HOUSE AMENDED
PRIOR PRINTER'S NOS. 663, 1067, 1140 PRINTER'S NO. 1194
No. 631 Session of 1997
INTRODUCED BY SALVATORE AND ULIANA, MARCH 6, 1997
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 11, 1997
AN ACT
1 Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An
2 act providing when, how, upon what property, and to what
3 extent, liens shall be allowed for taxes and for municipal
4 improvements, for the removal of nuisances, and for water
5 rents or rates, sewer rates, and lighting rates; for the
6 procedure upon claims filed therefor; the methods for
7 preserving such liens and enforcing payment of such claims;
8 the effect of judicial sales of the properties liened; the
9 distribution of the proceeds of such sales, and the
10 redemption of the property therefrom; for the lien and
11 collection of certain taxes heretofore assessed, and of
12 claims for municipal improvements made and nuisances removed,
13 within six months before the passage of this act; and for the
14 procedure on tax and municipal claims filed under other and
15 prior acts of Assembly," further providing for filing tax
16 claims, for attorney fees and for sale of property in cities
17 of the first class.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. The act of May 16, 1923 (P.L.207, No.153),
21 referred to as the Municipal Claim and Tax Lien Law, is amended
22 by adding a section to read:
23 Section 10.1. (a) After one year from the initial filing of
24 a tax claim pursuant to section 9 of this act, the claim may be
1 discharged by a person other than the owner of the property
2 against which the lien is filed by payment to the municipality
3 as provided in subsection (b).
4 (b) A tax claim will be discharged upon payment to the
5 municipality of the amount specified in either subsection (b)(1)
6 or (b)(2):
7 (1) an amount equal to the sum of:
8 (i) any outstanding taxes out of which the tax claim arose;
9 and
10 (ii) any outstanding charges, expenses and fees incurred in
11 the filing of the tax claim.
12 (2) an amount less than the total amount due under
13 subsection (b)(1) if the municipality agrees to accept that
14 amount. In no event shall a tax claim be discharged under this <--
15 paragraph for an amount less than fifty per cent of the amount
16 specified in subsection (b)(1).
17 (c) Upon payment to the municipality of an amount provided
18 for in subsection (b), the municipality shall issue a written
19 acknowledgment of receipt and issue a certificate of discharge
20 to the person making the payment to the municipality. The
21 certificate shall state the discharge, a brief description of
22 the property discharged and the amount of the total claim
23 discharged against the property, regardless of whether the
24 discharge was made under subsection (b)(1) or (b)(2). The
25 certificate may be entered in the office of the appropriate
26 prothonotary's office as a judgment against the owner of the
27 property for the amount stated in the certificate. The lien of
28 any such judgment shall have priority over all other liens
29 against such property in the same manner and to the same extent
30 as the tax claim discharged.
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1 (d) In addition to any other remedy provided by law, a
2 certificate issued under subsection (c) enables the holder of
3 the certificate to proceed by action in assumpsit and recover
4 the amount due by an owner and to recover related attorney fees,
5 court costs and reasonable collection costs related thereto. An
6 action under this subsection must be commenced within six years
7 after the taxes first become due.
8 (e) Any discharge of a municipal claim by a person under
9 this section must be approved by an act of the governing body of
10 the municipality. Upon approval, the governing body shall notify
11 the property owner of the discharge in writing. The notification
12 shall state the total amount of the certificate, the name and
13 address of the person discharging the claim and a statement
14 informing the property owner of his liability to that person.
15 (F) THE PROVISIONS OF THIS SECTION SHALL NOT BE APPLICABLE <--
16 IN CITIES OF THE FIRST CLASS.
17 Section 2. Section 20 of the act, amended February 7, 1996
18 (P.L.1, No.1), is amended to read:
19 Section 20. Tax claims and municipal claims shall be prima
20 facie evidence of the facts averred therein in all cases; and
21 the averments in both tax and municipal claims shall be
22 conclusive evidence of the facts averred therein, except in the
23 particulars in which those averments shall be specifically
24 denied by the affidavit of defense, or amendment thereof duly
25 allowed. A compulsory nonsuit, upon trial, shall be equivalent
26 to a verdict for defendant, whether the plaintiff appeared or
27 not. If plaintiff recovers a verdict, upon trial, in excess of
28 the amount admitted by the defendant in his affidavit of defense
29 or pleadings, he shall be entitled to reasonable attorney fees
30 for collection in accordance with section 3.
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1 Section 3. Section 31.2(b) of the act, amended December 14,
2 1992 (P.L.859, No.135), is amended and the section is amended by
3 adding subsections to read:
4 Section 31.2. * * *
5 (b) The deed to the purchaser shall be executed,
6 acknowledged and delivered as in other real estate sales by the
7 sheriff. Deeds for property exposed for any sale under this act <--
8 SECTION shall not be executed, acknowledged and delivered any <--
9 sooner than twenty THIRTY days nor later than forty-five days <--
10 after any sale held under this act ONE HUNDRED AND TWENTY DAYS <--
11 AFTER THE PURCHASER PAYS THE BALANCE DUE TO THE SHERIFF FOR ANY
12 SALE HELD UNDER THIS SECTION. Any person interested may at any
13 time prior to the proposed sale pay all the costs of the
14 proceedings, including the cost for the title search or title
15 insurance policy, and all tax and municipal claims, penalties
16 and interest thereon, charged against the property whereupon the
17 proceedings on petition shall at once determine.
18 (b.1) A city of the first class may, within fifteen THIRTY <--
19 days of any sale held under this act SECTION, petition the court <--
20 of common pleas to prohibit the transfer of any deed for any
21 property exposed for any sale under this act which is located in
22 that city to any purchaser who is proven to meet any of the
23 criteria set forth in subsection (b.2).
24 (b.2) The petition of a city of the first class shall, at a <--
25 minimum, allege that the purchaser has over the three years
26 preceding the filing of the petition exhibited a course of
27 conduct which demonstrates that the purchaser:
28 (1) permitted an uncorrected housing code violation to
29 continue unabated after being convicted of such violation;
30 (2) failed to maintain property owned by the purchaser in a
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1 reasonable manner such that it posed a threat to health, safety
2 or property;
3 (3) permitted the use of property in an unsafe, illegal or
4 unsanitary manner such that it posed a threat to health, safety
5 or property; or
6 (4) acted as an agent for a purchaser who sought to avoid
7 the limitations placed on the purchase of property by this act.
8 Allegations under this subsection shall be proved by a
9 preponderance of the evidence.
10 (B.2) (1) THE PETITION OF A CITY OF THE FIRST CLASS SHALL, <--
11 AT A MINIMUM, ALLEGE THAT THE PURCHASER IS UNLIKELY TO
12 REHABILITATE THE PROPERTY SO AS TO BRING IT INTO COMPLIANCE WITH
13 THE CODES OF THE MUNICIPALITY EITHER BY REPAIRS OR DEMOLITION
14 AND SHALL FURTHER ALLEGE THAT THE PURCHASER HAS OVER THE THREE
15 YEARS PRECEDING THE FILING OF THE PETITION EXHIBITED A COURSE OF
16 CONDUCT WHICH DEMONSTRATES THAT THE PURCHASER PERMITTED AN
17 UNCORRECTED HOUSING CODE VIOLATION TO CONTINUE UNABATED AFTER
18 BEING CONVICTED OF SUCH VIOLATION; AND
19 (I) FAILED TO MAINTAIN PROPERTY OWNED BY THE PURCHASER IN A
20 REASONABLE MANNER SUCH THAT IT POSED A THREAT TO HEALTH, SAFETY
21 OR PROPERTY; OR
22 (II) PERMITTED THE USE OF PROPERTY IN AN UNSAFE, ILLEGAL OR
23 UNSANITARY MANNER SUCH THAT IT POSED A THREAT TO HEALTH, SAFETY
24 OR PROPERTY.
25 (2) A PERSON WHO ACTS AS AN AGENT FOR A PURCHASER WHO SOUGHT
26 TO AVOID THE LIMITATIONS PLACED ON THE PURCHASE OF PROPERTY BY
27 THIS ACT SHALL BE SUBJECT TO THE RESTRICTIONS IMPOSED BY THIS
28 ACT.
29 (3) ALLEGATIONS UNDER THIS SUBSECTION SHALL BE PROVED BY A
30 PREPONDERANCE OF THE EVIDENCE. IN RULING ON THE PETITION, A
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1 COURT SHALL CONSIDER WHETHER VIOLATIONS WERE CAUSED BY MALICIOUS
2 ACTS OF A CURRENT NON-OWNER OCCUPANT.
3 (b.3) A change of name or business status shall not defeat
4 the purpose of this section.
5 (b.4) As used in this section:
6 "Purchaser" shall mean any individual, partner, shareholder,
7 trust, partnership, limited partnership, corporation, or any
8 other business association, or any trust, partnership, limited
9 partnership, corporation or any other business association that
10 has any individual as part of the business association who had
11 any ownership interest or rights in the property.
12 "Uncorrected housing code violation" shall mean any
13 conviction of a violation of the building, housing, property
14 maintenance or fire code which is not remedied within six months
15 of conviction.
16 "Violation" shall mean any conviction under a building,
17 housing, property maintenance or fire code which posed a threat
18 to health, safety or property, but not a conviction deemed by a
19 court to be de minimis.
20 * * *
21 Section 4. The amendment of section 31.2 of the act shall
22 apply to all sales conducted on or after the effective date of
23 this act.
24 Section 5. This act shall take effect in 60 days.
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