PRINTER'S NO. 263
No. 242 Session of 1987
INTRODUCED BY RICHARDSON, LINTON, DEAL AND WAMBACH, FEBRUARY 9,
1987
REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 9, 1987
AN ACT
1 Providing authority for urban homesteading and the procedure for
2 establishing an urban homesteading program; expanding local
3 government's authority in dealing with urban blight and
4 decay; and providing exclusions from certain statutes.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Legislative intent.
8 Section 3. Definitions.
9 Section 4. Urban homesteading.
10 Section 5. Qualifications.
11 Section 6. Land trust agreement.
12 Section 7. Homesteaded land free from liens.
13 Section 8. Rehabilitation loans.
14 Section 9. Federal funding.
15 Section 10. Default procedures.
16 Section 11. Code enforcement.
17 Section 12. Eminent domain.
18 Section 13. Assessments.
1 Section 14. Severability.
2 Section 15. Effective date.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Urban
7 Homesteading and Rehabilitation Act.
8 Section 2. Legislative intent.
9 The General Assembly of the Commonwealth of Pennsylvania
10 recognizes the need for strengthening the authority of local
11 government in dealing with the problems of housing. The General
12 Assembly recognizes that urban homesteading can be an effective
13 tool in local government's continuing struggle against urban
14 decay. In conjunction with other Federal, State and local
15 programs, urban homesteading offers the unique potential of
16 preserving our architectural heritage in addition to slowing and
17 reversing the loss of existing urban housing units. While the
18 concept of urban homesteading is being investigated by some in
19 Pennsylvania, it is desirable that such programs have some
20 uniformity of purpose and design. For the concept of urban
21 homesteading to work at an optimum level, it will be necessary
22 for such programs to be excluded from certain statutory
23 limitations normally placed on local governments.
24 Section 3. Definitions.
25 The following words and phrases when used in this act shall
26 have the meanings given to them in this section unless the
27 context clearly indicates otherwise:
28 "Agency." The Municipal Homestead Agency.
29 "Board." The governing body of the homestead agency
30 appointed to administer this act.
19870H0242B0263 - 2 -
1 "Code official." The director or individual responsible for
2 the supervision of the bureau or department responsible for code
3 enforcement.
4 "Council." The elected body of officials governing the
5 municipality.
6 "Department." The Department of Community Affairs of the
7 Commonwealth.
8 "Governing body." The elected council of the municipality.
9 "Homestead Board." The board created by section 4(b) or an
10 existing authority, board, commission or quasi-governmental
11 nonprofit corporation in existence prior to the effective date
12 of this act to which the council, by ordinance, has assigned the
13 duty to administer the homestead program provided by this act.
14 "Homesteader." An individual, his spouse, housing
15 cooperative or nonprofit corporation conforming to the
16 provisions and intent of this act.
17 "Housing cooperative." Any five or more persons, who shall
18 have associated themselves together by written articles of
19 association, such as described in section 1 of the act of June
20 7, 1887 (P.L.365, No.252), entitled "An act to encourage and
21 authorize the formation of cooperative associations, productive
22 and distributive, by farmers, mechanics, laborers, or other
23 persons," for the purpose of buying, selling, holding, leasing
24 or improving lands, tenements or buildings.
25 "Major code deficiencies." All those deficiencies enumerated
26 under section 11.
27 "Municipality." Any political subdivision of the
28 Commonwealth other than a school district.
29 "Parcel." That tract of land or unit of housing which, under
30 existing local zoning regulations, would accommodate a single-
19870H0242B0263 - 3 -
1 family residence or housing cooperative as defined in this act.
2 The term "parcel," unmodified by the word "developed," shall
3 include both developed and undeveloped tracts.
4 "Trustee." The board designated by the municipality.
5 Section 4. Urban homesteading.
6 (a) Program established.--There is hereby created an urban
7 homesteading program to be effective immediately and
8 administered by option of the various municipalities of the
9 Commonwealth, meeting certain requirements set forth in this
10 act, and upon enactment of the necessary ordinances.
11 (b) Homestead Board.--The governing body of the municipality
12 is hereby authorized to create and appoint members of a board to
13 be known as the Homestead Board, whose purposes shall be to
14 administer the homestead program, except that nothing in this
15 subsection shall be interpreted to prohibit the governing body
16 from assigning such duties, by ordinance, to an existing
17 authority, board, commission or existing quasi-governmental
18 nonprofit corporation. Except where council has assigned
19 homestead program duties to an existing authority, board,
20 commission or quasi-governmental nonprofit corporation, the
21 Homestead Board shall be composed of no less than nine, and no
22 more than twelve, members, no less than three of whom shall be
23 members of minority groups and no fewer than one of whom shall
24 be a representative of a local community action agency, where
25 such an agency exists. All board members shall have specific
26 experience with urban housing. Board members shall serve a term
27 of three years and shall be eligible for reappointment. Members
28 of the board shall receive no compensation but shall be
29 reimbursed for expenses actually incurred in connection with
30 performing the duties prescribed by this act and shall by
19870H0242B0263 - 4 -
1 majority vote appoint a secretary of the board, who may or may
2 not be a member of the board. The secretary shall receive such
3 compensation as may be agreed to by the members of the Homestead
4 Board. In addition, the members of the Homestead Board may
5 appoint and fix the compensation of such personnel as may be
6 necessary to implement the homestead program, provided council
7 has made funds available for such purposes.
8 (c) Powers and duties.--The board shall:
9 (1) Review and publicize, by newspaper advertising or
10 some other effective method, the availability of homestead
11 program properties and the procedure to apply for the
12 properties. Such announcement shall include an estimated cost
13 of bringing the aforementioned properties up to municipal
14 code standards.
15 (2) Receive applications, recording thereon the date and
16 time received, and review applications in the order received
17 as to applicants' compliance with criteria established by
18 this act and local ordinance and the regulations promulgated
19 thereunder.
20 (3) In order, according to date and time of receipt of
21 application, approve and certify applicants as to their
22 specific construction skills and ability in general to
23 refurbish the assigned parcel.
24 (4) Recommend, in order, according to date and time of
25 receipt of application, the execution by the governing body
26 of a land trust agreement with the approved applicant. The
27 land trust agreement shall grant a 24-month tax exemption for
28 the assigned parcel and be recorded with the appropriate
29 county officials. If the number of approved applicants
30 exceeds the number of parcels for which land trust agreements
19870H0242B0263 - 5 -
1 are recommended, agreements shall be negotiated in order,
2 according to date and time of receipt of application, until
3 all available parcels are subject to such agreements.
4 Negotiations with those approved applicants who are without
5 agreements shall be commenced in order, according to the date
6 and time of receipt of application, as additional parcels
7 become available.
8 (5) Approve and recommend the execution by the governing
9 body of all documents necessary to convey fee simple title to
10 the assigned parcel to the applicant upon the applicant's
11 fulfillment of all conditions enumerated in section 6.
12 (6) Utilize the aid and assistance of other relevant
13 municipal agencies in the furtherance of the duties and
14 responsibilities of the board.
15 (7) Promulgate regulations consistent with the purpose
16 and spirit of the homestead program as outlined herein, said
17 regulations to be approved in their entirety by the municipal
18 governing body and by the municipality's solicitor as to
19 form.
20 (8) Give notice to the code official which provides
21 that, pursuant to the authority of the governing body under
22 section 5(b), approved identified homesteaders who are
23 rehabilitating existing structures are exempt from the
24 enforcement of specific sections of the housing and property
25 maintenance code during the period of rehabilitation or
26 construction, except that no section relating to the
27 individual's health and safety shall be waived.
28 (9) Give notice to the code officer who shall thereupon
29 institute public nuisance proceedings against certain
30 deteriorated and blighted structures for demolition or
19870H0242B0263 - 6 -
1 rehabilitation through homesteading.
2 (10) Provide applicants with a report as to the
3 structural deficiencies of the property and other pertinent
4 information, including an estimate of the costs of bringing
5 the property into compliance with the housing and property
6 maintenance codes.
7 (11) Recommend to council that a municipality
8 homesteading map be prepared designating the location of
9 properties to be included under the homesteading program to
10 insure that the homesteading program is compatible with
11 existing or proposed programs of other municipality agencies.
12 (d) Catalog of property.--In each municipality embarking
13 upon an urban homesteading program, the bureau or department
14 charged with the responsibilities of code enforcement, as
15 specified in this act, shall, in conjunction with the municipal
16 planning commission and its staff under the direction of the
17 Homestead Board, compile and maintain a catalog of all
18 unoccupied dwellings and vacant lots owned by the municipality
19 or otherwise. From this catalog shall be determined which
20 parcels and structures can be utilized for building or
21 rehabilitation by homesteaders.
22 (e) Approval of governing body.--The governing body, upon
23 recommendation of the municipal planning commission, shall by
24 resolution approve the parcels cataloged under subsection (d)
25 for disposition by the board for the public purpose of improving
26 the quality of housing in accordance with the homestead program.
27 Section 5. Qualifications.
28 (a) Qualifications enumerated.--Homestead program property,
29 for purposes of this act, shall be limited to that property
30 which, when rehabilitated, is a single-family residence or
19870H0242B0263 - 7 -
1 housing cooperative and which will be offered to qualified
2 applicants at no initial cost on a land trust agreement provided
3 that the applicant:
4 (1) Is at least 18 years of age or is the head of a
5 family.
6 (2) Is a citizen of the United States or a resident
7 alien as determined by the United States Immigration and
8 Naturalization Service, or its successor.
9 (3) Is a recognized nonprofit community group,
10 corporation or housing cooperative acting as an agent for a
11 homesteader.
12 (4) Has financial resources and the mechanical skills to
13 rehabilitate an existing dwelling or construct a new
14 dwelling, as the case may be.
15 (5) Upon assignment, contractually agrees to
16 rehabilitate, or construct on, as the case may be, the parcel
17 assigned to him and further agrees to:
18 (i) bring the assigned parcel up to housing and
19 property maintenance code standards, as provided in this
20 act, within 18 months after assignment of the parcel to
21 him;
22 (ii) permit quarterly inspections by the code
23 enforcement personnel for determination by the board that
24 reasonable, satisfactory progress is being made by the
25 homesteader in rehabilitating or constructing on the
26 parcel assigned to him; and
27 (iii) live in, occupy and maintain as a single-
28 family dwelling or a housing cooperative to the housing
29 and property maintenance code standards, the parcel
30 assigned to him for a period of not less than five years.
19870H0242B0263 - 8 -
1 (b) Land trust agreement.--After approval of an applicant
2 pursuant to section 4(c)(3), the governing body of the
3 municipality shall negotiate and execute a land trust agreement
4 with the prospective homesteader, thereby assigning the parcel.
5 The agreement shall specify, in as much detail as reasonably
6 possible, a schedule of improvements the homesteader shall make
7 to bring the dwelling into conformity with the municipal housing
8 and property maintenance code within 18 months. The agreement
9 shall be in sufficient detail so that a homesteader shall be
10 able to know what he must do and by when he must do it to
11 fulfill the conditions of the agreement.
12 (c) Conveyance upon fulfillment.--If and when the conditions
13 of the land trust agreement are fulfilled, as determined and
14 certified by the code enforcement bureau, the governing body of
15 the municipality shall execute all documents necessary to convey
16 a fee simple title to the assigned parcel to the applicant so
17 qualifying.
18 Section 6. Land trust agreement.
19 The agreement between the homesteader and the governing body
20 shall be a land trust agreement and shall contain the following
21 minimal conditions:
22 (1) The homesteader of the agreement has the first right
23 to the title of the real estate, upon completion of the land
24 trust agreement.
25 (2) The homesteader's interest in the trust agreement
26 shall be considered personal property.
27 (3) The homesteader has the right of possession,
28 management, control and operation of the property.
29 (4) The homesteader has the duty of maintenance and
30 repair of the property in accordance with the provisions of
19870H0242B0263 - 9 -
1 the agreement.
2 (5) The homesteader takes the property in an "as is"
3 condition.
4 (6) The homesteader, from the time of the execution of
5 the trust agreement, accepts responsibility for all known or
6 unknown conditions, apparent and nonapparent, of the property
7 that were created before the execution of the agreement or
8 are in existence at the time of the execution of the
9 agreement or are coming into or will come into existence
10 either before, during or after the execution of the
11 agreement.
12 (7) The homesteader shall not act as the agent of the
13 trustee.
14 (8) The trustee does not assume any liability for the
15 acts, or omissions to act, of the homesteader that result in
16 injury or damage to other parties or their property.
17 (9) The homesteader shall carry insurance on the
18 property as the board may require. As a minimum, the
19 insurance shall be sufficient to pay off any loans taken in
20 accordance with this act and reimburse the municipality for
21 its costs in acquiring the property. The municipality and
22 lending institutions, if applicable, shall be named as joint
23 beneficiary with the homesteader of said policy.
24 (10) The homesteader, within 18 months after the
25 municipality assigns the homesteader a dwelling, promises and
26 covenants to bring the assigned dwelling up to housing and
27 property maintenance code standards and maintain it at code
28 standards throughout the homestead agreement.
29 (11) The homesteader promises and covenants to permit
30 quarterly inspections, between the hours of 9 a.m. and 4
19870H0242B0263 - 10 -
1 p.m., or at a mutually agreed time, and at reasonable
2 frequencies, by housing and property maintenance code
3 enforcement personnel for the determination of the
4 municipality that reasonable and satisfactory progress is
5 being made by the homesteader in rehabilitating the dwelling
6 assigned to him.
7 (12) The homesteader promises and covenants to occupy
8 and live in the dwelling assigned to him for a period of not
9 less than five years.
10 (13) The homesteader's personal property interest in the
11 possession, management, control and operation of the dwelling
12 may pass according to the rules applicable to personal
13 property except that before the personal property right
14 passes, the municipality must approve the heir, assign or
15 successor of the original homesteader. The heir, assign or
16 successor of the homesteader, before any personal right vests
17 in him, must meet the requirements of an applicant for the
18 program and independently agree to be held responsible to the
19 homesteading agreement. An attempt to pass the personal
20 property right in any manner or to any degree without
21 obtaining the required approval and making the required
22 commitment is void, and the homesteader's personal property
23 right is automatically extinguished. Approved transferees of
24 the original homesteader may deduct the original
25 homesteader's residence time from the required five years.
26 (14) The homesteader recognizes and agrees that, if the
27 homesteader, after occupying the dwelling, abandons the
28 dwelling for a period of more than 60 days or the dwelling is
29 abandoned 60 days without permission of the urban
30 homesteading board, the homesteader's right to the
19870H0242B0263 - 11 -
1 possession, management, control and operation of the dwelling
2 is automatically extinguished.
3 (15) The trustee, after the homesteader has fulfilled
4 the conditions of the land trust agreement, will execute all
5 documents necessary to convey a fee simple title to the
6 homesteader.
7 (16) The board may allow for extenuating circumstances,
8 including, but not limited to, serious illness of the
9 homesteader.
10 (17) The homesteader shall elect the person to whom the
11 property shall be transferred upon the death of the
12 homesteader. This transfer shall be for a consideration of
13 $1.
14 Section 7. Homesteaded land free from liens.
15 During the period of a land trust agreement, the real
16 property being homesteaded shall be free of all liens and
17 encumbrances.
18 Section 8. Rehabilitation loans.
19 (a) Low interest loans.--To assist local municipalities in
20 the elimination of slums and blighted or deteriorated areas, in
21 preventing the spread of slums, blight or deterioration and in
22 providing maximum opportunity for redevelopment, rehabilitation
23 and conservation of such areas by private enterprise, municipal
24 governing bodies are hereby authorized to obtain low interest
25 loans for the rehabilitation of properties designated as
26 suitable for homesteading.
27 (b) Debt authorized.--The municipality may borrow up to
28 $300,000 or $10 per capita, whichever is greater, without
29 considering such debt within the statutory borrowing limitations
30 prescribed in the act of July 12, 1972 (P.L.781, No.185), known
19870H0242B0263 - 12 -
1 as the Local Government Unit Debt Act.
2 (c) Financing of rehabilitation.--The municipal body
3 administering this act is authorized, through the utilization of
4 local public and private resources where feasible, to make
5 financing available through the board, as herein provided, to
6 the homesteaders to finance the rehabilitation of such property.
7 No financing shall be made available under this section unless
8 all of the following are met:
9 (1) Rehabilitation is required to make the property
10 conform to applicable code requirements and to carry out the
11 objectives of a homestead plan for the area.
12 (2) The applicant is unable to secure the necessary
13 funds from other sources upon comparable terms and
14 conditions.
15 (3) The resulting obligation is an acceptable risk
16 taking into consideration the need for the rehabilitation,
17 the security available for the debt and the ability of the
18 applicant to repay the debt.
19 (4) The board has first caused to be prepared a full and
20 complete list of all major code deficiencies and has caused
21 bid specifications and cost estimates for the rectification
22 of these deficiencies to be prepared. Based on those
23 specifications, the board shall advertise for bids, either
24 individually or collectively with other homestead properties,
25 all those deficiencies the homesteader indicates he cannot
26 rectify by himself, and, if the homesteader agrees to the
27 bid, to be responsible for the payments of said bid.
28 (5) The resulting bids received shall be from the lowest
29 responsible bidder and acceptable to the homesteader.
30 (6) The board has caused to be created an inspection
19870H0242B0263 - 13 -
1 schedule to assure that specifications are being met and that
2 the work is progressing at a sufficient rate to meet the
3 schedule for code deficiency rectification provided under
4 this act.
5 (7) A contractual agreement, between the board and the
6 approved contractor, and acceptable to the homesteader,
7 stipulating both a performance and payment schedule, as well
8 as any other item determined necessary by the board, has been
9 prepared. Such payments shall be made, or authorized, by the
10 board according to the agreed-to schedule.
11 (d) Limitations.--Rehabilitation financing made under this
12 section shall be subject to the following limitations:
13 (1) The debt shall be subject to such terms and
14 conditions as may be prescribed by the municipal governing
15 body.
16 (2) The term of the debt may not exceed 30 years or
17 three-fourths of the remaining economic life of the structure
18 after rehabilitation, whichever is less.
19 (3) The principal shall bear interest at such rate as
20 determined by the administrating agency, but in no case shall
21 it exceed one-half of 1% per year the interest rate obtained
22 by council, and the board may prescribe such other charges as
23 it finds necessary, including service charges, and appraisal,
24 inspection and other fees.
25 (4) The amount of the debt may not exceed the amount of
26 an obligation which would result in a monthly payment by the
27 applicant of more than 25% of his average monthly income.
28 (e) First payment for occupancy not required.--In no case
29 shall the homesteader's first payment on his financial
30 obligation to the board be required prior to occupancy of the
19870H0242B0263 - 14 -
1 homestead property.
2 Section 9. Federal funding.
3 (a) Training.--Participants in the homesteading program
4 shall, to the extent possible, take advantage of training
5 programs funded in whole or in part through the Job Training
6 Partnership Act (Public Law 97-300, 29 U.S.C. § 1501 et seq.).
7 (b) Loans.--Participants shall also take advantage of any
8 grants or loans made available through the Federal Community
9 Services Block Grant Act, and other sources, as administered by
10 the department.
11 Section 10. Default procedures.
12 (a) Explanation of agreement.--Before the homesteader
13 executes the land trust agreement, the board or its designee
14 shall explain to the homesteader the conditions of the land
15 trust agreement, his obligations thereunder, the appeal
16 procedures under this act and the consequences of failure to
17 comply with the conditions of the land trust agreement. After
18 the board or its designee makes the explanation contained in
19 this subsection and the homesteader understands the material
20 explained, the homesteader shall sign a statement that the
21 information contained in this subsection has been explained to
22 him and that he understands it and agrees to be bound in
23 accordance thereof. His signature shall constitute prima facie
24 evidence that he knowingly and understandingly executed the land
25 trust agreement. Only clear and convincing evidence to the
26 contrary may rebut this evidence.
27 (b) Noncompliance.--
28 (1) If a code official in a quarterly inspection
29 determines that the homesteader has not or is not complying
30 with the conditions of the land trust agreement, he shall
19870H0242B0263 - 15 -
1 give the homesteader an oral warning that he is in default of
2 the land trust agreement. Within seven days from the date of
3 the oral warning, the code official shall send a written
4 warning to the homesteader. The warning shall contain the
5 information that the homesteader is in default and specify
6 with reasonable particularity what the homesteader must do to
7 bring the parcel into compliance with the land trust
8 agreement. The code official shall also give the homesteader
9 not less than 30 nor more than 60 days from the date of the
10 mailing of the written warning to bring the parcel into
11 compliance with the land trust agreement. The code official
12 shall send a copy of the written warning to the board and
13 maintain at least one copy of the warning with the code
14 enforcement bureau. At the expiration of the time period
15 indicated in the written warning notice, the code official
16 shall again inspect the parcel to verify the homesteader's
17 compliance with the warning and land trust agreement.
18 (2) If the code official determines that the homesteader
19 has complied with or substantially complied with the warning
20 notice and brought the parcel up to the agreed-upon standard,
21 then he shall so inform the homesteader and file a written
22 report of the compliance in the code enforcement office and
23 with the board and shall send a copy of same to the
24 homesteader.
25 (3) If the code official determines that the homesteader
26 has not complied with or has not substantially complied with
27 the warning notice and has not brought the parcel up to the
28 agreed-upon standard, he shall file a written report with the
29 board. Such report shall specify with reasonable
30 particularity the facts upon which the code official based
19870H0242B0263 - 16 -
1 his decision of noncompliance and shall be delivered to the
2 homesteader at the same time it is filed with the board.
3 (c) Formal hearing.--
4 (1) Within ten days of the receipt of the code
5 official's report of noncompliance, the board shall schedule
6 a hearing and appoint no less than three members from the
7 board to determine whether the urban homesteader has breached
8 the land trust agreement and extinguished his personal
9 property right under the agreement. The decision of the board
10 members so appointed shall have the full force and effect of
11 a decision by the entire membership of the board. Within
12 three days after the scheduling of the hearing, the board
13 shall cause personal service of a hearing notice be made
14 either on the homesteader or someone capable of accepting
15 service on his behalf, ordering him to appear before the
16 board and show cause why the board should not declare him in
17 breach of the agreement and extinguish his personal property
18 right in the land trust agreement. The hearing notice shall
19 notify the homesteader of his right to be represented by
20 counsel and, if indigent, his right to have counsel appointed
21 on his behalf.
22 (2) If the board decides that the homesteader has
23 fulfilled his responsibilities under the land trust
24 agreement, it shall so note and provide copies of its
25 decision to the urban homesteader and the code enforcement
26 agency.
27 (3) If the board decides that the homesteader has not
28 fulfilled his responsibilities under the land trust
29 agreement, the board may:
30 (i) declare him in breach of the land trust
19870H0242B0263 - 17 -
1 agreement and issue a final decision to extinguish his
2 personal property right in the land trust agreement and
3 shall so inform the homesteader; or
4 (ii) issue an interim order which grants the
5 homesteader not less than 30 nor more than 60 days from
6 the interim order to bring the parcel into compliance
7 with the land trust agreement.
8 (4) If the board has issued an interim order pursuant to
9 paragraph (3)(ii), the code official shall file a
10 reinspection report with the board within three days of the
11 expiration of the period granted for compliance pursuant to
12 the interim order. If the code official determines that the
13 homesteader has complied with or substantially complied with
14 the interim order and brought the parcel up to the agreed-
15 upon standard, then he shall file with the board a written
16 report so stating and terminating the land trust agreement
17 breach declaration procedure. If the code official determines
18 that the homesteader has not complied with the interim order,
19 he shall file a written report with the board so stating. The
20 code official shall provide the homesteader with a copy of
21 all reports filed with the board pursuant to this section.
22 (5) Upon receipt of the code official's report of the
23 homesteader's noncompliance with the board's interim order,
24 the board may proceed as set forth in paragraph (3)(i).
25 (d) Decision and appeal.--
26 (1) After a final decision by the board that the
27 homesteader is in violation of his land trust agreement, the
28 homesteader shall have 14 business days to file an appeal
29 from that decision with the court of common pleas of the
30 county.
19870H0242B0263 - 18 -
1 (2) If within the 14 days the homesteader does not
2 appeal to the court of common pleas, the board shall record
3 its final determination extinguishing the homesteader's
4 personal property interest under the land trust agreement.
5 The board shall, the date it records its final decision, send
6 a copy of the final judgment to the homesteader and notice
7 that, if within 21 days he does not vacate the premises, the
8 board will initiate summary ejectment procedures against him.
9 If within the 21 days the homesteader does not vacate the
10 premises, the board shall initiate summary ejectment
11 proceedings against him.
12 (3) In case of an appeal to the court of common pleas,
13 the homesteader shall have the right to counsel and, if the
14 homesteader is indigent, counsel will be appointed in his
15 behalf. The court shall hear the homesteader's appeal within
16 30 days from the date he files it with the court. If the
17 court decides that the homesteader has not fulfilled his
18 responsibilities under the land trust agreement, it shall
19 affirm the decision of the board and cause copies of its
20 decision to be provided to the urban homesteader, the code
21 enforcement agency and the board. The decision of the court
22 shall be final. The board, on the date it receives the court
23 decision, shall send a copy to the homesteader together with
24 notice that, if within 21 days he does not vacate the
25 premises, the board will initiate summary ejectment
26 procedures against him. If the homesteader does not vacate
27 the premises within 21 days after the court enters judgment,
28 the board shall initiate summary ejectment proceedings
29 against him.
30 Section 11. Code enforcement.
19870H0242B0263 - 19 -
1 (a) Housing and property maintenance code requirement.--The
2 municipality or municipalities in which urban homesteading is to
3 be initiated by an acquiring agency under this act shall have a
4 housing and property maintenance code which establishes
5 standards for the protection of the public's health, safety and
6 welfare.
7 (b) Provisions of code.--The housing and property
8 maintenance code shall establish standards for basic equipment
9 and facilities, for light, ventilation and heating, for space,
10 use and location, and for safe and sanitary maintenance of all
11 dwellings now in existence or thereafter constructed. As minimum
12 requirements, the housing and property maintenance code shall
13 provide that:
14 (1) Dangerous walls shall be replaced or repaired. This
15 includes the replacement of defective wood lintels and
16 defective wood sills.
17 (2) The property shall be weatherproofed by replacing or
18 repairing any defective siding, shingles or other defects in
19 exterior walls.
20 (3) Gutters and downspouts shall be repaired or replaced
21 if they cause the entry of water into the property or onto
22 adjacent property or cause any public nuisances.
23 (4) Porches or access stairways (inside or outside the
24 structure) shall be made safe for use. Defective porches or
25 access stairways must be repaired or replaced.
26 (5) Missing and dangerously defective individual steps
27 shall be replaced or repaired.
28 (6) Chimneys shall be properly lined and repaired to
29 service the connected facilities.
30 (7) Roofs shall be leakproof.
19870H0242B0263 - 20 -
1 (8) Window frames and doors shall fit properly and be
2 operable.
3 (9) The electric service shall be adequate for the type
4 of structure and in a safe and operable condition.
5 (10) Every single-family residence shall have a complete
6 bath consisting of a tub, a toilet and a basin. Each kitchen
7 shall have a sink.
8 (11) Water pipes, drainpipes and soilpipes shall be
9 operable and capable of providing the intended service.
10 (12) Each dwelling shall have a water heater in operable
11 condition.
12 (13) Every dwelling unit shall have a room or space for
13 the preparation and cooking of food, including space and
14 connections for a stove or other cooking facilities. Adequate
15 electric service must be provided for connecting electric
16 refrigerators and other electrical kitchen appliances.
17 (14) Rotted and defective load carrying members shall be
18 replaced or repaired.
19 (15) Termite infested wood members shall be properly
20 treated or replaced.
21 (16) Rodent and vermin infestation shall be eliminated
22 and rat-proofing shall be performed, if necessary.
23 (17) Every dwelling shall contain heating facilities,
24 properly designed and installed, in good and safe working
25 condition, capable of heating those rooms and areas to be
26 inhabited. Systems must be operated to prevent freezing of
27 pipes and plumbing.
28 (18) Habitable rooms shall contain a window opening
29 directly to the outside.
30 (19) The premises shall be maintained in a clean and
19870H0242B0263 - 21 -
1 sanitary condition at all times. Refuse should be placed in
2 proper receptacles for collection.
3 (c) Administration and enforcement.--The housing and
4 property maintenance code shall also:
5 (1) Establish the responsibilities of owners, operators
6 and occupants of dwellings, including multifamily dwellings.
7 (2) Provide procedures for the administration and
8 enforcement of the housing and property maintenance code,
9 either by the municipality directly or by contractual
10 arrangements with a county, regional or intergovernmental
11 code enforcement bureau, including penalties for violations.
12 (d) Adoption of other codes.--A municipality may adopt by
13 reference a county housing and property maintenance code which
14 meets the aforementioned minimum standards and which may be or
15 is in existence at the time the municipality enters into a local
16 homesteading program as provided for in this act.
17 (e) Review of code.--The housing and property maintenance
18 code shall be reviewed every 24 months and shall be in effect at
19 the time the acquiring agency, municipality or municipalities
20 exercise any provisions of this act.
21 (f) Condemnation.--Any property which has been cited by a
22 municipality as being substandard and unfit for human habitation
23 under provisions of a housing and property maintenance code may
24 be subject to condemnation by that municipality or by an
25 acquiring agency designated by the municipality under the
26 following conditions:
27 (1) A preliminary notice outlining the housing and
28 property maintenance code violations shall be sent by
29 registered mail to the owner or owners of any property found
30 to be unfit for human habitation.
19870H0242B0263 - 22 -
1 (2) If within 30 days the owner or owners make no
2 attempt to correct the violations and bring the property into
3 code compliance or contact the municipality regarding their
4 intentions to do so, a second and final notice shall be
5 forwarded by registered mail to the owner or owners giving
6 them 120 days from the date of the final notice to bring the
7 property into code compliance or, in the case of a hardship,
8 to notify the municipality of same.
9 (3) If, after 120 days of receipt of the final notice,
10 the property owner or owners have not brought the property
11 into code compliance, the property may be subject to
12 condemnation as provided for in this act either by the
13 municipality or by an acquiring agency designated by the
14 municipality.
15 (4) If the municipality or designated agency determines
16 that the property which is unfit for human habitation has not
17 been brought into code compliance under provisions of the
18 municipality's housing and property maintenance code after
19 150 days, and after proper notification as provided for in
20 this act, and if the municipality determines that the
21 property would be suitable for urban homesteading as set
22 forth in this act, either through rehabilitation and resale
23 of the home or building or through demolition and resale of
24 the land, the municipality or the acquiring agency may
25 proceed to acquire the property under the act of June 22,
26 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain
27 Code.
28 Section 12. Eminent domain.
29 The act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as
30 the Eminent Domain Code, shall be applicable to acquisitions of
19870H0242B0263 - 23 -
1 property by municipalities for urban homesteading under this
2 act.
3 Section 13. Assessments.
4 (a) Schedule.--Notwithstanding the provision of any other
5 law, the proper authorities may change the assessed valuation of
6 real property when a property is being rehabilitated as a
7 homestead property. In such case, the homestead property shall
8 be assessed for taxing purposes, beginning in the third year of
9 the land trust agreement, at 35% of market value for the third
10 year, 70% of market value for the fourth year and 100% of market
11 value during the fifth year.
12 (b) Notice of sale.--Whenever a property is sold under this
13 act as a homestead property, a notice listing the address of the
14 property and the individual or individuals to whom the property
15 is to be sold shall be forwarded to the office of the chief
16 assessor of the county in which the property is located. In
17 addition, the tax on the property shall be computed at the end
18 of the third year and each year thereafter on the following
19 basis:
20 Year 3 35% of assessed value
21 Year 4 70% of assessed value
22 Year 5 100% of assessed value
23 (c) Construction of section.--This section shall not alter
24 or affect the ratio to market value in effect in any one county
25 but merely changes the base proportionately as the property is
26 rehabilitated, at which time the property is taxed on full
27 market value. All homestead properties shall be assessed prior
28 to the initial sale and then in the third year of ownership and
29 again before title passes following the fifth year of occupancy.
30 (d) Waiver of delinquent taxes.--At the request of any
19870H0242B0263 - 24 -
1 municipality engaged in a homesteading program, any other taxing
2 bodies shall have the option of waiving any and all delinquent
3 taxes for the express purpose of homesteading the parcel in
4 question for the five-year period as provided for in this act.
5 Section 14. Severability.
6 The provisions of this act are severable. If any provision of
7 this act or its application to any person or circumstance is
8 held invalid, the invalidity shall not affect other provisions
9 or applications of this act which can be given effect without
10 the invalid provision or application.
11 Section 15. Effective date.
12 This act shall take effect in 60 days.
A16L48DGS/19870H0242B0263 - 25 -