THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY TAYLOR, THOMAS, ROSS, BRENNAN, BUXTON, CALTAGIRONE, COHEN, D. COSTA, P. COSTA, CREIGHTON, DEASY, DERMODY, FARRY, FREEMAN, GEIST, GROVE, HARHART, HENNESSEY, HESS, JOHNSON, JOSEPHS, W. KELLER, KILLION, KOTIK, KULA, LONGIETTI, MANN, MILLER, MILNE, MURT, M. O'BRIEN, READSHAW, REICHLEY, SABATINA, STURLA, SWANGER, VULAKOVICH, WAGNER AND YOUNGBLOOD, JUNE 17, 2011

REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 17, 2011  

AN ACT

Amending Title 68 (Real and Personal Property) of the

Pennsylvania Consolidated Statutes, providing for the

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

delinquent properties into productive use.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Part II of Title 68 of the Pennsylvania

Consolidated Statutes is amended by adding a subpart to read:

SUBPART A

PRELIMINARY PROVISIONS

Chapter

21.  Land Banks

CHAPTER 21

LAND BANKS

Sec.

2101.  Scope of chapter.

2102.  Legislative findings and purpose.

2103.  Definitions.

2104.  Creation and existence.

2105.  Board.

2106.  Staff.

2107.  Powers.

2108.  Eminent domain.

2109.  Acquisition of property.

2110.  Disposition of property.

2111.  Financing of land bank operations.

2112.  Borrowing and issuance of bonds.

2113.  Public records and public access.

2114.  Dissolution of land bank.

2115.  Conflicts of interest.

2116.  Construction, intent and scope.

2117.  Delinquent property tax enforcement.

2118.  Expedited quiet title proceedings.

2119.  Annual audit and report.

2120.  Determination on procedural revision.

§ 2101.  Scope of chapter.

This chapter relates to land banks.

§ 2102.  Legislative findings and purpose.

The General Assembly finds and declares that:

(1)  Communities are important to the social and economic

vitality of this Commonwealth. Whether urban, suburban or

rural, many communities are struggling to cope with vacant,

abandoned and tax-delinquent properties.

(2)  Citizens of this Commonwealth are affected adversely

by vacant, abandoned and tax-delinquent properties, including

properties which have been vacated or abandoned due to

mortgage foreclosure.

(3)  Vacant, abandoned and tax-delinquent properties

impose significant costs on neighborhoods, communities and

municipalities by lowering property values, increasing fire

and police protection costs, decreasing tax revenues and

undermining community cohesion.

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

problems caused by vacant, abandoned and tax-delinquent

properties through the creation of new tools to enable

municipalities to turn vacant spaces into vibrant places.

(5)  Land banks are one of the tools that can be utilized

by municipalities to facilitate the return of vacant,

abandoned and tax-delinquent properties to productive use.

§ 2103.  Definitions.

The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

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

"Department."  The Department of Community and Economic

Development of the Commonwealth.

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

established under this chapter.

"Land bank jurisdiction."  A political subdivision which

complies with both of the following paragraphs:

(1)  Is:

(i)  a city, as defined in section 3(c) of the act of

May 24, 1945 (P.L.991, No.385), known as the Urban

Redevelopment Law; or

(ii)  a county, as defined in section 3(d) of the

Urban Redevelopment Law.

(2)  Possesses the authority to create a redevelopment

authority under section 4(c) and (d) of the Urban

Redevelopment Law.

"Real property."  As follows:

(1)  land;

(2)  a structure on land;

(3)  any easement, air right, franchise or incorporeal

hereditament applicable to land;

(4)  a legal or equitable estate or right in land. This

paragraph includes a term for years and a lien;

(5)  a fixture to land; or

(6)  an improvement to land.

"School district."  Any of the classifications of school

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

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

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

conveyed by a land bank, the school district within whose

geographical jurisdiction the real property is located.

§ 2104.  Creation and existence.

(a)  Authority.--A land bank jurisdiction may elect to create

a land bank by the adoption of an ordinance, subject to the

approval of the mayor in a city or the county executive in a

home rule county, to create a binding legal obligation. The

ordinance must specify the following:

(1)  The name of the land bank.

(2)  The number of members of the board.

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

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

(4)  The qualifications, manner of selection or

appointment and terms of office of members of the board.

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

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

ordinance with the department and with the Department of State.

After receipt of the ordinance, the Secretary of the

Commonwealth shall issue a certificate of incorporation.

(c)  Combinations.--

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

in combination pursuant to an intergovernmental cooperation

agreement by:

(i)  more than one land bank jurisdiction; or

(ii)  a land bank jurisdiction and one or more  

municipalities.

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

the intergovernmental cooperation agreement must specify

matters identified in subsection (a).

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

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

power to acquire real property only in those portions of the

county located outside of the geographical boundaries of any

other land bank established by another land bank jurisdiction

located partially or entirely within the county.

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

participate in a land bank pursuant to an intergovernmental

cooperation agreement. The agreement must specify the

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

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

approval by the school district.

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

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

(2)  have duration until terminated and dissolved under

section 2114 (relating to dissolution of land bank).

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

another municipal entity may enter into an intergovernmental

cooperation agreement relative to the operations of a land bank.

§ 2105.  Board.

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

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

Unless restricted by the actions or agreements specified in

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

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

adjusted in accordance with bylaws of the land bank.

(b)  Eligibility to serve on board.--

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

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

acceptance of the appointment shall neither terminate nor

impair that public office.

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

board member.

(3)  An established land bank board shall include at

least one voting member who:

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

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

and

(iii)  maintains membership with a recognized civic

organization within the land bank jurisdiction.

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

ineligible for reappointment to the board unless the

reappointment is confirmed unanimously by the board.

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

officer" means an individual who is elected to a municipal

office.

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

annually from among their members a chair, vice chair,

secretary, treasurer and other officers as the board determines.

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

following:

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

(2)  Attendance and participation of members in its

regular and special meetings.

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

the other members for failure to comply with a rule.

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

land bank.

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

the same manner as the original appointment. Upon removal under

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

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

compensation. The board may reimburse a member for expenses

actually incurred in the performance of duties on behalf of the

land bank.

(g)  Meetings.--

(1)  The board shall meet as follows:

(i)  In regular session according to a schedule

adopted by the board.

(ii)  In special session:

(A)  as convened by the chair; or

(B)  upon written notice signed by a majority of

the members.

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

constitutes a quorum. Physical presence is required under

this paragraph.

(h)  Voting.--

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

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

majority of the board present and voting.

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

approved by a majority of the entire board membership:

(i)  Adoption of bylaws.

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

(iii)  Hiring or firing of an employee or contractor

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

the entire board membership be delegated by the board to

a specified officer or committee of the land bank.

(iv)  Incurring of debt.

(v)  Adoption or amendment of the annual budget.

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

property or personal property with a value of more than

$50,000.

(3)  A resolution under section 2114 (relating to

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

the entire board membership.

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

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

resolution or action of the land bank.

(i)  Immunity.--A member of a board shall not be liable

personally on the bonds or other obligations of the land bank.

Rights of creditors of a land bank shall be solely against the

land bank.

§ 2106.  Staff.

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

contract for an executive director, counsel and legal staff,

technical experts and other individuals and may determine the

qualifications and fix the compensation and benefits of those

employees.

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

municipality for:

(1)  the municipality to provide staffing services to the

land bank; or

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

municipality.

§ 2107.  Powers.

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

exercising public powers of the Commonwealth necessary or

appropriate to carry out this chapter, including the following

powers:

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

of its affairs and the conduct of its business.

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

a civil action. This paragraph includes an action to clear

title to property of the land bank.

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

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

Commonwealth, from private lenders or from municipalities, as

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

(5)  To issue negotiable revenue bonds and notes

according to the provisions of this chapter.

(6)  To procure insurance or guarantees from the Federal

Government or the Commonwealth of the payment of debt

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

with the insurance or guarantee.

(7)  To enter into contracts and other instruments

necessary, incidental or convenient to the performance of its

duties and the exercise of its powers. This paragraph

includes intergovernmental cooperation agreements under 53

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

cooperation) for the joint exercise of powers under this

chapter.

(8)  To enter into contracts and intergovernmental

cooperation agreements with municipalities for the

performance of functions by municipalities on behalf of the

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

(9)  To make and execute contracts and other instruments

necessary or convenient to the exercise of the powers of the

land bank. Any contract or instrument signed shall be

executed by and for the land bank if the contract or

instrument is signed, including an authorized facsimile

signature, by:

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

(ii)  either:

(A)  the secretary or assistant secretary of the

land bank; or

(B)  the treasurer or assistant treasurer of the

land bank.

(10)  To procure insurance against losses in connection

with the real property, assets or activities of the land

bank.

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

of the board in instruments, obligations, securities or

property determined proper by the board and to name and use

depositories for its money.

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

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

land bank.

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

reconstruct, rehabilitate, renovate, relocate and otherwise

improve real property or rights or interests in real

property.

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

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

services provided by the land bank.

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

options with respect to real property of the land bank.

(16)  To enter into partnerships, joint ventures and

other collaborative relationships with municipalities and

other public and private entities for the ownership,

management, development and disposition of real property.

(17)  To organize and reorganize the executive,

administrative, clerical and other departments of the land

bank and to fix the duties, powers and compensation of

employees, agents and consultants of the land bank.

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

achieve the objectives and purposes of the land bank or other

law related to the purposes and responsibility of the land

bank.

§ 2108.  Eminent domain.

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

§ 2109.  Acquisition of property.

(a)  Tax exemption.--

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

property of a land bank and its income and operations are

exempt from State and local tax.

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

land bank after the fifth consecutive year in which the real

property is continuously leased to a private third party.

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

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

conditions and in a manner the land bank considers proper.

(c)  Acquisitions from municipalities.--

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

contracts, lease purchase agreements, installment sales

contracts and land contracts and may accept transfers from

municipalities upon terms and conditions as agreed to by the

land bank and the municipality.

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

property and interests in real property of the municipality

on terms and conditions and according to procedures

determined by the municipality as long as the real property

is located within the jurisdiction of the land bank.

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

property in accordance with the statutes and ordinances of the

jurisdiction in which the real property is located.

(e)  Prohibition.--

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

bank may not own or hold real property located outside the

jurisdictional boundaries of the entities which created the

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

existence).

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

intergovernmental cooperation agreement with a municipality

to manage and maintain real property located within the

jurisdiction of the municipality.

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

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

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

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

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

(g)  Acquisition of tax delinquent properties.--

(1)  If authorized by the land bank jurisdiction which

created a land bank or otherwise by intergovernmental

cooperation agreement, a land bank may:

(i)  accept donations of real property under:

(A)  section 5.1 of the act of May 16, 1923

(P.L.207, No.153), referred to as the Municipal Claim

and Tax Lien Law; or

(B)  section 303 of the Real Estate Tax Sale Law; 

and

(ii)  subject to paragraph (2), extinguish delinquent

claims for taxes as to the property.

(2)  Claims of a school district shall be extinguished

only if the school district has designated the land bank as

its agent under section 5.1(g) of the Municipal Claim and Tax

Lien Law or section 303(b)(6) of the Real Estate Tax Sale

Law.

§ 2110.  Disposition of property.

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

its own name real property acquired by the land bank

irrespective of the identity of the transferor of the property.

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

and make available for public review and inspection an inventory

of real property held by the land bank.

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

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

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

the best interests of the land bank.

(d)  Consideration.--

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

consideration necessary to convey, exchange, sell, transfer,

lease as lessor, grant or mortgage interests in real

property.

(2)  Consideration may take the form of monetary payments

and secured financial obligations, covenants and conditions

related to the present and future use of the property,

contractual commitments of the transferee and other forms of

consideration as determined by the board to be in the best

interest of the land bank.

(e)  Policies and procedures.--

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

policies and procedures the general terms and conditions for

consideration to be received by the land bank for the

transfer of real property and interests in real property.

(2)  Requirements which may be applicable to the

disposition of real property and interests in real property

by municipalities shall not be applicable to the disposition

of real property and interests in real property by a land

bank.

(f)  Ranking of priorities.--A land bank jurisdiction may, in

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

land bank jurisdictions creating a single land bank, in the

applicable intergovernmental cooperation agreement, establish a

hierarchical ranking of priorities for the use of real property

conveyed by a land bank, including use for:

(1)  Purely public spaces and places.

(2)  Affordable housing.

(3)  Retail, commercial and industrial activities.

(4)  Conservation areas.

(g)  Specific voting and approval requirements.--

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

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

jurisdictions and municipalities creating a single land bank

in the applicable intergovernmental cooperation agreement,

require that a particular form of disposition of real

property or a disposition of real property located within

specified jurisdictions be subject to specified voting and

approval requirements of the board.

(2)  Except as restricted or constrained under paragraph

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

authority to enter into and execute agreements, instruments

of conveyance and other related documents pertaining to the

conveyance of real property by the land bank.

§ 2111.  Financing of land bank operations.

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

grants and loans from:

(1)  the Federal Government;

(2)  the Commonwealth;

(3)  a municipality;

(4)  the land bank jurisdiction which created the land

bank; and

(5)  private sources.

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

for services rendered, for rents and leasehold payments

received, for consideration for disposition of real and personal

property, for proceeds of insurance coverage for losses

incurred, for income from investments and for an asset and

activity lawfully permitted to a land bank under this chapter.

(c)  Allocated real property taxes.--

(1)  A taxing jurisdiction may authorize the remittance

or dedication of a portion of real property taxes collected

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

real property conveyed by a land bank.

(2)  Allocation of property tax revenues in accordance

with this subsection, if authorized by the taxing

jurisdiction, shall commence with the first taxable year

following the date of conveyance and continue for a period of

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

aggregate property tax revenues generated by the property.

(3)  Remittance or dedication of real property taxes

shall include the real property taxes of a school district

only if the school district enters into an agreement with the

land bank for the remittance or dedication.

§ 2112.  Borrowing and issuance of bonds.

(a)  Authority.--

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

corporate purposes.

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

payable from the land bank's general revenue.

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

(i)  A pledge of revenue. This subparagraph includes

a grant or contribution from:

(A)  The Federal Government or a Federal agency

or instrumentality.

(B)  The Commonwealth, a Commonwealth agency or

an instrumentality of the Commonwealth.

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

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

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

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

exempt from taxation by:

(1)  the Commonwealth; or

(2)  a political subdivision.

(d)  Procedure.--

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

and shall be a limited obligation of the land bank. The

principal and interest, costs of issuance and other costs

incidental to the bond shall be payable solely from the

income and revenue derived from the sale, lease or other

disposition of the assets of the land bank.

(2)  In the discretion of the land bank, a bond may be

additionally secured by mortgage or other security device

covering all or part of the project from which the pledged

revenues may be derived.

(3)  A refunding bond issued under this section:

(i)  shall be payable from:

(A)  a source described in this chapter; or

(B)  the investment of the proceeds of the

refunding bonds; and 

(ii)  shall not constitute an indebtedness or pledge

of the general credit of a political subdivision within

the meaning of a constitutional or statutory limitation

of indebtedness and shall contain a recital to that

effect.

(4)  A bond must comply with the authorizing resolution

as to:

(i)  form;

(ii)  denomination;

(iii)  interest rate;

(iv)  maturity; and

(v)  execution.

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

and in the manner determined by the board in the authorizing

resolution.

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

guarantee, insure or otherwise become primarily or secondarily

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

to all other provisions of law of this Commonwealth applicable

to municipal indebtedness.

(f)  Sale.--

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

accordance with the terms and provisions of the authorizing

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

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

price of the bond.

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

newspaper of general circulation within the jurisdiction in

which the land bank is located.

(g)  Liability.--

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

executing the bond shall be liable personally on the bonds by

reason of the issuance of the bond.

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

to a bond shall not be a debt of a political subdivision or

of the Commonwealth. A statement to this effect shall appear

on the face of the bond or obligation.

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

related to a bond, all of the following apply:

(i)  The Commonwealth has no liability. This

subparagraph applies to the revenue and property of the

Commonwealth.

(ii)  A political subdivision has no liability. This

subparagraph applies to the revenue and property of a

political subdivision.

§ 2113.  Public records and public access.

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

to be kept of its proceedings.

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

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

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

the Right-to-Know Law.

§ 2114.  Dissolution of land bank.

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

body corporate and politic upon compliance with all of the

following:

(1)  Sixty calendar days' advance written notice of

consideration of a resolution of dissolution must:

(i)  be given to the land bank jurisdiction which

created the land bank;

(ii)  be published in a local newspaper of general

circulation; and

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

outstanding bonds of the land bank.

(2)  A resolution of dissolution stating dissolution in

60 days must be approved under section 2105(h)(3) (relating

to board).

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

real property, personal property and other assets of the land

bank shall become the assets of the municipality in which the

property is located.

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

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

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

bank jurisdictions shall not require dissolution of the land

bank unless:

(1)  the intergovernmental cooperation agreement provides

for dissolution in this event; and

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

continue the existence of the land bank.

§ 2115.  Conflicts of interest.

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

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

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

the State Adverse Interest Act.

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

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

standards and financial disclosure).

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

(1)  supplemental rules addressing potential conflicts of

interest; and

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

bank employees.

§ 2116.  Construction, intent and scope.

This chapter shall be construed liberally to effectuate the

legislative intent and the purposes as complete and independent

authorization for the implementation of this chapter, and all

powers granted shall be broadly interpreted to effectuate the

intent and purposes and not as a limitation of powers.

§ 2117.  Delinquent property tax enforcement.

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

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

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

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

bank.

(2)  For a land bank to discharge under paragraph (1) a

lien or claim to its real property for tax owed to a school

district, the governing body of the school district must

approve the discharge.

(3)  The land bank must file evidence of the

extinguishment and dissolution of liens or claims with the

county tax claim bureau, including copies of the resolution

by the board, the intergovernmental agreement, receipt of

payment and other necessary and appropriate documentation.

This requirement must be satisfied no later than the earlier

of:

(i)  ten days prior to the conveyance of the

property; or

(ii)  within 30 days after the discharge.

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

receives payments attributable to a lien or claim for real

property taxes owed to a municipality or school district on

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

the full amount of the payments to the municipality or school

district.

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

land bank located in a municipality which follows the act of

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

Sale Law, all of the following apply:

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

apply:

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

Sale Law, the municipality:

(A)  may direct the county tax claim bureau to

assign the claim or lien to the land bank under terms

mutually acceptable to the municipality and land

bank; and

(B)  shall otherwise confer upon the land bank

the rights, privileges and remedies of an assignee

under section 316 of the Real Estate Tax Sale Law.

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

Estate Tax Sale Law, a municipality which has complied

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

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

section 306 of the Real Estate Tax Sale Law:

(A)  may assign and transfer the claim to the

land bank upon terms and conditions mutually

acceptable to the municipality and the land bank; and

(B)  shall otherwise confer upon the land bank

the rights, privileges and remedies of an assignee

under section 316 of the Real Estate Tax Sale Law.

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

(i)  The upset sale price contemplated by section 605

of the Real Estate Tax Sale Law may be set in advance in

an amount equal to or greater than the minimum amount

described in section 605 of the Real Estate Tax Sale Law

as may be mutually agreed in writing by the municipality

and the land bank.

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

and no one bids a higher price than the specified upset

sale price, the property shall be sold to the land bank

upon payment by the land bank for the upset sale costs

and all liens, claims and subordinate encumbrances shall

be discharged by the sale.

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

(i)  Notwithstanding section 612 of the Real Estate

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

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

agreement as is mutually acceptable to the plaintiff and

the land bank if all of the following apply:

(A)  A judicial sale is ordered pursuant to a

judgment on a tax claim.

(B)  The purchaser of the property is the land

bank.

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

the land bank and the plaintiff in the claim. 

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

accordance with the agreement under subparagraph (i)

shall be deemed to be in full satisfaction of the tax

claim which was the basis for the judgment.

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

have an absolute title to the property sold, free and

discharged of tax and municipal claims, liens, mortgages,

ground rents, charges and estates.

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

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

potential bid by the land bank.

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

of the Real Estate Tax Sale Law shall be delivered and

acknowledged and recorded within 30 days of the date of

confirmation.

(6)  All of the following apply to judicial sales for

multiple tracts:

(i)  In a petition for a judicial sale, the

municipality or the land bank, if it is the holder of

municipal tax liens, may combine in a single petition

multiple tracts of real property if the petition and

accompanying affidavits provide all of the following:

(A)  Identification of each tract of real

property.

(B)  The identities of each party having an

interest in a tract of real property.

(C)  The amount of the tax liens then due and

owing, together with associated interest, costs and

fees.

(D)  The nature of the notice of the proposed

sale provided to the interested parties.

(ii)  The court may authorize in a single final

judgment that all or part of the real properties

identified in the petition be sold free and clear of tax

and municipal claims, mortgages, liens, charges and

estates and ground rents. 

(d)  Procedure relating to Municipal Claim and Tax Lien

Law.--For a land bank located in a municipality which follows

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

Municipal Claim and Tax Lien Law, all of the following apply:

(1)  Regardless of the time of filing, the municipality:

(i)  may assign and transfer a tax or municipal claim

to the land bank upon terms and conditions mutually

acceptable to the municipality and land bank; and

(ii)  shall otherwise confer upon the land bank the

rights, privileges and remedies of an assignee as stated

in section 33 of the Municipal Claim and Tax Lien Law.

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

(i)  The upset sale price authorized by section 29 of

the Municipal Claim and Tax Lien Law may be set in

advance in an amount as mutually agreed in writing by a

municipality and land bank.

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

and no one bids a higher price than the specified upset

sale price, the property shall be sold to the land bank

upon payment by the land bank for the upset sale costs

and liens, claims and subordinate encumbrances shall be

discharged by the sale.

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

(i)  Notwithstanding section 31 of the Municipal

Claim and Tax Lien Law, the form, substance and timing of

the land bank's payment of the sales price may be

according to the agreement mutually acceptable to the

plaintiff and the land bank if all of the following

apply:

(A)  A judicial sale is ordered pursuant to a

judgment on a tax or municipal claim.

(B)  The purchaser of the property is the land

bank.

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

the land bank and the plaintiff.

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

accordance with the agreement under subparagraph (i)

shall be deemed to be in full satisfaction of the

municipal claim which was the basis for the judgment.

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

have an absolute title to the property sold, free and

discharged of tax and municipal claims, liens, mortgages,

ground rents, charges and estates.

(4)  Notwithstanding sections 31.1 and 31.2 of the

Municipal Claim and Tax Lien Law and sections 4 and 6 of the

act of March 1, 1956 (1955 P.L.1196, No.372), entitled "An

act authorizing the sale of vacant land located in areas

certified as conservation areas in counties of the first

class, under a judgment obtained on a tax claim, by the

sheriff of the county; providing for the discharge of all

liens, mortgages, ground rents, estates and claims against

the property by sale; and limiting the right of redemption,"

all of the following apply:

(i)  The land bank may tender a bid at the sale in an

amount equal to the total amount of all municipal claims

and liens which were the basis for the judgment. Upon

tender under this subparagraph, the property shall be

deemed sold to the land bank regardless of bids by other

parties.

(ii)  The bid of the Land Bank shall be paid as to

its form, substance and timing according to an agreement

that is mutually acceptable to the plaintiff and the land

bank. The obligation of the land bank to perform in

accordance with the agreement shall be deemed to be in

full satisfaction of the tax or municipal claim which was

the basis for the judgment.

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

have an absolute title to the property sold, free and

discharged of tax and municipal claims, liens, mortgages,

ground rents, charges and estates.

(iv)  The deed to the land bank shall be executed,

acknowledged and delivered within 30 days of the sale.

(5)  All of the following apply to judicial sales for

multiple tracts:

(i)  In a petition for a judicial sale, a

municipality or a land bank, if it is the holder of

municipal tax liens, may combine in a petition multiple

tracts of real property if the petition and accompanying

affidavits provide all of the following:

(A)  Identification of each tract of real

property.

(B)  The identities of each party having an

interest in a tract of real property.

(C)  The amount of the tax liens then due and

owing, together with associated interest, costs and

fees.

(D)  The nature of the notice of the proposed

sale provided to the interested parties.

(ii)  The court may authorize in a single final

judgment that all or part of the real properties

identified in the petition be sold free and clear of tax

and municipal claims, mortgages, liens, ground rents,

charges and estates.

(e)  Procedure relating to Second Class City Treasurer's Sale

and Collection Act.--For a land bank located in a municipality

which follows the act of October 11, 1984 (P.L.876, No.171),

known as the Second Class City Treasurer's Sale and Collection

Act, all of the following apply:

(1)  Regardless of the time of filing, a municipality:

(i)  may assign and transfer a tax or municipal claim

to the land bank under the Second Class City Treasurer's

Sale and Collection Act upon terms and conditions

mutually acceptable to the municipality and the land

bank; and

(ii)  shall otherwise confer upon the land bank the

rights, privileges and remedies of the municipality under

the Second Class City Treasurer's Sale and Collection

Act.

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

(i)  The upset sale price authorized by section 301

of the Second Class City Treasurer's Sale and Collection

Act may be set in an amount as mutually agreed in writing

by the municipality and land bank.

(ii)  The land bank may tender a bid for the mutually

agreed upset sale price.

(iii)  Notwithstanding section 301 of the Second

Class City Treasurer's Sale and Collection Act, the bid

of the land bank shall be paid as to its form, substance

and timing according to an agreement between the

municipality and land bank. The obligation of the land

bank to perform in accordance with the agreement shall be

deemed to be in full satisfaction of the tax or claim

which was the basis for the sale.

(3)  The notice and advertisement under sections 203 and

204 of the Second Class City Treasurer's Sale and Collection

Act must contain reference to a potential bid by the land

bank.

(4)  Subject to redemption under section 304 of the

Second Class City Treasurer's Sale and Collection Act and

confirmation under section 305 of the Second Class City

Treasurer's Sale and Collection Act, the land bank, as

purchaser at the sale, shall have an absolute title to the

property sold, free and discharged of tax and municipal

claims, liens, mortgages, ground rents, charges and estates.

(5)  The deed to the land bank under section 307 of the

Second Class City Treasurer's Sale and Collection Act shall

be delivered, acknowledged and recorded within 30 days of the

date of confirmation.

(6)  All of the following apply to judicial sales for

multiple tracts:

(i)  In a petition for a judicial sale, the

municipality or the land bank, if it is the holder of

municipal tax liens, may combine in a single petition

multiple tracts of real property if the petition and

accompanying affidavits provide all of the following:

(A)  Identification of each tract of real

property.

(B)  The identities of each party having an

interest in a tract of real property.

(C)  The amount of the tax liens then due and

owing, together with associated interest, costs and

fees.

(D)  The nature of the notice of the proposed

sale provided to the interested parties.

(ii)  The court may authorize in a single final judgment

that all or part of the real properties identified in the

petition be sold free and clear of tax and municipal

claims, mortgages, liens, charges and estates and ground

rents.

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

property under this section shall be deemed to have acquired the

real property as an involuntary transfer within the meaning of

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

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

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

of the notice under section 2120 (relating to determination on

procedural revision).

§ 2118.  Expedited quiet title proceedings.

(a)  Authorization.--

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

real property in which the land bank has an interest.

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

title to one or more parcels of real property.

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

land bank shall be deemed to be the holder of sufficient

legal and equitable interests and possessory rights so as to

qualify the land bank as an adequate complainant in the

action.

(b)  Procedural requirements.--

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

land bank must conduct an examination of title to determine

the identity of any person possessing a claim or interest in

or to the real property.

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

provided to interested parties as follows:

(i)  By First Class mail to the identity and address

reasonably ascertainable by an inspection of public

records.

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

Class mail, addressed to "Occupant."

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

property.

(iv)  By publication.

(v)  As ordered by the court.

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

bank must file an affidavit identifying:

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

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

(c)  Hearing.--

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

within 90 days following filing of the complaint and as to

all matters upon which an answer was not filed by an

interested party.

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

days of the filing of the complaint.

§ 2119.  Annual audit and report.

The following shall apply:

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

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

expenditures, together with a report of its activities for

the preceding year, to the department.

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

filed with the governing body of:

(i)  the land bank jurisdiction which created the

land bank; and

(ii)  each political subdivision which opted to

participate in the land bank pursuant to an

intergovernmental agreement.

§ 2120.  Determination on procedural revision.

If the department determines that comprehensive reform

legislation on property-tax foreclosure has been enacted

revising procedure under the statutory provisions referred to in

section 2117 (relating to delinquent property tax enforcement),

the department shall transmit notice of the determination to the

Legislative Reference Bureau for publication in the Pennsylvania

Bulletin.

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