PRINTER'S NO. 1498
No. 1214 Session of 1989
INTRODUCED BY SALVATORE AND ROCKS, SEPTEMBER 25, 1989
REFERRED TO URBAN AFFAIRS AND HOUSING, SEPTEMBER 25, 1989
AN ACT
1 Providing authority for municipal homesteading and the procedure
2 for establishing a municipal homesteading program; expanding
3 local government's authority in dealing with 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. Municipal homesteading.
10 Section 5. Qualifications.
11 Section 6. Land trust agreement.
12 Section 7. Homesteaded land free from liens.
13 Section 8. Financing of rehabilitation.
14 Section 9. Default procedures.
15 Section 10. Code enforcement.
16 Section 11. Eminent domain.
17 Section 12. Assessments.
18 Section 13. Severability.
1 Section 14. Effective date.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Municipal
6 Homesteading and Rehabilitation Act.
7 Section 2. Legislative intent.
8 The General Assembly of the Commonwealth of Pennsylvania
9 recognizes the need for strengthening the authority of local
10 government in dealing with the problems of housing. The General
11 Assembly recognizes that homesteading can be an effective tool
12 in local government's continuing struggle against urban decay.
13 In conjunction with other Federal, State and local programs,
14 homesteading offers the unique potential of preserving our
15 architectural heritage in addition to slowing and reversing the
16 loss of existing housing units. While the concept of
17 homesteading is being investigated by some in Pennsylvania, it
18 is desirable that such programs have some uniformity of purpose
19 and design. For the concept of homesteading to work at an
20 optimum level, it will be necessary for such programs to be
21 excluded from certain statutory limitations normally placed on
22 local governments.
23 Section 3. Definitions.
24 The following words and phrases when used in this act shall
25 have the meanings given to them in this section unless the
26 context clearly indicates otherwise:
27 "Board." The Homestead Board.
28 "Code official." The director or individual responsible for
29 the supervision of the bureau or department responsible for code
30 enforcement.
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1 "Department." The Department of Community Affairs of the
2 Commonwealth.
3 "Governing body." The elected council of the municipality.
4 "Homestead Board." The board created by section 4(b) or an
5 existing authority, board, commission or quasi-governmental
6 nonprofit corporation in existence prior to the effective date
7 of this act to which the municipality, by ordinance, has
8 assigned the duty to administer the homestead program provided
9 by this act.
10 "Homesteader." An individual, his spouse, housing
11 cooperative or nonprofit corporation conforming to the
12 provisions and intent of this act.
13 "Housing cooperative." Any five or more persons, who shall
14 have associated themselves together by written articles of
15 association, such as described in section 1 of the act of June
16 7, 1887 (P.L.365, No.252), entitled "An act to encourage and
17 authorize the formation of cooperative associations, productive
18 and distributive, by farmers, mechanics, laborers, or other
19 persons," for the purpose of buying, selling, holding, leasing
20 or improving lands, tenements or buildings.
21 "Major code deficiencies." All those deficiencies enumerated
22 under section 10.
23 "Minority group." A group of persons who are citizens of the
24 United States and who are Black Americans, Hispanic Americans,
25 Native Americans, Asian-Pacific Americans, women and other
26 minorities or persons found to be disadvantaged by the Small
27 Business Administration pursuant to the Small Business Act
28 (Public Law 85-536, 15 U.S.C. § 631 et seq.).
29 "Municipality." Any county, city, borough, incorporated town
30 or township.
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1 "Parcel." That tract of land or unit of housing which, under
2 existing local zoning regulations, would accommodate a single-
3 family residence or housing cooperative as defined in this act.
4 The term "parcel," unmodified by the word "developed," shall
5 include both developed and undeveloped tracts.
6 "Trustee." The municipality entering into a land trust
7 agreement pursuant to section 5(b).
8 Section 4. Municipal homesteading.
9 (a) Program established.--There is hereby created, upon
10 enactment of the necessary ordinances, a homesteading program
11 which shall be effective immediately, and which shall be
12 administered by option of the various municipalities of this
13 Commonwealth and which shall meet certain requirements set forth
14 in this act.
15 (b) Homestead Board.--The municipality is hereby authorized
16 to create and appoint members of a board to be known as the
17 Homestead Board, whose purposes shall be to administer the
18 homestead program, except that nothing in this subsection shall
19 be interpreted to prohibit the municipality from assigning such
20 duties, by ordinance, to an existing authority, board,
21 commission or existing quasi-governmental nonprofit corporation.
22 Except where a municipality has assigned homestead program
23 duties to an existing authority, board, commission or quasi-
24 governmental nonprofit corporation, the Homestead Board shall be
25 composed of no less than three members. When possible, there
26 shall be an equal representation of minority groups, as defined
27 in this act, on the board, including at least one representative
28 of a local community action agency, where such an agency exists.
29 When possible, a simple majority of the board members shall have
30 specific experience with municipal housing-related programs.
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1 Board members shall serve a term of three years and shall be
2 eligible for reappointment. Members of the board shall receive
3 no compensation but shall be reimbursed for expenses actually
4 incurred in connection with performing the duties prescribed by
5 this act and shall by majority vote appoint a secretary of the
6 board, who may or may not be a member of the board. The
7 secretary shall receive such compensation as may be agreed to by
8 the members of the Homestead Board. In addition, the members of
9 the Homestead Board may appoint and fix the compensation of such
10 personnel as may be necessary to implement the homestead
11 program, provided the municipality has made funds available for
12 such purposes.
13 (c) Powers and duties.--The board shall:
14 (1) Review and publicize, by newspaper advertising or
15 some other effective method, the availability of homestead
16 program properties and the procedure to apply for the
17 properties. Such announcement shall include an estimated cost
18 of bringing the aforementioned properties up to municipal
19 code standards. The board shall confirm that residents of
20 those neighborhoods containing parcels to be included under
21 the homesteading program are apprised of the program.
22 (2) Receive applications, recording thereon the date and
23 time received, and review applications in the order received
24 as to applicants' compliance with criteria established by
25 this act and local ordinance and the regulations promulgated
26 thereunder.
27 (3) In order, according to date and time of receipt of
28 application, approve and certify applicants as to their
29 specific construction skills and ability in general to
30 refurbish the assigned parcel, provided that, if otherwise
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1 eligible therefor, residents of neighborhoods containing
2 homesteading parcels be given first preference as applicants
3 for participation in the program.
4 (4) Recommend, in order, according to date and time of
5 receipt of application, the execution by the governing body
6 of a land trust agreement with the approved applicant. The
7 land trust agreement shall be recorded with the appropriate
8 county officials. If the number of approved applicants
9 exceeds the number of parcels for which land trust agreements
10 are recommended, agreements shall be negotiated in order,
11 according to date and time of receipt of application, until
12 all available parcels are subject to such agreements.
13 Negotiations with those approved applicants who are without
14 agreements shall be commenced in order, according to the date
15 and time of receipt of application, as additional parcels
16 become available.
17 (5) Approve and recommend the execution by the governing
18 body of all documents necessary to convey fee simple title to
19 the assigned parcel to the applicant upon the applicant's
20 fulfillment of all conditions enumerated in section 6.
21 (6) Utilize the aid and assistance of other relevant
22 municipal agencies in the furtherance of the duties and
23 responsibilities of the board.
24 (7) Promulgate regulations consistent with the purpose
25 and spirit of the homestead program as outlined herein, said
26 regulations to be approved in their entirety by the municipal
27 governing body and by the municipality's solicitor as to
28 form.
29 (8) Give notice to the code official which provides
30 that, pursuant to the authority of the governing body under
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1 section 5(b), approved identified homesteaders who are
2 rehabilitating existing structures are exempt from the
3 enforcement of specific sections of the housing and property
4 maintenance code during the period of rehabilitation or
5 construction, except that no section relating to the
6 individual's health and safety shall be waived.
7 (9) Give notice to the code officer who shall thereupon
8 institute public nuisance proceedings against certain
9 deteriorated and blighted structures for demolition or
10 rehabilitation through homesteading.
11 (10) Provide applicants with a report as to the
12 structural deficiencies of the property and other pertinent
13 information, including an estimate of the costs of bringing
14 the property into compliance with the housing and property
15 maintenance codes.
16 (11) Recommend to the governing body that a municipality
17 homesteading map be prepared designating the location of
18 properties to be included under the homesteading program to
19 insure that the homesteading program is compatible with
20 existing or proposed programs of other municipality agencies.
21 (d) Catalog of property.--In each municipality embarking
22 upon a homesteading program, the bureau or department charged
23 with the responsibilities of code enforcement, as specified in
24 this act, shall, in conjunction with the municipal planning
25 commission and its staff under the direction of the Homestead
26 Board, compile and maintain a catalog of all unoccupied
27 dwellings and vacant lots owned by the municipality or
28 otherwise. From this catalog shall be determined which parcels
29 and structures can be utilized for building or rehabilitation by
30 homesteaders.
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1 (e) Approval of governing body.--The governing body, upon
2 recommendation of the municipal planning commission, shall by
3 resolution approve the parcels cataloged under subsection (d)
4 for disposition by the board for the public purpose of improving
5 the quality of housing in accordance with the homestead program.
6 Section 5. Qualifications.
7 (a) Qualifications enumerated.--Homestead program property,
8 for purposes of this act, shall be limited to that property
9 which, when rehabilitated, is a single-family residence or
10 housing cooperative and which will be offered to qualified
11 applicants at no initial cost on a land trust agreement provided
12 that the applicant:
13 (1) Is at least 18 years of age or is the head of a
14 family.
15 (2) Is a citizen of the United States or a resident
16 alien as determined by the United States Immigration and
17 Naturalization Service, or its successor.
18 (3) Is a recognized nonprofit community group,
19 corporation or housing cooperative acting as an agent for a
20 homesteader.
21 (4) Has financial resources to rehabilitate an existing
22 dwelling or construct a new dwelling, as the case may be.
23 (5) Upon assignment, contractually agrees to
24 rehabilitate, or construct on, as the case may be, the parcel
25 assigned to him and further agrees to:
26 (i) bring the assigned parcel up to housing and
27 property maintenance code standards, as provided in this
28 act, within 18 months after assignment of the parcel to
29 him;
30 (ii) permit quarterly inspections by the code
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1 enforcement personnel for determination by the board that
2 reasonable, satisfactory progress is being made by the
3 homesteader in rehabilitating or constructing on the
4 parcel assigned to him; and
5 (iii) live in, occupy and maintain as a single-
6 family dwelling or a housing cooperative to the housing
7 and property maintenance code standards, the parcel
8 assigned to him for a period of not less than five years.
9 (b) Land trust agreement.--After approval of an applicant
10 pursuant to section 4(c)(3), the governing body of the
11 municipality shall negotiate and execute a land trust agreement
12 with the prospective homesteader, thereby assigning the parcel.
13 The agreement shall specify, in as much detail as reasonably
14 possible, a schedule of improvements the homesteader shall make
15 to bring the dwelling into conformity with the municipal housing
16 and property maintenance code within 18 months. The agreement
17 shall be in sufficient detail so that a homesteader shall be
18 able to know what he must do and by when he must do it to
19 fulfill the conditions of the agreement.
20 (c) Conveyance upon fulfillment.--If and when the conditions
21 of the land trust agreement are fulfilled, as determined and
22 certified by the code enforcement bureau, the governing body of
23 the municipality shall execute all documents necessary to convey
24 a fee simple title to the assigned parcel to the applicant so
25 qualifying.
26 Section 6. Land trust agreement.
27 The agreement between the homesteader and the governing body
28 shall be a land trust agreement and shall contain the following
29 minimal conditions:
30 (1) The homesteader of the agreement has the first right
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1 to the title of the real estate, upon completion of the land
2 trust agreement.
3 (2) The homesteader's interest in the trust agreement
4 shall be considered personal property.
5 (3) The homesteader has the right of possession,
6 management, control and operation of the property.
7 (4) The homesteader has the duty of maintenance and
8 repair of the property in accordance with the provisions of
9 the agreement.
10 (5) The homesteader takes the property in an "as is"
11 condition.
12 (6) The homesteader, from the time of the execution of
13 the trust agreement, accepts responsibility for all known or
14 unknown conditions, apparent and nonapparent, of the property
15 that were created before the execution of the agreement or
16 are in existence at the time of the execution of the
17 agreement or are coming into or will come into existence
18 either before, during or after the execution of the
19 agreement.
20 (7) The homesteader shall not act as the agent of the
21 trustee.
22 (8) The trustee does not assume any liability for the
23 acts, or omissions to act, of the homesteader that result in
24 injury or damage to other parties or their property.
25 (9) The homesteader shall carry insurance on the
26 property as the board may require. As a minimum, the
27 insurance shall be sufficient to pay off any loans taken in
28 accordance with this act and reimburse the municipality for
29 its costs in acquiring the property. The municipality and
30 lending institutions, if applicable, shall be named as joint
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1 beneficiary with the homesteader of the policy.
2 (10) The homesteader, within 18 months after the board
3 assigns the homesteader a dwelling, promises and covenants to
4 bring the assigned dwelling up to housing and property
5 maintenance code standards and maintain it at code standards
6 throughout the homestead agreement.
7 (11) The homesteader promises and covenants to permit
8 quarterly inspections, between the hours of 9 a.m. and 4
9 p.m., or at a mutually agreed time, and at reasonable
10 frequencies, by housing and property maintenance code
11 enforcement personnel for the determination of the
12 municipality that reasonable and satisfactory progress is
13 being made by the homesteader in rehabilitating the dwelling
14 assigned to him.
15 (12) The homesteader promises and covenants to occupy
16 and live in the dwelling assigned to him for a period of not
17 less than five years.
18 (13) The homesteader's personal property interest in the
19 possession, management, control and operation of the dwelling
20 may pass according to the rules applicable to personal
21 property except that, before the personal property right
22 passes, the municipality must approve the heir, assign or
23 successor of the original homesteader. The heir, assign or
24 successor of the homesteader, before any personal right vests
25 in him, must meet the requirements of an applicant for the
26 program and independently agree to be held responsible to the
27 homesteading agreement. An attempt to pass the personal
28 property right in any manner or to any degree without
29 obtaining the required approval and making the required
30 commitment is void, and the homesteader's personal property
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1 right is automatically extinguished. Approved transferees of
2 the original homesteader may deduct the original
3 homesteader's residence time from the required five years.
4 (14) The homesteader recognizes and agrees that, if the
5 homesteader, after occupying the dwelling, abandons the
6 dwelling for a period of more than 60 days or the dwelling is
7 abandoned 60 days without permission of the homesteading
8 board, the homesteader's right to the possession, management,
9 control and operation of the dwelling is automatically
10 extinguished.
11 (15) The trustee, after the homesteader has fulfilled
12 the conditions of the land trust agreement, will execute all
13 documents necessary to convey a fee simple title to the
14 homesteader.
15 (16) The board may allow for extenuating circumstances,
16 including, but not limited to, serious illness of the
17 homesteader.
18 (17) The homesteader shall elect the person to whom the
19 property shall be transferred upon the death of the
20 homesteader. This transfer shall be for a consideration of
21 $1.
22 Section 7. Homesteaded land free from liens.
23 During the period of a land trust agreement, the real
24 property being homesteaded shall be free of all liens and
25 encumbrances.
26 Section 8. Financing of rehabilitation.
27 (a) Low interest loans.--To assist local municipalities in
28 the elimination of slums and blighted or deteriorated areas, in
29 preventing the spread of slums, blight or deterioration and in
30 providing maximum opportunity for redevelopment, rehabilitation
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1 and conservation of such areas by private enterprise, municipal
2 governing bodies are hereby authorized to obtain low interest
3 loans for the rehabilitation of properties designated as
4 suitable for homesteading through the United States Department
5 of Housing and Urban Development under section 810 of the
6 Housing and Community Development Act of 1974 (12 U.S.C. §
7 1706(e)).
8 (b) Public grants and loans.--A municipality administering
9 this act shall inform homesteaders of all grants or loans
10 available through the Federal Community Development Block Grant
11 Act, the Federal Community Services Block Grant Act, or other
12 sources administered by the department or municipality.
13 (c) Training.--A municipality administering this act shall
14 inform homesteaders of home repair or construction training
15 programs funded, in whole or in part, through the Job Training
16 Partnership Act (Public Law 97-300, 29 U.S.C. § 1501 et seq.).
17 (d) Financing of rehabilitation.--The municipality
18 administering this act is authorized, through the utilization of
19 local public and private resources where feasible, to make
20 financing available through the board, as herein provided, in
21 the form of grants or loans, to those homesteaders whose annual
22 income is at or below 50% of the Statewide median income to
23 finance the rehabilitation of such property. No financing shall
24 be made available under this section unless all of the following
25 are met:
26 (1) Rehabilitation is required to make the property
27 conform to applicable code requirements and to carry out the
28 objectives of a homestead plan for the area.
29 (2) The homesteader is unable to secure the necessary
30 funds from other sources.
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1 (3) The resulting obligation is an acceptable risk
2 taking into consideration the need for the rehabilitation,
3 the security available for the debt and the ability of the
4 applicant to repay the debt.
5 (4) The board has first caused to be prepared a full and
6 complete list of all major code deficiencies and has caused
7 bid specifications and cost estimates for the rectification
8 of these deficiencies to be prepared. Based on those
9 specifications, the board shall advertise for bids, either
10 individually or collectively with other homestead properties,
11 all those deficiencies the homesteader indicates he cannot
12 rectify by himself, and, if the homesteader agrees to the
13 bid, to be responsible for the payments of the bid.
14 (5) The resulting bids received shall be from the lowest
15 responsible bidder and acceptable to the homesteader.
16 (6) The board has caused to be created an inspection
17 schedule to assure that specifications are being met and that
18 the work is progressing at a sufficient rate to meet the
19 schedule for code deficiency rectification provided under
20 this act.
21 (7) A contractual agreement between the board and the
22 approved contractor, and acceptable to the homesteader,
23 stipulating both a performance and payment schedule, as well
24 as any other item determined necessary by the board, has been
25 prepared. Such payments shall be made, or authorized, by the
26 board according to the agreed-to schedule.
27 (e) 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
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1 as the Local Government Unit Debt Act.
2 (f) Limitations.--Rehabilitation financing made under this
3 section shall be subject to the following limitations:
4 (1) The debt shall be subject to such terms and
5 conditions as may be prescribed by the municipal governing
6 body.
7 (2) The term of the debt may not exceed 30 years or
8 three-fourths of the remaining economic life of the structure
9 after rehabilitation, whichever is less.
10 (3) The principal shall bear interest at such rate as
11 determined by the municipality, but in no case shall it
12 exceed 0.5% per year the interest rate obtained by the
13 municipality, and the board may prescribe such other charges
14 as it finds necessary, including service charges, and
15 appraisal, inspection and other fees.
16 (4) The amount of the debt may not exceed the amount of
17 an obligation which would result in a monthly payment by the
18 applicant of more than 25% of his average monthly income.
19 (g) First payment for occupancy not required.--In no case
20 shall the homesteader's first payment on his financial
21 obligation to the board be required prior to occupancy of the
22 homestead property.
23 Section 9. Default procedures.
24 (a) Explanation of agreement.--Before the homesteader
25 executes the land trust agreement, the board or its designee
26 shall explain to the homesteader the conditions of the land
27 trust agreement, his obligations thereunder, the appeal
28 procedures under this act and the consequences of failure to
29 comply with the conditions of the land trust agreement. After
30 the board or its designee makes the explanation contained in
19890S1214B1498 - 15 -
1 this subsection and the homesteader understands the material
2 explained, the homesteader shall sign a statement that the
3 information contained in this subsection has been explained to
4 him and that he understands it and agrees to be bound in
5 accordance thereof. His signature shall constitute prima facie
6 evidence that he knowingly and understandingly executed the land
7 trust agreement. Only clear and convincing evidence to the
8 contrary may rebut this evidence.
9 (b) Noncompliance.--
10 (1) If a code official in a quarterly inspection
11 determines that the homesteader has not or is not complying
12 with the conditions of the land trust agreement, he shall
13 give the homesteader an oral warning that he is in default of
14 the land trust agreement. Within seven days from the date of
15 the oral warning, the code official shall send a written
16 warning to the homesteader. The warning shall contain the
17 information that the homesteader is in default and specify
18 with reasonable particularity what the homesteader must do to
19 bring the parcel into compliance with the land trust
20 agreement. The code official shall also give the homesteader
21 not less than 30 nor more than 60 days from the date of the
22 mailing of the written warning to bring the parcel into
23 compliance with the land trust agreement. The code official
24 shall send a copy of the written warning to the board and
25 maintain at least one copy of the warning with the code
26 enforcement bureau. At the expiration of the time period
27 indicated in the written warning notice, the code official
28 shall again inspect the parcel to verify the homesteader's
29 compliance with the warning and land trust agreement.
30 (2) If the code official determines that the homesteader
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1 has complied with or substantially complied with the warning
2 notice and brought the parcel up to the agreed-upon standard,
3 then he shall so inform the homesteader and file a written
4 report of the compliance in the code enforcement office and
5 with the board and shall send a copy of same to the
6 homesteader.
7 (3) If the code official determines that the homesteader
8 has not complied with or has not substantially complied with
9 the warning notice and has not brought the parcel up to the
10 agreed-upon standard, he shall give the homesteader written
11 notice that he is still in default of the land trust
12 agreement and that the board will begin procedures to
13 determine if the land trust agreement is to be extinguished.
14 The code official shall then file a written report with the
15 board. Such report shall specify with reasonable
16 particularity the facts upon which the code official based
17 his decision of noncompliance and shall be delivered to the
18 homesteader at the same time it is filed with the board.
19 (c) Formal hearing.--
20 (1) Within ten days of the receipt of the code
21 official's report of noncompliance, the board shall schedule
22 a hearing and appoint no less than three members from the
23 board to determine whether the homesteader has breached the
24 land trust agreement and extinguished his personal property
25 right under the agreement. The decision of the board members
26 so appointed shall have the full force and effect of a
27 decision by the entire membership of the board. Within three
28 days after the scheduling of the hearing, the board shall
29 cause personal service of a hearing notice be made either on
30 the homesteader or someone capable of accepting service on
19890S1214B1498 - 17 -
1 his behalf, ordering him to appear before the board and show
2 cause why the board should not declare him in breach of the
3 agreement and extinguish his personal property right in the
4 land trust agreement. The hearing notice shall notify the
5 homesteader of his right to be represented by counsel and, if
6 indigent, his right to have counsel appointed on his behalf.
7 (2) If the board decides that the homesteader has
8 fulfilled his responsibilities under the land trust
9 agreement, it shall so note and provide copies of its
10 decision to the homesteader and the code enforcement agency.
11 (3) If the board decides that the homesteader has not
12 fulfilled his responsibilities under the land trust
13 agreement, the board may:
14 (i) declare him in breach of the land trust
15 agreement and issue a final decision to extinguish his
16 personal property right in the land trust agreement and
17 shall so inform the homesteader; or
18 (ii) issue an interim order which grants the
19 homesteader not less than 30 nor more than 60 days from
20 the interim order to bring the parcel into compliance
21 with the land trust agreement.
22 (4) If the board has issued an interim order pursuant to
23 paragraph (3)(ii), the code official shall file a
24 reinspection report with the board within three days of the
25 expiration of the period granted for compliance pursuant to
26 the interim order. If the code official determines that the
27 homesteader has complied with or substantially complied with
28 the interim order and brought the parcel up to the agreed-
29 upon standard, then he shall file with the board a written
30 report so stating and terminating the land trust agreement
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1 breach declaration procedure. If the code official determines
2 that the homesteader has not complied with the interim order,
3 he shall file a written report with the board so stating. The
4 code official shall provide the homesteader with a copy of
5 all reports filed with the board pursuant to this section.
6 (5) Upon receipt of the code official's report of the
7 homesteader's noncompliance with the board's interim order,
8 the board may proceed as set forth in paragraph (3)(i).
9 (d) Decision and appeal.--
10 (1) After a final decision by the board that the
11 homesteader is in violation of his land trust agreement, the
12 homesteader shall have 14 business days to file an appeal
13 from that decision with the court of common pleas of the
14 county.
15 (2) If within the 14 days the homesteader does not
16 appeal to the court of common pleas, the board shall record
17 its final determination extinguishing the homesteader's
18 personal property interest under the land trust agreement.
19 The board shall, the date it records its final decision, send
20 a copy of the final judgment to the homesteader and notice
21 that, if within 21 days he does not vacate the premises, the
22 board will initiate summary ejectment procedures against him.
23 If within the 21 days the homesteader does not vacate the
24 premises, the board shall initiate summary ejectment
25 proceedings against him.
26 (3) In case of an appeal to the court of common pleas,
27 the homesteader shall have the right to counsel and, if the
28 homesteader is indigent, counsel will be appointed in his
29 behalf. The court shall hear the homesteader's appeal within
30 30 days from the date he files it with the court. If the
19890S1214B1498 - 19 -
1 court decides that the homesteader has not fulfilled his
2 responsibilities under the land trust agreement, it shall
3 affirm the decision of the board and cause copies of its
4 decision to be provided to the homesteader, the code
5 enforcement agency and the board. The decision of the court
6 shall be final. The board, on the date it receives the court
7 decision, shall send a copy to the homesteader together with
8 notice that, if within 21 days he does not vacate the
9 premises, the board will initiate summary ejectment
10 procedures against him. If the homesteader does not vacate
11 the premises within 21 days after the court enters judgment,
12 the board shall initiate summary ejectment proceedings
13 against him.
14 Section 10. Code enforcement.
15 (a) Housing and property maintenance code requirement.--The
16 municipality or municipalities in which homesteading is to be
17 initiated under this act shall have a housing and property
18 maintenance code which establishes standards for the protection
19 of the public's health, safety and welfare.
20 (b) Provisions of code.--The housing and property
21 maintenance code shall establish standards for basic equipment
22 and facilities, for light, ventilation and heating, for space,
23 use and location, and for safe and sanitary maintenance of all
24 dwellings now in existence or thereafter constructed. As minimum
25 requirements, the housing and property maintenance code shall
26 provide that:
27 (1) Dangerous walls shall be replaced or repaired. This
28 includes the replacement of defective wood lintels and
29 defective wood sills.
30 (2) The property shall be weatherproofed by replacing or
19890S1214B1498 - 20 -
1 repairing any defective siding, shingles or other defects in
2 exterior walls.
3 (3) Gutters and downspouts shall be repaired or replaced
4 if they cause the entry of water into the property or onto
5 adjacent property or cause any public nuisances.
6 (4) Porches or access stairways (inside or outside the
7 structure) shall be made safe for use. Defective porches or
8 access stairways must be repaired or replaced.
9 (5) Missing and dangerously defective individual steps
10 shall be replaced or repaired.
11 (6) Chimneys shall be properly lined and repaired to
12 service the connected facilities.
13 (7) Roofs shall be leakproof.
14 (8) Window frames and doors shall fit properly and be
15 operable.
16 (9) The electric service shall be adequate for the type
17 of structure and in a safe and operable condition.
18 (10) Every single-family residence shall have a complete
19 bath consisting of a tub, a toilet and a basin. Each kitchen
20 shall have a sink.
21 (11) Water pipes, drainpipes and soilpipes shall be
22 operable and capable of providing the intended service.
23 (12) Each dwelling shall have a water heater in operable
24 condition.
25 (13) Every dwelling unit shall have a room or space for
26 the preparation and cooking of food, including space and
27 connections for a stove or other cooking facilities. Adequate
28 electric service must be provided for connecting electric
29 refrigerators and other electrical kitchen appliances.
30 (14) Rotted and defective load carrying members shall be
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1 replaced or repaired.
2 (15) Termite infested wood members shall be properly
3 treated or replaced.
4 (16) Rodent and vermin infestation shall be eliminated
5 and rat-proofing shall be performed, if necessary.
6 (17) Every dwelling shall contain heating facilities,
7 properly designed and installed, in good and safe working
8 condition, capable of heating those rooms and areas to be
9 inhabited. Systems must be operated to prevent freezing of
10 pipes and plumbing.
11 (18) Habitable rooms shall contain a window opening
12 directly to the outside.
13 (19) The premises shall be maintained in a clean and
14 sanitary condition at all times. Refuse should be placed in
15 proper receptacles for collection.
16 (c) Administration and enforcement.--The housing and
17 property maintenance shall also:
18 (1) Establish the responsibilities of owners, operators
19 and occupants of dwellings, including multifamily dwellings.
20 (2) Provide procedures for the administration and
21 enforcement of the housing and property maintenance code,
22 either by the municipality directly or by contractual
23 arrangements with a county, regional or intergovernmental
24 code enforcement bureau, including penalties for violations.
25 (d) Adoption of other codes.--A municipality may adopt by
26 reference a county housing and property maintenance code which
27 meets the aforementioned minimum standards and which may be or
28 is in existence at the time the municipality enters into a local
29 homesteading program as provided for in this act.
30 (e) Review of code.--The housing and property maintenance
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1 code shall be reviewed every 24 months and shall be in effect at
2 the time the municipality or municipalities exercise any
3 provisions of this act.
4 (f) Condemnation.--Any property which has been cited by a
5 municipality as being substandard and unfit for human habitation
6 under provisions of a housing and property maintenance code may
7 be subject to condemnation by that municipality under the
8 following conditions:
9 (1) A preliminary notice outlining the housing and
10 property maintenance code violations shall be sent by
11 registered mail to the owner or owners of any property found
12 to be unfit for human habitation.
13 (2) If within 30 days the owner or owners make no
14 attempt to correct the violations and bring the property into
15 code compliance or contact the municipality regarding their
16 intentions to do so, a second and final notice shall be
17 forwarded by registered mail to the owner or owners giving
18 them 120 days from the date of the final notice to bring the
19 property into code compliance or, in the case of a hardship,
20 to notify the municipality of same.
21 (3) If, after 120 days of receipt of the final notice,
22 the property owner or owners have not brought the property
23 into code compliance, the property may be subject to
24 condemnation as provided for in this act.
25 (4) If the municipality determines that the property
26 which is unfit for human habitation has not been brought into
27 code compliance under provisions of the municipality's
28 housing and property maintenance code after 150 days, and
29 after proper notification as provided for in this act, and if
30 the municipality determines that the property would be
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1 suitable for homesteading as set forth in this act, either
2 through rehabilitation and resale of the home or building or
3 through demolition and resale of the land, the municipality
4 may proceed to acquire the property under the act of June 22,
5 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain
6 Code.
7 Section 11. Eminent domain.
8 The act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as
9 the Eminent Domain Code, shall be applicable to acquisitions of
10 property by municipalities for urban homesteading under this
11 act.
12 Section 12. Assessments.
13 (a) Change in assessed valuation.--Notwithstanding the
14 provision of any other law, the proper authorities may change
15 the assessed valuation of real property when a property is being
16 rehabilitated as a homestead property. In such case the
17 homestead property will be assessed for taxing purposes at 20%
18 of assessed value the first year and at 40%, 60%, 80% and 100%
19 during the successive four years respectively.
20 (b) Notice of sale.--Whenever a property is sold under the
21 provisions as outlined in this act as a homestead property, a
22 notice listing the address of the property and the individual or
23 individuals to whom the property is to be sold shall be
24 forwarded to the office of the chief assessor of the county in
25 which the property is located. In addition the tax on the
26 property shall be computed at the end of each year on the
27 following basis:
28 (1) Year 1 20% of assessed value
29 (2) Year 2 40% of assessed value
30 (3) Year 3 60% of assessed value
19890S1214B1498 - 24 -
1 (4) Year 4 80% of assessed value
2 (5) Year 5 100% of assessed value
3 (c) Construction of section.--This section shall not alter
4 or affect the ratio to market value in effect in any one county
5 but merely changes the base proportionately as the property is
6 rehabilitated, at which time the property is taxed on full
7 market value. All homestead properties shall be assessed prior
8 to the initial sale and then in the third year of ownership and
9 again before title passes following the fifth year of occupancy.
10 (d) Waiver of delinquent taxes.--At the request of any
11 municipality engaged in a homesteading program, any other taxing
12 bodies shall have the option of waiving any and all delinquent
13 taxes for the express purpose of homesteading the parcel in
14 question for the five-year period as provided for in this act.
15 Section 13. Severability.
16 The provisions of this act are severable. If any provision of
17 this act or its application to any person or circumstance is
18 held invalid, the invalidity shall not affect other provisions
19 or applications of this act which can be given effect without
20 the invalid provision or application.
21 Section 14. Effective date.
22 This act shall take effect in 60 days.
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