THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY ARGALL, YAW, PIPPY, ERICKSON, RAFFERTY, KASUNIC, WONDERLING, COSTA, O'PAKE, BROWNE, BAKER, FERLO, WASHINGTON, ALLOWAY, BOSCOLA, STACK, EARLL, EICHELBERGER, WILLIAMS, WARD, TOMLINSON, LOGAN, FOLMER AND KITCHEN, JUNE 17, 2009

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, JUNE 7, 2010   

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, providing for neighborhood blight

reclamation and revitalization.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 53 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

CHAPTER 61

NEIGHBORHOOD BLIGHT

RECLAMATION AND REVITALIZATION

Subchapter

A.  Preliminary Provisions

B.  Actions Against Owner of Blighted Property

C.  Responsibilities of Mortgage Lenders

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D C.  Permit Denials by Municipalities

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E D.  Miscellaneous Provisions

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SUBCHAPTER A

PRELIMINARY PROVISIONS

Sec.

6101.  Short title of chapter.

6102.  Legislative findings and declaration of policy.

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6103.  Definitions.

§ 6101.  Short title of chapter.

This chapter shall be known and may be cited as the

Neighborhood Blight Reclamation and Revitalization Act.

§ 6102.  Legislative findings and declaration of policy.

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The General Assembly finds and declares as follows:

(1)  It is the intent of the General Assembly to

eliminate neighborhood blight caused by property owners who

fail to maintain their property or to comply with municipal

property maintenance codes. The General Assembly declares

that it is in the best interest of the Commonwealth, its

citizens and its municipalities to establish a process as set

forth under this chapter to effectively deal with blighted

and abandoned properties in order to bring the properties up

to code standards, acquire and demolish them or, where cost-

effective and structurally sound, rehabilitate them and

return them to productive use. This includes constructing new

housing on sites that formerly contained blighted properties

and rehabilitating blighted buildings which have been

determined to be structurally sound and capable of being

rehabilitated.

(2)  Pennsylvania's communities are important to this

Commonwealth's economic health and provide a focal point for

businesses and services. They also contribute to this

Commonwealth's quality of life with their rich histories,

culture, heritage and diversity, along with their parks,

recreational attributes and historic buildings and

architecture. Many of these communities, however, are

presently being negatively affected by blighted properties

that either are in use in spite of their deteriorated state

or have been abandoned.

(3)  Citizens of this Commonwealth living in its

communities are adversely affected by abandoned and blighted

residential, commercial and industrial properties, especially

individuals living or owning property in close proximity to

unsafe, substandard and deteriorated buildings.

(4)  Substandard, deteriorating and abandoned

residential, commercial and industrial structures are not

only a public safety threat and nuisance, their blighted

condition diminishes property values in the communities in

which these properties are located. Nearby property owners

lose equity in their properties, and municipalities lose

desperately needed property tax revenues for municipal

services as a result of lower assessed property values which

result from the presence of blighted and abandoned buildings.

(5)  Blighted properties presently sold at tax sales most

times remain blighted. When these blighted properties are not

rehabilitated or demolished immediately, they further

deteriorate, resulting in increased costs to the Commonwealth

and its municipalities to secure and demolish them.

(6)  Providing a legislative mechanism to transform

abandoned and blighted properties into productive reuse

provides an opportunity for communities in Pennsylvania to be

revitalized while improving the quality of life for

individuals who live there. This revitalization includes

clearing sites of blighted properties and replacing them with

new housing, as well as rehabilitating structurally sound

blighted properties.

§ 6103 § 6102.  Definitions.

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The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Abandoned property."  A property on which there is a

building that has not been legally occupied for at least the

previous 12 months and is a blighted property.

"Blighted property."  Any of the following:

(1)  Premises which, because of physical condition or

use, have been declared by a court of competent jurisdiction

as a public nuisance at common law or have been declared a

public nuisance in accordance with the local housing,

building, plumbing, fire and related codes and ordinances,

including nuisance and dangerous building ordinances.

(2)  Premises which, because of physical condition, use

or occupancy, are considered an attractive nuisance to

children, including, but not limited to, abandoned wells,

shafts, basements, excavations and unsafe fences or

structures.

(3)  A dwelling which, because it is dilapidated,

unsanitary, unsafe, vermin-infested or lacking in the

facilities and equipment required under the housing code of

the municipality, has been designated by the municipal

department responsible for enforcement of the code as unfit

for human habitation.

(4)  A structure which is a fire hazard or is otherwise

dangerous to the safety of persons or property.

(5)  A structure from which the utilities, plumbing,

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heating, water, sewage or other facilities have been

disconnected, destroyed, removed or rendered ineffective so

that the property is unfit for its intended use.

(6) (5)  A vacant or unimproved lot or parcel of ground

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in a predominantly built-up neighborhood which, by reason of

neglect or lack of maintenance, has become a place for

accumulation of trash and debris or a haven for rodents or

other vermin.

(7) (6)  An unoccupied property which has been tax

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delinquent for a period of two years.

(8) (7)  A property which is vacant but not tax

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delinquent and which has not been rehabilitated within one

year of the receipt of notice to rehabilitate from the

appropriate code enforcement agency.

"Building."  A residential, commercial or industrial building

or structure and the land appurtenant to it.

"Code."  A building, housing, property maintenance, fire,

health or other public safety ordinance enacted by a

municipality.

"Commonwealth agency."  The Governor, departments, boards,

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agencies, commissions, authorities and other officers of the

Commonwealth, including those subject to the policy supervision

and control of the Governor. The term does not include any court

or other officer or agency of the unified judicial system or the

General Assembly or any of its officers and agencies.

"Competent entity."  A person or entity, including a

governmental unit, with experience in the rehabilitation of

residential, commercial or industrial buildings and the ability

to provide or obtain the necessary financing for such

rehabilitation.

"Consumer."  A person who is a named insured, insured or

beneficiary of a policy of insurance or any other person who may

be affected by the Insurance Department's exercise of or the

failure to exercise its authority.

"Cost of rehabilitation."  Costs and expenses for

construction, stabilization, rehabilitation, demolition and

reasonable nonconstruction costs associated with any of these

projects, including, but not limited to, environmental

remediation, architectural, engineering and legal fees, permits,

financing fees and a developer's fee consistent with the

standards for developer's fees established by the Pennsylvania

Housing Finance Agency.

"Court."  The appropriate court of common pleas.

"Department."  The Department of Community and Economic

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Development of the Commonwealth.

"Electronically."  Utilizing procedures promulgated by the

Department of Community and Economic Development to file forms

and obtain information electronically, provided the information

is available to the requester under the act of February 14, 2008

(P.L.6, No.3), known as the Right-to-Know Law.

"Insurer," "company," "association" or "exchange."  As these

terms are defined in section 101 of the act of May 17, 1921

(P.L.682, No.284), known as The Insurance Company Law of 1921,

or any entity subject to Article XXIV of The Insurance Company

Law of 1921, the act of December 29, 1972 (P.L.1701, No.364),

known as the Health Maintenance Organization Act, or 40 Pa.C.S.

Ch. 61 (relating to hospital plan corporations) or 63 (relating

to professional health services plan corporations).

"License."  A permit granted by the Commonwealth or one of

its agencies which gives permission to the applicant, excluding

individuals and businesses regulated by the Bureau of

Professional and Occupational Affairs, to participate in a

certain activity or exercise a certain privilege.

"Licensing" or "certification."  The issuance of a license or

the formal assertion in writing of some fact or qualification

from the Commonwealth or one of its agencies, excluding the

Bureau of Professional and Occupational Affairs.

"Mortgage lender."  A business association defined as a

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"banking institution" or "mortgage lender" under 7 Pa.C.S. Ch.

61 (relating to mortgage loan industry licensing and consumer

protection) that is in possession of or holds title to real

property pursuant to, in enforcement of or to protect rights

arising under, a mortgage, mortgage note, deed of trust or other

transaction that created a security interest in the real

property.

"Municipality."  A city, borough, incorporated town, township

or home rule, optional plan or optional charter municipality or

municipal authority in this Commonwealth. The term also includes

any other governmental entity charged with enforcement of

municipal housing, building, plumbing, fire and related codes

and specifically includes a neighborhood improvement district

and nonprofit corporation created under the act of December 20,

2000 (P.L.949, No.130), known as the Neighborhood Improvement

District Act.

"Municipal permits."  Privileges relating to real property

granted by a municipality, including, but not limited to,

building permits, exceptions to zoning ordinances and occupancy

permits.

"Nonprofit corporation."  A nonprofit corporation that has,

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as one of its purposes, community development activities,

including economic development or the promotion or enhancement

of affordable housing opportunities.

"Owner."  The holder or holders of the title to or of a legal

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or equitable interest in A holder of the title to residential,

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commercial or industrial real estate, other than a mortgage

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lender, who possesses and controls the real estate. The term

includes, but is not limited to, heirs, assigns, trustees, 

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beneficiaries and lessees, provided this ownership interest is a

matter of public record.

"Property maintenance code."  A municipal ordinance which

regulates the maintenance or development of real property. The

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term includes, but is not limited to, building codes, housing

codes and public safety codes.

"Property maintenance code violation."  A violation of a

municipal property maintenance code.

"Public nuisance."  Property which, because of its physical

condition or use, is regarded as a public nuisance at common law

or has been declared by the appropriate official a public

nuisance in accordance with the local housing, building, health,

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fire or related a municipal code.

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"Registry."  The Property Maintenance Code Violations

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Registry established under this chapter.

"Residential building."  Real property that consists of not

less than one nor more than four residential dwelling units.

"Serious violation."  A violation of a housing, building,

property maintenance or fire safety code that poses an immediate

threat to the health and safety of a dwelling occupant,

occupants in surrounding structures or passersby.

"Substantial step."  An affirmative action as determined by a

municipality on the part of a property owner or managing agent,

as determined by the municipality, to remedy a violation of a

housing, building, property maintenance or fire safety code,

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including, but not limited to, physical improvements or

reparations to the property.

"Tax delinquent property."  Tax delinquent real property as

defined under the act of July 7, 1947 (P.L.1368, No.542), known

as the Real Estate Tax Sale Law, located in any municipality in

this Commonwealth.

SUBCHAPTER B

ACTIONS AGAINST OWNER OF BLIGHTED PROPERTY

Sec.

6111.  Actions.

6112.  Asset attachment.

6113.  Duty of out-of-State owners of real estate in this

Commonwealth.

6114.  Duty of corporate owners.

§ 6111.  Actions.

In addition to other remedies, a municipality may institute

the following actions against the legal owner or owner of record 

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owner of any building, housing or land in serious violation of

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an ordinance regarding a building or housing code code or which

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causes the property to be blighted:

(1)  An in personam action may be initiated for a

continuing violation for which the legal owner or owner of

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record owner takes no substantial step to correct within 60

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days following notification of any violation receipt of an

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order to correct the violation, unless the order is subject

to a pending appeal before the administrative agency or

court.

(2)  An action against the legal owner or owner of record 

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owner shall be for an amount equal to any penalties imposed

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against the legal owner or owner of record owner and for the

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amount expended by the municipality to abate the violation.

(3)  A proceeding in equity.

§ 6112.  Asset attachment.

A lien may be placed against the assets of an owner of

unremediated blighted real property after a judgment, decree or

order is entered by a court of competent jurisdiction against

the legal owner or owner of record owner of the property.

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§ 6113.  Duty of out-of-State owners of real estate in this

Commonwealth.

A person who lives or has a principal place of residence

outside this Commonwealth, who owns real estate in this

Commonwealth against which municipal housing code violations

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have been cited under 18 Pa.C.S. § 7510 (relating to municipal

housing code avoidance), and who has been properly notified of

the violations may be extradited to this Commonwealth to face

criminal prosecution.

§ 6114.  Duty of corporate owners.

Mailing a notice or citation for any property maintenance

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code violation for any property owned by a corporation to the

mailing address used for real estate tax collection purposes

shall constitute good service by the municipality. Where, after

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reasonable efforts, service of process for a notice or citation

for any code violation for any property owned by a corporation

or business association cannot be accomplished by handing a copy

of the notice or citation to an executive officer, partner or

trustee of the corporation or business association or to the

manager, trustee or clerk in charge of the property, the

delivery of the notice or citation may occur by registered mail,

accompanied by a delivery confirmation:

(1)  To the registered office of the corporation or

business association.

(2)  Where a corporation or business association does not

have a registered office, to the mailing address used for

real estate tax collection purposes, if accompanied by the

posting of a conspicuous notice to the property and by

handing a copy of the notice or citation to any adult in

possession of the property.

SUBCHAPTER C

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RESPONSIBILITIES OF MORTGAGE LENDERS

Sec.

6121.  Residential, business or commercial mortgages.

6122.  Code compliance.

6123.  Residential mortgages.

§ 6121.  Residential, business or commercial mortgages.

This subchapter shall apply to mortgage loans made for

residential, business or commercial purposes.

§ 6122.  Code compliance.

(a)  Liability assumed.--Sixty days following the entry of a

foreclosure order or upon surrender of the right to possession

by a delinquent borrower of a building due to the owner of

record's default on a mortgage loan, the mortgage lender or

Federal insurer in possession of the building shall assume legal

responsibility and liability as the owner of record for all

exterior municipal housing, building and property maintenance

code requirements representing the following:

(1)  Serious violations.

(2)  Violations which contribute to blight in a

neighborhood due to their negative effect on the aesthetic

appearance of the structure or the neighborhood.

(b)  Time period.--The time period provided for under

subsection (a) shall be extended to 120 days following the

foreclosure of a property due to the owner of record's default

on a mortgage loan in cases where the mortgage lender or Federal

insurer has executed a contract to sell the property in question

or until final action regarding a petition for appointment of a

conservator filed under the act of November 26, 2008 (P.L.1672,

No.135), known as the Abandoned and Blighted Property

Conservatorship Act.

(c)  Exception.--

(1)  A mortgage lender or Federal insurer in possession

of a building shall not be subject to subsection (a) if the

mortgage lender or Federal insurer files a notice with the

county recorder of deeds assigning the right to possession of

the property, provided that there is:

(i)  an acceptance of the assignment by the assignee;

(ii)  a foreclosure sale or other disposition of

property by the mortgage lender or Federal insurer to the

city, borough, township or incorporated town within which

the property is located to a municipal housing or

redevelopment authority organized by the municipality or

to a nonprofit community organization designated by the

municipality or a municipal housing or redevelopment

authority organized by the municipality; and

(iii)  a lien upon the property which takes priority

over the mortgage lender's or Federal insurer's interest

in the property to reimburse the municipality, authority

or nonprofit community organization for the costs of

bringing the property into compliance with exterior

housing, building and property maintenance code

requirements necessary to comply with subsection (a)

together with any other reasonable and necessary costs

incurred by the municipality, authority or community

development organization to protect or preserve the

property pending its sale or disposition.

(2)  The notice of assignment shall provide the

municipality, authority or community development organization

possession of the property for the purpose of bringing it

into compliance with property maintenance code requirements

necessary to comply with subsection (a) and to protect and

preserve the property pending its final sale or disposition.

(3)  The notice need not be accompanied by a signature,

acknowledgment or other indication of acceptance of the

assignment and lien by the municipality, authority or

community development organization.

§ 6123.  Residential mortgages.

Entities that may grant or insure residential mortgages or

participate in related activities for purposes of this

subchapter shall include, but not be limited to, the following:

(1)  A State-chartered bank, bank and trust company,

savings bank, private bank or national bank, a federally

chartered or State-chartered savings and loan association, a

federally chartered savings bank or a federally chartered or

State-chartered credit union.

(2)  An attorney authorized to practice law in this

Commonwealth who acts as a mortgage broker in negotiating or

placing a mortgage loan in the normal course of legal

practice.

(3)  A person licensed under the act of February 19, 1980

(P.L.15, No.9), known as the Real Estate Licensing and

Registration Act, who is principally engaged in a third-party

real estate brokerage business, but only to the extent that

the person provides information, verbal or written, to, or

negotiates or places a mortgage loan for, a buyer of real

estate and is not compensated by the buyer or any other

person for providing such information or negotiating or

placing such mortgage loan. If the person is compensated for

providing the information or negotiating or placing a

mortgage loan, the person shall be subject to sections 308,

310, 311 and 314(b) of the act of December 22, 1989 (P.L.687,

No.90), known as the Mortgage Bankers and Brokers and

Consumer Equity Protection Act.

(4)  A seller of a dwelling if the person has resided in

the dwelling at least one year and as part of the purchase

price receives a first mortgage executed by the purchaser.

(5)  A person who either originates or negotiates fewer

than 12 mortgage loans in a calendar year in this

Commonwealth.

(6)  Builders, when obtaining mortgages for their own

construction or for the sale of their own construction.

(7)  An agency or instrumentality of the Federal

Government or a corporation otherwise created by an act of

Congress, including, but not limited to, the Federal National

Mortgage Association, the Department of Veterans Affairs, the

Federal Home Loan Mortgage Corporation and the Federal

Housing Administration.

(8)  The Pennsylvania Housing Finance Agency.

(9)  A licensee under the act of April 8, 1937 (P.L.262,

No.66), known as the Consumer Discount Company Act, except

that a licensee who makes a mortgage loan other than under

the provisions of the Consumer Discount Company Act shall be

subject to the provisions of sections 304(b)(2) and (3), 308,

310 and 314(b) of the Mortgage Bankers and Brokers and

Consumer Equity Protection Act, excluding section 308(a)(1).

(10)  Except for a licensee described under paragraph

(9), a subsidiary or affiliate of the following institutions:

(i)  State-chartered banks, bank and trust companies,

savings banks, private banks, savings and loan

associations and credit unions.

(ii)  National banks.

(iii)  Federally chartered savings and loan

associations.

(iv)  Federally chartered savings banks.

(v)  Federally chartered credit unions.

A subsidiary or affiliate set forth under this paragraph

shall be subject to the provisions of sections 308, 309(a)

(3), 310 and 314(b) of the Mortgage Bankers and Brokers and

Consumer Equity Protection Act, excluding section 308(a)(1),

and shall deliver annually to the Department of Banking

copies of financial reports made to all supervisory agencies.

(11)  An employee of a licensee or a person designated to

act on behalf of his employer.

(12)  An insurance company, association or exchange

authorized to transact business in this Commonwealth under

the act of May 17, 1921 (P.L.682, No.284), known as The

Insurance Company Law of 1921, and any subsidiaries and

affiliates thereof. A subsidiary or affiliate shall:

(i)  be subject to the provisions of sections 308,

309(a)(3), 310 and 314(b) of the Mortgage Bankers and

Brokers and Consumer Equity Protection Act, excluding

section 308(a)(1); and

(ii)  deliver annually to the Insurance Department

copies of financial reports made to all supervisory

agencies.

SUBCHAPTER D C

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PERMIT DENIALS BY MUNICIPALITIES

Sec.

6131.  Municipal permit denial.

§ 6131.  Municipal permit denial.

(a)  Denial.--

(1)  A municipality may deny issuing to an applicant a

building permit, zoning permit, zoning variance, municipal

license, municipal permit or municipal approval for

contemplated action that requires the approval of the

municipality, if any of the following final and unappealable

tax, water, sewer or refuse collection delinquencies or code

violations apply:

(i)  The applicant owns real property in any

municipality for which taxes, water, sewer or refuse

collection charges are delinquent.

(ii)  The applicant owns real property in any

municipality that has been determined to be in serious

violation of applicable State or municipal housing,

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building, property maintenance or fire safety code

requirements and has not taken substantial steps to bring

the property into code compliance.

(iii)  The applicant owns any property in any

municipality which is in violation of an applicable State

or municipal housing, building, property maintenance or

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fire safety law or municipal code requirement and has

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taken no substantial steps to correct within six months

following notification of the violation.

(2)  Letters required under this subsection shall be

verified by the appropriate municipal officials before

issuing to the applicant a municipal variance, approval,

permit or license.

(3)  The municipal permit denial shall not apply to an

applicant's action to correct a violation of an applicable

State or municipal housing, building, property maintenance or

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fire safety law or municipal code for which the building

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permit, zoning permit, zoning variance, municipal license,

municipal permit or municipal approval for contemplated

action requiring such approval is required.

(4)  The municipal permit denial shall not apply to an

applicant's delinquency on taxes, water, sewer or refuse

collection charges that are under appeal or otherwise

contested through a court or administrative process.

(b)  Proof of compliance.--

(1)  All municipal variances, approvals, permits or

licenses may be withheld until an applicant obtains a letter

from the appropriate State agency, municipality or school

district indicating the following:

(i)  The property in question is not presently tax

delinquent.

(ii)  The property in question is now in code

compliance.

(iii)  The owner of the property in question has

taken substantial steps to bring the property into code

compliance.

(2)  Letters required under this subsection shall be

verified by the appropriate municipal officials before

issuing to the applicant a municipal variance, approval,

permit or license.

(c)  Applicability of other law.--A denial of a building

permit, zoning permit, zoning variance, municipal license,

municipal permit or municipal approval for contemplated actions

that requires approval of a municipality shall be subject to the

provisions of 2 Pa.C.S. Chs. 5 Subch. B (relating to practice

and procedure of local agencies) and 7 Subch. B (relating to

judicial review of local agency action).

SUBCHAPTER E D

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MISCELLANEOUS PROVISIONS

Sec.

6141.  Education and training programs for judges.

6142.  County housing courts.

6143.  Conflict with other laws.

§ 6141.  Education and training programs for judges.

Available funds shall be used to The Administrative Office of

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Pennsylvania Courts may develop and implement annual and ongoing

education and training programs for judges, including

magisterial district judges, regarding the laws of this

Commonwealth relating to blighted and abandoned property and the

economic impact that blighted and abandoned properties have upon

municipalities. The education and training programs shall

include, but not be limited to:

(1)  The importance and connection of municipal housing 

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code violations and crime.

(2)  Time-in-fact violations as they relate to property

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maintenance code violations.

(3)  Conduct of witnesses in prosecuting property

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maintenance code violations.

(4)  Limiting continuances in property maintenance code

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violations.

(5)  Use of indigency hearings in the prosecution of

property maintenance code violations.

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§ 6142.  County housing courts.

Upon a request or approval of a resolution by the county

commissioners, the president judge of a county may establish a

housing court to hear and decide matters arising under this

chapter and other laws relating to real property matters.

§ 6143.  Conflict with other law.

In the event of a conflict between the requirements of this

chapter and Federal requirements applicable to demolition,

disposition or redevelopment of buildings, structures or land

owned by or held in trust for the Government of the United

States and regulated pursuant to the United States Housing Act

of 1937 (50 Stat. 888, 42 U.S.C. § 1437 et seq.) and the

regulations promulgated thereunder, the Federal requirements

shall prevail.

Section 2.  This act shall take effect in 90 days.