PRINTER'S NO. 1375
No. 1221 Session of 1995
INTRODUCED BY RICHARDSON, ROBINSON, BELARDI, TIGUE, TRELLO, PISTELLA, ITKIN AND MIHALICH, MARCH 16, 1995
REFERRED TO COMMITTEE ON URBAN AFFAIRS, MARCH 16, 1995
AN ACT 1 Providing authority for urban homesteading and the procedure for 2 establishing an urban homesteading program; expanding local 3 government's authority in dealing with urban 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. Urban homesteading. 10 Section 5. Qualifications. 11 Section 6. Land trust agreement. 12 Section 7. Homesteaded land free from liens. 13 Section 8. Rehabilitation loans. 14 Section 9. Federal funding. 15 Section 10. Default procedures. 16 Section 11. Code enforcement. 17 Section 12. Eminent domain. 18 Section 13. Assessments.
1 Section 14. Severability. 2 Section 15. Effective date. 3 The General Assembly of the Commonwealth of Pennsylvania 4 hereby enacts as follows: 5 Section 1. Short title. 6 This act shall be known and may be cited as the Urban 7 Homesteading and Rehabilitation Act. 8 Section 2. Legislative intent. 9 The General Assembly of the Commonwealth of Pennsylvania 10 recognizes the need for strengthening the authority of local 11 government in dealing with the problems of housing. The General 12 Assembly recognizes that urban homesteading can be an effective 13 tool in local government's continuing struggle against urban 14 decay. In conjunction with other Federal, State and local 15 programs, urban homesteading offers the unique potential of 16 preserving our architectural heritage in addition to slowing and 17 reversing the loss of existing urban housing units. While the 18 concept of urban homesteading is being investigated by some in 19 Pennsylvania, it is desirable that such programs have some 20 uniformity of purpose and design. For the concept of urban 21 homesteading to work at an optimum level, it will be necessary 22 for such programs to be excluded from certain statutory 23 limitations normally placed on local governments. 24 Section 3. Definitions. 25 The following words and phrases when used in this act shall 26 have the meanings given to them in this section unless the 27 context clearly indicates otherwise: 28 "Agency." The Municipal Homestead Agency. 29 "Board." The governing body of the homestead agency 30 appointed to administer this act. 19950H1221B1375 - 2 -
1 "Code official." The director or individual responsible for 2 the supervision of the bureau or department responsible for code 3 enforcement. 4 "Council." The elected body of officials governing the 5 municipality. 6 "Department." The Department of Community Affairs of the 7 Commonwealth. 8 "Governing body." The elected council of the municipality. 9 "Homestead Board." The board created by section 4(b) or an 10 existing authority, board, commission or quasi-governmental 11 nonprofit corporation in existence prior to the effective date 12 of this act to which the council, by ordinance, has assigned the 13 duty to administer the homestead program provided by this act. 14 "Homesteader." An individual, their spouse, housing 15 cooperative or nonprofit corporation conforming to the 16 provisions and intent of this act. 17 "Housing cooperative." Any five or more persons, who shall 18 have associated themselves together by written articles of 19 association, such as described in section 1 of the act of June 20 7, 1887 (P.L.365, No.252), entitled "An act to encourage and 21 authorize the formation of cooperative associations, productive 22 and distributive, by farmers, mechanics, laborers, or other 23 persons," for the purpose of buying, selling, holding, leasing 24 or improving lands, tenements or buildings. 25 "Major code deficiencies." All those deficiencies enumerated 26 under section 11. 27 "Municipality." Any political subdivision of this 28 Commonwealth other than a school district. 29 "Parcel." That tract of land or unit of housing which, under 30 existing local zoning regulations, would accommodate a single- 19950H1221B1375 - 3 -
1 family residence or housing cooperative as defined in this act. 2 The term "parcel," unmodified by the word "developed," shall 3 include both developed and undeveloped tracts. 4 "Trustee." The board designated by the municipality. 5 Section 4. Urban homesteading. 6 (a) Program established.--There is hereby created an urban 7 homesteading program to be effective immediately and 8 administered by option of the various municipalities of this 9 Commonwealth, meeting certain requirements set forth in this 10 act, and upon enactment of the necessary ordinances. 11 (b) Homestead Board.--The governing body of the municipality 12 is hereby authorized to create and appoint members of a board to 13 be known as the Homestead Board, whose purposes shall be to 14 administer the homestead program, except that nothing in this 15 subsection shall be interpreted to prohibit the governing body 16 from assigning such duties, by ordinance, to an existing 17 authority, board, commission or existing quasi-governmental 18 nonprofit corporation. Except where council has assigned 19 homestead program duties to an existing authority, board, 20 commission or quasi-governmental nonprofit corporation, the 21 Homestead Board shall be composed of no less than three members. 22 When possible, there shall be an equal representation of 23 minority groups on the board, including at least one 24 representative of a local community action agency, where such an 25 agency exists. When possible, a simple majority of the board 26 members shall have specific experience with municipal housing- 27 related programs and at least one member of the board shall have 28 specific experience with a historic preservation program. Board 29 members shall serve a term of three years and shall be eligible 30 for reappointment. Members of the board shall receive no 19950H1221B1375 - 4 -
1 compensation but shall be reimbursed for expenses actually 2 incurred in connection with performing the duties prescribed by 3 this act and shall by majority vote appoint a secretary of the 4 board, who may or may not be a member of the board. The 5 secretary shall receive such compensation as may be agreed to by 6 the members of the Homestead Board. In addition, the members of 7 the Homestead Board may appoint and fix the compensation of such 8 personnel as may be necessary to implement the homestead 9 program, provided council has made funds available for such 10 purposes. 11 (c) Powers and duties.--The board shall: 12 (1) Review and publicize, by newspaper advertising or 13 some other effective method, the availability of homestead 14 program properties and the procedure to apply for the 15 properties. Such announcement shall include an estimated cost 16 of bringing the aforementioned properties up to municipal 17 code standards. 18 (2) Receive applications, recording thereon the date and 19 time received, and review applications in the order received 20 as to applicants' compliance with criteria established by 21 this act and local ordinance and the regulations promulgated 22 thereunder. 23 (3) In order, according to date and time of receipt of 24 application, approve and certify applicants as to their 25 specific construction skills and ability in general to 26 refurbish the assigned parcel. 27 (4) Recommend, in order, according to date and time of 28 receipt of application, the execution by the governing body 29 of a land trust agreement with the approved applicant. The 30 land trust agreement shall grant a 24-month tax exemption for 19950H1221B1375 - 5 -
1 the assigned parcel and be recorded with the appropriate 2 county officials. If the number of approved applicants 3 exceeds the number of parcels for which land trust agreements 4 are recommended, agreements shall be negotiated in order, 5 according to date and time of receipt of application, until 6 all available parcels are subject to such agreements. 7 Negotiations with those approved applicants who are without 8 agreements shall be commenced in order, according to the date 9 and time of receipt of application, as additional parcels 10 become available. 11 (5) Approve and recommend the execution by the governing 12 body of all documents necessary to convey fee simple title to 13 the assigned parcel to the applicant upon the applicant's 14 fulfillment of all conditions enumerated in section 6. 15 (6) Utilize the aid and assistance of other relevant 16 municipal agencies in the furtherance of the duties and 17 responsibilities of the board. 18 (7) Promulgate regulations consistent with the purpose 19 and spirit of the homestead program as outlined herein, said 20 regulations to be approved in their entirety by the municipal 21 governing body and by the municipality's solicitor as to 22 form. 23 (8) Give notice to the code official which provides 24 that, pursuant to the authority of the governing body under 25 section 5(b), approved identified homesteaders who are 26 rehabilitating existing structures are exempt from the 27 enforcement of specific sections of the housing and property 28 maintenance code during the period of rehabilitation or 29 construction, except that no section relating to the 30 individual's health and safety shall be waived. 19950H1221B1375 - 6 -
1 (9) Give notice to the code officer who shall thereupon 2 institute public nuisance proceedings against certain 3 deteriorated and blighted structures for demolition or 4 rehabilitation through homesteading. 5 (10) Provide applicants with a report as to the 6 structural deficiencies of the property and other pertinent 7 information, including an estimate of the costs of bringing 8 the property into compliance with the housing and property 9 maintenance codes. 10 (11) Recommend to council that a municipality 11 homesteading map be prepared designating the location of 12 properties to be included under the homesteading program to 13 insure that the homesteading program is compatible with 14 existing or proposed programs of other municipality agencies. 15 (d) Catalog of property.--In each municipality embarking 16 upon an urban homesteading program, the bureau or department 17 charged with the responsibilities of code enforcement, as 18 specified in this act, shall, in conjunction with the municipal 19 planning commission and its staff under the direction of the 20 Homestead Board, compile and maintain a catalog of all 21 unoccupied dwellings and vacant lots owned by the municipality 22 or otherwise. From this catalog shall be determined which 23 parcels and structures can be utilized for building or 24 rehabilitation by homesteaders. 25 (e) Approval of governing body.--The governing body, upon 26 recommendation of the municipal planning commission, shall by 27 resolution approve the parcels cataloged under subsection (d) 28 for disposition by the board for the public purpose of improving 29 the quality of housing in accordance with the homestead program. 30 Section 5. Qualifications. 19950H1221B1375 - 7 -
1 (a) Qualifications enumerated.--Homestead program property, 2 for purposes of this act, shall be limited to that property 3 which, when rehabilitated, is a single-family residence or 4 housing cooperative and which will be offered to qualified 5 applicants at no initial cost on a land trust agreement provided 6 that the applicant: 7 (1) Is at least 18 years of age or is the head of a 8 family. 9 (2) Is a citizen of the United States or a resident 10 alien as determined by the United States Immigration and 11 Naturalization Service, or its successor. 12 (3) Is a recognized nonprofit community group, 13 corporation or housing cooperative acting as an agent for a 14 homesteader. 15 (4) Has financial resources and the mechanical skills to 16 rehabilitate an existing dwelling or construct a new 17 dwelling, as the case may be. 18 (5) Upon assignment, contractually agrees to 19 rehabilitate, or construct on, as the case may be, the parcel 20 assigned to him and further agrees to: 21 (i) bring the assigned parcel up to housing and 22 property maintenance code standards, as provided in this 23 act, within 18 months after assignment of the parcel to 24 him; 25 (ii) permit quarterly inspections by the code 26 enforcement personnel for determination by the board that 27 reasonable, satisfactory progress is being made by the 28 homesteader in rehabilitating or constructing on the 29 parcel assigned to him; and 30 (iii) live in, occupy and maintain as a single- 19950H1221B1375 - 8 -
1 family dwelling or a housing cooperative to the housing 2 and property maintenance code standards, the parcel 3 assigned to him for a period of not less than five years. 4 (b) Land trust agreement.--After approval of an applicant 5 pursuant to section 4(c)(3), the governing body of the 6 municipality shall negotiate and execute a land trust agreement 7 with the prospective homesteader, thereby assigning the parcel. 8 The agreement shall specify, in as much detail as reasonably 9 possible, a schedule of improvements the homesteader shall make 10 to bring the dwelling into conformity with the municipal housing 11 and property maintenance code within 18 months. The agreement 12 shall be in sufficient detail so that a homesteader shall be 13 able to know what he must do and by when he must do it to 14 fulfill the conditions of the agreement. 15 (c) Conveyance upon fulfillment.--If and when the conditions 16 of the land trust agreement are fulfilled, as determined and 17 certified by the code enforcement bureau, the governing body of 18 the municipality shall execute all documents necessary to convey 19 a fee simple title to the assigned parcel to the applicant so 20 qualifying. 21 Section 6. Land trust agreement. 22 The agreement between the homesteader and the governing body 23 shall be a land trust agreement and shall contain the following 24 minimal conditions: 25 (1) The homesteader of the agreement has the first right 26 to the title of the real estate, upon completion of the land 27 trust agreement. 28 (2) The homesteader's interest in the trust agreement 29 shall be considered personal property. 30 (3) The homesteader has the right of possession, 19950H1221B1375 - 9 -
1 management, control and operation of the property. 2 (4) The homesteader has the duty of maintenance and 3 repair of the property in accordance with the provisions of 4 the agreement. 5 (5) The homesteader takes the property in an "as is" 6 condition. 7 (6) The homesteader, from the time of the execution of 8 the trust agreement, accepts responsibility for all known or 9 unknown conditions, apparent and nonapparent, of the property 10 that were created before the execution of the agreement or 11 are in existence at the time of the execution of the 12 agreement or are coming into or will come into existence 13 either before, during or after the execution of the 14 agreement. 15 (7) The homesteader shall not act as the agent of the 16 trustee. 17 (8) The trustee does not assume any liability for the 18 acts, or omissions to act, of the homesteader that result in 19 injury or damage to other parties or their property. 20 (9) The homesteader shall carry insurance on the 21 property as the board may require. As a minimum, the 22 insurance shall be sufficient to pay off any loans taken in 23 accordance with this act and reimburse the municipality for 24 its costs in acquiring the property. The municipality and 25 lending institutions, if applicable, shall be named as joint 26 beneficiary with the homesteader of said policy. 27 (10) The homesteader, within 18 months after the 28 municipality assigns the homesteader a dwelling, promises and 29 covenants to bring the assigned dwelling up to housing and 30 property maintenance code standards and maintain it at code 19950H1221B1375 - 10 -
1 standards throughout the homestead agreement. 2 (11) The homesteader promises and covenants to permit 3 quarterly inspections, between the hours of 9 a.m. and 4 4 p.m., or at a mutually agreed time, and at reasonable 5 frequencies, by housing and property maintenance code 6 enforcement personnel for the determination of the 7 municipality that reasonable and satisfactory progress is 8 being made by the homesteader in rehabilitating the dwelling 9 assigned to him. 10 (12) The homesteader promises and covenants to occupy 11 and live in the dwelling assigned to him for a period of not 12 less than five years. 13 (13) The homesteader's personal property interest in the 14 possession, management, control and operation of the dwelling 15 may pass according to the rules applicable to personal 16 property except that, before the personal property right 17 passes, the municipality must approve the heir, assign or 18 successor of the original homesteader. The heir, assign or 19 successor of the homesteader, before any personal right vests 20 in him, must meet the requirements of an applicant for the 21 program and independently agree to be held responsible to the 22 homesteading agreement. An attempt to pass the personal 23 property right in any manner or to any degree without 24 obtaining the required approval and making the required 25 commitment is void, and the homesteader's personal property 26 right is automatically extinguished. Approved transferees of 27 the original homesteader may deduct the original 28 homesteader's residence time from the required five years. 29 (14) The homesteader recognizes and agrees that, if the 30 homesteader, after occupying the dwelling, abandons the 19950H1221B1375 - 11 -
1 dwelling for a period of more than 60 days or the dwelling is 2 abandoned 60 days without permission of the urban 3 homesteading board, the homesteader's right to the 4 possession, management, control and operation of the dwelling 5 is automatically extinguished. 6 (15) The trustee, after the homesteader has fulfilled 7 the conditions of the land trust agreement, will execute all 8 documents necessary to convey a fee simple title to the 9 homesteader. 10 (16) The board may allow for extenuating circumstances, 11 including, but not limited to, serious illness of the 12 homesteader. 13 (17) The homesteader shall elect the person to whom the 14 property shall be transferred upon the death of the 15 homesteader. This transfer shall be for a consideration of 16 $1. 17 Section 7. Homesteaded land free from liens. 18 During the period of a land trust agreement, the real 19 property being homesteaded shall be free of all liens and 20 encumbrances. 21 Section 8. Rehabilitation loans. 22 (a) Low-interest loans.--To assist local municipalities in 23 the elimination of slums and blighted or deteriorated areas, in 24 preventing the spread of slums, blight or deterioration and in 25 providing maximum opportunity for redevelopment, rehabilitation 26 and conservation of such areas by private enterprise, municipal 27 governing bodies are hereby authorized to obtain low-interest 28 loans for the rehabilitation of properties designated as 29 suitable for homesteading. 30 (b) Debt authorized.--The municipality may borrow up to 19950H1221B1375 - 12 -
1 $300,000 or $10 per capita, whichever is greater, without 2 considering such debt within the statutory borrowing limitations 3 prescribed in the act of July 12, 1972 (P.L.781, No.185), known 4 as the Local Government Unit Debt Act. 5 (c) Financing of rehabilitation.--The municipal body 6 administering this act is authorized, through the utilization of 7 local public and private resources where feasible, to make 8 financing available through the board, as herein provided, to 9 the homesteaders to finance the rehabilitation of such property. 10 No financing shall be made available under this section unless 11 all of the following are met: 12 (1) Rehabilitation is required to make the property 13 conform to applicable code requirements and to carry out the 14 objectives of a homestead plan for the area. 15 (2) The applicant is unable to secure the necessary 16 funds from other sources upon comparable terms and 17 conditions. 18 (3) The resulting obligation is an acceptable risk 19 taking into consideration the need for the rehabilitation, 20 the security available for the debt and the ability of the 21 applicant to repay the debt. 22 (4) The board has first caused to be prepared a full and 23 complete list of all major code deficiencies and has caused 24 bid specifications and cost estimates for the rectification 25 of these deficiencies to be prepared. Based on those 26 specifications, the board shall advertise for bids, either 27 individually or collectively with other homestead properties, 28 all those deficiencies the homesteader indicates he cannot 29 rectify by himself, and, if the homesteader agrees to the 30 bid, to be responsible for the payments of the bid. 19950H1221B1375 - 13 -
1 (5) The resulting bids received shall be from the lowest 2 responsible bidder and acceptable to the homesteader. 3 (6) The board has caused to be created an inspection 4 schedule to assure that specifications are being met and that 5 the work is progressing at a sufficient rate to meet the 6 schedule for code deficiency rectification provided under 7 this act. 8 (7) A contractual agreement, between the board and the 9 approved contractor, and acceptable to the homesteader, 10 stipulating both a performance and payment schedule, as well 11 as any other item determined necessary by the board, has been 12 prepared. Such payments shall be made, or authorized, by the 13 board according to the agreed-to schedule. 14 (d) Limitations.--Rehabilitation financing made under this 15 section shall be subject to the following limitations: 16 (1) The debt shall be subject to such terms and 17 conditions as may be prescribed by the municipal governing 18 body. 19 (2) The term of the debt may not exceed 30 years or 20 three-fourths of the remaining economic life of the structure 21 after rehabilitation, whichever is less. 22 (3) The principal shall bear interest at such rate as 23 determined by the administrating agency, but in no case shall 24 it exceed 0.5% per year the interest rate obtained by 25 council, and the board may prescribe such other charges as it 26 finds necessary, including service charges, and appraisal, 27 inspection and other fees. 28 (4) The amount of the debt may not exceed the amount of 29 an obligation which would result in a monthly payment by the 30 applicant of more than 25% of his average monthly income. 19950H1221B1375 - 14 -
1 (e) First payment for occupancy not required.--In no case 2 shall the homesteader's first payment on his financial 3 obligation to the board be required prior to occupancy of the 4 homestead property. 5 Section 9. Federal funding. 6 (a) Training.--Participants in the homesteading program 7 shall, to the extent possible, take advantage of training 8 programs funded in whole or in part through the Job Training 9 Partnership Act (Public Law 97-300, 96 Stat. 1322). 10 (b) Loans.--Participants shall also take advantage of any 11 grants or loans made available through the Federal Community 12 Services Block Grant Act, and other sources, as administered by 13 the department. 14 Section 10. Default procedures. 15 (a) Explanation of agreement.--Before the homesteader 16 executes the land trust agreement, the board or its designee 17 shall explain to the homesteader the conditions of the land 18 trust agreement, his obligations thereunder, the appeal 19 procedures under this act and the consequences of failure to 20 comply with the conditions of the land trust agreement. After 21 the board or its designee makes the explanation contained in 22 this subsection and the homesteader understands the material 23 explained, the homesteader shall sign a statement that the 24 information contained in this subsection has been explained to 25 him and that he understands it and agrees to be bound in 26 accordance thereof. His signature shall constitute prima facie 27 evidence that he knowingly and understandingly executed the land 28 trust agreement. Only clear and convincing evidence to the 29 contrary may rebut this evidence. 30 (b) Noncompliance.-- 19950H1221B1375 - 15 -
1 (1) If a code official in a quarterly inspection 2 determines that the homesteader has not or is not complying 3 with the conditions of the land trust agreement, he shall 4 give the homesteader an oral warning that he is in default of 5 the land trust agreement. Within seven days from the date of 6 the oral warning, the code official shall send a written 7 warning to the homesteader. The warning shall contain the 8 information that the homesteader is in default and specify, 9 with reasonable particularity, what the homesteader must do 10 to bring the parcel into compliance with the land trust 11 agreement. The code official shall also give the homesteader 12 not less than 30 nor more than 60 days from the date of the 13 mailing of the written warning to bring the parcel into 14 compliance with the land trust agreement. The code official 15 shall send a copy of the written warning to the board and 16 maintain at least one copy of the warning with the code 17 enforcement bureau. At the expiration of the time period 18 indicated in the written warning notice, the code official 19 shall again inspect the parcel to verify the homesteader's 20 compliance with the warning and land trust agreement. 21 (2) If the code official determines that the homesteader 22 has complied with or substantially complied with the warning 23 notice and brought the parcel up to the agreed-upon standard, 24 then he shall so inform the homesteader and file a written 25 report of the compliance in the code enforcement office and 26 with the board and shall send a copy of same to the 27 homesteader. 28 (3) If the code official determines that the homesteader 29 has not complied with or has not substantially complied with 30 the warning notice and has not brought the parcel up to the 19950H1221B1375 - 16 -
1 agreed-upon standard, he shall file a written report with the 2 board. Such report shall specify with reasonable 3 particularity the facts upon which the code official based 4 his decision of noncompliance and shall be delivered to the 5 homesteader at the same time it is filed with the board. 6 (c) Formal hearing.-- 7 (1) Within ten days of the receipt of the code 8 official's report of noncompliance, the board shall schedule 9 a hearing and appoint no less than three members from the 10 board to determine whether the urban homesteader has breached 11 the land trust agreement and extinguished his personal 12 property right under the agreement. The decision of the board 13 members so appointed shall have the full force and effect of 14 a decision by the entire membership of the board. Within 15 three days after the scheduling of the hearing, the board 16 shall cause personal service of a hearing notice to be made 17 either on the homesteader or someone capable of accepting 18 service on his behalf, ordering him to appear before the 19 board and show cause why the board should not declare him in 20 breach of the agreement and extinguish his personal property 21 right in the land trust agreement. The hearing notice shall 22 notify the homesteader of his right to be represented by 23 counsel and, if indigent, his right to have counsel appointed 24 on his behalf. 25 (2) If the board decides that the homesteader has 26 fulfilled his responsibilities under the land trust 27 agreement, it shall so note and provide copies of its 28 decision to the urban homesteader and the code enforcement 29 agency. 30 (3) If the board decides that the homesteader has not 19950H1221B1375 - 17 -
1 fulfilled his responsibilities under the land trust 2 agreement, the board may: 3 (i) declare him in breach of the land trust 4 agreement and issue a final decision to extinguish his 5 personal property right in the land trust agreement and 6 shall so inform the homesteader; or 7 (ii) issue an interim order which grants the 8 homesteader not less than 30 nor more than 60 days from 9 the interim order to bring the parcel into compliance 10 with the land trust agreement. 11 (4) If the board has issued an interim order pursuant to 12 paragraph (3)(ii), the code official shall file a 13 reinspection report with the board within three days of the 14 expiration of the period granted for compliance pursuant to 15 the interim order. If the code official determines that the 16 homesteader has complied with or substantially complied with 17 the interim order and brought the parcel up to the agreed- 18 upon standard, then he shall file with the board a written 19 report so stating and terminating the land trust agreement 20 breach declaration procedure. If the code official determines 21 that the homesteader has not complied with the interim order, 22 he shall file a written report with the board so stating. The 23 code official shall provide the homesteader with a copy of 24 all reports filed with the board pursuant to this section. 25 (5) Upon receipt of the code official's report of the 26 homesteader's noncompliance with the board's interim order, 27 the board may proceed as set forth in paragraph (3)(i). 28 (d) Decision and appeal.-- 29 (1) After a final decision by the board that the 30 homesteader is in violation of his land trust agreement, the 19950H1221B1375 - 18 -
1 homesteader shall have 14 business days to file an appeal 2 from that decision with the court of common pleas of the 3 county. 4 (2) If within the 14 days the homesteader does not 5 appeal to the court of common pleas, the board shall record 6 its final determination extinguishing the homesteader's 7 personal property interest under the land trust agreement. 8 The board shall, the date it records its final decision, send 9 a copy of the final judgment to the homesteader and notice 10 that, if within 21 days he does not vacate the premises, the 11 board will initiate summary ejectment procedures against him. 12 If within the 21 days the homesteader does not vacate the 13 premises, the board shall initiate summary ejectment 14 proceedings against him. 15 (3) In case of an appeal to the court of common pleas, 16 the homesteader shall have the right to counsel and, if the 17 homesteader is indigent, counsel will be appointed in his 18 behalf. The court shall hear the homesteader's appeal within 19 30 days from the date he files it with the court. If the 20 court decides that the homesteader has not fulfilled his 21 responsibilities under the land trust agreement, it shall 22 affirm the decision of the board and cause copies of its 23 decision to be provided to the urban homesteader, the code 24 enforcement agency and the board. The decision of the court 25 shall be final. The board, on the date it receives the court 26 decision, shall send a copy to the homesteader together with 27 notice that, if within 21 days he does not vacate the 28 premises, the board will initiate summary ejectment 29 procedures against him. If the homesteader does not vacate 30 the premises within 21 days after the court enters judgment, 19950H1221B1375 - 19 -
1 the board shall initiate summary ejectment proceedings 2 against him. 3 Section 11. Code enforcement. 4 (a) Housing and property maintenance code requirement.--The 5 municipality or municipalities in which urban homesteading is to 6 be initiated by an acquiring agency under this act shall have a 7 housing and property maintenance code which establishes 8 standards for the protection of the public's health, safety and 9 welfare. 10 (b) Provisions of code.--The housing and property 11 maintenance code shall establish standards for basic equipment 12 and facilities, for light, ventilation and heating, for space, 13 use and location, and for safe and sanitary maintenance of all 14 dwellings now in existence or thereafter constructed. As minimum 15 requirements, the housing and property maintenance code shall 16 provide that: 17 (1) Dangerous walls shall be replaced or repaired. This 18 includes the replacement of defective wood lintels and 19 defective wood sills. 20 (2) The property shall be weatherproofed by replacing or 21 repairing any defective siding, shingles or other defects in 22 exterior walls. 23 (3) Gutters and downspouts shall be repaired or replaced 24 if they cause the entry of water into the property or onto 25 adjacent property or cause any public nuisances. 26 (4) Porches or access stairways (inside or outside the 27 structure) shall be made safe for use. Defective porches or 28 access stairways must be repaired or replaced. 29 (5) Missing and dangerously defective individual steps 30 shall be replaced or repaired. 19950H1221B1375 - 20 -
1 (6) Chimneys shall be properly lined and repaired to 2 service the connected facilities. 3 (7) Roofs shall be leakproof. 4 (8) Window frames and doors shall fit properly and be 5 operable. 6 (9) The electric service shall be adequate for the type 7 of structure and in a safe and operable condition. 8 (10) Every single-family residence shall have a complete 9 bath consisting of a tub, a toilet and a basin. Each kitchen 10 shall have a sink. 11 (11) Water pipes, drainpipes and soilpipes shall be 12 operable and capable of providing the intended service. 13 (12) Each dwelling shall have a water heater in operable 14 condition. 15 (13) Every dwelling unit shall have a room or space for 16 the preparation and cooking of food, including space and 17 connections for a stove or other cooking facilities. Adequate 18 electric service must be provided for connecting electric 19 refrigerators and other electrical kitchen appliances. 20 (14) Rotted and defective load carrying members shall be 21 replaced or repaired. 22 (15) Termite infested wood members shall be properly 23 treated or replaced. 24 (16) Rodent and vermin infestation shall be eliminated 25 and rat-proofing shall be performed, if necessary. 26 (17) Every dwelling shall contain heating facilities, 27 properly designed and installed, in good and safe working 28 condition, capable of heating those rooms and areas to be 29 inhabited. Systems must be operated to prevent freezing of 30 pipes and plumbing. 19950H1221B1375 - 21 -
1 (18) Habitable rooms shall contain a window opening 2 directly to the outside. 3 (19) The premises shall be maintained in a clean and 4 sanitary condition at all times. Refuse should be placed in 5 proper receptacles for collection. 6 (c) Administration and enforcement.--The housing and 7 property maintenance code shall also: 8 (1) Establish the responsibilities of owners, operators 9 and occupants of dwellings, including multifamily dwellings. 10 (2) Provide procedures for the administration and 11 enforcement of the housing and property maintenance code, 12 either by the municipality directly or by contractual 13 arrangements with a county, regional or intergovernmental 14 code enforcement bureau, including penalties for violations. 15 (d) Adoption of other codes.--A municipality may adopt by 16 reference a county housing and property maintenance code which 17 meets the aforementioned minimum standards and which may be or 18 is in existence at the time the municipality enters into a local 19 homesteading program as provided for in this act. 20 (e) Review of code.--The housing and property maintenance 21 code shall be reviewed every 24 months and shall be in effect at 22 the time the acquiring agency, municipality or municipalities 23 exercise any provisions of this act. 24 (f) Condemnation.--Any property which has been cited by a 25 municipality as being substandard and unfit for human habitation 26 under provisions of a housing and property maintenance code may 27 be subject to condemnation by that municipality or by an 28 acquiring agency designated by the municipality under the 29 following conditions: 30 (1) A preliminary notice outlining the housing and 19950H1221B1375 - 22 -
1 property maintenance code violations shall be sent by 2 registered mail to the owner or owners of any property found 3 to be unfit for human habitation. 4 (2) If within 30 days the owner or owners make no 5 attempt to correct the violations and bring the property into 6 code compliance or contact the municipality regarding their 7 intentions to do so, a second and final notice shall be 8 forwarded by registered mail to the owner or owners giving 9 them 120 days from the date of the final notice to bring the 10 property into code compliance or, in the case of a hardship, 11 to notify the municipality of same. 12 (3) If, after 120 days of receipt of the final notice, 13 the property owner or owners have not brought the property 14 into code compliance, the property may be subject to 15 condemnation as provided for in this act either by the 16 municipality or by an acquiring agency designated by the 17 municipality. 18 (4) If the municipality or designated agency determines 19 that the property which is unfit for human habitation has not 20 been brought into code compliance under provisions of the 21 municipality's housing and property maintenance code after 22 150 days, and after proper notification as provided for in 23 this act, and if the municipality determines that the 24 property would be suitable for urban homesteading as set 25 forth in this act, either through rehabilitation and resale 26 of the home or building or through demolition and resale of 27 the land, the municipality or the acquiring agency may 28 proceed to acquire the property under the act of June 22, 29 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain 30 Code. 19950H1221B1375 - 23 -
1 Section 12. Eminent domain. 2 The act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as 3 the Eminent Domain Code, shall be applicable to acquisitions of 4 property by municipalities for urban homesteading under this 5 act. 6 Section 13. Assessments. 7 (a) Change in assessed valuation.--Notwithstanding the 8 provision of any other law, the proper authorities may change 9 the assessed valuation of real property when a property is being 10 rehabilitated as a homestead property. In such case, the 11 homestead property will be assessed for taxing purposes at 20% 12 of assessed value the second year and at 40%, 60%, 80% and 100% 13 during the successive four years, respectively. 14 (b) Notice of sale.--Whenever a property is sold under the 15 provisions as outlined in this act as a homestead property, a 16 notice listing the address of the property and the individual or 17 individuals to whom the property is to be sold shall be 18 forwarded to the office of the chief assessor of the county in 19 which the property is located. In addition, the tax on said 20 property shall be computed at the end of each year on the 21 following basis: 22 (1) Year 2 20% of assessed value 23 (2) Year 3 40% of assessed value 24 (3) Year 4 60% of assessed value 25 (4) Year 5 80% of assessed value 26 (5) Year 6 100% of assessed value 27 (c) Construction of section.--This section shall not alter 28 or affect the ratio to market value in effect in any one county 29 but merely changes the base proportionately as the property is 30 rehabilitated, at which time the property is taxed on full 19950H1221B1375 - 24 -
1 market value. All homestead properties shall be assessed prior 2 to the initial sale and then in the third year of ownership and 3 again before title passes following the fifth year of occupancy. 4 (d) Waiver of delinquent taxes.--At the request of any 5 municipality engaged in a homesteading program, any other taxing 6 bodies shall have the option of waiving any and all delinquent 7 taxes for the express purpose of homesteading the parcel in 8 question for the five-year period as provided for in this act. 9 Section 14. Severability. 10 The provisions of this act are severable. If any provision of 11 this act or its application to any person or circumstance is 12 held invalid, the invalidity shall not affect other provisions 13 or applications of this act which can be given effect without 14 the invalid provision or application. 15 Section 15. Effective date. 16 This act shall take effect in 60 days. K30L48DGS/19950H1221B1375 - 25 -