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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY WILLIAMS, FERLO, TARTAGLIONE, LEACH, FARNESE, BOSCOLA, COSTA, BROWNE, WARD AND WASHINGTON, FEBRUARY 8, 2010 |
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| REFERRED TO LOCAL GOVERNMENT, FEBRUARY 8, 2010 |
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| AN ACT |
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1 | Providing for the creation of land banks for the conversion of |
2 | vacant or tax-delinquent properties into productive use. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | Section 1. Short title. |
6 | This act shall be known and may be cited as the Land Banks |
7 | Authorities Act. |
8 | Section 2. Legislative findings and purpose. |
9 | The General Assembly finds and declares as follows: |
10 | (1) Pennsylvania's communities are important to the |
11 | social and economic vitality of this Commonwealth. Whether |
12 | rural, suburban or urban, many communities are struggling to |
13 | cope with vacant or tax-delinquent properties. |
14 | (2) Citizens of this Commonwealth are affected adversely |
15 | by vacant or tax-delinquent properties, including properties |
16 | that have been vacated due to foreclosure brought about by |
17 | the national foreclosure crisis. |
18 | (3) Substandard, deteriorating or vacant structures are |
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1 | a public safety threat and nuisance, and their blighting |
2 | effect diminishes property values in the communities in which |
3 | these properties are located. |
4 | (4) If these buildings remain vacant and further |
5 | deteriorate, the result will be increased costs to the |
6 | Commonwealth, municipalities and taxpayers to secure and |
7 | ultimately demolish them. |
8 | (5) Providing a mechanism to transform vacant or tax- |
9 | delinquent buildings into productive reuse is an opportunity |
10 | for communities to modernize, revitalize and grow and to |
11 | improve the quality of life for residents. |
12 | (6) Developers who wish to acquire vacant or tax- |
13 | delinquent properties and return them to productive use |
14 | confront a confusing array of agencies and entities that hold |
15 | property and have unique disposition policies. |
16 | (7) Land banks provide for the acquisition, management |
17 | and transferral of ownership of tax-foreclosed properties not |
18 | reclaimed or redeveloped by market forces, and land banks |
19 | facilitate the properties' productive reuse through sales and |
20 | transfers to local government agencies, community development |
21 | corporations, private developers and adjacent property |
22 | owners. |
23 | (8) It is in the best interest of this Commonwealth to |
24 | authorize the establishment of local land banks to provide an |
25 | effective and efficient system for communities to convert |
26 | vacant or tax-delinquent properties into community assets |
27 | that are consistent with local plans for growth and |
28 | development. |
29 | Section 3. Definitions. |
30 | The following words and phrases when used in this act shall |
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1 | have the meanings given to them in this section unless the |
2 | context clearly indicates otherwise: |
3 | "Agreement." An agreement entered into by parties pursuant |
4 | to this act. |
5 | "Authority." A land bank authority established pursuant to |
6 | this act. |
7 | "Board of directors" or "board." The board of a land bank |
8 | authority established in section 5. |
9 | "Municipality." A city of the first, second, second class A |
10 | or third class, township of the first or second class, borough, |
11 | incorporated town or county. |
12 | "Parties." The parties to an agreement, which may include a |
13 | municipality, school district or taxing authority of the |
14 | Commonwealth. |
15 | "Property." Real property, including any improvements |
16 | thereon. |
17 | "Tax delinquent property." A property on which the taxes |
18 | levied and assessed by any party remain in whole or in part |
19 | unpaid on the date due. |
20 | "Vacant." A property that is not occupied legally. |
21 | Section 4. Land bank authorities. |
22 | (a) Establishment.--A municipality, school district or |
23 | taxing authority may enter into an agreement to establish a land |
24 | bank authority pursuant to this act or may act on its own to |
25 | establish a land bank authority by charter. |
26 | (b) Powers.--An authority shall: |
27 | (1) Be a public body, corporate and politic with the |
28 | power to sue and be sued, issue deeds in its name and any |
29 | other powers necessary and proper to carry out these powers |
30 | or that may be granted to the authority by the parties. |
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1 | (2) Have all powers assigned to it in the agreement or |
2 | charter. |
3 | (3) Have the power to adopt, amend and repeal bylaws for |
4 | the regulation of its affairs and the conduct of its |
5 | business. |
6 | (4) Have the power to acquire vacant or tax-delinquent |
7 | properties within the jurisdiction of the parties in order to |
8 | foster the public purpose of returning property that is |
9 | nontax producing to effective reuse in the provision of |
10 | housing, business, industry or public purposes. |
11 | Section 5. Board of directors. |
12 | (a) Establishment.--An authority shall be governed by a |
13 | board of directors comprised of one member appointed by each |
14 | party to the agreement or charter. In the event that there are |
15 | only two parties to the agreement, each party shall appoint two |
16 | members so that the board has at least three members. In the |
17 | event that a party acts on its own to establish an authority, it |
18 | shall appoint at least three members to the board. |
19 | (b) Term of office.--Board members shall be appointed within |
20 | 30 days of the signing of the agreement or adoption of the |
21 | charter. Each member shall serve at the pleasure of the |
22 | respective appointing authority for a term of four years. No |
23 | member may serve more than two consecutive terms. |
24 | (c) Qualifications.--Each board member shall be a resident |
25 | or employee of its appointing party and shall have experience or |
26 | education in urban planning, real estate, community development, |
27 | finance, economic development or related areas. |
28 | (d) Vacancy.--If a board member vacancy occurs, the |
29 | appointing party shall appoint a successor within 45 days of the |
30 | vacancy. A person appointed to fill a vacant board member |
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1 | position shall serve for the remainder of the unexpired term. |
2 | (e) Compensation.--Board members shall receive no |
3 | compensation for services. |
4 | (f) Chairperson.--The board shall elect a chairperson from |
5 | among its members. The chairperson shall execute all deeds, |
6 | leases and contracts of the authority when authorized by the |
7 | board. |
8 | (g) Meetings.--The board shall meet as specified in the |
9 | agreement or charter, but not less than four times per year. The |
10 | meetings of the authority shall be subject to the provision of |
11 | 65 Pa.C.S. Ch. 7 (relating to open meetings). |
12 | (h) Quorum.--A majority of the board members shall |
13 | constitute a quorum. An affirmative vote of the majority of the |
14 | board members present shall be necessary for any action to be |
15 | taken by the board. |
16 | (i) Staff.--The authority may employ its own staff or may |
17 | utilize employees of the parties, as determined by the agreement |
18 | or charter. |
19 | Section 6. Mailing list of interested entities. |
20 | Upon the establishment of an authority, the authority shall |
21 | maintain a list of city, county or regional housing authorities, |
22 | redevelopment authorities and community development corporations |
23 | that have requested to be notified prior to any action by the |
24 | authority to dispose of property in its inventory. An interested |
25 | housing authority, redevelopment authority and community |
26 | development corporation must provide the authority with the |
27 | following information: |
28 | (1) Name of the organization. |
29 | (2) Postal or electronic address for the organization. |
30 | (3) The name and title of a contact person for the |
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1 | organization. |
2 | Section 7. Acquisition and management of property. |
3 | (a) General rule.--The acquisition of property by an |
4 | authority shall not be governed or controlled by any |
5 | regulations, ordinances or laws of the parties, unless |
6 | specifically provided in the agreement or charter. |
7 | (b) Authority deemed to be successful bidder at tax sale.-- |
8 | (1) If any party obtains a judgment against a tax- |
9 | delinquent property within the county for the taxes, and to |
10 | satisfy the judgment, the property is ordered sold at a tax |
11 | sale, and if no person bids an amount equal to the full |
12 | amount of all tax bills, interest and costs owing on the |
13 | property at the sale, the authority shall be deemed to have |
14 | bid the full amount of all tax bills, interest and costs due |
15 | regardless of whether all parties of the authority are |
16 | parties to the lawsuit. |
17 | (2) The authority shall not be required to make actual |
18 | payment to the court for the amount deemed to have been bid. |
19 | (3) The court, notwithstanding any other provision of |
20 | law, shall treat the amount deemed to have been bid as cash |
21 | received. Upon proper motion by the authority, the court |
22 | shall make a deed of the property to the authority. The title |
23 | to the property shall be an absolute estate in fee simple, |
24 | free and clear of all liens, claims and encumbrances. |
25 | (c) No accrual of taxes.--When a property is acquired by the |
26 | authority, all State, county, city and school district taxes |
27 | shall be extinguished and no taxes shall accrue while the |
28 | property is owned by the authority. |
29 | (d) Title held by authority.--An authority shall hold in its |
30 | own name, for the benefit of the parties, all properties |
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1 | conveyed to it by the parties, all tax-delinquent properties |
2 | acquired by it pursuant to this section and all properties |
3 | otherwise acquired. |
4 | (e) Administration of properties.--An authority shall |
5 | administer the properties acquired by it, as follows: |
6 | (1) All property acquired by the authority shall be |
7 | inventoried and appraised and the inventory shall be |
8 | maintained as a public record. |
9 | (2) The authority shall organize and classify the |
10 | property on the basis of suitability for use. |
11 | (3) The authority shall maintain all property held by it |
12 | in accordance with applicable laws and codes. |
13 | (4) The authority shall have the power to manage, |
14 | maintain, protect, rent, lease, repair, insure, alter, sell, |
15 | transfer, trade, exchange or otherwise dispose of any |
16 | property on terms and conditions as determined by the board. |
17 | Section 8. Disposition of property. |
18 | (a) General rule.--The disposition of property by an |
19 | authority shall not be governed or controlled by any regulations |
20 | or laws of the parties, unless specifically provided in the |
21 | agreement or charter. |
22 | (b) Prerequisites.--Before an authority may rent, lease, |
23 | sell, transfer, trade, exchange or otherwise dispose of any |
24 | property it shall establish: |
25 | (1) a price for rent or lease purposes; |
26 | (2) a purchase price for sale purposes; or |
27 | (3) the conditions for transfer, trade, exchange or |
28 | other disposition of the property. |
29 | (c) Public notice.-- |
30 | (1) An authority shall publish the information required |
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1 | pursuant to subsection (b) on a publicly available Internet |
2 | website at least 30 days before any property may be disposed |
3 | of from the inventory. |
4 | (2) The authority shall also notify by mail or |
5 | electronic mail all entities on the mailing list established |
6 | in section 6 of the authority's intent to dispose of a |
7 | specified property and the established price to rent, lease |
8 | or purchase the property or the conditions for transfer, |
9 | trade, exchange or other disposition of the property. |
10 | (d) Restriction.-- |
11 | (1) No property shall be acquired for investment |
12 | purposes only and with no intent to use the property other |
13 | than to transfer the property at a future date for monetary |
14 | gain. |
15 | (2) The authority may, at its option, require a |
16 | purchaser to enter into a written agreement to rehabilitate |
17 | or otherwise develop the property and may specify the type of |
18 | development and other terms, including the length of time |
19 | allowed for development. |
20 | (e) Specific board member approval.--No property may be |
21 | sold, transferred, traded, exchanged or otherwise disposed of, |
22 | unless the transaction is approved by the board member appointed |
23 | by the affected municipality in which the property is located. |
24 | (f) Distribution of sale proceeds.--At the time that an |
25 | authority sells or otherwise disposes of property as part of its |
26 | land bank program, the proceeds from the sale shall be |
27 | distributed as follows: |
28 | (1) The party or parties bringing the action that |
29 | resulted in the acquisition of the property by the authority |
30 | shall be reimbursed, to the extent proceeds are available, |
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1 | for all costs incurred. |
2 | (2) Any remaining proceeds shall be distributed to the |
3 | parties in proportion to their respective tax bills as they |
4 | existed just prior to the time the property was acquired by |
5 | the authority. |
6 | (g) Amount of consideration.--Conveyance of a property may |
7 | be for less than market value or for no consideration. |
8 | Section 9. Dissolution. |
9 | Upon the approval of the parties, the board, by a two-thirds |
10 | vote, may provide for the dissolution of the authority. Upon the |
11 | dissolution of the authority, any funds within its control shall |
12 | be paid to any party under section 8(d) to satisfy any written |
13 | agreement extended under this section. All remaining funds shall |
14 | be transferred to the parties to the agreement or charter. |
15 | Section 10. Effective date. |
16 | This act shall take effect immediately. |
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