THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY ARGALL, YAW, PILEGGI, RAFFERTY, WAUGH, FONTANA, SOLOBAY, ERICKSON, SCHWANK, MENSCH, YUDICHAK AND EARLL, FEBRUARY 16, 2012

REFERRED TO URBAN AFFAIRS AND HOUSING, FEBRUARY 16, 2012  

AN ACT

Amending Title 68 (Real and Personal Property) of the

Pennsylvania Consolidated Statutes, providing for the

creation of land banks for the conversion of vacant or tax-

delinquent properties into productive use.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Part II of Title 68 of the Pennsylvania

Consolidated Statutes is amended by adding a subpart to read:

SUBPART A

PRELIMINARY PROVISIONS

Chapter

21.  Land Banks

CHAPTER 21

LAND BANKS

Sec.

2101.  Scope of chapter.

2102.  Legislative findings and purpose.

2103.  Definitions.

2104.  Creation and existence.

2105.  Board.

2106.  Staff.

2107.  Powers.

2108.  Eminent domain.

2109.  Acquisition of property.

2110.  Disposition of property.

2111.  Financing of land bank operations.

2112.  Borrowing and issuance of bonds.

2113.  Public records and public access.

2114.  Dissolution of land bank.

2115.  Conflicts of interest.

2116.  Construction, intent and scope.

2117.  Delinquent property tax enforcement.

2118.  Expedited quiet title proceedings.

2119.  Annual audit and report.

2120.  Determination on procedural revision.

§ 2101.  Scope of chapter.

This chapter relates to land banks.

§ 2102.  Legislative findings and purpose.

The General Assembly finds and declares that:

(1)  Strong communities are important to the social and

economic vitality of this Commonwealth. Whether urban,

suburban or rural, many communities are struggling to cope

with vacant, abandoned and tax-delinquent properties.

(2)  Citizens of this Commonwealth are affected adversely

by vacant, abandoned and tax-delinquent properties, including

properties which have been vacated or abandoned due to

mortgage foreclosure.

(3)  Vacant, abandoned and tax-delinquent properties

impose significant costs on neighborhoods, communities and

municipalities by lowering property values, increasing fire

and police protection costs, decreasing tax revenues and

undermining community cohesion.

(4)  There is an overriding public need to confront the

problems caused by vacant, abandoned and tax-delinquent

properties through the creation of new tools to enable

municipalities to turn vacant, abandoned and tax-delinquent

spaces into vibrant places.

(5)  Land banks are one of the tools that municipalities

may use to facilitate the return of vacant, abandoned and

tax-delinquent properties to productive use.

§ 2103.  Definitions.

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:

"Board."  The board of directors of a land bank.

"Department."  The Department of Community and Economic

Development of the Commonwealth.

"Financial institution."  A bank, savings association,

operating subsidiary of a bank or savings association, credit

union, association licensed to originate mortgage loans or an

assignee of a mortgage or note originated by such an

institution.

"Land bank."  A public body and a body corporate and politic

established under this chapter.

"Land bank jurisdiction."

(1)  a county, city, borough, township or incorporated

town with a population of more than 10,000; or

(2)  two or more municipalities with populations less

than 10,000 that enter into an intergovernmental cooperation

agreement to establish and maintain a land bank.

"Low income."  A household with total income at or below 80%

of the area median income, adjusted for household size, as

defined annually by the United States Department of Housing and

Urban Development.

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

township and home rule municipality.

"Owner-occupant."  A natural person with a legal or equitable

ownership interest in property which was the primary residence

of the person for at least three consecutive months at any point

in the year preceding the date of initial delinquency.

"Real property."  Land and all structures and fixtures

thereon and all estates and interests in land, including

easements, covenants and leaseholders.

"School district."  Any of the classifications of school

districts specified in section 202 of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949. The

term includes, as to any real property acquired, owned or

conveyed by a land bank, the school district within whose

geographical jurisdiction the real property is located.

§ 2104.  Creation and existence.

(a)  Authority.--Subject, in a city of the first class, to

its home rule charter, a land bank jurisdiction may elect to

create a land bank by the adoption of an ordinance to create a

binding legal obligation. The ordinance must specify the

following:

(1)  The name of the land bank.

(2)  The number of members of the board.

(3)  The names of individuals to serve as initial members

of the board and the length of terms which they will serve.

(4)  The qualifications, manner of selection or

appointment and terms of office of members of the board.

(5)  The manner by which residents will be provided an

opportunity to have input into the land bank decision-making

process.

(6)  Policies regarding former owner-occupants who occupy

homes acquired by the land bank. These policies shall show a

preference for keeping the former owner-occupants in their

homes, whenever feasible.

(7)  Additional terms and conditions the land bank

jurisdiction deems reasonable and necessary for operation of

the land bank.

(b)  Filing.--The governing body of the land bank

jurisdiction which creates a land bank shall file a copy of the

ordinance with the department and with the Department of State.

After receipt of the ordinance, the Secretary of the

Commonwealth shall issue a certificate of incorporation.

(c)  Combinations.--

(1)  The authority under subsection (a) may be exercised

in combination pursuant to an intergovernmental cooperation

agreement by:

(i)  more than one land bank jurisdiction; or

(ii)  a land bank jurisdiction and one or more

municipalities.

(2)  If a land bank is established under paragraph (1),

the intergovernmental cooperation agreement must specify

matters identified in subsection (a).

(d)  Limitation.--Except as set forth in subsection (c), if a

county establishes a land bank, the land bank shall have the

power to acquire real property only in those portions of the

county located outside of the geographical boundaries of any

other land bank established by another land bank jurisdiction

located partially or entirely within the county.

(e)  Participation by school district.--A school district may

participate in a land bank pursuant to an intergovernmental

cooperation agreement. The agreement must specify the

membership, if any, of the school district on the board of the

land bank and the actions of the land bank which are subject to

approval by the school district.

(f)  Legal status of land bank.--A land bank shall:

(1)  be a public body corporate and politic; and

(2)  have duration until terminated and dissolved under

section 2114 (relating to dissolution of land bank).

(g)  Collaboration.--A land bank, a political subdivision and

another municipal entity may enter into an intergovernmental

cooperation agreement relative to the operations of a land bank.

§ 2105.  Board.

(a)  Membership.--A board shall consist of an odd number of

members and be not less than 5 members nor more than 11 members.

Unless restricted by the actions or agreements specified in

section 2104 (relating to creation and existence) and subject to

the limits stated in this section, the size of the board may be

adjusted in accordance with bylaws of the land bank.

(b)  Eligibility to serve on board.--

(1)  Notwithstanding any law to the contrary, a public

officer shall be eligible to serve as a board member, and the

acceptance of the appointment shall neither terminate nor

impair that public office.

(2)  A municipal employee shall be eligible to serve as a

board member.

(3)  An established land bank board shall include at

least one voting member who:

(i)  is a resident of the land bank jurisdiction;

(ii)  is not a public official or municipal employee;

and

(iii)  maintains membership with a recognized civic

organization within the land bank jurisdiction.

(4)  A member removed under subsection (d)(3) shall be

ineligible for reappointment to the board unless the

reappointment is confirmed unanimously by the board.

(5)  As used in this subsection, the term "public

officer" means an individual who is elected to a municipal

office.

(c)  Officers.--The members of the board shall select

annually from among their members a chair, vice chair,

secretary, treasurer and other officers as the board determines.

(d)  Rules.--The board shall establish rules on all of the

following:

(1)  Duties of officers under subsection (c).

(2)  Attendance and participation of members in its

regular and special meetings.

(3)  A procedure to remove a member by a majority vote of

the other members for failure to comply with a rule.

(4)  Other matters necessary to govern the conduct of a

land bank.

(e)  Vacancies.--A vacancy on the board shall be filled in

the same manner as the original appointment. Upon removal under

subsection (d)(3), the position shall become vacant.

(f)  Compensation.--Board members shall serve without

compensation. The board may reimburse a member for expenses

actually incurred in the performance of duties on behalf of the

land bank.

(g)  Meetings.--

(1)  The board shall meet as follows:

(i)  In regular session according to a schedule

adopted by the board.

(ii)  In special session:

(A)  as convened by the chair; or

(B)  upon written notice signed by a majority of

the members.

(2)  A majority of the board, excluding vacancies,

constitutes a quorum. Physical presence is required under

this paragraph.

(h)  Voting.--

(1)  Except as set forth in paragraph (2) or (3), action

of the board must be approved by the affirmative vote of a

majority of the board present and voting.

(2)  Action of the board on the following matters must be

approved by a majority of the entire board membership:

(i)  Adoption of bylaws.

(ii)  Adoption of rules under subsection (d).

(iii)  Hiring or firing of an employee or contractor

of the land bank. This function may, by majority vote of

the entire board membership, be delegated by the board to

a specified officer or committee of the land bank.

(iv)  Incurring of debt.

(v)  Adoption or amendment of the annual budget.

(vi)  Sale, lease, encumbrance or alienation of real

property or personal property with a value of more than

$50,000.

(3)  A resolution under section 2114 (relating to

dissolution of a land bank) must be approved by two-thirds of

the entire board membership.

(4)  A member of the board may not vote by proxy.

(5)  A member may request a recorded vote on any

resolution or action of the land bank.

(i)  Immunity.--A land bank jurisdiction that establishes a

land bank and a municipality and a school district that are

parties to an intergovernmental cooperation agreement

establishing a land bank shall not be liable personally on the

bonds or other obligations of the land bank. Rights of creditors

of a land bank shall be solely against the land bank.

§ 2106.  Staff.

(a)  Employees.--A land bank may employ or enter into a

contract for an executive director, counsel and legal staff,

technical experts and other individuals and may determine the

qualifications and fix the compensation and benefits of those

employees.

(b)  Contracts.--A land bank may enter into a contract with a

municipality for:

(1)  the municipality to provide staffing services to the

land bank; or

(2)  the land bank to provide staffing services to the

municipality.

§ 2107.  Powers.

A land bank constitutes a public body, corporate and politic,

exercising public powers of the Commonwealth necessary or

appropriate to carry out this chapter, including the following

powers:

(1)  To adopt, amend and repeal bylaws for the regulation

of its affairs and the conduct of its business.

(2)  To sue and be sued in its own name and be a party in

a civil action. This paragraph includes an action to clear

title to property of the land bank.

(3)  To adopt a seal and to alter the same at pleasure.

(4)  To borrow from Federal Government funds, from the

Commonwealth, from private lenders or from municipalities, as

necessary, for the operation and work of the land bank.

(5)  To issue negotiable revenue bonds and notes

according to the provisions of this chapter.

(6)  To procure insurance or guarantees from the Federal

Government or the Commonwealth of the payment of debt

incurred by the land bank, and to pay premiums in connection

with the insurance or guarantee.

(7)  To enter into contracts and other instruments

necessary, incidental or convenient to the performance of its

duties and the exercise of its powers. This paragraph

includes intergovernmental cooperation agreements under 53

Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental

cooperation) for the joint exercise of powers under this

chapter.

(8)  To enter into contracts and intergovernmental

cooperation agreements with municipalities for the

performance of functions by municipalities on behalf of the

land bank or by the land bank on behalf of municipalities.

(9)  To make and execute contracts and other instruments

necessary or convenient to the exercise of the powers of the

land bank. Any contract or instrument signed shall be

executed by and for the land bank if the contract or

instrument is signed, including an authorized facsimile

signature, by:

(i)  the chair or vice chair of the land bank; and

(ii)  either:

(A)  the secretary or assistant secretary of the

land bank; or

(B)  the treasurer or assistant treasurer of the

land bank.

(10)  To procure insurance against losses in connection

with the real property, assets or activities of the land

bank.

(11)  To invest money of the land bank at the discretion

of the board in instruments, obligations, securities or

property determined proper by the board and to name and use

depositories for its money.

(12)  To enter into contracts for the management of, the

collection of rent from or the sale of real property of the

land bank.

(13)  To design, develop, construct, demolish,

reconstruct, rehabilitate, renovate, relocate and otherwise

improve real property or rights or interests in real

property.

(14)  To fix, charge and collect rents, fees and charges

for the use of real property of the land bank and for

services provided by the land bank.

(15)  To grant or acquire licenses, easements, leases or

options with respect to real property of the land bank.

(16)  To enter into partnerships, joint ventures and

other collaborative relationships with municipalities and

other public and private entities for the ownership,

management, development and disposition of real property.

(17)  To organize and reorganize the executive,

administrative, clerical and other departments of the land

bank and to fix the duties, powers and compensation of

employees, agents and consultants of the land bank.

(18)  To do all other things necessary or convenient to

achieve the objectives and purposes of the land bank or other

law related to the purposes and responsibility of the land

bank.

§ 2108.  Eminent domain.

A land bank does not possess the power of eminent domain.

§ 2109.  Acquisition of property.

(a)  Title to be held in its name.--A land bank shall hold in

its own name all real property it acquires.

(b)  Tax exemption.--

(1)  Except as set forth in paragraph (2), the real

property of a land bank and its income and operations are

exempt from State and local tax.

(2)  Paragraph (1) does not apply to real property of a

land bank after the fifth consecutive year in which the real

property is continuously leased to a private third party.

However, real property shall continue to be exempt from State

and local taxes if it is leased to a nonprofit or

governmental agency at substantially less than fair market

value.

(c)  Methods of acquisition.--A land bank may acquire real

property or interests in real property by any means on terms and

conditions and in a manner the land bank considers proper.

(d)  Acquisitions from municipalities.--

(1)  A land bank may acquire real property by purchase

contracts, lease purchase agreements, installment sales

contracts and land contracts and may accept transfers from

municipalities upon terms and conditions as agreed to by the

land bank and the municipality.

(2)  A municipality may transfer to a land bank real

property and interests in real property of the municipality

on terms and conditions and according to procedures

determined by the municipality as long as the real property

is located within the jurisdiction of the land bank.

(3)  A redevelopment authority located within a land bank

jurisdiction established under this chapter may, with the

consent of the local governing body and without a

redevelopment contract, convey property that it acquired

before the effective date of this section to land bank. A

conveyance under this paragraph must be with fee simple

title, free of all liens and encumbrances.

(e)  Maintenance.--A land bank shall maintain all of its real

property in accordance with the statutes and ordinances of the

jurisdiction in which the real property is located.

(f)  Prohibition.--

(1)  Subject to the provisions of paragraph (2), a land

bank may not own or hold real property located outside the

jurisdictional boundaries of the entities which created the

land bank under section 2104(c) (relating to creation and

existence).

(2)  A land bank may be granted authority pursuant to an

intergovernmental cooperation agreement with a municipality

to manage and maintain real property located within the

jurisdiction of the municipality.

(g)  Tax claim bureaus.--A tax claim bureau may transfer to a

land bank real property of the county held by the tax claim

bureau, as trustee for the county, in a repository for unsold

property under section 626 of the act of July 7, 1947 (P.L.1368,

No.542), known as the Real Estate Tax Sale Law.

(h)  Acquisition of tax delinquent properties.--If authorized

by the land bank jurisdiction which created a land bank or

otherwise by intergovernmental cooperation agreement, a land

bank may accept donations of real property and extinguish

delinquent claims for taxes as to the property under section 5.1

of the act of May 16, 1923 (P.L.207, No.153), referred to as the

Municipal Claim and Tax Lien Law, or section 303 of the Real

Estate Tax Sale Law. For the purposes of this subsection, the

land bank shall have all rights and obligations of the

municipality provided for in section 5.1 of the Municipal Claim

and Tax Lien Law and of a local taxing authority provided for in

section 303 of the Real Estate Tax Sale Law.

§ 2110.  Disposition of property.

(a)  Public access to inventory.--A land bank shall maintain

and make available for public review and inspection an inventory

of real property held by the land bank.

(b)  Power.--A land bank may convey, exchange, sell,

transfer, lease, grant or mortgage interests in real property of

the land bank in the form and by the method determined to be in

the best interests of the land bank.

(c)  Consideration.--

(1)  A land bank shall determine the amount and form of

consideration necessary to convey, exchange, sell, transfer,

lease as lessor, grant or mortgage interests in real

property.

(2)  Consideration may take the form of monetary payments

and secured financial obligations, covenants and conditions

related to the present and future use of the property,

contractual commitments of the transferee and other forms of

consideration as determined by the board to be in the best

interest of the land bank.

(d)  Policies and procedures.--

(1)  A board shall determine and state in the land bank

policies and procedures the general terms and conditions for

consideration to be received by the land bank for the

transfer of real property and interests in real property.

(2)  Requirements which may be applicable to the

disposition of real property and interests in real property

by municipalities shall not be applicable to the disposition

of real property and interests in real property by a land

bank.

(e)  Ranking of priorities.--

(1)  A land bank jurisdiction may establish a

hierarchical ranking of priorities for the use of real

property conveyed by a land bank, including use for:

(i)  Purely public spaces and places.

(ii)  Affordable housing.

(iii)  Retail, commercial and industrial activities.

(iv)  Conservation areas.

(2)  The priorities established may be for the entire

land bank jurisdiction or may be set according to the needs

of different neighborhoods, municipalities or other locations

within the land bank jurisdiction, or according to the nature

of the real property.

(f)  Land use plans.--A land bank shall consider all duly

adopted land use plans and make reasonable efforts to coordinate

the disposition of land bank real property with such land use

plans.

(g)  Specific voting and approval requirements.--

(1)  A land bank jurisdiction may, in its ordinance

creating a land bank or, in the case of multiple land bank

jurisdictions and municipalities creating a single land bank

in the applicable intergovernmental cooperation agreement,

require that a particular form of disposition of real

property or a disposition of real property located within

specified jurisdictions be subject to specified voting and

approval requirements of the board.

(2)  Except as restricted or constrained under paragraph

(1), the board may delegate to officers and employees the

authority to enter into and execute agreements, instruments

of conveyance and other related documents pertaining to the

conveyance of real property by the land bank.

§ 2111.  Financing of land bank operations.

(a)  General rule.--A land bank may receive funding through

grants and loans from:

(1)  the Federal Government;

(2)  the Commonwealth;

(3)  a municipality;

(4)  the land bank jurisdiction which created the land

bank; and

(5)  private sources.

(b)  Funding.--A land bank may receive and retain payments

for services rendered, for rents and leasehold payments

received, for consideration for disposition of real and personal

property, for proceeds of insurance coverage for losses

incurred, for income from investments and for an asset and

activity lawfully permitted to a land bank under this chapter.

(c)  Allocated real property taxes.--

(1)  A taxing jurisdiction may authorize the remittance

or dedication of a portion of real property taxes collected

pursuant to the laws of this Commonwealth to a land bank on

real property conveyed by a land bank.

(2)  Allocation of property tax revenues in accordance

with this subsection, if authorized by the taxing

jurisdiction, shall commence with the first taxable year

following the date of conveyance and continue for a period of

up to five years and may not exceed a maximum of 50% of the

aggregate property tax revenues generated by the property.

(3)  Remittance or dedication of real property taxes

shall include the real property taxes of a school district

only if the school district enters into an agreement with the

land bank for the remittance or dedication.

§ 2112.  Borrowing and issuance of bonds.

(a)  Authority.--

(1)  A land bank may issue a bond for any of its

corporate purposes.

(2)  The principal and interest of a bond shall be

payable from the land bank's general revenue.

(3)  The bond may be secured by any of the following:

(i)  A pledge of revenue. This subparagraph includes

a grant or contribution from:

(A)  The Federal Government or a Federal agency

or instrumentality.

(B)  The Commonwealth, a Commonwealth agency or

an instrumentality of the Commonwealth.

(ii)  A mortgage of property of the land bank.

(b)  Nature.--The bond must meet the requirements of 13

Pa.C.S. § 3104 (relating to negotiable instrument).

(c)  Tax exempt.--A bond and the income from the bond is

exempt from taxation by:

(1)  the Commonwealth; or

(2)  a political subdivision.

(d)  Procedure.--

(1)  A bond must be authorized by resolution of the board

and shall be a limited obligation of the land bank.

(2)  The principal and interest, costs of issuance and

other costs incidental to the bond shall be payable solely

from the income and revenue derived from the sale, lease or

other disposition of the assets of the land bank. The land

bank may secure the bond by a mortgage or other security

device covering all or part of the project from which the

pledged revenue may be derived.

(3)  A refunding bond issued under this section:

(i)  shall be payable from:

(A)  a source described in this chapter; or

(B)  the investment of the proceeds of the

refunding bonds; and

(ii)  shall not constitute an indebtedness or pledge

of the general credit of a political subdivision within

the meaning of a constitutional or statutory limitation

of indebtedness and shall contain a recital to that

effect.

(4)  A bond must comply with the authorizing resolution

as to:

(i)  form;

(ii)  denomination;

(iii)  interest rate;

(iv)  maturity; and

(v)  execution.

(5)  A bond may be subject to redemption at the option of

and in the manner determined by the board in the authorizing

resolution.

(e)  Powers of municipalities.--A municipality may elect to

guarantee, insure or otherwise become primarily or secondarily

obligated on the indebtedness of a land bank subject, however,

to all other provisions of law of this Commonwealth applicable

to municipal indebtedness.

(f)  Sale.--

(1)  A bond shall be issued, sold and delivered in

accordance with the terms and provisions of the authorizing

resolution. The board, to effectuate its best interest, may

determine the manner of sale, public or private, and the

price of the bond.

(2)  The resolution issuing a bond must be published in a

newspaper of general circulation within the jurisdiction in

which the land bank is located.

(g)  Liability.--

(1)  Neither the members of a land bank nor a person

executing the bond shall be liable personally on the bonds by

reason of the issuance of the bond.

(2)  The bond or other obligation of a land bank related

to a bond shall not be a debt of a municipality or of the

Commonwealth. A statement to this effect shall appear on the

face of the bond or obligation.

(3)  On the bond or other obligation of a land bank

related to a bond, all of the following apply:

(i)  The municipality has no liability. This

subparagraph applies to the revenue and property of a

municipality.

(ii)  A political subdivision has no liability. This

subparagraph applies to the revenue and property of a

political subdivision.

§ 2113.  Public records and public access.

(a)  Public records.--A board shall maintain minutes and a

record of its proceedings.

(b)  Public access.--A land bank is subject to:

(1)  65 Pa.C.S. Ch. 7 (relating to open meetings); and

(2)  the act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law.

§ 2114.  Dissolution of land bank.

(a)  General rule.--A land bank may be dissolved as a public

body corporate and politic upon compliance with all of the

following:

(1)  Sixty calendar days' advance written notice of

consideration of a resolution to request dissolution must:

(i)  be given to the land bank jurisdiction which

created the land bank;

(ii)  be published in a local newspaper of general

circulation; and

(iii)  be sent by certified mail to the trustees of

outstanding bonds of the land bank.

(2)  A resolution requesting dissolution must be approved

under section 2105(h)(3) (relating to board).

(b)  Authority.--Upon receipt of a proper resolution

described in subsection (a)(1), the land bank jurisdiction which

created the land bank may dissolve the land bank by adoption of

an ordinance subject to the approval of the mayor in a city or

the county executive in a home rule county. If approved, the

governing body of the land bank jurisdiction which created the

land bank shall file a certified copy of the ordinance with the

Department of State, and the Secretary of the Commonwealth shall

cause the termination of the existence of the land bank to be

noted on the record of incorporation. Upon such filing, the land

bank shall cease to function. The Secretary of the Commonwealth

shall also notify the department of the dissolution of the land

bank.

(c)  Transfer of assets.--Upon dissolution of the land bank,

real property, personal property and other assets of the land

bank shall become the assets of the municipality in which the

property is located. The following shall apply:

(1)  Personal property, including financial assets, of

the land bank shall be divided among participating land bank

jurisdictions in proportion to the population of each

jurisdiction.

(2)  The municipality in which real property is located

shall approve the transfer of title to the municipality.

(d)  Multiple jurisdictions.--If multiple land bank

jurisdictions create a land bank under section 2104(c) (relating

to creation and existence), the withdrawal of one or more land

bank jurisdictions shall not require dissolution of the land

bank unless:

(1)  the intergovernmental cooperation agreement provides

for dissolution in this event; and

(2)  there is no land bank jurisdiction which desires to

continue the existence of the land bank.

§ 2115.  Conflicts of interest.

(a)  State Adverse Interest Act.--The acts and decisions of

members of a board and of employees of a land bank shall be

subject to the act of July 19, 1957 (P.L.1017, No.451), known as

the State Adverse Interest Act.

(b)  Ethical standards.--Board members and land bank

employees are subject to 65 Pa.C.S. Ch. 11 (relating to ethics

standards and financial disclosure).

(c)  Supplemental rules and guidelines.--The board may adopt:

(1)  supplemental rules addressing potential conflicts of

interest; and

(2)  ethical guidelines for members of the board and land

bank employees.

§ 2116.  Construction, intent and scope.

This chapter shall be construed liberally to effectuate the

legislative intent and the purposes as complete and independent

authorization for the implementation of this chapter, and all

powers granted shall be broadly interpreted to effectuate the

intent and purposes and not as a limitation of powers.

§ 2117.  Delinquent property tax enforcement.

(a)  Power to discharge liens and claims.--

(1)  Except as set forth in paragraph (2), a land bank

may, by resolution of the board, discharge a lien or claim to

its real property for tax owed to the members of the land

bank.

(2)  For a land bank to discharge a lien or claim to its

real property under paragraph (1) for tax owed to a school

district, the governing body of the school district must

approve the discharge.

(3)  The land bank must file evidence of the

extinguishment and dissolution of liens or claims with the

county tax claim bureau, including copies of the resolution

by the board, the intergovernmental agreement, receipt of

payment and other necessary and appropriate documentation.

This requirement must be satisfied no later than the earlier

of:

(i)  ten days prior to the conveyance of the

property; or

(ii)  within 30 days after the discharge.

(b)  Remittance of payments.--To the extent that a land bank

receives payments attributable to a lien or claim for real

property taxes owed to a municipality or school district on

property acquired by the land bank, the land bank shall remit

the full amount of the payments to the municipality or school

district.

(c)  Procedure relating to Real Estate Tax Sale Law.--For a

land bank located in a municipality which follows the act of

July 7, 1947 (P.L.1368, No.542), known as the Real Estate Tax

Sale Law, all of the following apply:

(1)  Depending upon the time of filing, the following

apply:

(i)  For a tax claim filed under the Real Estate Tax

Sale Law, the municipality:

(A)  may direct the county tax claim bureau to

assign the claim or lien to the land bank under terms

mutually acceptable to the municipality and land

bank; and

(B)  shall otherwise confer upon the land bank

the rights, privileges and remedies of an assignee

under section 316 of the Real Estate Tax Sale Law.

(ii)  For a tax claim to be filed under the Real

Estate Tax Sale Law, a municipality which has complied

with section 26 of the act of May 25, 1945 (P.L.1050,

No.394), known as the Local Tax Collection Law, and

section 306 of the Real Estate Tax Sale Law:

(A)  may assign and transfer the claim to the

land bank upon terms and conditions mutually

acceptable to the municipality and the land bank; and

(B)  shall otherwise confer upon the land bank

the rights, privileges and remedies of an assignee

under section 316 of the Real Estate Tax Sale Law.

(iii)  For tax liens assigned to the land bank under

subparagraph (i) or (ii), the land bank shall adopt

policies providing for plans and agreements by which low-

income, owner-occupant households may pay their

delinquent taxes. Such plans and agreements shall take

into account the household's ability to pay and shall be

designed to promote the continued occupancy by that

household whenever feasible.

(2)  All of the following apply to upset sales:

(i)  The land bank and the plaintiff in the claim may

enter into an agreement for the land bank to purchase the

property at the minimum amount described in section 605

of the Real Estate Tax Sale Law in the event there is no

bid tendered for a higher amount than the minimum amount.

(ii)  If there is an agreement under subparagraph (i)

and no one bids a higher price than the minimum amount

described in section 605 of the Real Estate Tax Sale Law,

the property shall be sold to the land bank upon payment

by the land bank for the upset sale costs and all liens,

claims and subordinate encumbrances shall be discharged

by the sale.

(3)  All of the following apply to judicial sales:

(i)  Notwithstanding section 612 of the Real Estate

Tax Sale Law, the form, substance and timing of the land

bank's payment of the sales price may be according to the

agreement as is mutually acceptable to the plaintiff and

the land bank if all of the following apply:

(A)  A judicial sale is ordered pursuant to a

judgment on a tax claim.

(B)  The purchaser of the property is the land

bank.

(C)  The sales price is an amount agreed to by

the land bank and the plaintiff in the claim. 

(ii)  The obligation of the land bank to perform in

accordance with the agreement under subparagraph (i)

shall be deemed to be in full satisfaction of the tax

claim which was the basis for the judgment.

(iii)  The land bank, as purchaser at the sale, shall

have an absolute title to the property sold, free and

discharged of tax and municipal claims, liens, mortgages,

ground rents, charges and estates.

(4)  The notice and return under sections 602 and 607(a)

of the Real Estate Tax Sale Law must contain reference to a

potential bid by the land bank.

(5)  The deed to the land bank under sections 608 and 615

of the Real Estate Tax Sale Law shall be delivered and

acknowledged and recorded within 30 days of the date of

confirmation.

(d)  Involuntary transfers.--A land bank which acquires real

property under this section shall be deemed to have acquired the

real property as an involuntary transfer within the meaning of

section 701(b)(1)(vi)(B) of the act of October 18, 1988

(P.L.756, No.108), known as the Hazardous Sites Cleanup Act.

(e)  Expiration.--This section shall expire upon publication

of the notice under section 2120 (relating to determination on

procedural revision).

§ 2118.  Expedited quiet title proceedings.

(a)  Authorization.--

(1)  A land bank may file an action to quiet title to

real property in which the land bank has an interest.

(2)  A land bank may join in a single complaint to quiet

title to one or more parcels of real property.

(3)  For purposes of an action under this section, the

land bank shall be deemed to be the holder of sufficient

legal and equitable interests and possessory rights so as to

qualify the land bank as an adequate complainant in the

action.

(b)  Procedural requirements.--

(1)  Prior to the filing of an action to quiet title the

land bank must conduct an examination of title to determine

the identity of any person possessing a claim or interest in

or to the real property.

(2)  Service of the complaint to quiet title shall be

provided to interested parties as follows:

(i)  By first class mail to the identity and address

reasonably ascertainable by an inspection of public

records.

(ii)  In the case of occupied real property, by first

class mail, addressed to "Occupant."

(iii)  By posting a copy of the notice on the real

property.

(iv)  By publication.

(v)  As ordered by the court.

(3)  As part of the complaint to quiet title, the land

bank must file an affidavit identifying:

(i)  persons discovered under paragraph (1); and

(ii)  the form of service under paragraph (2).

(c)  Hearing.--

(1)  The court shall schedule a hearing on the complaint

within 90 days following filing of the complaint and as to

all matters upon which an answer was not filed by an

interested party.

(2)  The court shall issue its final judgment within 120

days of the filing of the complaint.

§ 2119.  Annual audit and report.

The following shall apply:

(1)  The land bank shall annually, within 120 days after

the end of the fiscal year, submit an audit of income and

expenditures, together with a report of its activities for

the preceding year, to the department.

(2)  A duplicate of the audit and the report shall be

filed with the governing body of:

(i)  the land bank jurisdiction which created the

land bank; and

(ii)  each political subdivision which opted to

participate in the land bank pursuant to an

intergovernmental agreement.

§ 2120.  Determination on procedural revision.

If the department determines that comprehensive reform

legislation on property-tax foreclosure has been enacted

revising procedure under the statutory provisions referred to in

section 2117 (relating to delinquent property tax enforcement),

the department shall transmit notice of the determination to the

Legislative Reference Bureau for publication in the Pennsylvania

Bulletin.

Section 2.  This act shall take effect in 60 days.