PRIOR PRINTER'S NO. 1963

PRINTER'S NO.  2078

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

1414

Session of

2012

  

  

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

  

  

SENATOR YAW, URBAN AFFAIRS AND HOUSING, AS AMENDED, APRIL 2, 2012   

  

  

  

AN ACT

  

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.

 


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.

- 17 -

 


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;

- 18 -

 


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

- 19 -

 


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

- 20 -

 


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.

- 21 -

 


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

- 22 -

 


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.

- 23 -

 


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,

- 24 -

 


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

<--

- 25 -

 


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

- 26 -

 


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

- 27 -

 


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

- 28 -

 


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.

- 29 -

 


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

- 30 -

 


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

- 31 -

 


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

- 32 -

 


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

- 33 -

 


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.

- 34 -