SENATE AMENDED PRIOR PRINTER'S NO. 386 PRINTER'S NO. 3396
No. 356 Session of 1985
INTRODUCED BY RICHARDSON, MILLER, IRVIS, FREEMAN, PRESTON, DEAL, J. L. WRIGHT, FATTAH, WAMBACH, HARPER, ANGSTADT, GEIST, PISTELLA, COHEN, PRESSMANN, CARN, KUKOVICH, GAMBLE, TRUMAN, AFFLERBACH, TIGUE, WOZNIAK, O'DONNELL, McHALE, DeLUCA, HALUSKA, BOOK, DALEY, PERZEL, MORRIS, ARTY, PETRONE, FOX AND ACOSTA, FEBRUARY 13, 1985
SENATOR SALVATORE, URBAN AFFAIRS AND HOUSING, IN SENATE, AS AMENDED, APRIL 29, 1986
AN ACT 1 Providing authority for urban MUNICIPALITY homesteading and the <-- 2 procedure for establishing an urban A MUNICIPAL homesteading <-- 3 program; expanding local government's authority in dealing 4 with urban blight and decay; and providing exclusions from <-- 5 certain statutes. 6 TABLE OF CONTENTS 7 Section 1. Short title. 8 Section 2. Legislative intent. 9 Section 3. Definitions. 10 Section 4. Urban MUNICIPAL homesteading. <-- 11 Section 5. Qualifications. 12 Section 6. Land trust agreement. 13 Section 7. Homesteaded land free from liens. 14 Section 8. Rehabilitation loans FINANCING OF REHABILITATION. <-- 15 Section 9. Federal funding. <-- 16 Section 10 9. Default procedures. <--
1 Section 11 10. Code enforcement. <-- 2 Section 12 11. Eminent domain. <-- 3 Section 13 12 Assessments. <-- 4 Section 14 13. Severability. <-- 5 Section 15 14. Effective date. <-- 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. Short title. 9 This act shall be known and may be cited as the Urban <-- 10 MUNICIPAL Homesteading and Rehabilitation Act. <-- 11 Section 2. Legislative intent. 12 The General Assembly of the Commonwealth of Pennsylvania 13 recognizes the need for strengthening the authority of local 14 government in dealing with the problems of housing. The General 15 Assembly recognizes that urban homesteading can be an effective <-- 16 tool in local government's continuing struggle against urban 17 decay. In conjunction with other Federal, State and local 18 programs, urban homesteading offers the unique potential of <-- 19 preserving our architectural heritage in addition to slowing and 20 reversing the loss of existing urban housing units. While the <-- 21 concept of urban homesteading is being investigated by some in <-- 22 Pennsylvania, it is desirable that such programs have some 23 uniformity of purpose and design. For the concept of urban <-- 24 homesteading to work at an optimum level, it will be necessary 25 for such programs to be excluded from certain statutory 26 limitations normally placed on local governments. 27 Section 3. Definitions. 28 The following words and phrases when used in this act shall 29 have the meanings given to them in this section unless the 30 context clearly indicates otherwise: 19850H0356B3396 - 2 -
1 "Agency." The Municipal Homestead Agency. <-- 2 "Board." The governing body of the homestead agency 3 appointed to administer this act. 4 "BOARD." THE HOMESTEAD BOARD. <-- 5 "Code official." The director or individual responsible for 6 the supervision of the bureau or department responsible for code 7 enforcement. 8 "Council." The elected body of officials governing the <-- 9 municipality. 10 "Department." The Department of Community Affairs of the 11 Commonwealth. 12 "Governing body." The elected council of the municipality. 13 "Homestead Board." The board created by section 4(b) or an 14 existing authority, board, commission or quasi-governmental 15 nonprofit corporation in existence prior to the effective date 16 of this act to which the council MUNICIPALITY, by ordinance, has <-- 17 assigned the duty to administer the homestead program provided 18 by this act. 19 "Homesteader." An individual, his spouse, housing 20 cooperative or nonprofit corporation conforming to the 21 provisions and intent of this act. 22 "Housing cooperative." Any five or more persons, who shall 23 have associated themselves together by written articles of 24 association, such as described in section 1 of the act of June 25 7, 1887 (P.L.365, No.252), entitled "An act to encourage and 26 authorize the formation of cooperative associations, productive 27 and distributive, by farmers, mechanics, laborers, or other 28 persons," for the purpose of buying, selling, holding, leasing 29 or improving lands, tenements or buildings. 30 "Major code deficiencies." All those deficiencies enumerated 19850H0356B3396 - 3 -
1 under section 10. 2 "Municipality." Any political subdivision of the <-- 3 Commonwealth other than a school district. COUNTY, CITY, <-- 4 BOROUGH, INCORPORATED TOWN OR TOWNSHIP. 5 "Parcel." That tract of land or unit of housing which, under 6 existing local zoning regulations, would accommodate a single- 7 family residence or housing cooperative as defined in this act. 8 The term "parcel," unmodified by the word "developed," shall 9 include both developed and undeveloped tracts. 10 "Trustee." The board designated by the municipality <-- 11 MUNICIPALITY ENTERING INTO A LAND TRUST AGREEMENT PURSUANT TO <-- 12 SECTION 5(B). 13 Section 4. Urban MUNICIPAL homesteading. <-- 14 (a) Program established.--There is hereby created an urban A <-- 15 homesteading program to be effective immediately and 16 administered by option of the various municipalities of the 17 Commonwealth, meeting certain requirements set forth in this 18 act, and upon enactment of the necessary ordinances. 19 (b) Homestead Board.--The governing body of the municipality <-- 20 is hereby authorized to create and appoint members of a board to 21 be known as the Homestead Board, whose purposes shall be to 22 administer the homestead program, except that nothing in this 23 subsection shall be interpreted to prohibit the governing body <-- 24 MUNICIPALITY from assigning such duties, by ordinance, to an <-- 25 existing authority, board, commission or existing quasi- 26 governmental nonprofit corporation. Except where council A <-- 27 MUNICIPALITY has assigned homestead program duties to an 28 existing authority, board, commission or quasi-governmental 29 nonprofit corporation, the Homestead Board shall be composed of 30 no less than nine, and no more than twelve, members, no less 19850H0356B3396 - 4 -
1 than three of whom shall be members of minority groups and no 2 fewer than one of whom shall be a representative of a local 3 community action agency, where such an agency exists. All board <-- 4 members shall have specific experience with urban housing. A <-- 5 SIMPLE MAJORITY OF THE BOARD MEMBERS SHALL HAVE SPECIFIC 6 EXPERIENCE WITH MUNICIPAL HOUSING OR HOUSING-RELATED PROGRAMS. 7 Board members shall serve a term of three years and shall be 8 eligible for reappointment. Members of the board shall receive 9 no compensation but shall be reimbursed for expenses actually 10 incurred in connection with performing the duties prescribed by 11 this act and shall by majority vote appoint a secretary of the 12 board, who may or may not be a member of the board. The 13 secretary shall receive such compensation as may be agreed to by 14 the members of the Homestead Board. In addition, the members of 15 the Homestead Board may appoint and fix the compensation of such 16 personnel as may be necessary to implement the homestead 17 program, provided council THE MUNICIPALITY has made funds <-- 18 available for such purposes. 19 (c) Powers and duties.--The board shall: 20 (1) Review and publicize, by newspaper advertising or 21 some other effective method, the availability of homestead 22 program properties and the procedure to apply for the 23 properties. Such announcement shall include an estimated cost 24 of bringing the aforementioned properties up to municipal 25 code standards. THE BOARD SHALL CONFIRM THAT RESIDENTS OF <-- 26 THOSE NEIGHBORHOODS CONTAINING PARCELS TO BE INCLUDED UNDER 27 THE HOMESTEADING PROGRAM ARE APPRISED OF THE PROGRAM. 28 (2) Receive applications, recording thereon the date and 29 time received, and review applications in the order received 30 as to applicants' compliance with criteria established by 19850H0356B3396 - 5 -
1 this act and local ordinance and the regulations promulgated 2 thereunder. 3 (3) In order, according to date and time of receipt of 4 application, approve and certify applicants as to their 5 specific construction skills and ability in general to 6 refurbish the assigned parcel, PROVIDED THAT, IF OTHERWISE <-- 7 ELIGIBLE THEREFOR, RESIDENTS OF NEIGHBORHOODS CONTAINING 8 HOMESTEADING PARCELS BE GIVEN FIRST PREFERENCE AS APPLICANTS 9 FOR PARTICIPATION IN THE PROGRAM. 10 (4) Recommend, in order, according to date and time of 11 receipt of application, the execution by the governing body 12 of a land trust agreement with the approved applicant. The 13 land trust agreement shall grant a 24-month tax exemption for 14 the assigned parcel and be recorded with the appropriate 15 county officials. If the number of approved applicants 16 exceeds the number of parcels for which land trust agreements 17 are recommended, agreements shall be negotiated in order, 18 according to date and time of receipt of application, until 19 all available parcels are subject to such agreements. 20 Negotiations with those approved applicants who are without 21 agreements shall be commenced in order, according to the date 22 and time of receipt of application, as additional parcels 23 become available. 24 (5) Approve and recommend the execution by the governing 25 body of all documents necessary to convey fee simple title to 26 the assigned parcel to the applicant upon the applicant's 27 fulfillment of all conditions enumerated in section 6. 28 (6) Utilize the aid and assistance of other relevant 29 municipal agencies in the furtherance of the duties and 30 responsibilities of the board. 19850H0356B3396 - 6 -
1 (7) Promulgate regulations consistent with the purpose 2 and spirit of the homestead program as outlined herein, said 3 regulations to be approved in their entirety by the municipal 4 governing body and by the municipality's solicitor as to 5 form. 6 (8) Give notice to the code official which provides that 7 pursuant to the authority of the governing body under section 8 5(b), approved identified homesteaders who are rehabilitating 9 existing structures are exempt from the enforcement of 10 specific sections of the housing and property maintenance 11 code during the period of rehabilitation or construction, 12 except that no section relating to the individual's health 13 and safety shall be waived. 14 (9) Give notice to the code officer who shall thereupon 15 institute public nuisance proceedings against certain 16 deteriorated and blighted structures for demolition or 17 rehabilitation through homesteading. 18 (10) Provide applicants with a report as to the 19 structural deficiencies of the property and other pertinent 20 information, including an estimate of the costs of bringing 21 the property into compliance with the housing and property 22 maintenance codes. 23 (11) Recommend to council THE GOVERNING BODY that a <-- 24 municipality homesteading map be prepared designating the 25 location of properties to be included under the homesteading 26 program to insure that the homesteading program is compatible 27 with existing or proposed programs of other municipality 28 agencies. 29 (d) Catalogue of property.--In each municipality embarking 30 upon an urban A homesteading program, the bureau or department <-- 19850H0356B3396 - 7 -
1 charged with the responsibilities of code enforcement, as
2 specified in this act, shall, in conjunction with the municipal
3 planning commission and its staff under the direction of the
4 Homestead Board, compile and maintain a catalogue of all
5 unoccupied dwellings and vacant lots owned by the municipality
6 or otherwise. From this catalogue shall be determined which
7 parcels and structures can be utilized for building or
8 rehabilitation by homesteaders.
9 (e) Approval of governing body.--The governing body, upon
10 recommendation of the municipal planning commission, shall by
11 resolution approve the parcels catalogued under subsection (d)
12 for disposition by the board for the public purpose of improving
13 the quality of housing in accordance with the homestead program.
14 Section 5. Qualifications.
15 (a) Qualifications enumerated.--Homestead program property,
16 for purposes of this act, shall be limited to that property
17 which, when rehabilitated, is a single-family residence or
18 housing cooperative and which will be offered to qualified
19 applicants at no initial cost on a land trust agreement provided
20 that the applicant:
21 (1) Is at least 18 years of age or is the head of a
22 family.
23 (2) Is a citizen of the United States or a resident
24 alien as determined by the United States Immigration and
25 Naturalization Service, or its successor.
26 (3) Is a recognized nonprofit community group,
27 corporation or housing cooperative acting as an agent for a
28 homesteader.
29 (4) Has financial resources and the mechanical skills to <--
30 rehabilitate an existing dwelling or construct a new
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1 dwelling, as the case may be. 2 (5) Upon assignment, contractually agrees to 3 rehabilitate, or construct on, as the case may be, the parcel 4 assigned to him and further agrees to: 5 (i) bring the assigned parcel up to housing and 6 property maintenance code standards, as provided in this 7 act, within 18 months after assignment of the parcel to 8 him; 9 (ii) permit quarterly inspections by the code 10 enforcement personnel for determination by the board that 11 reasonable, satisfactory progress is being made by the 12 homesteader in rehabilitating or constructing on the 13 parcel assigned to him; and 14 (iii) live in, occupy, and maintain as a single- 15 family dwelling or a housing cooperative to the housing 16 and property maintenance code standards, the parcel 17 assigned to him for a period of not less than five years. 18 (b) Land trust agreement.--After approval of an applicant 19 pursuant to section 4(c)(3), the governing body of the 20 municipality shall negotiate and execute a land trust agreement 21 with the prospective homesteader, thereby assigning the parcel. 22 The agreement shall specify, in as much detail as reasonably 23 possible, a schedule of improvements the homesteader shall make 24 to bring the dwelling into conformity with the municipal housing 25 and property maintenance code within 18 months. The agreement 26 shall be in sufficient detail so that a homesteader shall be 27 able to know what he must do and by when he must do it to 28 fulfill the conditions of the agreement. 29 (c) Conveyance upon fulfillment.--If and when the conditions 30 of the land trust agreement are fulfilled, as determined and 19850H0356B3396 - 9 -
1 certified by the code enforcement bureau, the governing body of 2 the municipality shall execute all documents necessary to convey 3 a fee simple title to the assigned parcel to the applicant so 4 qualifying. 5 Section 6. Land trust agreement. 6 The agreement between the homesteader and the governing body 7 shall be a land trust agreement and shall contain the following 8 minimal conditions: 9 (1) The homesteader of the agreement has the first right 10 to the title of the real estate, upon completion of the land 11 trust agreement. 12 (2) The homesteader's interest in the trust agreement 13 shall be considered personal property. 14 (3) The homesteader has the right of possession, 15 management, control and operation of the property. 16 (4) The homesteader has the duty of maintenance and 17 repair of the property in accordance with the provisions of 18 the agreement. 19 (5) The homesteader takes the property in an "as is" 20 condition. 21 (6) The homesteader, from the time of the execution of 22 the trust agreement, accepts responsibility for all known or 23 unknown conditions, apparent and nonapparent, of the property 24 that were created before the execution of the agreement or 25 are in existence at the time of the execution of the 26 agreement or are coming into or will come into existence 27 either before, during or after the execution of the 28 agreement. 29 (7) The homesteader shall not act as the agent of the 30 trustee. 19850H0356B3396 - 10 -
1 (8) The trustee does not assume any liability for the
2 acts, or omissions to act, of the homesteader that result in
3 injury or damage to other parties or their property.
4 (9) The homesteader shall carry insurance on the
5 property as the board may require. As a minimum, the
6 insurance shall be sufficient to pay off any loans taken in
7 accordance with this act and reimburse the municipality for
8 its costs in acquiring the property. The municipality and
9 lending institutions, if applicable, shall be named as joint
10 beneficiary with the homesteader of said policy.
11 (10) The homesteader, within 18 months after the
12 municipality BOARD assigns the homesteader a dwelling, <--
13 promises and covenants to bring the assigned dwelling up to
14 housing and property maintenance code standards and maintain
15 it at code standards throughout the homestead agreement.
16 (11) The homesteader promises and covenants to permit
17 quarterly inspections, between the hours of 9 a.m. and 4
18 p.m., or at a mutually agreed time, and at reasonable
19 frequencies, by housing and property maintenance code
20 enforcement personnel for the determination of the
21 municipality that reasonable and satisfactory progress is
22 being made by the homesteader in rehabilitating the dwelling
23 assigned to him.
24 (12) The homesteader promises and covenants to occupy
25 and live in the dwelling assigned to him for a period of not
26 less than five years.
27 (13) The homesteader's personal property interest in the
28 possession, management, control and operation of the dwelling
29 may pass according to the rules applicable to personal
30 property except that before the personal property right
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1 passes, the municipality must approve the heir, assign or
2 successor of the original homesteader. The heir, assign or
3 successor of the homesteader, before any personal right vests
4 in him, must meet the requirements of an applicant for the
5 program and independently agree to be held responsible to the
6 homesteading agreement. An attempt to pass the personal
7 property right in any manner or to any degree without
8 obtaining the required approval and making the required
9 commitment is void, and the homesteader's personal property
10 right is automatically extinguished. Approved transferees of
11 the original homesteader may deduct the original
12 homesteader's residence time from the required five years.
13 (14) The homesteader recognizes and agrees that, if the
14 homesteader, after occupying the dwelling, abandons the
15 dwelling for a period of more than 60 days or the dwelling is
16 abandoned 60 days without permission of the urban <--
17 homesteading board, the homesteader's right to the
18 possession, management, control and operation of the dwelling
19 is automatically extinguished.
20 (15) The trustee, after the homesteader has fulfilled
21 the conditions of the land trust agreement, will execute all
22 documents necessary to convey a fee simple title to the
23 homesteader.
24 (16) The board may allow for extenuating circumstances,
25 including, but not limited to, serious illness of the
26 homesteader.
27 (17) The homesteader shall elect the person to whom the
28 property shall be transferred upon the death of the
29 homesteader. This transfer shall be for a consideration of
30 $1.
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1 Section 7. Homesteaded land free from liens. 2 During the period of a land trust agreement, the real 3 property being homesteaded shall be free of all liens and 4 encumbrances. 5 Section 8. Rehabilitation loans FINANCING OF REHABILITATION. <-- 6 (a) Low interest loans.--To assist local municipalities in 7 the elimination of slums and blighted or deteriorated areas, in 8 preventing the spread of slums, blight or deterioration and in 9 providing maximum opportunity for redevelopment, rehabilitation 10 and conservation of such areas by private enterprise, municipal 11 governing bodies are hereby authorized to obtain low interest 12 loans for the rehabilitation of properties designated as 13 suitable for homesteading. <-- 14 (b) Debt authorized.--The municipality may borrow up to 15 $300,000 or $10 per capita, whichever is greater, without 16 considering such debt within the statutory borrowing limitations 17 prescribed in the act of July 12, 1972 (P.L.781, No.185), known 18 as the Local Government Unit Debt Act. THROUGH THE UNITED STATES <-- 19 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT UNDER SECTION 810 OF 20 THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 (12 U.S.C. 21 1706(E)). 22 (B) PUBLIC GRANTS AND LOANS.--A MUNICIPALITY ADMINISTERING 23 THIS ACT SHALL INFORM HOMESTEADERS OF ALL GRANTS OR LOANS 24 AVAILABLE THROUGH THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT 25 ACT, THE FEDERAL COMMUNITY SERVICES BLOCK GRANT ACT, OR OTHER 26 SOURCES ADMINISTERED BY THE DEPARTMENT OR MUNICIPALITY. 27 (C) TRAINING.--A MUNICIPALITY ADMINISTERING THIS ACT SHALL 28 INFORM HOMESTEADERS OF HOME REPAIR OR CONSTRUCTION TRAINING 29 PROGRAMS FUNDED, IN WHOLE OR IN PART, THROUGH THE JOB TRAINING 30 PARTNERSHIP ACT (PUBLIC LAW 97-300, 29 U.S.C. § 1501, ET SEQ.). 19850H0356B3396 - 13 -
1 (c) (D) Financing of rehabilitation.--The municipal body <-- 2 MUNICIPALITY administering this act is authorized, through the <-- 3 utilization of local public and private resources where 4 feasible, to make financing available through the board, as 5 herein provided, to the homesteaders to finance the <-- 6 rehabilitation of such property. IN THE FORM OF GRANTS OR LOANS, <-- 7 TO THOSE HOMESTEADERS WHOSE ANNUAL INCOME IS AT OR BELOW 50% OF 8 THE STATEWIDE MEDIAN INCOME TO FINANCE THE REHABILITATION OF 9 SUCH PROPERTY. No financing shall be made available under this 10 section unless all of the following are met: 11 (1) Rehabilitation is required to make the property 12 conform to applicable code requirements and to carry out the 13 objectives of a homestead plan for the area. 14 (2) The applicant HOMESTEADER is unable to secure the <-- 15 necessary funds from other sources. upon comparable terms and <-- 16 conditions. 17 (3) The resulting obligation is an acceptable risk 18 taking into consideration the need for the rehabilitation, 19 the security available for the debt and the ability of the 20 applicant to repay the debt. 21 (4) The board has first caused to be prepared a full and 22 complete list of all major code deficiencies and has caused 23 bid specifications and cost estimates for the rectification 24 of these deficiencies to be prepared. Based on those 25 specifications, the board shall advertise for bids, either 26 individually or collectively with other homestead properties, 27 all those deficiencies the homesteader indicates he cannot 28 rectify by himself, and, if the homesteader agrees to the 29 bid, to be responsible for the payments of said bid. 30 (5) The resulting bids received shall be from the lowest 19850H0356B3396 - 14 -
1 responsible bidder and acceptable to the homesteader. 2 (6) The board has caused to be created an inspection 3 schedule, to assure that specifications are being met and 4 that the work is progressing at a sufficient rate to meet the 5 schedule for code deficiency rectification provided under 6 this act. 7 (7) A contractual agreement, between the board and the 8 approved contractor, and acceptable to the homesteader, 9 stipulating both a performance and payment schedule, as well 10 as any other item determined necessary by the board, has been 11 prepared. Such payments shall be made, or authorized, by the 12 board according to the agreed-to schedule. 13 (E) DEBT AUTHORIZED.--THE MUNICIPALITY MAY BORROW UP TO <-- 14 $300,000 OR $10 PER CAPITA, WHICHEVER IS GREATER, WITHOUT 15 CONSIDERING SUCH DEBT WITHIN THE STATUTORY BORROWING LIMITATIONS 16 PRESCRIBED IN THE ACT OF JULY 12, 1972 (P.L.781, NO.185), KNOWN 17 AS THE LOCAL GOVERNMENT UNIT DEBT ACT. 18 (d) (F) Limitations.--Rehabilitation financing made under <-- 19 this section shall be subject to the following limitations: 20 (1) The debt shall be subject to such terms and 21 conditions as may be prescribed by the municipal governing 22 body. 23 (2) The term of the debt may not exceed 30 years or 24 three-fourths of the remaining economic life of the structure 25 after rehabilitation, whichever is less. 26 (3) The principal shall bear interest at such rate as 27 determined by the administrating agency MUNICIPALITY, but in <-- 28 no case shall it exceed one-half of 1% per year the interest 29 rate obtained by council THE MUNICIPALITY, and the board may <-- 30 prescribe such other charges as it finds necessary, including 19850H0356B3396 - 15 -
1 service charges, and appraisal, inspection and other fees. 2 (4) The amount of the debt may not exceed the amount of 3 an obligation which would result in a monthly payment by the 4 applicant of more than 25% of his average monthly income. 5 (e) (G) First payment for occupancy not required.--In no <-- 6 case shall the homesteader's first payment on his financial 7 obligation to the board be required prior to occupancy of the 8 homestead property. 9 Section 9. Federal funding. <-- 10 (a) Training.--Participants in the homesteading program 11 shall, to the extent possible, take advantage of training 12 programs funded in whole or in part through the Job Training 13 Partnership Act (Public Law 97-300, 29 U.S.C. § 1501, et seq.). 14 (b) Loans.--Participants shall also take advantage of any 15 grants or loans made available through the Federal Community 16 Services Block Grant Act, and other sources, as administered by 17 the department. 18 Section 10 9. Default procedures. <-- 19 (a) Explanation of agreement.--Before the homesteader 20 executes the land trust agreement, the board or its designee 21 shall explain to the homesteader the conditions of the land 22 trust agreement, his obligations thereunder, the appeal 23 procedures under this act and the consequences of failure to 24 comply with the conditions of the land trust agreement. After 25 the board or its designee makes the explanation contained in 26 this subsection and the homesteader understands the material 27 explained, the homesteader shall sign a statement that the 28 information contained in this subsection has been explained to 29 him and that he understands it and agrees to be bound in 30 accordance thereof. His signature shall constitute prima facie 19850H0356B3396 - 16 -
1 evidence that he knowingly and understandingly executed the land 2 trust agreement. Only clear and convincing evidence to the 3 contrary may rebut this evidence. 4 (b) Noncompliance.-- 5 (1) If a code official in a quarterly inspection 6 determines that the homesteader has not or is not complying 7 with the conditions of the land trust agreement, he shall 8 give the homesteader an oral warning that he is in default of 9 the land trust agreement. Within seven days from the date of 10 the oral warning, the code official shall send a written 11 warning to the homesteader. The warning shall contain the 12 information that the homesteader is in default and specify 13 with reasonable particularity what the homesteader must do to 14 bring the parcel into compliance with the land trust 15 agreement. The code official shall also give the homesteader 16 not less than 30 nor more than 60 days from the date of the 17 mailing of the written warning to bring the parcel into 18 compliance with the land trust agreement. The code official 19 shall send a copy of the written warning to the board and 20 maintain at least one copy of the warning with the code 21 enforcement bureau. At the expiration of the time period 22 indicated in the written warning notice, the code official 23 shall again inspect the parcel to verify the homesteader's 24 compliance with the warning and land trust agreement. 25 (2) If the code official determines that the homesteader 26 has complied with or substantially complied with the warning 27 notice and brought the parcel up to the agreed-upon standard, 28 then he shall so inform the homesteader and file a written 29 report of the compliance in the code enforcement office and 30 with the board and shall send a copy of same to the 19850H0356B3396 - 17 -
1 homesteader.
2 (3) If the code official determines that the homesteader
3 has not complied with or has not substantially complied with
4 the warning notice and has not brought the parcel up to the
5 agreed-upon standard, he shall GIVE THE HOMESTEADER WRITTEN <--
6 NOTICE THAT HE IS STILL IN DEFAULT OF THE LAND TRUST
7 AGREEMENT AND THAT THE BOARD WILL BEGIN PROCEDURES TO
8 DETERMINE IF THE LAND TRUST AGREEMENT IS TO BE EXTINGUISHED.
9 THE CODE OFFICIAL SHALL THEN file a written report with the
10 board. Such report shall specify with reasonable
11 particularity the facts upon which the code official based
12 his decision of noncompliance and shall be delivered to the
13 homesteader at the same time it is filed with the board.
14 (c) Formal hearing.--
15 (1) Within ten days of the receipt of the code
16 official's report of noncompliance, the board shall schedule
17 a hearing and appoint no less than three members from the
18 board to determine whether the urban homesteader has breached <--
19 the land trust agreement and extinguished his personal
20 property right under the agreement. The decision of the board
21 members so appointed shall have the full force and effect of
22 a decision by the entire membership of the board. Within
23 three days after the scheduling of the hearing, the board
24 shall cause personal service of a hearing notice be made
25 either on the homesteader or someone capable of accepting
26 service on his behalf, ordering him to appear before the
27 board and show cause why the board should not declare him in
28 breach of the agreement and extinguish his personal property
29 right in the land trust agreement. The hearing notice shall
30 notify the homesteader of his right to be represented by
19850H0356B3396 - 18 -
1 counsel and if indigent, his right to have counsel appointed
2 on his behalf.
3 (2) If the board decides that the homesteader has
4 fulfilled his responsibilities under the land trust
5 agreement, it shall so note and provide copies of its
6 decision to the urban homesteader and the code enforcement <--
7 agency.
8 (3) If the board decides that the homesteader has not
9 fulfilled his responsibilities under the land trust
10 agreement, the board may:
11 (i) declare him in breach of the land trust
12 agreement and issue a final decision to extinguish his
13 personal property right in the land trust agreement and
14 shall so inform the homesteader; or
15 (ii) issue an interim order which grants the
16 homesteader not less than 30 nor more than 60 days from
17 the interim order to bring the parcel into compliance
18 with the land trust agreement.
19 (4) If the board has issued an interim order pursuant to
20 paragraph (3)(ii), the code official shall file a
21 reinspection report with the board within three days of the
22 expiration of the period granted for compliance pursuant to
23 the interim order. If the code official determines that the
24 homesteader has complied with or substantially complied with
25 the interim order and brought the parcel up to the agreed-
26 upon standard, then he shall file with the board a written
27 report so stating and terminating the land trust agreement
28 breach declaration procedure. If the code official determines
29 that the homesteader has not complied with the interim order,
30 he shall file a written report with the board so stating. The
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1 code official shall provide the homesteader with a copy of 2 all reports filed with the board pursuant to this section. 3 (5) Upon receipt of the code official's report of the 4 homesteader's noncompliance with the board's interim order, 5 the board may proceed as set forth in paragraph (3)(i). 6 (d) Decision and appeal.-- 7 (1) After a final decision by the board that the 8 homesteader is in violation of his land trust agreement, the 9 homesteader shall have 14 business days to file an appeal 10 from that decision with the court of common pleas of the 11 county. 12 (2) If within the 14 days the homesteader does not 13 appeal to the court of common pleas, the board shall record 14 its final determination extinguishing the homesteader's 15 personal property interest under the land trust agreement. 16 The board shall, the date it records its final decision, send 17 a copy of the final judgment to the homesteader and notice 18 that if within 21 days he does not vacate the premises, the 19 board will initiate summary ejectment procedures against him. 20 If within the 21 days the homesteader does not vacate the 21 premises, the board shall initiate summary ejectment 22 proceedings against him. 23 (3) In case of an appeal to the court of common pleas, 24 the homesteader shall have the right to counsel and, if the 25 homesteader is indigent, counsel will be appointed in his 26 behalf. The court shall hear the homesteader's appeal within 27 30 days from the date he files it with the court. If the 28 court decides that the homesteader has not fulfilled his 29 responsibilities under the land trust agreement, it shall 30 affirm the decision of the board and cause copies of its 19850H0356B3396 - 20 -
1 decision to be provided to the urban homesteader, the code <-- 2 enforcement agency and the board. The decision of the court 3 shall be final. The board, on the date it receives the court 4 decision, shall send a copy to the homesteader together with 5 notice that, if within 21 days he does not vacate the 6 premises, the board will initiate summary ejectment 7 procedures against him. If the homesteader does not vacate 8 the premises within 21 days after the court enters judgment, 9 the board shall initiate summary ejectment proceedings 10 against him. 11 Section 11 10. Code enforcement. <-- 12 (a) Housing and property maintenance code requirement.--The 13 municipality or municipalities in which urban homesteading is to <-- 14 be initiated by an acquiring agency under this act shall have a <-- 15 housing and property maintenance code which establishes 16 standards for the protection of the public's health, safety and 17 welfare. 18 (b) Provisions of code.--The housing and property 19 maintenance code shall establish standards for basic equipment 20 and facilities, for light, ventilation and heating, for space, 21 use and location, and for safe and sanitary maintenance of all 22 dwellings now in existence or thereafter constructed. As minimum 23 requirements, the housing and property maintenance code shall 24 provide that: 25 (1) Dangerous walls shall be replaced or repaired. This 26 includes the replacement of defective wood lintels and 27 defective wood sills. 28 (2) The property shall be weatherproofed by replacing or 29 repairing any defective siding, shingles or other defects in 30 exterior walls. 19850H0356B3396 - 21 -
1 (3) Gutters and downspouts shall be repaired or replaced 2 if they cause the entry of water into the property or onto 3 adjacent property or cause any public nuisances. 4 (4) Porches or access stairways (inside or outside the 5 structure) shall be made safe for use. Defective porches or 6 access stairways must be repaired or replaced. 7 (5) Missing and dangerously defective individual steps 8 shall be replaced or repaired. 9 (6) Chimneys shall be properly lined and repaired to 10 service the connected facilities. 11 (7) Roofs shall be leakproof. 12 (8) Window frames and doors shall fit properly and be 13 operable. 14 (9) The electric service shall be adequate for the type 15 of structure and in a safe and operable condition. 16 (10) Every single-family residence shall have a complete 17 bath consisting of a tub, a toilet and a basin. Each kitchen 18 shall have a sink. 19 (11) Water pipes, drainpipes and soilpipes shall be 20 operable and capable of providing the intended service. 21 (12) Each dwelling shall have a water heater in operable 22 condition. 23 (13) Every dwelling unit shall have a room or space for 24 the preparation and cooking of food, including space and 25 connections for a stove or other cooking facilities. Adequate 26 electric service must be provided for connecting electric 27 refrigerators and other electrical kitchen appliances. 28 (14) Rotted and defective load carrying members shall be 29 replaced or repaired. 30 (15) Termite infested wood members shall be properly 19850H0356B3396 - 22 -
1 treated or replaced.
2 (16) Rodent and vermin infestation shall be eliminated
3 and rat-proofing shall be performed, if necessary.
4 (17) Every dwelling shall contain heating facilities,
5 properly designed and installed, in good and safe working
6 condition, capable of heating those rooms and areas to be
7 inhabited. Systems must be operated to prevent freezing of
8 pipes and plumbing.
9 (18) Habitable rooms shall contain a window opening
10 directly to the outside.
11 (19) The premises shall be maintained in a clean and
12 sanitary condition at all times. Refuse should be placed in
13 proper receptacles for collection.
14 (c) Administration and enforcement.--The housing and
15 property maintenance code shall also:
16 (1) Establish the responsibilities of owners, operators
17 and occupants of dwellings, including multifamily dwellings.
18 (2) Provide procedures for the administration and
19 enforcement of the housing and property maintenance code,
20 either by the municipality directly or by contractual
21 arrangements with a county, regional or intergovernmental
22 code enforcement bureau, including penalties for violations.
23 (d) Adoption of other codes.--A municipality may adopt by
24 reference a county housing and property maintenance code which
25 meets the aforementioned minimum standards and which may be or
26 is in existence at the time the municipality enters into a local
27 homesteading program as provided for in this act.
28 (e) Review of code.--The housing and property maintenance
29 code shall be reviewed every 24 months and shall be in effect at
30 the time the acquiring agency, municipality or municipalities <--
19850H0356B3396 - 23 -
1 exercise any provisions of this act. 2 (f) Condemnation.--Any property which has been cited by a 3 municipality as being substandard and unfit for human habitation 4 under provisions of a housing and property maintenance code may 5 be subject to condemnation by that municipality or by an <-- 6 acquiring agency designated by the municipality under the 7 following conditions: 8 (1) A preliminary notice outlining the housing and 9 property maintenance code violations shall be sent by 10 registered mail to the owner or owners of any property found 11 to be unfit for human habitation. 12 (2) If within 30 days the owner or owners make no 13 attempt to correct the violations and bring the property into 14 code compliance or contact the municipality regarding their 15 intentions to do so, a second and final notice shall be 16 forwarded by registered mail to the owner or owners giving 17 them 120 days from the date of the final notice to bring the 18 property into code compliance or, in the case of a hardship, 19 to notify the municipality of same. 20 (3) If, after 120 days of receipt of the final notice, 21 the property owner or owners have not brought the property 22 into code compliance, the property may be subject to 23 condemnation as provided for in this act. either by the <-- 24 municipality or by an acquiring agency designated by the 25 municipality. 26 (4) If the municipality or designated agency determines <-- 27 that the property which is unfit for human habitation has not 28 been brought into code compliance under provisions of the 29 municipality's housing and property maintenance code after 30 150 days, and after proper notification as provided for in 19850H0356B3396 - 24 -
1 this act, and if the municipality determines that the 2 property would be suitable for urban homesteading as set <-- 3 forth in this act, either through rehabilitation and resale 4 of the home or building or through demolition and resale of 5 the land, the municipality or the acquiring agency may <-- 6 proceed to acquire the property under the act of June 22, 7 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain 8 Code. 9 Section 12 11. Eminent domain. <-- 10 The act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as 11 the Eminent Domain Code, shall be applicable to acquisitions of 12 property by municipalities for urban homesteading under this 13 act. 14 Section 13 12. Assessments. <-- 15 (a) Schedule.--Notwithstanding the provision of any other 16 law, the proper authorities may change the assessed valuation of 17 real property when a property is being rehabilitated as a 18 homestead property. In such case, the homestead property shall 19 be assessed for taxing purposes, beginning in the third year of 20 the land trust agreement, at 35% of market value for the third 21 year, 70% of market value for the fourth year, and 100% of 22 market value during the fifth year. 23 (b) Notice of sale.--Whenever a property is sold under this 24 act as a homestead property, a notice listing the address of the 25 property and the individual or individuals to whom the property 26 is to be sold shall be forwarded to the office of the chief 27 assessor of the county in which the property is located. In 28 addition, the tax on the property shall be computed at the end 29 of the third year and each year thereafter on the following 30 basis: 19850H0356B3396 - 25 -
1 Year 3 35% of assessed value 2 Year 4 70% of assessed value 3 Year 5 100% of assessed value 4 (c) Construction of section.--This section shall not alter 5 or affect the ratio to market value in effect in any one county 6 but merely changes the base proportionately as the property is 7 rehabilitated, at which time the property is taxed on full 8 market value. All homestead properties shall be assessed prior 9 to the initial sale and then in the third year of ownership and 10 again before title passes following the fifth year of occupancy. 11 (d) Waiver of delinquent taxes.--At the request of any 12 municipality engaged in a homesteading program, any other taxing 13 bodies shall have the option of waiving any and all delinquent 14 taxes for the express purpose of homesteading the parcel in 15 question for the five-year period as provided for in this act. 16 Section 14 13. Severability. <-- 17 The provisions of this act are severable. If any provision of 18 this act or its application to any person or circumstance is 19 held invalid, the invalidity shall not affect other provisions 20 or applications of this act which can be given effect without 21 the invalid provision or application. 22 Section 15 14. Effective date. <-- 23 This act shall take effect in 60 days. A30L48DGS/19850H0356B3396 - 26 -