PRIOR PRINTER'S NO. 1407
PRINTER'S NO. 1651
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1289
Session of
2023
INTRODUCED BY FLEMING, N. NELSON, VENKAT, MADDEN, PROBST, RABB,
BURGOS, SMITH-WADE-EL, McANDREW, SCHLOSSBERG, SANCHEZ, ROZZI,
WARREN, HILL-EVANS, FREEMAN, PARKER, MALAGARI, KRAJEWSKI,
KINSEY, CERRATO, HANBIDGE AND GREEN, JUNE 1, 2023
AS REPORTED FROM COMMITTEE ON JUDICIARY, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 21, 2023
AN ACT
Amending Title 68 (Real and Personal Property) of the
Pennsylvania Consolidated Statutes, in residential real
property, providing for discharging discriminatory real
estate covenants; and establishing the Unlawful Restrictive
Covenant Discharge Reimbursement Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 68 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 74
DISCHARGING DISCRIMINATORY REAL ESTATE COVENANTS
Sec.
7401. Scope of chapter.
7402. Definitions.
7403. Nullification of existing unlawful restrictive covenants.
7404. Discharge of unlawful restrictive covenants.
7405. Form for discharge.
7406. Unlawful Restrictive Covenant Discharge Reimbursement
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Fund.
7407 7406 . Unlawful restrictive covenants in declarations of
common interest ownership communities.
7408 7407 . Unlawful restrictive covenants not in declarations
of common interest ownership communities.
§ 7401. Scope of chapter.
This chapter relates to real estate covenants that
discriminate against individuals.
§ 7402. 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 executive board or board of directors of a
common interest ownership community.
"Common interest ownership community." Includes:
(1) A c ondominium as defined in section 3103 (relating
to definitions).
(2) A cooperative as defined in section 4103 (relating
to definitions).
(3) A planned community as defined in section 5103
(relating to definitions).
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Instrument." A deed, mortgage, declaration of restrictive
covenants, conditions or covenants, easement or other similar
document.
"Recorder." As follows:
(1) A county recorder of deeds or a county official or
department responsible for the recording of documents in a
county without a recorder of deeds.
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(2) The term includes the Philadelphia Department of
Records and the Allegheny County Department of Real Estate.
"Unlawful restrictive covenant." A covenant or other
provision that purports to restrict ownership or occupancy of
real property on the basis of one or more of the following:
(1) R ace, color, ethnicity, national origin, religious
creed, sex, gender identity, sexual orientation, age, marital
status, familial status, citizenship or immigration status or
any other status as those terms are defined in the act of
October 27, 1955 (P.L.744, No.222), known as the Pennsylvania
Human Relations Act, or 42 U.S.C. Ch. 45 (relating to fair
housing) or which may hereafter become a protected class
under Federal or State law.
(2) The presence of a sensory, mental or physical
disability or the use of a guide, service, assistance or
support animal as a reasonable accommodation for the user or
because the user is a handler or trainer of service, support,
assistance or guide animals.
§ 7403. Nullification of existing unlawful restrictive
covenants.
(a) Unenforceable covenants.--An unlawful restrictive
covenant contained in an instrument affecting title to real
property, whether or not recorded, in this Commonwealth shall be
null, void and unenforceable ab initio without need for further
action by any person or recorder.
( b) Combined covenants.--If an unlawful restrictive covenant
is contained in an instrument affecting title to real property
that also contains other covenants or provisions that are not an
unlawful restrictive covenant, the validity and enforceability
of the remaining covenants or provisions, as well as the
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validity of the recorded instrument, shall not be affected by
the nullification, voiding and unenforceability of the unlawful
restrictive covenant.
§ 7404. Discharge of unlawful restrictive covenants.
(a) Landowner discharge.--An owner of real property,
including a common interest ownership community, with an
unlawful restrictive covenant recorded in the instrument may
file a form described in section 7405 (relating to form for
discharge) with the recorder in the county where the real
property is located to strike REPUDIATE the unlawful restrictive
covenant from the instrument.
( b) Electronic filing.--A form filed under subsection (a)
shall be in writing and may be filed electronically if the
county allows for electronic recording of deeds.
(c) Duty of recorder.--The recorder shall record the form
submitted under subsection (a) and, to the extent practicable,
notate the indices to the records accordingly to reflect the
invalidity of the unlawful restrictive covenant.
(d) Fees prohibited.--A recorder may not assess a fee for
the filing of a form under this section.
(e) Separation of covenant from instrument.--When the form
submitted under subsection (a) is properly recorded, the removal
of the unlawful restrictive covenant is effective and does not
affect the validity of the instrument. The instrument shall be
construed as if the unlawful restrictive covenant was never
contained in the instrument.
§ 7405. Form for discharge.
(a) Development.--No later than 90 days after the effective
date of this section, the department shall develop and release a
standardized form for landowners or other persons with an
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interest in real property to file with the recorder to discharge
an unlawful restrictive covenant within the interested person's
instrument.
( b) Distribution.--No later than 30 days after the
standardized form required in subsection (a) is approved in
final form by the department, the department shall provide a
"Discharge of Unlawful Restrictive Covenant" form to each
recorder in this Commonwealth and publish the form on the
department's publicly accessible Internet website.
§ 7406. Unlawful Restrictive Covenant Discharge Reimbursement
Fund.
The Unlawful Restrictive Covenant Discharge Reimbursement
Fund is established in the State Treasury for the purpose of
reimbursing recorders for the costs incurred in recording
discharges of unlawful restrictive covenants as provided under
section 7404 (relating to discharge of unlawful restrictive
covenants). Funding to carry out the purpose of this fund shall
be contingent on appropriations of the General Assembly.
§ 7407 7406 . Unlawful restrictive covenants in declarations of
common interest ownership communities.
(a) Board vote for removal.--Notwithstanding any other
provision of law, a board of a common interest ownership
community may, upon receipt of an opinion by independent legal
counsel, consider an unlawful restrictive covenant to be removed
as a corrective amendment by a vote of a majority of the members
of the board and without further need for a vote by unit owners
or approval from lenders on individual units, thereby correcting
the declaration by amendment to remove the unlawful restrictive
covenant.
( b) Unit owner request for removal.--If a unit owner in a
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common interest ownership community submits a written request to
the board for an amendment to the declaration to remove an
unlawful restrictive covenant, the board shall, no later than 90
days after receipt of the request, hold a meeting to determine
whether an unlawful restrictive covenant exists and should be
removed from the declaration by a corrective amendment to the
declaration. If the board finds that an unlawful restrictive
covenant exists and should be removed from the declaration by a
corrective amendment to the declaration, the board shall take
swift action to record the corrective amendment.
§ 7408 7407 . Unlawful restrictive covenants not in declarations
of common interest ownership communities.
If an instrument in the chain of title to the common elements
in a condominium, in the common facilities or controlled
facilities in a planned community or in the chain of title to a
real estate cooperative includes an unlawful restrictive
covenant, the board may perform a landowner discharge in
accordance with section 7404 (relating to discharge of unlawful
restrictive covenants).
Section 2. This act shall take effect as follows:
(1) The following shall take effect immediately:
(i) The addition of 68 Pa.C.S. §§ 7402 and 7403.
(ii) This section.
(2) The remainder of this act shall take effect in 60
days.
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