MEETS THE FOLLOWING
12 TERMS AND CONDITIONS:
13 (1) ALL EXPENDITURES OF COMMONWEALTH FUNDS SHALL BE
14 APPROVED, SUPERVISED AND MONITORED BY THE DEPARTMENT.
15 (2) PRIOR TO THE EXPENDITURE OF ANY FUNDS FOR THE
16 ACQUISITION OF PROPERTY IMMINENTLY DANGEROUS DUE TO
17 STRUCTURAL DAMAGE CAUSED BY SUBSIDENCE OR PROPERTY LOCATED IN
18 AN AREA AFFECTED BY SUCH IMMINENTLY DANGEROUS PROPERTY, TWO
19 INDEPENDENT ENGINEERING STUDIES OF THE AFFECTED AREA SHALL BE
20 PREPARED, ONE BY AN ENGINEER OR ENGINEERING FIRM SELECTED BY
21 THE MUNICIPALITY IN WHICH THE AFFECTED AREA IS LOCATED AND
22 ONE BY AN ENGINEER OR ENGINEERING FIRM SELECTED BY THE
23 DEPARTMENT. THE STUDIES SHALL ESTABLISH, BY STREET ADDRESS,
24 THOSE PROPERTIES WHICH:
25 (I) MUST BE RAZED DUE TO THE SEVERITY OF THE
26 STRUCTURAL DAMAGE OR SUBSOIL CONDITIONS.
27 (II) MUST BE RAZED DUE TO THEIR BEING LOCATED IN AN
28 AREA AFFECTED BY SUCH PROPERTY.
29 (III) NEED NOT BE ACQUIRED AND RAZED, BUT NEED
30 REHABILITATION AND STRUCTURAL IMPROVEMENTS SUCH AS
19870H1178B3481 - 26 -
1 SHORING, ETC., TO GIVE ADDED SUPPORT TO EXISTING
2 FOUNDATIONS AND WALLS.
3 (IV) NEED NOT BE ACQUIRED AND RAZED BUT SHOW SIGNS
4 OF EXTENSIVE DAMAGE AS A RESULT OF ROOF COLLAPSE OR THE
5 FAILURE OF THE HEATING, PLUMBING AND/OR SEWER SYSTEMS.
6 (V) NEED NOT BE ACQUIRED AND RAZED AND NEED ONLY
7 MINIMAL REHABILITATION.
8 AT LEAST TWO PUBLIC HEARINGS, AT TIMES CONVENIENT TO
9 RESIDENTS, SHALL BE HELD BY THE MUNICIPALITY AND
10 REPRESENTATIVES OF THE DEPARTMENT IN THE AREAS AFFECTED BY
11 NON-MINE SUBSIDENCE TO DISCUSS THE RESULTS OF THE ENGINEERING
12 STUDIES WITH RESIDENTS AND NEIGHBORHOOD ORGANIZATIONS.
13 (3) MONEYS PROVIDED SHALL BE USED SOLELY FOR:
14 (I) REASONABLE COSTS ASSOCIATED WITH THE PHASED
15 ACQUISITION OF PROPERTY IMMINENTLY DANGEROUS DUE TO
16 STRUCTURAL DAMAGE CAUSED BY SUBSIDENCE, OR LOCATED IN AN
17 AREA AFFECTED BY SUCH PROPERTY.
18 (II) REASONABLE COSTS ASSOCIATED WITH RELOCATING
19 RESIDENTS OWNING OR OCCUPYING SUCH PROPERTY. FOR THE
20 PURPOSES OF THIS SUBPARAGRAPH, MINIMUM REASONABLE COSTS
21 ASSOCIATED WITH RELOCATING RESIDENTS SHALL BE DETERMINED
22 BY COMPLIANCE WITH THE UNIFORM RELOCATION ASSISTANCE AND
23 REAL PROPERTY ACQUISITION POLICIES ACT OF 1970 (PUBLIC
24 LAW 91-646; 84 STAT. 1894).
25 (III) REASONABLE COSTS OF THE PHASED CONSTRUCTION OF
26 NEW SINGLE-FAMILY OR MULTIFAMILY RENTAL HOUSING TO
27 REPLACE THE HOMES ACQUIRED AND RAZED, WITH OWNER-
28 OCCUPANTS WHOSE HOMES ARE ACQUIRED AND RAZED BEING GIVEN
29 THE FIRST OPPORTUNITY TO PURCHASE OR RENT THE NEW HOUSING
30 CONSTRUCTED.
19870H1178B3481 - 27 -
1 (IV) REASONABLE COSTS OF THE PHASED CONSTRUCTION OF
2 NEW NEIGHBORHOOD COMMERCIAL DEVELOPMENT NEEDED TO SUPPORT
3 THE NEW HOUSING CONSTRUCTED.
4 (V) REASONABLE COSTS ASSOCIATED WITH REHABILITATING
5 PROPERTIES WHICH, BASED ON AN ENGINEERING REPORT, NEED
6 NOT BE ACQUIRED AND RAZED BUT NEED REHABILITATIVE
7 CONSTRUCTION IN THE FORM OF SHORING, ETC., TO STABILIZE
8 FOUNDATIONS AND WALLS.
9 MONEYS PROVIDED SHALL NOT BE USED TO ACQUIRE ANY PROPERTY
10 WHICH, BASED ON ENGINEERING STUDIES, NEED NOT BE ACQUIRED AND
11 RAZED, UNLESS THE OWNER OF SUCH PROPERTY AGREES TO SELL.
12 (4) A LAND REUSE PLAN SHALL BE DEVELOPED BY THE
13 MUNICIPALITY ACCORDING TO GUIDELINES DEVELOPED BY THE
14 DEPARTMENT. SUCH PLAN SHALL BE APPROVED BY THE DEPARTMENT AND
15 BY A MAJORITY OF THE RESIDENTS AND NEIGHBORHOOD ORGANIZATIONS
16 IN THE AREA AFFECTED BY NON-MINE SUBSIDENCE PRIOR TO ANY
17 MONEYS BEING PROVIDED BY THE DEPARTMENT TO THE MUNICIPALITY
18 AND SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
19 (I) BASED ON THE TWO ENGINEERING STUDIES, A DRAWING
20 INDICATING, BY STREET ADDRESS, EACH PROPERTY TO BE
21 ACQUIRED AND RAZED, AS WELL AS AN INDICATION, BY STREET
22 ADDRESS, OF THOSE PROPERTIES THAT ARE NOT TO BE RAZED BUT
23 WHICH ARE IN NEED OF REHABILITATIVE CONSTRUCTION.
24 (II) AN ANNUAL PROPERTY ACQUISITION SCHEDULE
25 INDICATING THE PROPERTIES TO BE ACQUIRED AND RAZED DURING
26 A GIVEN YEAR, BOTH RESIDENTIAL AND COMMERCIAL, ETC. AND
27 MONTHLY PROGRESS REPORTS.
28 (III) AN ANNUAL CONSTRUCTION PLAN INDICATING THE
29 TYPE OF RESIDENTIAL HOUSING AND/OR NEIGHBORHOOD
30 COMMERCIAL DEVELOPMENT TO BE CONSTRUCTED ON VACANT LAND
19870H1178B3481 - 28 -
1 DURING A GIVEN YEAR AND MONTHLY PROGRESS REPORTS.
2 (IV) AN ANNUAL REHABILITATION PLAN INDICATING THOSE
3 PROPERTIES TO UNDERGO REHABILITATIVE CONSTRUCTION DURING
4 A GIVEN YEAR AND MONTHLY PROGRESS REPORTS.
5 (5) THE LAND REUSE PLAN DEVELOPED SHALL PHASE THE
6 CONSTRUCTION OF NEW HOUSING AND COORDINATE THE RELOCATION OF
7 OWNER-OCCUPANTS, AS WELL AS OTHER RESIDENTS LIVING IN HOUSING
8 WHICH IS IMMINENTLY DANGEROUS DUE TO STRUCTURAL DAMAGE CAUSED
9 BY SUBSIDENCE OR LOCATED IN AN AREA AFFECTED BY SUCH
10 IMMINENTLY DANGEROUS PROPERTY, IN ORDER THAT RESIDENTS OF
11 SUCH HOUSING MAY BE RELOCATED INTO THE NEW HOUSING AS IT IS
12 CONSTRUCTED AND BECOMES AVAILABLE FOR OCCUPANCY.
13 (6) A RELOCATION PLAN SHALL BE DEVELOPED BY THE
14 MUNICIPALITY ACCORDING TO GUIDELINES DEVELOPED BY THE
15 DEPARTMENT. SUCH PLAN SHALL BE APPROVED BY THE DEPARTMENT AND
16 BY A MAJORITY OF THE RESIDENTS AND NEIGHBORHOOD ORGANIZATIONS
17 IN THE AREA AFFECTED BY NON-MINE SUBSIDENCE, AND SHALL
18 INCLUDE WHAT CONSTITUTES REASONABLE RELOCATION EXPENSES,
19 BEFORE ANY MONEYS MAY BE PROVIDED BY THE DEPARTMENT TO THE
20 MUNICIPALITY. SUCH PLAN SHALL ALSO INCLUDE, BUT NOT BE
21 LIMITED TO, THE FOLLOWING:
22 (I) A LIST OF ALL INDIVIDUALS ALREADY RELOCATED AND
23 THOSE TO BE RELOCATED, BASED ON A PRIORITY SCHEDULE
24 DEVELOPED BY THE MUNICIPALITY AND APPROVED BY THE
25 DEPARTMENT AND BY A MAJORITY OF THE RESIDENTS AND
26 NEIGHBORHOOD ORGANIZATIONS. THE RELOCATION SCHEDULE SHALL
27 PRIORITIZE THOSE INDIVIDUALS TO BE RELOCATED BASED ON THE
28 SEVERITY OF THE DANGEROUS CONDITION OF THE HOMES WHICH
29 THEY OWN, OR IN WHICH THEY RESIDE, DUE TO SUBSIDENCE,
30 ACCORDING TO INSPECTIONS AND A DESIGNATION BY THE
19870H1178B3481 - 29 -
1 MUNICIPALITY.
2 (II) A LIST OF NEW SINGLE-FAMILY AND/OR MULTIFAMILY
3 RENTAL HOUSING UNITS TO BE CONSTRUCTED EACH YEAR,
4 INCLUDING MONTHLY PROGRESS REPORTS, AND THE NAMES OF
5 THOSE INDIVIDUALS SCHEDULED TO BE RELOCATED AND ACTUALLY
6 RELOCATED INTO THE NEW HOUSING CONSTRUCTED. SUCH SCHEDULE
7 SHALL INSURE THAT OWNER-OCCUPANTS WHOSE PROPERTY HAS BEEN
8 ACQUIRED ARE GIVEN THE FIRST OPPORTUNITY TO PURCHASE OR
9 RENT THE NEW HOUSING WHICH IS CONSTRUCTED.
10 (7) AN ANNUAL FINANCIAL PLAN AND MONTHLY PROGRESS
11 REPORTS SHALL BE DEVELOPED BY THE MUNICIPALITY FOR EACH
12 FISCAL YEAR THAT FUNDS ARE REQUESTED FROM THE DEPARTMENT, AND
13 SUCH PLAN SHALL BE APPROVED BY THE DEPARTMENT AND BY A
14 MAJORITY OF THE RESIDENTS AND NEIGHBORHOOD ORGANIZATIONS
15 BEFORE ANY MONEYS MAY BE PROVIDED BY THE DEPARTMENT TO THE
16 MUNICIPALITY. THE GUIDELINES FOR THE PREPARATION OF THE
17 ANNUAL FINANCIAL PLAN SHALL BE DEVELOPED BY THE DEPARTMENT
18 AND SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
19 (I) AN ANNUAL BUDGET WHICH SHALL INCLUDE:
20 (A) A DETAILED BREAKDOWN OF ALL PROPERTY
21 ACQUISITION COSTS.
22 (B) A DETAILED BREAKDOWN OF ALL RELOCATION
23 EXPENDITURES.
24 (C) A DETAILED BREAKDOWN OF ALL COSTS ASSOCIATED
25 WITH THE CONSTRUCTION OF NEW SINGLE-FAMILY AND
26 MULTIFAMILY RENTAL HOUSING.
27 (D) A DETAILED BREAKDOWN OF ALL COSTS ASSOCIATED
28 WITH THE CONSTRUCTION OF NEW NEIGHBORHOOD COMMERCIAL
29 DEVELOPMENT.
30 (E) A DETAILED BREAKDOWN OF ALL REHABILITATIVE
19870H1178B3481 - 30 -
1 CONSTRUCTION COSTS.
2 (F) A DETAILED BREAKDOWN OF ALL OVERHEAD AND
3 ADMINISTRATIVE COSTS, INCLUDING ADMINISTRATIVE COSTS
4 INCURRED BY THE DEPARTMENT.
5 (II) A SEPARATE ANNUAL PROPERTY ACQUISITION REPORT
6 AND MONTHLY PROGRESS REPORTS WHICH SHALL INCLUDE:
7 (A) A LISTING OF ALL PROPERTY TO BE ACQUIRED
8 DURING THE YEAR AND/OR ACQUIRED TO DATE.
9 (B) A PHYSICAL AND DEED DESCRIPTION OF EACH
10 PARCEL.
11 (C) THE NAME OF THE LEGAL OWNER AND DATE
12 PURCHASED, FOR EACH PARCEL.
13 (D) A STATEMENT BY THE MUNICIPALITY INDICATING
14 THAT THE PROPERTY TO BE ACQUIRED IS IMMINENTLY
15 DANGEROUS DUE TO STRUCTURAL DAMAGE CAUSED BY
16 SUBSIDENCE OR IS LOCATED IN AN AREA AFFECTED BY
17 IMMINENTLY DANGEROUS PROPERTY AND, BASED ON
18 ENGINEERING STUDIES, MUST BE ACQUIRED AND RAZED; AND
19 THE DATE OF THE PHYSICAL INSPECTION WHICH ESTABLISHED
20 THAT.
21 (E) THE AGREED-TO ACQUISITION PRICE FOR EACH
22 PARCEL TO BE ACQUIRED. THIS PRICE SHALL BE APPROVED
23 BY THE DEPARTMENT BASED ON AN APPRAISAL OF EACH
24 PARCEL BY A CERTIFIED APPRAISER OR APPRAISAL FIRM
25 APPROVED BY THE DEPARTMENT. THE APPRAISAL OF EACH
26 PROPERTY SHALL BE THE FAIR MARKET VALUE IRRESPECTIVE
27 OF THE PROPERTY'S CURRENT ASSESSMENT, AS IF THE
28 PROPERTY WERE NOT DAMAGED AS A RESULT OF SUBSIDENCE.
29 NO PAYMENT SHALL BE MADE WITH COMMONWEALTH FUNDS FOR
30 THE ACQUISITION OF ANY PROPERTY AT A PRICE OTHER THAN
19870H1178B3481 - 31 -
1 THAT APPROVED BY THE DEPARTMENT BASED ON THEIR REVIEW
2 OF THE INDEPENDENT APPRAISAL. WHERE ANY QUESTION
3 EXISTS WITH RESPECT TO THE FAIR MARKET VALUE
4 ESTABLISHED BY THE APPRAISAL, THE DEPARTMENT MAY
5 ORDER A SECOND APPRAISAL AND BASED ON THE TWO
6 APPRAISALS SHALL ESTABLISH THE FAIR MARKET VALUE FOR
7 THE PROPERTY.
8 (F) THE TOTAL PROPERTY ACQUISITION COSTS FOR
9 THAT FISCAL YEAR.
10 (8) WHEN PREPARING THE PLANS AND REPORTS REQUIRED BY
11 THIS ACT, THE MUNICIPALITY SHALL CONSULT, ON A MONTHLY BASIS,
12 OR MORE FREQUENTLY AS IS NECESSARY, WITH NEIGHBORHOOD
13 RESIDENTS AND NEIGHBORHOOD ORGANIZATIONS IN THE AREA AFFECTED
14 BY SUBSIDENCE.
15 (9) THE MUNICIPALITY SHALL ANNUALLY APPLY TO THE
16 DEPARTMENT FOR MONEYS PROPOSED TO BE SPENT DURING THE NEXT
17 FISCAL YEAR, AS PROVIDED IN THE ANNUAL FINANCIAL PLAN
18 APPROVED BY THE DEPARTMENT, WHETHER OR NOT SUCH FUNDS HAVE
19 BEEN APPROPRIATED TO THE DEPARTMENT OR TO ANOTHER AGENCY OF
20 THE COMMONWEALTH. WHERE SUCH FUNDS HAVE INITIALLY BEEN
21 APPROPRIATED TO ANOTHER AGENCY, THE FUNDS SHALL BE
22 TRANSFERRED TO THE DEPARTMENT UPON REQUEST AS NEEDED. THE
23 DEPARTMENT SHALL PREPARE GUIDELINES AND PROCEDURES FOR
24 APPLYING FOR SUCH MONEYS, INCLUDING THE DATE BY WHICH AN
25 APPLICATION FROM A MUNICIPALITY MUST BE RECEIVED.
26 (10) MONEYS PROVIDED TO THE MUNICIPALITY BY THE
27 DEPARTMENT UNDER PROVISIONS OF THIS ACT MAY NOT BE USED TO
28 ACQUIRE RESIDENTIAL REAL PROPERTY DESIGNATED BY THE
29 MUNICIPALITY AS IMMINENTLY DANGEROUS DUE TO STRUCTURAL DAMAGE
30 CAUSED BY SUBSIDENCE, OR PROPERTY IN OR AROUND THE AFFECTED
19870H1178B3481 - 32 -
1 PROPERTY, UNLESS THE HOMEOWNER HAD PURCHASED THE PROPERTY
2 PRIOR TO A DATE ESTABLISHED BY THE DEPARTMENT. THE HOMEOWNER
3 SHALL DETERMINE WHETHER THE ACQUISITION PRICE PAID FOR THE
4 PROPERTY SHALL BE IN THE FORM OF A CERTIFICATE OR CERTIFIED
5 CHECK. MONEYS PROVIDED TO THE MUNICIPALITY BY THE DEPARTMENT
6 UNDER PROVISIONS OF THIS ACT MAY NOT BE USED TO ACQUIRE
7 COMMERCIAL PROPERTY DESIGNATED BY THE MUNICIPALITY AS
8 IMMINENTLY DANGEROUS DUE TO STRUCTURAL DAMAGE CAUSED BY
9 SUBSIDENCE OR PROPERTY LOCATED IN AN AREA AFFECTED BY SUCH
10 IMMINENTLY DANGEROUS PROPERTY UNLESS THE COMMERCIAL PROPERTY
11 WAS OWNED BY THE PRESENT OWNER ON OR BEFORE A DATE
12 ESTABLISHED BY THE DEPARTMENT. MONEYS PROVIDED TO THE
13 MUNICIPALITY BY THE DEPARTMENT UNDER PROVISIONS OF THIS ACT
14 MAY NOT BE USED TO ACQUIRE PROPERTY OWNED BY RELATORS,
15 AGENTS, BANKS OR OTHER INVESTORS.
16 (11) NO MONEY PROVIDED TO THE MUNICIPALITY BY THE
17 DEPARTMENT UNDER PROVISIONS OF THIS ACT MAY BE USED TO
18 ACQUIRE REAL PROPERTY WHICH IS IMMINENTLY DANGEROUS DUE TO
19 STRUCTURAL DAMAGE CAUSED BY SUBSIDENCE IF THERE IS REASON TO
20 BELIEVE THAT REPRESENTATIONS WERE FRAUDULENTLY MADE
21 CONCERNING THE SOUNDNESS OF THE STRUCTURE AS AN INDUCEMENT
22 FOR SECURING A MORTGAGE OR MORTGAGE INSURANCE, UNLESS THE
23 MUNICIPALITY HAS FIRST DEMONSTRATED TO THE SATISFACTION OF
24 THE DEPARTMENT THAT IT HAS EXHAUSTED ALL EFFORTS TO
25 INVESTIGATE AND PROSECUTE THOSE INDIVIDUALS RESPONSIBLE FOR
26 ANY ALLEGED FRAUDULENT CERTIFICATION OF THE PROPERTY AND HAS
27 ALSO INITIATED SUCH APPROPRIATE LEGAL ACTIONS AS IT DEEMS
28 NECESSARY TO SEEK RESTITUTION FOR DAMAGES RELATING TO THE
29 DIMINISHED VALUE OF PROPERTY FROM ANY INSTITUTIONS OR OTHER
30 PARTIES WHICH MAY HAVE BEEN A PARTY TO THE FRAUDULENT ACT OR
19870H1178B3481 - 33 -
1 LEGALLY RESPONSIBLE FOR THE MORTGAGE OR MORTGAGE INSURANCE
2 HAVING BEEN APPROVED AS A RESULT OF SUCH CRIMINAL CONDUCT ON
3 THEIR PART. THIS SHALL NOT PREVENT THE ACQUISITION AND
4 SETTLEMENT WITH THE PRESENT OWNER OF SUCH PROPERTY, IF THE
5 PRESENT OWNER IS NOT INVOLVED WITH ANY FRAUDULENT
6 MISREPRESENTATION PRIOR TO OR DURING SUCH LITIGATION.
7 (12) THE MUNICIPALITY MAY PROVIDE TO A NONPROFIT
8 CORPORATION ANY MONEYS IT IS PROVIDED BY THE COMMONWEALTH TO
9 CARRY OUT PROVISIONS OF THIS ACT ON BEHALF OF THE
10 MUNICIPALITY, PROVIDED THE REQUIREMENTS OF THIS ACT ARE MET
11 BY THE HOUSING ASSISTANCE CORPORATION RECEIVING THE
12 COMMONWEALTH MONEYS PROVIDED BY THE MUNICIPALITY.
13 (13) NO COMMONWEALTH FUNDS ADMINISTERED BY THE
14 MUNICIPALITY SHALL BE USED FOR THE REHABILITATION OF
15 PROPERTIES:
16 (I) WHICH ARE DETERMINED TO BE IMMINENTLY DANGEROUS
17 DUE TO STRUCTURAL DAMAGE CAUSED BY SUBSIDENCE IN ANY
18 GIVEN YEAR.
19 (II) WHICH WILL SUBSEQUENTLY BE ACQUIRED AND RAZED
20 DURING THE NEXT YEAR ACCORDING TO THE LAND REUSE PLAN
21 DEVELOPED BY THE MUNICIPALITY, AS REQUIRED BY THIS ACT.
22 (III) WHOSE ACQUISITION AND DEMOLITION COSTS ARE TO
23 BE PAID FOR FROM MONEYS PROVIDED BY THE COMMONWEALTH.
24 (14) AN AUDIT OF ALL EXPENDITURES OF MONEYS PROVIDED TO
25 A MUNICIPALITY BY THE DEPARTMENT UNDER PROVISIONS OF THIS ACT
26 SHALL BE MADE ANNUALLY BY A CPA (CERTIFIED PUBLIC ACCOUNTANT)
27 OR CPA FIRM TO BE DESIGNATED BY THE DEPARTMENT. THIS SHALL
28 INCLUDE AN AUDIT OF MONEYS WHICH A MUNICIPALITY RECEIVED FROM
29 THE DEPARTMENT AND RELOANED TO A HOUSING ASSISTANCE
30 CORPORATION. IN SUCH CASE, ALL EXPENDITURES MADE BY THE
19870H1178B3481 - 34 -
1 HOUSING ASSISTANCE CORPORATION FROM FUNDS RECEIVED FROM THE
2 MUNICIPALITY SHALL BE INCLUDED IN THE AUDIT. THE COSTS OF
3 THIS OUTSIDE ANNUAL CPA AUDIT SHALL BE PAID FOR FROM FUNDS
4 PROVIDED BY THE COMMONWEALTH TO A MUNICIPALITY TO RESOLVE
5 NON-MINE HOUSING SUBSIDENCE PROBLEMS. COPIES OF THE ANNUAL
6 CPA AUDIT SHALL BE MADE AVAILABLE TO MEMBERS OF THE GENERAL
7 ASSEMBLY AND TO NEIGHBORHOOD ORGANIZATIONS IN THE AREA
8 AFFECTED BY SUBSIDENCE.
9 SECTION 3. ADMINISTRATIVE COSTS.
10 ADMINISTRATIVE COSTS INCURRED BY THE DEPARTMENT IN MONITORING
11 AND SUPERVISING COMMONWEALTH FUNDS PROVIDED TO A MUNICIPALITY TO
12 RESOLVE NON-MINE HOUSING SUBSIDENCE PROBLEMS, AS REQUIRED BY
13 THIS ACT, SHALL BE CONSIDERED ELIGIBLE PROJECT COSTS AND
14 DEDUCTED FROM ANY FUNDS THE COMMONWEALTH PROVIDES TO A
15 MUNICIPALITY FOR THIS PURPOSE AND SHALL BE ACCOUNTED FOR
16 ACCORDINGLY.
17 SECTION 4. ASSISTANCE.
18 THE PENNSYLVANIA HOUSING FINANCE AGENCY SHALL ASSIST THE
19 MUNICIPALITY IN THE FINANCING OF ANY NEW HOUSING CONSTRUCTED TO
20 REPLACE HOUSING WHICH IS ACQUIRED AND RAZED DUE TO IT BEING
21 DETERMINED TO BE IMMINENTLY DANGEROUS DUE TO STRUCTURAL DAMAGE
22 CAUSED BY SUBSIDENCE OR DUE TO ITS BEING LOCATED IN AN AREA
23 AFFECTED BY SUCH IMMINENTLY DANGEROUS HOUSING.
24 SECTION 5. NON-MINE SUBSIDENCE LOAN PROGRAM.
25 (A) FUND.--THE DEPARTMENT SHALL ESTABLISH A NON-MINE
26 SUBSIDENCE REHABILITATION LOAN FUND FOR THE PURPOSE OF PROVIDING
27 FINANCIAL ASSISTANCE IN THE FORM OF LOW INTEREST LOANS AND LOAN
28 GUARANTEES, ETC., TO HOMEOWNERS TO REPAIR OR PREVENT STRUCTURAL
29 DAMAGE CAUSED BY NON-MINE SUBSIDENCE.
30 (B) REGULATIONS.--THE DEPARTMENT SHALL PROMULGATE SUCH RULES
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1 AND REGULATIONS NECESSARY TO CARRY OUT THE OBJECTIVES OF THIS
2 SECTION.
3 (C) APPROPRIATION.--THE SUM OF $10,000,000 IS HEREBY
4 APPROPRIATED TO THE DEPARTMENT FOR DEPOSIT INTO THE NON-MINE
5 SUBSIDENCE REHABILITATION LOAN FUND.
6 SECTION 6. EFFECTIVE DATE.
7 THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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