PRINTER'S NO. 4262
No. 2747 Session of 2008
INTRODUCED BY J. TAYLOR, ARGALL, PETRONE, CARROLL, FLECK, FRANKEL, GEORGE, HALUSKA, HESS, KORTZ, MANDERINO, MARSHALL, RAMALEY, SCAVELLO, VULAKOVICH, WATSON AND WOJNAROSKI, AUGUST 28, 2008
REFERRED TO COMMITTEE ON FINANCE, AUGUST 28, 2008
AN ACT 1 Providing for the tax sale of abandoned properties. 2 The General Assembly finds and declares as follows: 3 (1) Pennsylvania's older communities are vital to the 4 Commonwealth's economic health by providing a focal point for 5 businesses and services and to the Commonwealth's quality of 6 life with their rich histories and diverse communities. 7 However, many older communities suffer from blighted 8 properties that have been abandoned by their owners. 9 (2) The citizens of this Commonwealth are adversely 10 affected by abandoned, blighted and tax-delinquent 11 residential, commercial and industrial properties, including 12 those citizens who live or work in proximity to substandard 13 buildings, as well as those who own property in the vicinity 14 of the buildings. 15 (3) Abandoned, blighted and tax-delinquent residential, 16 commercial and industrial structures pose a safety threat and
1 public nuisance, and their blighting effect diminishes the 2 value of nearby property. 3 (4) If these buildings are not demolished or 4 rehabilitated and brought into code compliance, they are 5 likely to remain abandoned and further deteriorate, resulting 6 in increased cost to the Commonwealth, municipality and 7 taxpayers to secure and ultimately demolish these buildings. 8 (5) Properties sold at tax sale sometimes remain 9 blighted and become tax delinquent again. 10 (6) Providing a mechanism to remove or transform 11 abandoned, blighted and tax-delinquent buildings into 12 productive reuse is an opportunity for communities to 13 modernize, revitalize and grow, and to improve both the local 14 economy and the quality of life for neighbors. 15 (7) The General Assembly declares that it is in the best 16 interests of the Commonwealth, municipalities and communities 17 to establish a process, as set forth under this act, for 18 declaring properties abandoned and ensuring that such 19 properties, when purchased at tax sale, will be demolished or 20 rehabilitated and returned to productive use. 21 The General Assembly of the Commonwealth of Pennsylvania 22 hereby enacts as follows: 23 Section 1. Short title. 24 This act shall be known and may be cited as the Abandoned 25 Property Tax Sale Act. 26 Section 2. Definitions. 27 The following words and phrases when used in this act shall 28 have the meanings given to them in this section unless the 29 context clearly indicates otherwise: 30 "Abandoned property." 20080H2747B4262 - 2 -
1 (1) A property on which there is a building that has not 2 been legally occupied for at least the previous 12 months and 3 the municipality finds at least one of the following: 4 (i) The building is a public nuisance. 5 (ii) The building is in need of substantial 6 rehabilitation and no rehabilitation has taken place 7 during the previous 12 months. 8 (iii) The building is unfit for human habitation, 9 occupancy or use. 10 (iv) The condition and vacancy of the building 11 materially increases the risk of fire to the building and 12 to adjacent properties. 13 (v) The building is subject to unauthorized entry 14 leading to potential health and safety hazards and the 15 owner has failed to take reasonable and necessary 16 measures to secure the building, or the municipality has 17 secured the building in order to prevent such hazards 18 after the owner has failed to do so. 19 (vi) The property is an attractive nuisance to 20 children, including the presence of abandoned wells, 21 shafts, basements, excavation and unsafe structures. 22 (vii) The presence of vermin or the accumulation of 23 debris, uncut vegetation or physical deterioration of the 24 structure or grounds has created potential health and 25 safety hazards and the owner has failed to take 26 reasonable and necessary measures to remove the hazards. 27 (viii) The dilapidated appearance or other condition 28 of the building negatively affects the economic well- 29 being of residents and businesses in close proximity to 30 the building, including decreases in property value and 20080H2747B4262 - 3 -
1 loss of business and the owner has failed to take 2 reasonable and necessary measures to remedy the 3 conditions. 4 (ix) The property is an attractive nuisance for 5 illicit purposes, including prostitution, drug use and 6 vagrancy. 7 (2) The term shall include structures if the structures 8 are the only improvements on the property. 9 (3) The term shall not include auxiliary structures 10 which are incidental to the main building on the property. 11 "Municipality." Any city of the first, second, second class 12 A or third class, any incorporated town, any township of the 13 first or second class and any borough. 14 "Public nuisance." Any property which because of physical 15 condition or use is regarded as a public nuisance at common law 16 or has been declared a public nuisance in accordance with the 17 local housing, building, health, fire or related codes. 18 Section 3. Publication of notice and review by municipality. 19 (a) List.--At least 60 days prior to the date scheduled for 20 a tax sale, the county shall make public a list of properties to 21 be offered at the sale. The county shall provide a copy of the 22 list to the mayor, or comparable municipal official, of any 23 municipality in which a property scheduled for sale is located. 24 (b) Notification.--Within 30 days of receipt of the list 25 under subsection (a), the municipality may notify the county of 26 any abandoned properties within its jurisdiction. 27 (c) Sale.--No less than 15 days prior to the scheduled tax 28 sale, the county shall make public a revised list of properties 29 to be offered for sale indicating which are abandoned. 30 Section 4. Requirements for purchaser of abandoned properties. 20080H2747B4262 - 4 -
1 In addition to any other requirements of the act of May 16, 2 1923 (P.L.207, No.153), referred to as the Municipal Claim and 3 Tax Lien Law, the act of July 7, 1947 (P.L.1368, No.542), known 4 as the Real Estate Tax Sale Law, or the act of October 11, 1984 5 (P.L.876, No.171), known as the Second Class City Treasurer's 6 Sale and Collection Act, the purchaser of an abandoned property 7 shall do all of the following: 8 (1) Within 30 days of the sale and prior to the transfer 9 of title, enter into a redevelopment agreement with the 10 municipality in which the property is located or, at the 11 option of the municipality, with the redevelopment authority 12 obligating the purchaser to redevelop the property in 13 accordance with all municipal codes and any officially 14 adopted plans for the geographic area in which the property 15 is located. If the municipality or the redevelopment 16 authority determines that demolition of the building is 17 appropriate, the purchaser may demolish instead of 18 redeveloping the property. The redevelopment plan shall 19 include all of the following at a minimum: 20 (i) A specified time by which the redevelopment or 21 demolition must be completed. 22 (ii) A description of the redevelopment work or 23 demolition to be completed. 24 (iii) Remedies for noncompliance, including the 25 right of the municipality or redevelopment authority to 26 acquire title to the property if the redevelopment or 27 demolition is not completed by the agreed-upon date. 28 (2) Within 30 days of the sale and prior to the transfer 29 of title, post a bond to ensure compliance with the 30 redevelopment agreement, naming the municipality or 20080H2747B4262 - 5 -
1 redevelopment authority as the beneficiary. 2 Section 5. Effective date. 3 This act shall take effect in 90 days. H7L53DMS/20080H2747B4262 - 6 -