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| PRIOR PRINTER'S NO. 1963 | PRINTER'S NO. 2078 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY ARGALL, YAW, PILEGGI, RAFFERTY, WAUGH, FONTANA, SOLOBAY, ERICKSON, SCHWANK, MENSCH, YUDICHAK, EARLL AND STACK, FEBRUARY 16, 2012 |
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| SENATOR YAW, URBAN AFFAIRS AND HOUSING, AS AMENDED, APRIL 2, 2012 |
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| AN ACT |
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1 | Amending Title 68 (Real and Personal Property) of the |
2 | Pennsylvania Consolidated Statutes, providing for the |
3 | creation of land banks for the conversion of vacant or tax- |
4 | delinquent properties into productive use. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Part II of Title 68 of the Pennsylvania |
8 | Consolidated Statutes is amended by adding a subpart to read: |
9 | SUBPART A |
10 | PRELIMINARY PROVISIONS |
11 | Chapter |
12 | 21. Land Banks |
13 | CHAPTER 21 |
14 | LAND BANKS |
15 | Sec. |
16 | 2101. Scope of chapter. |
17 | 2102. Legislative findings and purpose. |
18 | 2103. Definitions. |
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1 | 2104. Creation and existence. |
2 | 2105. Board. |
3 | 2106. Staff. |
4 | 2107. Powers. |
5 | 2108. Eminent domain. |
6 | 2109. Acquisition of property. |
7 | 2110. Disposition of property. |
8 | 2111. Financing of land bank operations. |
9 | 2112. Borrowing and issuance of bonds. |
10 | 2113. Public records and public access. |
11 | 2114. Dissolution of land bank. |
12 | 2115. Conflicts of interest. |
13 | 2116. Construction, intent and scope. |
14 | 2117. Delinquent property tax enforcement. |
15 | 2118. Expedited quiet title proceedings. |
16 | 2119. Annual audit and report. |
17 | 2120. Determination on procedural revision. |
18 | § 2101. Scope of chapter. |
19 | This chapter relates to land banks. |
20 | § 2102. Legislative findings and purpose. |
21 | The General Assembly finds and declares that: |
22 | (1) Strong communities are important to the social and |
23 | economic vitality of this Commonwealth. Whether urban, |
24 | suburban or rural, many communities are struggling to cope |
25 | with vacant, abandoned and tax-delinquent properties. |
26 | (2) Citizens of this Commonwealth are affected adversely |
27 | by vacant, abandoned and tax-delinquent properties, including |
28 | properties which have been vacated or abandoned due to |
29 | mortgage foreclosure. |
30 | (3) Vacant, abandoned and tax-delinquent properties |
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1 | impose significant costs on neighborhoods, communities and |
2 | municipalities by lowering property values, increasing fire |
3 | and police protection costs, decreasing tax revenues and |
4 | undermining community cohesion. |
5 | (4) There is an overriding public need to confront the |
6 | problems caused by vacant, abandoned and tax-delinquent |
7 | properties through the creation of new tools to enable |
8 | municipalities to turn vacant, abandoned and tax-delinquent |
9 | spaces into vibrant places. |
10 | (5) Land banks are one of the tools that municipalities |
11 | may use to facilitate the return of vacant, abandoned and |
12 | tax-delinquent properties to productive use. |
13 | § 2103. Definitions. |
14 | The following words and phrases when used in this chapter |
15 | shall have the meanings given to them in this section unless the |
16 | context clearly indicates otherwise: |
17 | "Board." The board of directors of a land bank. |
18 | "Department." The Department of Community and Economic |
19 | Development of the Commonwealth. |
20 | "Financial institution." A bank, savings association, |
21 | operating subsidiary of a bank or savings association, credit |
22 | union, association licensed to originate mortgage loans or an |
23 | assignee of a mortgage or note originated by such an |
24 | institution. |
25 | "Land bank." A public body and a body corporate and politic |
26 | established under this chapter. |
27 | "Land bank jurisdiction." |
28 | (1) a county, city, borough, township or incorporated |
29 | town with a population of more than 10,000; or |
30 | (2) two or more municipalities with populations less |
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1 | than 10,000 that enter into an intergovernmental cooperation |
2 | agreement to establish and maintain a land bank. |
3 | "Low income." A household with total income at or below 80% |
4 | of the area median income, adjusted for household size, as |
5 | defined annually by the United States Department of Housing and |
6 | Urban Development. |
7 | "Municipality." A county, city, borough, incorporated town, |
8 | township and or home rule municipality. | <-- |
9 | "Owner-occupant." A natural person with a legal or equitable |
10 | ownership interest in property which was the primary residence |
11 | of the person for at least three consecutive months at any point |
12 | in the year preceding the date of initial delinquency. |
13 | "Real property." Land and all structures and fixtures |
14 | thereon and all estates and interests in land, including |
15 | easements, covenants and leaseholders. |
16 | "School district." Any of the classifications of school |
17 | districts specified in section 202 of the act of March 10, 1949 |
18 | (P.L.30, No.14), known as the Public School Code of 1949. The |
19 | term includes, as to any real property acquired, owned or |
20 | conveyed by a land bank, the school district within whose |
21 | geographical jurisdiction the real property is located. |
22 | § 2104. Creation and existence. |
23 | (a) Authority.--Subject, in a city of the first class, to |
24 | its home rule charter, a land bank jurisdiction may elect to |
25 | create a land bank by the adoption of an ordinance to create a |
26 | binding legal obligation. The ordinance must specify the |
27 | following: |
28 | (1) The name of the land bank. |
29 | (2) The number of members of the board. |
30 | (3) The names of individuals to serve as initial members |
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1 | of the board and the length of terms which they will serve. |
2 | (4) The qualifications, manner of selection or |
3 | appointment and terms of office of members of the board. |
4 | (5) The manner by which residents will be provided an |
5 | opportunity to have input into the land bank decision-making |
6 | process. |
7 | (6) Policies regarding former owner-occupants who occupy |
8 | homes acquired by the land bank. These policies shall show a |
9 | preference for keeping the former owner-occupants in their |
10 | homes, whenever feasible. |
11 | (7) Additional terms and conditions the land bank |
12 | jurisdiction deems reasonable and necessary for operation of |
13 | the land bank. |
14 | (b) Filing.--The governing body of the land bank |
15 | jurisdiction which creates a land bank shall file a copy of the |
16 | ordinance with the department and with the Department of State. |
17 | After receipt of the ordinance, the Secretary of the |
18 | Commonwealth shall issue a certificate of incorporation. |
19 | (c) Combinations.-- |
20 | (1) The authority under subsection (a) may be exercised |
21 | in combination pursuant to an intergovernmental cooperation |
22 | agreement by: |
23 | (i) more than one land bank jurisdiction; or |
24 | (ii) a land bank jurisdiction and one or more |
25 | municipalities. |
26 | (2) If a land bank is established under paragraph (1), |
27 | the intergovernmental cooperation agreement must specify |
28 | matters identified in subsection (a). |
29 | (d) Limitation.--Except as set forth in subsection (c), if a |
30 | county establishes a land bank, the land bank shall have the |
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1 | power to acquire real property only in those portions of the |
2 | county located outside of the geographical boundaries of any |
3 | other land bank established by another land bank jurisdiction |
4 | located partially or entirely within the county. |
5 | (e) Participation by school district.--A school district may |
6 | participate in a land bank pursuant to an intergovernmental |
7 | cooperation agreement. The agreement must specify the |
8 | membership, if any, of the school district on the board of the |
9 | land bank and the actions of the land bank which are subject to |
10 | approval by the school district. |
11 | (f) Legal status of land bank.--A land bank shall: |
12 | (1) be a public body corporate and politic; and |
13 | (2) have duration until terminated and dissolved under |
14 | section 2114 (relating to dissolution of land bank). |
15 | (g) Collaboration.--A land bank, a political subdivision and |
16 | another municipal entity may enter into an intergovernmental |
17 | cooperation agreement relative to the operations of a land bank. |
18 | § 2105. Board. |
19 | (a) Membership.--A board shall consist of an odd number of |
20 | members and be not less than 5 members nor more than 11 members. |
21 | Unless restricted by the actions or agreements specified in |
22 | section 2104 (relating to creation and existence) and subject to |
23 | the limits stated in this section, the size of the board may be |
24 | adjusted in accordance with bylaws of the land bank. |
25 | (b) Eligibility to serve on board.-- |
26 | (1) Notwithstanding any law to the contrary, a public |
27 | officer shall be eligible to serve as a board member, and the |
28 | acceptance of the appointment shall neither terminate nor |
29 | impair that public office. |
30 | (2) A municipal employee shall be eligible to serve as a |
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1 | board member. |
2 | (3) An established land bank board shall include at |
3 | least one voting member who: |
4 | (i) is a resident of the land bank jurisdiction; |
5 | (ii) is not a public official or municipal employee; |
6 | and |
7 | (iii) maintains membership with a recognized civic |
8 | organization within the land bank jurisdiction. |
9 | (4) A member removed under subsection (d)(3) shall be |
10 | ineligible for reappointment to the board unless the |
11 | reappointment is confirmed unanimously by the board. |
12 | (5) As used in this subsection, the term "public |
13 | officer" means an individual who is elected to a municipal |
14 | office. |
15 | (c) Officers.--The members of the board shall select |
16 | annually from among their members a chair, vice chair, |
17 | secretary, treasurer and other officers as the board determines. |
18 | (d) Rules.--The board shall establish rules on all of the |
19 | following: |
20 | (1) Duties of officers under subsection (c). |
21 | (2) Attendance and participation of members in its |
22 | regular and special meetings. |
23 | (3) A procedure to remove a member by a majority vote of |
24 | the other members for failure to comply with a rule. |
25 | (4) Other matters necessary to govern the conduct of a |
26 | land bank. |
27 | (e) Vacancies.--A vacancy on the board shall be filled in |
28 | the same manner as the original appointment. Upon removal under |
29 | subsection (d)(3), the position shall become vacant. |
30 | (f) Compensation.--Board members shall serve without |
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1 | compensation. The board may reimburse a member for expenses |
2 | actually incurred in the performance of duties on behalf of the |
3 | land bank. |
4 | (g) Meetings.-- |
5 | (1) The board shall meet as follows: |
6 | (i) In regular session according to a schedule |
7 | adopted by the board. |
8 | (ii) In special session: |
9 | (A) as convened by the chair; or |
10 | (B) upon written notice signed by a majority of |
11 | the members. |
12 | (2) A majority of the board, excluding vacancies, |
13 | constitutes a quorum. Physical presence is required under |
14 | this paragraph. |
15 | (h) Voting.-- |
16 | (1) Except as set forth in paragraph (2) or (3), action |
17 | of the board must be approved by the affirmative vote of a |
18 | majority of the board present and voting. |
19 | (2) Action of the board on the following matters must be |
20 | approved by a majority of the entire board membership: |
21 | (i) Adoption of bylaws. |
22 | (ii) Adoption of rules under subsection (d). |
23 | (iii) Hiring or firing of an employee or contractor |
24 | of the land bank. This function may, by majority vote of |
25 | the entire board membership, be delegated by the board to |
26 | a specified officer or committee of the land bank. |
27 | (iv) Incurring of debt. |
28 | (v) Adoption or amendment of the annual budget. |
29 | (vi) Sale, lease, encumbrance or alienation of real |
30 | property or personal property with a value of more than |
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1 | $50,000. |
2 | (3) A resolution under section 2114 (relating to |
3 | dissolution of a land bank) must be approved by two-thirds of |
4 | the entire board membership. |
5 | (4) A member of the board may not vote by proxy. |
6 | (5) A member may request a recorded vote on any |
7 | resolution or action of the land bank. |
8 | (i) Immunity.--A land bank jurisdiction that establishes a |
9 | land bank and a municipality and a school district that are |
10 | parties to an intergovernmental cooperation agreement |
11 | establishing a land bank shall not be liable personally on the |
12 | bonds or other obligations of the land bank. Rights of creditors |
13 | of a land bank shall be solely against the land bank. |
14 | § 2106. Staff. |
15 | (a) Employees.--A land bank may employ or enter into a |
16 | contract for an executive director, counsel and legal staff, |
17 | technical experts and other individuals and may determine the |
18 | qualifications and fix the compensation and benefits of those |
19 | employees. |
20 | (b) Contracts.--A land bank may enter into a contract with a |
21 | municipality for: |
22 | (1) the municipality to provide staffing services to the |
23 | land bank; or |
24 | (2) the land bank to provide staffing services to the |
25 | municipality. |
26 | § 2107. Powers. |
27 | A land bank constitutes a public body, corporate and politic, |
28 | exercising public powers of the Commonwealth necessary or |
29 | appropriate to carry out this chapter, including the following |
30 | powers: |
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1 | (1) To adopt, amend and repeal bylaws for the regulation |
2 | of its affairs and the conduct of its business. |
3 | (2) To sue and be sued in its own name and be a party in |
4 | a civil action. This paragraph includes an action to clear |
5 | title to property of the land bank. |
6 | (3) To adopt a seal and to alter the same at pleasure. |
7 | (4) To borrow from Federal Government funds, from the |
8 | Commonwealth, from private lenders or from municipalities, as |
9 | necessary, for the operation and work of the land bank. |
10 | (5) To issue negotiable revenue bonds and notes |
11 | according to the provisions of this chapter. |
12 | (6) To procure insurance or guarantees from the Federal |
13 | Government or the Commonwealth of the payment of debt |
14 | incurred by the land bank, and to pay premiums in connection |
15 | with the insurance or guarantee. |
16 | (7) To enter into contracts and other instruments |
17 | necessary, incidental or convenient to the performance of its |
18 | duties and the exercise of its powers. This paragraph |
19 | includes intergovernmental cooperation agreements under 53 |
20 | Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental |
21 | cooperation) for the joint exercise of powers under this |
22 | chapter. |
23 | (8) To enter into contracts and intergovernmental |
24 | cooperation agreements with municipalities for the |
25 | performance of functions by municipalities on behalf of the |
26 | land bank or by the land bank on behalf of municipalities. |
27 | (9) To make and execute contracts and other instruments |
28 | necessary or convenient to the exercise of the powers of the |
29 | land bank. Any contract or instrument signed shall be |
30 | executed by and for the land bank if the contract or |
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1 | instrument is signed, including an authorized facsimile |
2 | signature, by: |
3 | (i) the chair or vice chair of the land bank; and |
4 | (ii) either: |
5 | (A) the secretary or assistant secretary of the |
6 | land bank; or |
7 | (B) the treasurer or assistant treasurer of the |
8 | land bank. |
9 | (10) To procure insurance against losses in connection |
10 | with the real property, assets or activities of the land |
11 | bank. |
12 | (11) To invest money of the land bank at the discretion |
13 | of the board in instruments, obligations, securities or |
14 | property determined proper by the board and to name and use |
15 | depositories for its money. |
16 | (12) To enter into contracts for the management of, the |
17 | collection of rent from or the sale of real property of the |
18 | land bank. |
19 | (13) To design, develop, construct, demolish, |
20 | reconstruct, rehabilitate, renovate, relocate and otherwise |
21 | improve real property or rights or interests in real |
22 | property. |
23 | (14) To fix, charge and collect rents, fees and charges |
24 | for the use of real property of the land bank and for |
25 | services provided by the land bank. |
26 | (15) To grant or acquire licenses, easements, leases or |
27 | options with respect to real property of the land bank. |
28 | (16) To enter into partnerships, joint ventures and |
29 | other collaborative relationships with municipalities and |
30 | other public and private entities for the ownership, |
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1 | management, development and disposition of real property. |
2 | (17) To organize and reorganize the executive, |
3 | administrative, clerical and other departments of the land |
4 | bank and to fix the duties, powers and compensation of |
5 | employees, agents and consultants of the land bank. |
6 | (18) To do all other things necessary or convenient to |
7 | achieve the objectives and purposes of the land bank or other |
8 | law related to the purposes and responsibility of the land |
9 | bank. |
10 | § 2108. Eminent domain. |
11 | A land bank does not possess the power of eminent domain. |
12 | § 2109. Acquisition of property. |
13 | (a) Title to be held in its name.--A land bank shall hold in |
14 | its own name all real property it acquires. |
15 | (b) Tax exemption.-- |
16 | (1) Except as set forth in paragraph (2), the real |
17 | property of a land bank and its income and operations are |
18 | exempt from State and local tax. |
19 | (2) Paragraph (1) does not apply to real property of a |
20 | land bank after the fifth consecutive year in which the real |
21 | property is continuously leased to a private third party. |
22 | However, real property shall continue to be exempt from State |
23 | and local taxes if it is leased to a nonprofit or |
24 | governmental agency at substantially less than fair market |
25 | value. |
26 | (c) Methods of acquisition.--A land bank may acquire real |
27 | property or interests in real property by any means on terms and |
28 | conditions and in a manner the land bank considers proper. |
29 | (d) Acquisitions from municipalities.-- |
30 | (1) A land bank may acquire real property by purchase |
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1 | contracts, lease purchase agreements, installment sales |
2 | contracts and land contracts and may accept transfers from |
3 | municipalities upon terms and conditions as agreed to by the |
4 | land bank and the municipality. |
5 | (2) A municipality may transfer to a land bank real |
6 | property and interests in real property of the municipality |
7 | on terms and conditions and according to procedures |
8 | determined by the municipality as long as the real property |
9 | is located within the jurisdiction of the land bank. |
10 | (3) A redevelopment authority located within a land bank |
11 | jurisdiction established under this chapter may, with the |
12 | consent of the local governing body and without a |
13 | redevelopment contract, convey transfer property that it | <-- |
14 | acquired before the effective date of this section to the | <-- |
15 | land bank. A conveyance transfer under this paragraph must be | <-- |
16 | with shall convey fee simple title, free of all liens and | <-- |
17 | encumbrances. |
18 | (e) Maintenance.--A land bank shall maintain all of its real |
19 | property in accordance with the statutes and ordinances of the |
20 | jurisdiction in which the real property is located. |
21 | (f) Prohibition.-- |
22 | (1) Subject to the provisions of paragraph (2), a land |
23 | bank may not own or hold real property located outside the |
24 | jurisdictional boundaries of the entities which created the |
25 | land bank under section 2104(c) (relating to creation and |
26 | existence). |
27 | (2) A land bank may be granted authority pursuant to an |
28 | intergovernmental cooperation agreement with a municipality |
29 | to manage and maintain real property located within the |
30 | jurisdiction of the municipality. |
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1 | (g) Tax claim bureaus.--A tax claim bureau may transfer to a |
2 | land bank real property of the county held by the tax claim |
3 | bureau, as trustee for the county, in a repository for unsold |
4 | property under section 626 of the act of July 7, 1947 (P.L.1368, |
5 | No.542), known as the Real Estate Tax Sale Law. |
6 | (h) Acquisition of tax delinquent properties.--If authorized |
7 | by the land bank jurisdiction which created a land bank or |
8 | otherwise by intergovernmental cooperation agreement, a land |
9 | bank may accept donations of real property and extinguish |
10 | delinquent claims for taxes as to the property under section 5.1 |
11 | of the act of May 16, 1923 (P.L.207, No.153), referred to as the |
12 | Municipal Claim and Tax Lien Law, or section 303 of the Real |
13 | Estate Tax Sale Law. For the purposes of this subsection, the |
14 | land bank shall have all rights and obligations of the |
15 | municipality provided for in section 5.1 of the Municipal Claim |
16 | and Tax Lien Law and of a local taxing authority provided for in |
17 | section 303 of the Real Estate Tax Sale Law. |
18 | § 2110. Disposition of property. |
19 | (a) Public access to inventory.--A land bank shall maintain |
20 | and make available for public review and inspection an inventory |
21 | of real property held by the land bank. |
22 | (b) Power.--A land bank may convey, exchange, sell, |
23 | transfer, lease, grant or mortgage interests in real property of |
24 | the land bank in the form and by the method determined to be in |
25 | the best interests of the land bank. |
26 | (c) Consideration.-- |
27 | (1) A land bank shall determine the amount and form of |
28 | consideration necessary to convey, exchange, sell, transfer, |
29 | lease as lessor, grant or mortgage interests in real |
30 | property. |
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1 | (2) Consideration may take the form of monetary payments |
2 | and secured financial obligations, covenants and conditions |
3 | related to the present and future use of the property, |
4 | contractual commitments of the transferee and other forms of |
5 | consideration as determined by the board to be in the best |
6 | interest of the land bank. |
7 | (d) Policies and procedures.-- |
8 | (1) A board shall determine and state in the land bank |
9 | policies and procedures the general terms and conditions for |
10 | consideration to be received by the land bank for the |
11 | transfer of real property and interests in real property. |
12 | (2) Requirements which may be applicable to the |
13 | disposition of real property and interests in real property |
14 | by municipalities shall not be applicable to the disposition |
15 | of real property and interests in real property by a land |
16 | bank. |
17 | (e) Ranking of priorities.-- |
18 | (1) A land bank jurisdiction may establish a |
19 | hierarchical ranking of priorities for the use of real |
20 | property conveyed by a land bank, including use for: |
21 | (i) Purely public spaces and places. |
22 | (ii) Affordable housing. |
23 | (iii) Retail, commercial and industrial activities. |
24 | (iv) Conservation areas. |
25 | (2) The priorities established may be for the entire |
26 | land bank jurisdiction or may be set according to the needs |
27 | of different neighborhoods, municipalities or other locations |
28 | within the land bank jurisdiction, or according to the nature |
29 | of the real property. |
30 | (f) Land use plans.--A land bank shall consider all duly |
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1 | adopted land use plans and make reasonable efforts to coordinate |
2 | the disposition of land bank real property with such land use |
3 | plans. |
4 | (g) Specific voting and approval requirements.-- |
5 | (1) A land bank jurisdiction may, in its ordinance |
6 | creating a land bank or, in the case of multiple land bank |
7 | jurisdictions and municipalities creating a single land bank |
8 | in the applicable intergovernmental cooperation agreement, |
9 | require that a particular form of disposition of real |
10 | property or a disposition of real property located within |
11 | specified jurisdictions be subject to specified voting and |
12 | approval requirements of the board. |
13 | (2) Except as restricted or constrained under paragraph |
14 | (1), the board may delegate to officers and employees the |
15 | authority to enter into and execute agreements, instruments |
16 | of conveyance and other related documents pertaining to the |
17 | conveyance of real property by the land bank. |
18 | § 2111. Financing of land bank operations. |
19 | (a) General rule.--A land bank may receive funding through |
20 | grants and loans from: |
21 | (1) the Federal Government; |
22 | (2) the Commonwealth; |
23 | (3) a municipality; |
24 | (4) the land bank jurisdiction which created the land |
25 | bank; and |
26 | (5) private sources. |
27 | (b) Funding.--A land bank may receive and retain payments |
28 | for services rendered, for rents and leasehold payments |
29 | received, for consideration for disposition of real and personal |
30 | property, for proceeds of insurance coverage for losses |
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1 | incurred, for income from investments and for an asset and |
2 | activity lawfully permitted to a land bank under this chapter. |
3 | (c) Allocated real property taxes.-- |
4 | (1) A taxing jurisdiction may authorize the remittance |
5 | or dedication of a portion of real property taxes collected |
6 | pursuant to the laws of this Commonwealth to a land bank on |
7 | real property conveyed by a land bank. |
8 | (2) Allocation of property tax revenues in accordance |
9 | with this subsection, if authorized by the taxing |
10 | jurisdiction, shall commence with the first taxable year |
11 | following the date of conveyance and continue for a period of |
12 | up to five years and may not exceed a maximum of 50% of the |
13 | aggregate property tax revenues generated by the property. |
14 | (3) Remittance or dedication of real property taxes |
15 | shall include the real property taxes of a school district |
16 | only if the school district enters into an agreement with the |
17 | land bank for the remittance or dedication. |
18 | § 2112. Borrowing and issuance of bonds. |
19 | (a) Authority.-- |
20 | (1) A land bank may issue a bond for any of its |
21 | corporate purposes. |
22 | (2) The principal and interest of a bond shall be |
23 | payable from the land bank's general revenue. |
24 | (3) The bond may be secured by any of the following: |
25 | (i) A pledge of revenue revenues. This subparagraph | <-- |
26 | includes a grant or contribution from: |
27 | (A) The Federal Government or a Federal agency |
28 | or instrumentality. |
29 | (B) The Commonwealth, a Commonwealth agency or |
30 | an instrumentality of the Commonwealth. |
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1 | (ii) A mortgage of property of the land bank. |
2 | (b) Nature.--The bond must meet the requirements of 13 |
3 | Pa.C.S. § 3104 (relating to negotiable instrument). |
4 | (c) Tax exempt.--A bond and the income from the bond is |
5 | exempt from taxation by: |
6 | (1) the Commonwealth; or |
7 | (2) a political subdivision. |
8 | (d) Procedure.-- |
9 | (1) A bond must be authorized by resolution of the board |
10 | and shall be a limited obligation of the land bank. |
11 | (2) The principal and interest, costs of issuance and |
12 | other costs incidental to the bond shall be payable solely |
13 | from the income and revenue derived from the sale, lease or |
14 | other disposition of the assets of the land bank. The land |
15 | bank may secure the bond by a mortgage or other security |
16 | device covering all or part of the project from which the |
17 | pledged revenue revenues may be derived. | <-- |
18 | (3) A refunding bond issued under this section: |
19 | (i) shall be payable from: |
20 | (A) a source described in this chapter; or |
21 | (B) the investment of the proceeds of the |
22 | refunding bonds; and |
23 | (ii) shall not constitute an indebtedness or pledge |
24 | of the general credit of a political subdivision within |
25 | the meaning of a constitutional or statutory limitation |
26 | of indebtedness and shall contain a recital to that |
27 | effect. |
28 | (4) A bond must comply with the authorizing resolution |
29 | as to: |
30 | (i) form; |
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1 | (ii) denomination; |
2 | (iii) interest rate; |
3 | (iv) maturity; and |
4 | (v) execution. |
5 | (5) A bond may be subject to redemption at the option of |
6 | and in the manner determined by the board in the authorizing |
7 | resolution. |
8 | (e) Powers of municipalities.--A municipality may elect to |
9 | guarantee, insure or otherwise become primarily or secondarily |
10 | obligated on the indebtedness of a land bank subject, however, |
11 | to all other provisions of law of this Commonwealth applicable |
12 | to municipal indebtedness. |
13 | (f) Sale.-- |
14 | (1) A bond shall be issued, sold and delivered in |
15 | accordance with the terms and provisions of the authorizing |
16 | resolution. The board, to effectuate its best interest, may |
17 | determine the manner of sale, public or private, and the |
18 | price of the bond. |
19 | (2) The resolution issuing a bond must be published in a |
20 | newspaper of general circulation within the jurisdiction in |
21 | which the land bank is located. |
22 | (g) Liability.-- |
23 | (1) Neither the members of a land bank nor a person |
24 | executing the bond shall be liable personally on the bonds by |
25 | reason of the issuance of the bond. |
26 | (2) The bond or other obligation of a land bank related |
27 | to a bond shall not be a debt of a municipality or of the |
28 | Commonwealth. A statement to this effect shall appear on the |
29 | face of the bond or obligation. |
30 | (3) On the bond or other obligation of a land bank |
|
1 | related to a bond, all of the following apply: |
2 | (i) The municipality Commonwealth has no liability. | <-- |
3 | This subparagraph applies to the revenue and property of |
4 | a municipality the Commonwealth. | <-- |
5 | (ii) A political subdivision municipality has no | <-- |
6 | liability. This subparagraph applies to the revenue and |
7 | property of a political subdivision municipality. | <-- |
8 | § 2113. Public records and public access. |
9 | (a) Public records.--A board shall maintain keep minutes and | <-- |
10 | a record of its proceedings. |
11 | (b) Public access.--A land bank is subject to: |
12 | (1) 65 Pa.C.S. Ch. 7 (relating to open meetings); and |
13 | (2) the act of February 14, 2008 (P.L.6, No.3), known as |
14 | the Right-to-Know Law. |
15 | § 2114. Dissolution of land bank. |
16 | (a) General rule.--A land bank may be dissolved as a public |
17 | body corporate and politic upon compliance with all of the |
18 | following: |
19 | (1) Sixty calendar days' advance written notice of |
20 | consideration of a resolution to request dissolution must: |
21 | (i) be given to the land bank jurisdiction which |
22 | created the land bank; |
23 | (ii) be published in a local newspaper of general |
24 | circulation; and |
25 | (iii) be sent by certified mail to the trustees of |
26 | outstanding bonds of the land bank. |
27 | (2) A resolution requesting dissolution must be approved |
28 | under section 2105(h)(3) (relating to board). |
29 | (b) Authority.--Upon receipt of a proper resolution |
30 | described in subsection (a)(1), the land bank jurisdiction which |
|
1 | created the land bank may dissolve the land bank by adoption of |
2 | an ordinance subject to the approval of the mayor in a city or |
3 | the county executive in a home rule county. If approved, the |
4 | governing body of the land bank jurisdiction which created the |
5 | land bank shall file a certified copy of the ordinance with the |
6 | Department of State, and the Secretary of the Commonwealth shall |
7 | cause the termination of the existence of the land bank to be |
8 | noted on the record of incorporation. Upon such filing, the land |
9 | bank shall cease to function. The Secretary of the Commonwealth |
10 | shall also notify the department of the dissolution of the land |
11 | bank. |
12 | (c) Transfer of assets.--Upon dissolution of the land bank, |
13 | real property, personal property and other assets of the land |
14 | bank shall become the assets of the municipality in which the |
15 | property is located. The following shall apply: |
16 | (1) Personal property, including financial assets, of |
17 | the land bank shall be divided among participating land bank |
18 | jurisdictions in proportion to the population of each |
19 | jurisdiction. |
20 | (2) The municipality in which real property is located |
21 | shall approve the transfer of title to the municipality. |
22 | (d) Multiple jurisdictions.--If multiple land bank |
23 | jurisdictions create a land bank under section 2104(c) (relating |
24 | to creation and existence), the withdrawal of one or more land |
25 | bank jurisdictions shall not require dissolution of the land |
26 | bank unless: |
27 | (1) the intergovernmental cooperation agreement provides |
28 | for dissolution in this event; and |
29 | (2) there is no land bank jurisdiction which desires to |
30 | continue the existence of the land bank. |
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1 | § 2115. Conflicts of interest. |
2 | (a) State Adverse Interest Act.--The acts and decisions of |
3 | members of a board and of employees of a land bank shall be |
4 | subject to the act of July 19, 1957 (P.L.1017, No.451), known as |
5 | the State Adverse Interest Act. |
6 | (b) Ethical standards.--Board members and land bank |
7 | employees are subject to 65 Pa.C.S. Ch. 11 (relating to ethics |
8 | standards and financial disclosure). |
9 | (c) Supplemental rules and guidelines.--The board may adopt: |
10 | (1) supplemental rules addressing potential conflicts of |
11 | interest; and |
12 | (2) ethical guidelines for members of the board and land |
13 | bank employees. |
14 | § 2116. Construction, intent and scope. |
15 | This chapter shall be construed liberally to effectuate the |
16 | legislative intent and the purposes as complete and independent |
17 | authorization for the implementation of this chapter, and all |
18 | powers granted shall be broadly interpreted to effectuate the |
19 | intent and purposes and not as a limitation of powers. |
20 | § 2117. Delinquent property tax enforcement. |
21 | (a) Power to discharge liens and claims.-- |
22 | (1) Except as set forth in paragraph (2), a land bank |
23 | may, by resolution of the board, discharge a lien or claim to |
24 | its real property for tax owed to the members of the land |
25 | bank. |
26 | (2) For a land bank to discharge a lien or claim to its |
27 | real property under paragraph (1) for tax owed to a school |
28 | district, the governing body of the school district must |
29 | approve the discharge. |
30 | (3) The land bank must file evidence of the |
|
1 | extinguishment and dissolution of liens or claims with the |
2 | county tax claim bureau, including copies of the resolution |
3 | by the board, the intergovernmental agreement, receipt of |
4 | payment and other necessary and appropriate documentation. |
5 | This requirement must be satisfied no later than the earlier |
6 | of: |
7 | (i) ten days prior to the conveyance of the |
8 | property; or |
9 | (ii) within 30 days after the discharge. |
10 | (b) Remittance of payments.--To the extent that a land bank |
11 | receives payments attributable to a lien or claim for real |
12 | property taxes owed to a municipality or school district on |
13 | property acquired by the land bank, the land bank shall remit |
14 | the full amount of the payments to the municipality or school |
15 | district. |
16 | (c) Procedure relating to Real Estate Tax Sale Law.--For a |
17 | land bank located in a municipality which follows the act of |
18 | July 7, 1947 (P.L.1368, No.542), known as the Real Estate Tax |
19 | Sale Law, all of the following apply: |
20 | (1) Depending upon the time of filing, the following |
21 | apply: |
22 | (i) For a tax claim filed under the Real Estate Tax |
23 | Sale Law, the municipality: |
24 | (A) may direct the county tax claim bureau to |
25 | assign the claim or lien to the land bank under terms |
26 | mutually acceptable to the municipality and land |
27 | bank; and |
28 | (B) shall otherwise confer upon the land bank |
29 | the rights, privileges and remedies of an assignee |
30 | under section 316 of the Real Estate Tax Sale Law. |
|
1 | (ii) For a tax claim to be filed under the Real |
2 | Estate Tax Sale Law, a municipality which has complied |
3 | with section 26 of the act of May 25, 1945 (P.L.1050, |
4 | No.394), known as the Local Tax Collection Law, and |
5 | section 306 of the Real Estate Tax Sale Law: |
6 | (A) may assign and transfer the claim to the |
7 | land bank upon terms and conditions mutually |
8 | acceptable to the municipality and the land bank; and |
9 | (B) shall otherwise confer upon the land bank |
10 | the rights, privileges and remedies of an assignee |
11 | under section 316 of the Real Estate Tax Sale Law. |
12 | (iii) For tax liens assigned to the land bank under |
13 | subparagraph (i) or (ii), the land bank shall adopt |
14 | policies providing for plans and agreements by which low- |
15 | income, owner-occupant households may pay their |
16 | delinquent taxes. Such plans and agreements shall take |
17 | into account the household's ability to pay and shall be |
18 | designed to promote the continued occupancy by that |
19 | household whenever feasible. |
20 | (2) All of the following apply to upset sales: |
21 | (i) The land bank and the plaintiff in the claim may |
22 | enter into an agreement for the land bank to purchase the |
23 | property at the minimum amount described in section 605 |
24 | of the Real Estate Tax Sale Law in the event there is no |
25 | bid tendered for a higher amount than the minimum amount. |
26 | (ii) If there is an agreement under subparagraph (i) |
27 | and no one bids a higher price than the minimum amount |
28 | described in section 605 of the Real Estate Tax Sale Law, |
29 | the property shall be sold to the land bank upon payment |
30 | by the land bank for the upset sale costs and all liens, |
|
1 | claims and subordinate encumbrances shall be discharged |
2 | by the sale. |
3 | (3) All of the following apply to judicial sales: |
4 | (i) Notwithstanding section 612 of the Real Estate |
5 | Tax Sale Law, the form, substance and timing of the land |
6 | bank's payment of the sales price may be according to the |
7 | agreement as is mutually acceptable to the plaintiff and |
8 | the land bank if all of the following apply: |
9 | (A) A judicial sale is ordered pursuant to a |
10 | judgment on a tax claim. |
11 | (B) The purchaser of the property is the land |
12 | bank. |
13 | (C) The sales price is an amount agreed to by |
14 | the land bank and the plaintiff in the claim. |
15 | (ii) The obligation of the land bank to perform in |
16 | accordance with the agreement under subparagraph (i) |
17 | shall be deemed to be in full satisfaction of the tax |
18 | claim which was the basis for the judgment. |
19 | (iii) The land bank, as purchaser at the sale, shall |
20 | have an absolute title to the property sold, free and |
21 | discharged of tax and municipal claims, liens, mortgages, |
22 | ground rents, charges and estates. |
23 | (4) The notice and return under sections 602 and 607(a) |
24 | of the Real Estate Tax Sale Law must contain reference to a |
25 | potential bid by the land bank. |
26 | (5) The deed to the land bank under sections 608 and 615 |
27 | of the Real Estate Tax Sale Law shall be delivered and |
28 | acknowledged and recorded within 30 days of the date of |
29 | confirmation. |
30 | (6) All of the following apply to judicial sales for | <-- |
|
1 | multiple tracts: |
2 | (i) In a petition for a judicial sale, the |
3 | municipality or the land bank, if it is the holder of |
4 | municipal tax liens, may combine in a single petition |
5 | multiple tracts of real property if the petition and |
6 | accompanying affidavits provide all of the following: |
7 | (A) Identification of each tract of real |
8 | property. |
9 | (B) The identities of each party having an |
10 | interest in a tract of real property. |
11 | (C) The amount of the tax liens then due and |
12 | owing, together with associated interest, costs and |
13 | fees. |
14 | (D) The nature of the notice of the proposed |
15 | sale provided to the interested parties. |
16 | (ii) The court may authorize in a single final |
17 | judgment that all or part of the real properties |
18 | identified in the petition be sold free and clear of tax |
19 | and municipal claims, mortgages, liens, charges and |
20 | estates and ground rents. |
21 | (d) Procedure relating to Municipal Claim and Tax Lien |
22 | Law.--For a land bank located in a municipality which follows |
23 | the act of May 16, 1923 (P.L.207, No.153), referred to as the |
24 | Municipal Claim and Tax Lien Law, all of the following apply: |
25 | (1) Regardless of the time of filing, the municipality: |
26 | (i) may assign and transfer a tax or municipal claim |
27 | to the land bank upon terms and conditions mutually |
28 | acceptable to the municipality and land bank; |
29 | (ii) shall otherwise confer upon the land bank the |
30 | rights, privileges and remedies of an assignee as stated |
|
1 | in section 33 of the Municipal Claim and Tax Lien Law; |
2 | and |
3 | (iii) for tax liens assigned to the land bank under |
4 | this section, the land bank shall adopt policies |
5 | providing for plans and agreements by which low-income, |
6 | owner-occupant households may pay their delinquent taxes. |
7 | Such plans and agreements shall take into account the |
8 | household's ability to pay and shall be designed to |
9 | promote the continued occupancy by that household |
10 | whenever feasible. |
11 | (2) All of the following apply to upset sales: |
12 | (i) The land bank and the plaintiff in the claim may |
13 | enter into an agreement for the land bank to purchase the |
14 | property at the minimum amount described in section 29 of |
15 | the Municipal Claim and Tax Lien Law in the event there |
16 | is no bid tendered for a higher amount than the minimum |
17 | amount. |
18 | (ii) If there is an agreement under subparagraph (i) |
19 | and no one bids a higher price than the minimum amount |
20 | described in section 29 of the Municipal Claim and Tax |
21 | Lien Law, the property shall be sold to the land bank |
22 | upon payment by the land bank for the upset sale costs |
23 | and liens, claims and subordinate encumbrances shall be |
24 | discharged by the sale. |
25 | (3) All of the following apply to judicial sales: |
26 | (i) Notwithstanding section 31 of the Municipal |
27 | Claim and Tax Lien Law, the form, substance and timing of |
28 | the land bank's payment of the sales price may be |
29 | according to the agreement mutually acceptable to the |
30 | plaintiff and the land bank if all of the following |
|
1 | apply: |
2 | (A) A judicial sale is ordered pursuant to a |
3 | judgment on a tax or municipal claim. |
4 | (B) The purchaser of the property is the land |
5 | bank. |
6 | (C) The sales price is an amount agreed to by |
7 | the land bank and the plaintiff. |
8 | (ii) The obligation of the land bank to perform in |
9 | accordance with the agreement under subparagraph (i) |
10 | shall be deemed to be in full satisfaction of the |
11 | municipal claim which was the basis for the judgment. |
12 | (iii) The land bank, as purchaser at the sale, shall |
13 | have an absolute title to the property sold, free and |
14 | discharged of tax and municipal claims, liens, mortgages, |
15 | ground rents, charges and estates. |
16 | (4) Notwithstanding sections 31.1 and 31.2 of the |
17 | Municipal Claim and Tax Lien Law and sections 4 and 6 of the |
18 | act of March 1, 1956 (1955 P.L.1196, No.372), entitled "An |
19 | act authorizing the sale of vacant land located in areas |
20 | certified as conservation areas in counties of the first |
21 | class, under a judgment obtained on a tax claim, by the |
22 | sheriff of the county; providing for the discharge of all |
23 | liens, mortgages, ground rents, estates and claims against |
24 | the property by sale; and limiting the right of redemption," |
25 | all of the following apply: |
26 | (i) The land bank may tender a bid at the sale in an |
27 | amount equal to the total amount of all municipal claims |
28 | and liens which were the basis for the judgment. Upon |
29 | tender under this subparagraph, the property shall be |
30 | deemed sold to the land bank regardless of bids by other |
|
1 | parties. |
2 | (ii) The bid of the land bank shall be paid as to |
3 | its form, substance and timing according to an agreement |
4 | that is mutually acceptable to the plaintiff and the land |
5 | bank. The obligation of the land bank to perform in |
6 | accordance with the agreement shall be deemed to be in |
7 | full satisfaction of the tax or municipal claim which was |
8 | the basis for the judgment. |
9 | (iii) The land bank, as purchaser at the sale, shall |
10 | have an absolute title to the property sold, free and |
11 | discharged of tax and municipal claims, liens, mortgages, |
12 | ground rents, charges and estates. |
13 | (iv) The deed to the land bank shall be executed, |
14 | acknowledged and delivered within 30 days of the sale. |
15 | (5) All of the following apply to judicial sales for |
16 | multiple tracts: |
17 | (i) In a petition for a judicial sale, a |
18 | municipality or a land bank, if it is the holder of |
19 | municipal tax liens, may combine in a petition multiple |
20 | tracts of real property if the petition and accompanying |
21 | affidavits provide all of the following: |
22 | (A) Identification of each tract of real |
23 | property. |
24 | (B) The identities of each party having an |
25 | interest in a tract of real property. |
26 | (C) The amount of the tax liens then due and |
27 | owing, together with associated interest, costs and |
28 | fees. |
29 | (D) The nature of the notice of the proposed |
30 | sale provided to the interested parties. |
|
1 | (ii) The court may authorize in a single final |
2 | judgment that all or part of the real properties |
3 | identified in the petition be sold free and clear of tax |
4 | and municipal claims, mortgages, liens, ground rents, |
5 | charges and estates. |
6 | (e) Procedure relating to Second Class City Treasurer's Sale |
7 | and Collection Act.--For a land bank located in a municipality |
8 | which follows the act of October 11, 1984 (P.L.876, No.171), |
9 | known as the Second Class City Treasurer's Sale and Collection |
10 | Act, all of the following apply: |
11 | (1) Regardless of the time of filing, a municipality: |
12 | (i) may assign and transfer a tax or municipal claim |
13 | to the land bank under the Second Class City Treasurer's |
14 | Sale and Collection Act upon terms and conditions |
15 | mutually acceptable to the municipality and the land |
16 | bank; and |
17 | (ii) shall otherwise confer upon the land bank the |
18 | rights, privileges and remedies of the municipality under |
19 | the Second Class City Treasurer's Sale and Collection |
20 | Act. |
21 | (iii) For tax liens assigned to the land bank under |
22 | this section, the land bank shall adopt policies |
23 | providing for plans and agreements by which low-income, |
24 | owner-occupant households may pay their delinquent taxes. |
25 | Such plans and agreements shall take into account the |
26 | household's ability to pay and shall be designed to |
27 | promote the continued occupancy by that household |
28 | whenever feasible. |
29 | (2) All of the following apply to upset sales: |
30 | (i) The land bank and the plaintiff in the claim may |
|
1 | enter into an agreement for the land bank to purchase the |
2 | property for the minimum amount of the upset sale price |
3 | described in section 301 of the Second Class City |
4 | Treasurer's Sale and Collection Act in the event there is |
5 | no bid tendered for a higher amount than the minimum |
6 | amount. |
7 | (ii) The land bank may tender a bid for the mutually |
8 | agreed upset sale price. |
9 | (iii) Notwithstanding section 301 of the Second |
10 | Class City Treasurer's Sale and Collection Act, the bid |
11 | of the land bank shall be paid as to its form, substance |
12 | and timing according to an agreement between the |
13 | municipality and land bank. The obligation of the land |
14 | bank to perform in accordance with the agreement shall be |
15 | deemed to be in full satisfaction of the tax or claim |
16 | which was the basis for the sale. |
17 | (3) The notice and advertisement under sections 203 and |
18 | 204 of the Second Class City Treasurer's Sale and Collection |
19 | Act must contain reference to a potential bid by the land |
20 | bank. |
21 | (4) Subject to redemption under section 304 of the |
22 | Second Class City Treasurer's Sale and Collection Act and |
23 | confirmation under section 305 of the Second Class City |
24 | Treasurer's Sale and Collection Act, the land bank, as |
25 | purchaser at the sale, shall have an absolute title to the |
26 | property sold, free and discharged of tax and municipal |
27 | claims, liens, mortgages, ground rents, charges and estates. |
28 | (5) The deed to the land bank under section 307 of the |
29 | Second Class City Treasurer's Sale and Collection Act shall |
30 | be delivered, acknowledged and recorded within 30 days of the |
|
1 | date of confirmation. |
2 | (d) (f) Involuntary transfers.--A land bank which acquires | <-- |
3 | real property under this section shall be deemed to have |
4 | acquired the real property as an involuntary transfer within the |
5 | meaning of section 701(b)(1)(vi)(B) of the act of October 18, |
6 | 1988 (P.L.756, No.108), known as the Hazardous Sites Cleanup |
7 | Act. |
8 | (e) (G) Expiration.--This section shall expire upon | <-- |
9 | publication of the notice under section 2120 (relating to |
10 | determination on procedural revision). |
11 | § 2118. Expedited quiet title proceedings. |
12 | (a) Authorization.-- |
13 | (1) A land bank may file an action to quiet title to |
14 | real property in which the land bank has an interest. |
15 | (2) A land bank may join in a single complaint to quiet |
16 | title to one or more parcels of real property. |
17 | (3) For purposes of an action under this section, the |
18 | land bank shall be deemed to be the holder of sufficient |
19 | legal and equitable interests and possessory rights so as to |
20 | qualify the land bank as an adequate complainant in the |
21 | action. |
22 | (b) Procedural requirements.-- |
23 | (1) Prior to the filing of an action to quiet title the |
24 | land bank must conduct an examination of title to determine |
25 | the identity of any person possessing a claim or interest in |
26 | or to the real property. |
27 | (2) Service of the complaint to quiet title shall be |
28 | provided to interested parties as follows: |
29 | (i) By first class mail to the identity and address |
30 | reasonably ascertainable by an inspection of public |
|
1 | records. |
2 | (ii) In the case of occupied real property, by first |
3 | class mail, addressed to "Occupant." |
4 | (iii) By posting a copy of the notice on the real |
5 | property. |
6 | (iv) By publication. |
7 | (v) As ordered by the court. |
8 | (3) As part of the complaint to quiet title, the land |
9 | bank must file an affidavit identifying: |
10 | (i) persons discovered under paragraph (1); and |
11 | (ii) the form of service under paragraph (2). |
12 | (c) Hearing.-- |
13 | (1) The court shall schedule a hearing on the complaint |
14 | within 90 days following filing of the complaint and as to |
15 | all matters upon which an answer was not filed by an |
16 | interested party. |
17 | (2) The court shall issue its final judgment within 120 |
18 | days of the filing of the complaint. |
19 | § 2119. Annual audit and report. |
20 | The following shall apply: |
21 | (1) The land bank shall annually, within 120 days after |
22 | the end of the fiscal year, submit an audit of income and |
23 | expenditures, together with a report of its activities for |
24 | the preceding year, to the department. |
25 | (2) A duplicate of the audit and the report shall be |
26 | filed with the governing body of: |
27 | (i) the land bank jurisdiction which created the |
28 | land bank; and |
29 | (ii) each political subdivision which opted to |
30 | participate in the land bank pursuant to an |
|
1 | intergovernmental agreement. |
2 | § 2120. Determination on procedural revision. |
3 | If the department determines that comprehensive reform |
4 | legislation on property-tax foreclosure has been enacted |
5 | revising procedure under the statutory provisions referred to in |
6 | section 2117 (relating to delinquent property tax enforcement), |
7 | the department shall transmit notice of the determination to the |
8 | Legislative Reference Bureau for publication in the Pennsylvania |
9 | Bulletin. |
10 | Section 2. This act shall take effect in 60 days. |
|