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        PRIOR PRINTER'S NO. 1860                      PRINTER'S NO. 2447

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1291 Session of 2008


        INTRODUCED BY RHOADES, PIPPY, EARLL, TOMLINSON, FERLO,
           WASHINGTON, BAKER, ERICKSON, ORIE, RAFFERTY, O'PAKE, LOGAN,
           COSTA, BROWNE, KASUNIC, EICHELBERGER, A. WILLIAMS AND STACK,
           MARCH 26, 2008

        SENATOR PIPPY, URBAN AFFAIRS AND HOUSING, AS AMENDED,
           SEPTEMBER 24, 2008

                                     AN ACT

     1  Amending Title 53 (Municipalities Generally) of the Pennsylvania
     2     Consolidated Statutes, providing for neighborhood blight
     3     reclamation and revitalization.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Title 53 of the Pennsylvania Consolidated
     7  Statutes is amended by adding a chapter to read:
     8                             CHAPTER 61
     9         NEIGHBORHOOD BLIGHT RECLAMATION AND REVITALIZATION
    10  Subchapter
    11     A.  Preliminary Provisions
    12     B.  Actions Against Owner of Blighted Property
    13     C.  Responsibilities of Mortgage Lenders
    14     D.  Conservatorship                                            <--
    15     E D.  State and Local Government Permit Denials                <--
    16     F E.  State Blight Data Collection System                      <--
    17     G F.  Grants                                                   <--

     1     H.  Sale of Blighted and Abandoned Properties                  <--
     2     I G.  Miscellaneous Provisions                                 <--
     3                            SUBCHAPTER A
     4                       PRELIMINARY PROVISIONS
     5  Sec.
     6  6101.  Short title of chapter.
     7  6102.  Legislative findings and declaration of policy.
     8  6103.  Definitions.
     9  § 6101.  Short title of chapter.
    10     This chapter shall be known and may be cited as the
    11  Neighborhood Blight Reclamation and Revitalization Act.
    12  § 6102.  Legislative findings and declaration of policy.
    13     The General Assembly finds and declares as follows:
    14         (1)  It is the intent of the General Assembly to
    15     eliminate neighborhood blight caused by property owners who
    16     fail to maintain their property or to comply with municipal
    17     property maintenance codes. The General Assembly declares
    18     that it is in the best interest of the Commonwealth, its
    19     citizens and its municipalities to establish a process as set
    20     forth under this chapter to effectively deal with blighted
    21     and abandoned properties in order to bring the properties up
    22     to code standards, acquire and demolish them or, where cost-
    23     effective and structurally sound, rehabilitate them and
    24     return them to productive use. This includes constructing new
    25     housing on sites that formerly contained blighted properties
    26     and rehabilitating blighted buildings which have been
    27     determined to be structurally sound and capable of being
    28     rehabilitated.
    29         (2)  Pennsylvania's communities are important to this
    30     Commonwealth's economic health and provide a focal point for
    20080S1291B2447                  - 2 -     

     1     businesses and services. They also contribute to this
     2     Commonwealth's quality of life with their rich histories,
     3     culture, heritage and diversity, along with their parks,
     4     recreational attributes and historic buildings and
     5     architecture. Many of these communities, however, are
     6     presently being negatively affected by blighted properties
     7     that either are in use in spite of their deteriorated state
     8     or have been abandoned.
     9         (3)  Citizens of this Commonwealth living in its
    10     communities are adversely affected by abandoned and blighted
    11     residential, commercial and industrial properties, especially
    12     individuals living or owning property in close proximity to
    13     unsafe, substandard and deteriorated buildings.
    14         (4)  Substandard, deteriorating and abandoned
    15     residential, commercial and industrial structures are not
    16     only a public safety threat and nuisance, their blighted
    17     condition diminishes property values in the communities in
    18     which these properties are located. Nearby property owners
    19     lose equity in their properties, and municipalities lose
    20     desperately needed property tax revenues for municipal
    21     services as a result of lower assessed property values which
    22     result from the presence of blighted and abandoned buildings.
    23         (5)  Blighted properties presently sold at tax sales most
    24     times remain blighted. When these blighted properties are not
    25     rehabilitated or demolished immediately, they further
    26     deteriorate, resulting in increased costs to the Commonwealth
    27     and its municipalities to secure and demolish them.
    28         (6)  Providing a legislative mechanism to transform
    29     abandoned and blighted properties into productive reuse
    30     provides an opportunity for communities in Pennsylvania to be
    20080S1291B2447                  - 3 -     

     1     revitalized while improving the quality of life for
     2     individuals who live there. This revitalization includes
     3     clearing sites of blighted properties and replacing them with
     4     new housing, as well as rehabilitating structurally sound
     5     blighted properties.
     6  § 6103.  Definitions.
     7     The following words and phrases when used in this chapter
     8  shall have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     "Abandoned property."  A property on which there is a
    11  building that has not been legally occupied for at least the
    12  previous 12 months and is a blighted property.
    13     "Blighted property."  Any of the following:
    14         (1)  Premises which, because of physical condition or
    15     use, are regarded as a public nuisance at common law or have
    16     been declared a public nuisance in accordance with the local
    17     housing, building, plumbing, fire and related codes and
    18     ordinances, including nuisance and dangerous building
    19     ordinances.
    20         (2)  Premises which, because of physical condition, use
    21     or occupancy, are considered an attractive nuisance to
    22     children, including, but not limited to, abandoned wells,
    23     shafts, basements, excavations and unsafe fences or
    24     structures.
    25         (3)  A dwelling which, because it is dilapidated,
    26     unsanitary, unsafe, vermin-infested or lacking in the
    27     facilities and equipment required under the housing code of
    28     the municipality, has been designated by the municipal
    29     department responsible for enforcement of the code as unfit
    30     for human habitation.
    20080S1291B2447                  - 4 -     

     1         (4)  A structure which is a fire hazard or is otherwise
     2     dangerous to the safety of persons or property.
     3         (5)  A structure from which the utilities, plumbing,
     4     heating, water, sewage or other facilities have been
     5     disconnected, destroyed, removed or rendered ineffective so
     6     that the property is unfit for its intended use.
     7         (6)  A vacant or unimproved lot or parcel of ground in a
     8     predominantly built-up neighborhood which, by reason of
     9     neglect or lack of maintenance, has become a place for
    10     accumulation of trash and debris or a haven for rodents or
    11     other vermin.
    12         (7)  An unoccupied property which has been tax delinquent
    13     for a period of two years.
    14         (8)  A property which is vacant but not tax delinquent
    15     and which has not been rehabilitated within one year of the
    16     receipt of notice to rehabilitate from the appropriate code
    17     enforcement agency.
    18     "Building."  A residential, commercial or industrial building
    19  or structure and the land appurtenant to it.
    20     "Code."  A building, housing, property maintenance, fire,
    21  health or other public safety ordinance enacted by a
    22  municipality.
    23     "Commonwealth agency."  The Governor, departments, boards,
    24  agencies, commissions, authorities and other officers of the
    25  Commonwealth, including those subject to the policy supervision
    26  and control of the Governor. The term does not include any court
    27  or other officer or agency of the unified judicial system or the
    28  General Assembly or any of its officers and agencies.
    29     "Competent entity."  A person or entity, including a
    30  governmental unit, with experience in the rehabilitation of
    20080S1291B2447                  - 5 -     

     1  residential, commercial or industrial buildings and the ability
     2  to provide or obtain the necessary financing for such
     3  rehabilitation.
     4     "Consumer."  A person who is a named insured, insured or
     5  beneficiary of a policy of insurance or any other person who may
     6  be affected by the Insurance Department's exercise of or the
     7  failure to exercise its authority.
     8     "Cost of rehabilitation."  Costs and expenses for
     9  construction, stabilization, rehabilitation, demolition and
    10  reasonable nonconstruction costs associated with any of these
    11  projects, including, but not limited to, environmental
    12  remediation, architectural, engineering and legal fees, permits,
    13  financing fees and a developer's fee consistent with the
    14  standards for developer's fees established by the Pennsylvania
    15  Housing Finance Agency.
    16     "Court."  The appropriate court of common pleas.
    17     "Department."  The Department of Community and Economic
    18  Development of the Commonwealth.
    19     "Electronically."  Utilizing procedures promulgated by the
    20  Department of Community and Economic Development to file forms
    21  and obtain information electronically, provided the information
    22  is available to the requester under the act of June 21, 1957
    23  (P.L.390, No.212), referred to as the Right-to-Know Law.
    24     "Insurer," "company," "association" or "exchange."  As these
    25  terms are defined in section 101 of the act of May 17, 1921
    26  (P.L.682, No.284), known as The Insurance Company Law of 1921,
    27  or any entity subject to Article XXIV of The Insurance Company
    28  Law of 1921, the act of December 29, 1972 (P.L.1701, No.364),
    29  known as the Health Maintenance Organization Act, or 40 Pa.C.S.
    30  Ch. 61 (relating to hospital plan corporations) or 63 (relating
    20080S1291B2447                  - 6 -     

     1  to professional health services plan corporations).
     2     "License."  A permit granted by the Commonwealth or one of
     3  its agencies which gives permission to the applicant, EXCLUDING   <--
     4  INDIVIDUALS AND BUSINESSES REGULATED BY THE BUREAU OF
     5  PROFESSIONAL AND OCCUPATIONAL AFFAIRS, to participate in a
     6  certain activity or exercise a certain privilege.
     7     "Licensing" or "certification."  The issuance of a license or
     8  the formal assertion in writing of some fact or qualification
     9  from the Commonwealth or one of its agencies, EXCLUDING THE       <--
    10  BUREAU OF PROFESSIONAL AND OCCUPATIONAL AFFAIRS.
    11     "Municipality."  A city, borough, incorporated town, township
    12  or home rule, optional plan or optional charter municipality or
    13  municipal authority in this Commonwealth. The term also includes
    14  any other governmental entity charged with enforcement of
    15  municipal housing, building, plumbing, fire and related codes
    16  and specifically includes a neighborhood improvement district
    17  and nonprofit corporation created under the act of December 20,
    18  2000 (P.L.949, No.130), known as the Neighborhood Improvement
    19  District Act.
    20     "Municipal permits."  Privileges relating to real property
    21  granted by a municipality, including, but not limited to,
    22  building permits, exceptions to zoning ordinances and occupancy
    23  permits.
    24     "Nonprofit corporation."  A nonprofit corporation that has,
    25  as one of its purposes, community development activities,
    26  including economic development or the promotion or enhancement
    27  of affordable housing opportunities.
    28     "Owner."  The holder or holders of the title to or of a legal
    29  or equitable interest in residential, commercial or industrial
    30  real estate. The term includes, but is not limited to, heirs,
    20080S1291B2447                  - 7 -     

     1  assigns, trustees, beneficiaries and lessees, provided this
     2  ownership interest is a matter of public record.
     3     "Party in interest."  Any person or entity who has a direct    <--
     4  and immediate interest in residential, commercial or industrial
     5  real estate, including:
     6         (1)  The owner or owners.
     7         (2)  Any lienholder and other secured creditors of the
     8     owner.
     9         (3)  A person who resides or owns a business which is
    10     located within 500 feet of the real estate.
    11         (4)  A nonprofit corporation carrying out community
    12     development activities within the municipality where the
    13     building is located, including, but not limited to, a
    14     redevelopment authority.
    15         (5)  A municipality in which the real estate is located.
    16     "Property maintenance code."  A municipal ordinance which
    17  regulates the maintenance or development of real property. The
    18  term includes, but is not limited to, building codes, housing
    19  codes and public safety codes.
    20     "Property maintenance code violation."  A violation of a
    21  municipal property maintenance code.
    22     "Public nuisance."  Property which, because of its physical
    23  condition or use, is regarded as a public nuisance at common law
    24  or has been declared BY THE APPROPRIATE OFFICIAL a public         <--
    25  nuisance in accordance with the local housing, building, health,
    26  fire or related code.
    27     "Registry."  The Property Maintenance Code Violations
    28  Registry established under this chapter.
    29     "Residential building."  A building or structure containing
    30  one or more dwelling units and the land appurtenant to it.
    20080S1291B2447                  - 8 -     

     1     "Serious violation."  A violation of a housing, building,
     2  property maintenance or fire safety code that poses an immediate
     3  threat to the health and safety of a dwelling occupant,
     4  occupants in surrounding structures or passersby.
     5     "Substantial step."  An affirmative action on the part of a
     6  property owner or managing agent, as determined by the
     7  municipality, to remedy a violation of a housing, building,
     8  property maintenance or fire safety code, including, but not
     9  limited to, physical improvements or reparations to the
    10  property.
    11     "Tax delinquent property."  Tax delinquent real property as
    12  defined under the act of July 7, 1947 (P.L.1368, No.542), known
    13  as the Real Estate Tax Sale Law, located in any municipality in
    14  this Commonwealth.
    15                            SUBCHAPTER B
    16             ACTIONS AGAINST OWNER OF BLIGHTED PROPERTY
    17  Sec.
    18  6111.  Building, housing and health code violations.
    19  6112.  Actions.
    20  6113.  Asset attachment.
    21  6114.  Duty of out-of-State owners of real estate in this
    22             Commonwealth.
    23  6115.  Duty of corporate owners.
    24  § 6111.  Building, housing and health code violations.
    25     (a)  Cause of action.--Where a building, structure,
    26  landscaping or land is or is proposed to be erected,
    27  constructed, reconstructed, altered, converted, maintained or
    28  used in violation of any building, housing or health ordinance
    29  enacted pursuant to law by a municipality, the governing body of
    30  the municipality or, with the approval of the governing body, an
    20080S1291B2447                  - 9 -     

     1  officer of the municipality, or an aggrieved owner or tenant of
     2  real property who shows that his property or person will be
     3  substantially affected by the alleged violation, in addition to
     4  other remedies, may institute an action or proceeding to
     5  prevent, restrain, correct or abate such building, structure,
     6  landscaping or land or to prevent, in or about such premises,
     7  any act, conduct, business or use constituting a violation. When
     8  any such action is instituted by a landowner or tenant, notice
     9  of the action shall be served upon the municipality at least 30
    10  days prior to the time the action is begun by serving a copy of
    11  the complaint on the governing body of the municipality. No such
    12  action may be maintained until such notice has been given.
    13     (b)  Jurisdiction.--Except as provided under 42 Pa.C.S. §
    14  1143(a)(3) (relating to jurisdiction and venue), magisterial
    15  district judges shall have jurisdiction of actions instituted
    16  pursuant to this section.
    17  § 6112.  Actions.
    18     In addition to other remedies, a municipality may institute
    19  the following actions against the legal owner or owner of record
    20  of any building, housing or land in serious violation of an
    21  ordinance regarding a building or housing code:
    22         (1)  An in personam action may be initiated for a
    23     continuing violation for which the legal owner of record
    24     takes no substantial step to correct within 60 days following
    25     notification of any violation.
    26         (2)  An action against an owner of record shall be for an
    27     amount equal to any penalties imposed against the owner and
    28     for the amount expended by the municipality to abate the
    29     violation.
    30         (3)  A proceeding in equity.
    20080S1291B2447                 - 10 -     

     1  § 6113.  Asset attachment.
     2     A lien may be placed against the assets of an owner of
     3  unremediated blighted real property after a legal action
     4  initiated under section 6112 (relating to actions) is concluded
     5  with a finding against the legal owner or owner of record of the
     6  property.
     7  § 6114.  Duty of out-of-State owners of real estate in this
     8             Commonwealth.
     9     A person who lives or has a principal place of residence
    10  outside this Commonwealth, who owns real estate in this
    11  Commonwealth against which municipal housing code violations
    12  have been cited under 18 Pa.C.S. § 7510 (relating to municipal
    13  housing code avoidance), and who has been properly notified of
    14  the violations may be extradited to this Commonwealth to face
    15  criminal prosecution.
    16  § 6115.  Duty of corporate owners.                                <--
    17     (a)  Means of identification.--A deed or other instrument of
    18  writing involving transfer of title to a corporate owner or
    19  corporate officer shall include an attachment setting forth the
    20  name and address of each officer of the corporation and a
    21  photographic copy of the current driver's license or other photo
    22  identification from the state in which anyone who is an officer
    23  of the corporation is licensed to drive.
    24     (b)  Means of service.--Mailing a notice or citation for any
    25  § 6115.  CORPORATE OWNERS.                                        <--
    26     MAILING A NOTICE OR CITATION FOR ANY property maintenance
    27  code violation for any property owned by a corporation to the
    28  mailing address of any corporate officer USED FOR TAX COLLECTION  <--
    29  PURPOSES shall constitute good service by the municipality.
    30                            SUBCHAPTER C
    20080S1291B2447                 - 11 -     

     1                RESPONSIBILITIES OF MORTGAGE LENDERS
     2  Sec.
     3  6121.  Business or commercial mortgages.
     4  6122.  Code compliance.
     5  6123.  Residential mortgages.
     6  § 6121.  Business or commercial mortgages.
     7     This subchapter shall apply to mortgage loans made for
     8  residential, business or commercial purposes.
     9  § 6122.  Code compliance.
    10     (a)  Liability assumed.--Thirty SIXTY days following the       <--
    11  foreclosure of a building due to the owner of record's default
    12  on a mortgage loan, the mortgage lender or Federal insurer in
    13  possession of the building shall assume legal responsibility and
    14  liability as the owner of record for all exterior municipal
    15  housing, building and property maintenance code requirements
    16  representing the following:
    17         (1)  Serious violations.
    18         (2)  Violations which contribute to blight in a
    19     neighborhood due to their negative effect on the aesthetic
    20     appearance of the structure or the neighborhood.
    21     (b)  Time period.--The time period provided for under
    22  subsection (a) shall be extended to 120 days following the
    23  foreclosure of a property due to the owner of record's default
    24  on a mortgage loan in cases where the mortgage lender or Federal
    25  insurer has executed a contract to sell the property in
    26  question.
    27  § 6123.  Residential mortgages.
    28     Entities that may grant or insure residential mortgages or
    29  participate in related activities for purposes of this
    30  subchapter shall include, but not be limited to, the following:
    20080S1291B2447                 - 12 -     

     1         (1)  A State-chartered bank, bank and trust company,
     2     savings bank, private bank or national bank, a federally
     3     chartered or State-chartered savings and loan association, a
     4     federally chartered savings bank or a federally chartered or
     5     State-chartered credit union.
     6         (2)  An attorney authorized to practice law in this
     7     Commonwealth who acts as a mortgage broker in negotiating or
     8     placing a mortgage loan in the normal course of legal
     9     practice.
    10         (3)  A person licensed under the act of February 19, 1980
    11     (P.L.15, No.9), known as the Real Estate Licensing and
    12     Registration Act, who is principally engaged in a third-party
    13     real estate brokerage business, but only to the extent that
    14     the person provides information, verbal or written, to or
    15     negotiates or places a mortgage loan for a buyer of real
    16     estate and is not compensated by the buyer or any other
    17     person for providing such information or negotiating or
    18     placing such mortgage loan. If the person is compensated for
    19     providing the information or negotiating or placing a
    20     mortgage loan, the person shall be subject to sections 308,
    21     310, 311 and 314(b) of the act of December 22, 1989 (P.L.687,
    22     No.90), known as the Mortgage Bankers and Brokers and
    23     Consumer Equity Protection Act.
    24         (4)  A seller of a dwelling if the person has resided in
    25     the dwelling at least one year and as part of the purchase
    26     price receives a first mortgage executed by the purchaser.
    27         (5)  A person who either originates or negotiates fewer
    28     than 12 mortgage loans in a calendar year in this
    29     Commonwealth.
    30         (6)  Builders, when obtaining mortgages for their own
    20080S1291B2447                 - 13 -     

     1     construction or for the sale of their own construction.
     2         (7)  An agency or instrumentality of the Federal
     3     Government or a corporation otherwise created by an act of
     4     Congress, including, but not limited to, the Federal National
     5     Mortgage Association, the Department of Veterans Affairs, the
     6     Federal Home Loan Mortgage Corporation and the Federal
     7     Housing Administration.
     8         (8)  The Pennsylvania Housing Finance Agency.
     9         (9)  A licensee under the act of April 8, 1937 (P.L.262,
    10     No.66), known as the Consumer Discount Company Act, except
    11     that a licensee who makes a mortgage loan other than under
    12     the provisions of the Consumer Discount Company Act shall be
    13     subject to the provisions of sections 304(b)(2) and (3), 308,
    14     310 and 314(b) of the Mortgage Bankers and Brokers and
    15     Consumer Equity Protection Act, excluding section 308(a)(1).
    16         (10)  Except for a licensee described under paragraph
    17     (9), a subsidiary or affiliate of the following institutions:
    18             (i)  State-chartered banks, bank and trust companies,
    19         savings banks, private banks, savings and loan
    20         associations and credit unions.
    21             (ii)  National banks.
    22             (iii)  Federally chartered savings and loans
    23         associations.
    24             (iv)  Federally chartered savings banks.
    25             (v)  Federally chartered credit unions.
    26     A subsidiary or affiliate set forth under this paragraph
    27     shall be subject to the provisions of sections 308,
    28     309(a)(3), 310 and 314(b) of the Mortgage Bankers and Brokers
    29     and Consumer Equity Protection Act, excluding section
    30     308(a)(1), and shall deliver annually to the Department of
    20080S1291B2447                 - 14 -     

     1     Banking copies of financial reports made to all supervisory
     2     agencies.
     3         (11)  An employee of a licensee or a person designated to
     4     act on behalf of his employer.
     5         (12)  An insurance company, association or exchange
     6     authorized to transact business in this Commonwealth under
     7     the act of May 17, 1921 (P.L.682, No.284), known as The
     8     Insurance Company Law of 1921, and any subsidiaries and
     9     affiliates thereof. A subsidiary or affiliate shall:
    10             (i)  be subject to the provisions of sections 308,
    11         309(a)(3), 310 and 314(b) of the Mortgage Bankers and
    12         Brokers and Consumer Equity Protection Act, excluding
    13         section 308(a)(1); and
    14             (ii)  deliver annually to the Insurance Department
    15         copies of financial reports made to all supervisory
    16         agencies.
    17                            SUBCHAPTER D                            <--
    18                          CONSERVATORSHIP
    19  Sec.
    20  6131.  Initiation of action.
    21  6132.  Appointment of conservator.
    22  6133.  Powers and duties of conservator.
    23  6134.  Ownership of property.
    24  6135.  Incurring indebtedness.
    25  6136.  Sale of property.
    26  6137.  Termination of conservatorship.
    27  § 6131.  Initiation of action.
    28     (a)  Filing of petition.--A petition for the appointment of a
    29  conservator to take possession and to undertake the
    30  rehabilitation of a building may be filed by a party in interest
    20080S1291B2447                 - 15 -     

     1  in a court in the county in which the building is located.
     2     (b)  Contents.--The petition submitted to the court shall
     3  include a concise statement of the reasons a conservator should
     4  be appointed and, to the extent available to the petitioner:
     5         (1)  A copy of any citation charging the owner with being
     6     in violation of municipal code requirements or declaring the
     7     building to be a public nuisance.
     8         (2)  A recommendation as to which person or entity should
     9     be appointed conservator.
    10         (3)  A preliminary plan with initial cost estimates for
    11     rehabilitation of the building to bring it into compliance
    12     with all municipal codes and duly adopted plans for the area
    13     in which the building is located and anticipated funding
    14     sources.
    15     (c)  Notification of owner and lienholders.--
    16         (1)  Upon filing the petition with the court, the
    17     petitioner shall notify the current owner of the property and
    18     all lienholders of the filing by registered or certified mail
    19     to the last known address of each and by posting a copy of
    20     the notice on the building.
    21         (2)  In the event the registered or certified mail is
    22     returned with notation by the postal authorities that the
    23     recipient refused to accept the mail, the petitioner may mail
    24     a copy to the recipient at the same address by ordinary mail
    25     with the return address of the petitioner appearing thereon.
    26         (3)  Service by ordinary mail shall be presumed complete
    27     if the mail is not returned to the petitioner within 15 days
    28     after mailing.
    29         (4)  In the event the registered or certified mail is
    30     returned with the notation by the postal authorities that it
    20080S1291B2447                 - 16 -     

     1     was unclaimed, the notice shall be personally served.
     2         (5)  In the event that the personal service is not able
     3     to be made after two such attempts, the petitioner shall mail
     4     the petition to the recipient at the same address by ordinary
     5     mail with the return address of the petitioner appearing
     6     thereon with service by ordinary mail deemed complete if the
     7     mail is not returned to the petitioner within 15 days after
     8     the mailing.
     9         (6)  The petitioner shall also notify the owner and each
    10     lienholder of the hearing date and provide notice that the
    11     owner and lienholders may petition to intervene in the
    12     action.
    13  § 6132.  Appointment of conservator.
    14     (a)  General rule.--The court shall act upon a petition
    15  submitted by holding a hearing within 90 days of receipt of the
    16  petition and rendering a decision no later than 30 days after
    17  completion of the hearing.
    18     (b)  Intervention.--Subject to the court's discretion, a
    19  party in interest may intervene in the proceeding and be heard
    20  with respect to the petition, the requested relief or any other
    21  matter which may come before the court in connection with the
    22  proceeding.
    23     (c)  Hearing.--At the hearing, any party in interest shall be
    24  permitted to present evidence to support or contest the
    25  petition.
    26     (d)  Conditions for conservatorship.--If a petition is filed
    27  under section 6131 (relating to initiation of action), the court
    28  may appoint a conservator if the building has not been legally
    29  occupied for at least the previous 12 months and has not been
    30  actively marketed during the 60 days prior to the date of the
    20080S1291B2447                 - 17 -     

     1  petition and the court finds at least two of the following:
     2         (1)  The building or physical structure is a public
     3     nuisance.
     4         (2)  The building is in need of substantial
     5     rehabilitation and no rehabilitation has taken place during
     6     the previous 12 months.
     7         (3)  The building is unfit for human habitation,
     8     occupancy or use.
     9         (4)  The condition and vacancy of the building materially
    10     increases the risk of fire to the building and to adjacent
    11     properties.
    12         (5)  The building is subject to unauthorized entry
    13     leading to potential health and safety hazards and:
    14             (i)  the owner has failed to take reasonable and
    15         necessary measures to secure the building; or
    16             (ii)  the municipality has secured the building in
    17         order to prevent such hazards after the owner has failed
    18         to do so.
    19         (6)  The property is an attractive nuisance to children,
    20     including, but not limited to, the presence of abandoned
    21     wells, shafts, basements, excavations and unsafe structures.
    22         (7)  The presence of vermin or the accumulation of
    23     debris, uncut vegetation or physical deterioration of the
    24     structure or grounds has created potential health and safety
    25     hazards and the owner has failed to take reasonable and
    26     necessary measures to remove the hazards.
    27         (8)  The dilapidated appearance or other condition of the
    28     building negatively affects the economic well-being of
    29     residents and businesses in close proximity to the building,
    30     including decreases in property value and loss of business,
    20080S1291B2447                 - 18 -     

     1     and the owner has failed to take reasonable and necessary
     2     measures to remedy appearance or the condition.
     3     (e)  Appointment.--
     4         (1)  If the court determines after a hearing that the
     5     property has met the conditions of subsection (d), the court
     6     may appoint a conservator and grant such other relief as may
     7     be just and appropriate.
     8         (2)  The court may appoint a nonprofit corporation or
     9     other competent entity. In appointing a conservator, the
    10     court shall consider any recommendations contained in the
    11     petition or otherwise presented by a party in interest.
    12     (f)  Conditional relief.--
    13         (1)  If the court finds after a hearing that the
    14     conditions for conservatorship set forth under subsection (d)
    15     have been established, but the owner represents that the
    16     violations or nuisance or emergency condition will be abated
    17     in a reasonable period, the court may allow the owner to
    18     proceed to remedy the conditions.
    19         (2)  If the conditions set forth under paragraph (1) have
    20     been satisfied, the court shall enter an order providing
    21     that, in the event that the violations or nuisance or
    22     emergency conditions are not abated by the owner by a
    23     specific date or that other specified remedial activities
    24     have not occurred by a specific date or dates, an order
    25     granting the relief requested in the petition shall be
    26     entered.
    27         (3)  The court may also require the owner to post a bond
    28     in the amount of the repair costs estimated in the petition
    29     as a condition to retaining possession of the building.
    30     (g)  Hearing on conservator's final plan for abatement.--At
    20080S1291B2447                 - 19 -     

     1  the time the court appoints a conservator, the court shall set a
     2  date for a hearing on the conservator's final plan for abatement
     3  to be held within 120 days.
     4     (h)  Conservator's lien.--The conservator shall file a lien
     5  against the property in an amount based on the estimated costs
     6  to be incurred during the conservatorship. The lien amount may
     7  be adjusted from time to time.
     8     (i)  Immediate possession.--The conservator shall promptly
     9  take possession of the building and other property subject to
    10  the conservatorship and shall immediately be authorized to
    11  exercise all powers of this act.
    12     (j)  Removal by court.--A conservator may be removed by the
    13  court at any time upon the request of the conservator or upon a
    14  showing by a party to the action that the conservator is not
    15  carrying out its responsibilities under this chapter.
    16  § 6133.  Powers and duties of conservator.
    17     (a)  Full powers and duties.--The conservator shall have all
    18  powers and duties necessary or desirable, from time to time, for
    19  the efficient operation, management and improvement of the
    20  building in order to bring it into compliance with all municipal
    21  building and housing code requirements and to fulfill the
    22  conservator's responsibilities under this chapter. Such powers
    23  and duties shall include, but not be limited to, the power to:
    24         (1)  Take possession and control of the building,
    25     appurtenant land and any personal property of the owner used
    26     with respect to the building, including any bank or operating
    27     account for the building.
    28         (2)  Collect outstanding accounts receivable.
    29         (3)  Pursue all claims or causes of action of the owner
    30     with respect to the building and all other property subject
    20080S1291B2447                 - 20 -     

     1     to the conservator.
     2         (4)  Contract for the repair and maintenance of the
     3     building. The contracts shall be appropriately documented and
     4     included in the reports and accounting which the conservator
     5     is required to submit or file under the provisions of this
     6     chapter.
     7         (5)  Borrow money and incur credit in accordance with
     8     section 6135 (relating to incurring indebtedness).
     9         (6)  Contract and pay for the maintenance and restoration
    10     of utilities to the building.
    11         (7)  Purchase materials, goods and supplies to accomplish
    12     repairs and operate the building.
    13         (8)  With the court's approval, enter into new rental
    14     contracts and leases for a period not to exceed one year.
    15         (9)  Affirm, renew or enter into contracts providing for
    16     insurance coverage on the building.
    17         (10)  Engage and pay legal, accounting, appraisal and
    18     other professionals to aid the conservator in the conduct of
    19     the conservatorship.
    20         (11)  Apply for and receive public grants or loans.
    21         (12)  Sell the building in accordance with section 6136
    22     (relating to sale of property).
    23         (13)  Exercise all authority that an owner of the
    24     building would have to improve, maintain and otherwise manage
    25     the building.
    26     (b)  Affirmative duty.--While in possession of the building,
    27  the conservator shall:
    28         (1)  Maintain, safeguard and insure the building.
    29         (2)  Apply all revenue generated from the building
    30     consistent with the provisions of this chapter.
    20080S1291B2447                 - 21 -     

     1         (3)  Develop a final plan for abatement of the conditions
     2     which caused the petition to be granted or, if no such
     3     feasible final plan can be developed, develop alternatives,
     4     including the closing, sealing or demolition of all or part
     5     of the building.
     6         (4)  Implement the final plan referred to under paragraph
     7     (3) upon approval by the court.
     8         (5)  Submit a status report to the court and parties to
     9     the action annually or more frequently as the court may deem
    10     appropriate. The status report shall include:
    11             (i)  A copy of any contract entered into by the
    12         conservator regarding the improvement of the building.
    13             (ii)  An account of the disposition of all revenue
    14         generated from the building.
    15             (iii)  An account of all expenses and improvements.
    16             (iv)  The status of developing and implementing the
    17         final plan pursuant to this subsection.
    18             (v)  A description of any proposed actions to be
    19         taken in the next six months to improve the building.
    20     (c)  Submission of final plan.--
    21         (1)  The final plan referred to under subsection (b)(3)
    22     shall be submitted to the court and to all parties to the
    23     action.
    24         (2)  After notice and an opportunity for a hearing, the
    25     court may amend the final plan.
    26     (d)  Accounting.--Upon the implementation of the final plan
    27  approved by the court, the conservator shall file with the court
    28  a full accounting of all income and expenditures during the
    29  period of time it took to implement the final plan.
    30  § 6134.  Ownership of property.
    20080S1291B2447                 - 22 -     

     1     (a)  Ownership interest of conservator.--A conservator
     2  appointed under section 6132 (relating to appointment of
     3  conservator) shall be deemed to have an ownership interest in
     4  and legal control of the property for the purposes of filing
     5  plans with public agencies and boards, seeking and obtaining
     6  construction permits and other approvals and submitting
     7  applications for financing or other assistance to public or
     8  private entities.
     9     (b)  Liability of owner.--Notwithstanding the appointment of
    10  a conservator under section 6132, nothing in this chapter shall
    11  be construed to relieve the owner of any civil or criminal
    12  liability or of any obligation to pay taxes, municipal liens and
    13  charges, mortgages, private liens or other fees or charges,
    14  whether incurred before or after the appointment of the
    15  conservator.
    16  § 6135.  Incurring indebtedness.
    17     (a)  Borrowing.--From time to time a conservator may borrow
    18  money or incur indebtedness in order to cover the cost of
    19  rehabilitation, improvement, preservation, insurance, management
    20  or operation of the building or to otherwise fulfill the
    21  conservator's obligations under this chapter.
    22     (b)  Liens.--In order to facilitate the borrowing of funds
    23  for the rehabilitation of the building, the court may grant a
    24  lien or security interest with priority over all other liens
    25  with the exception of municipal or other governmental liens,
    26  provided, however, that prior to granting a priority lien, the
    27  court has found that:
    28         (1)  The conservator sought to obtain the necessary
    29     financing from the senior lienholder, but the lienholder
    30     declined to provide financing on reasonable terms.
    20080S1291B2447                 - 23 -     

     1         (2)  Lien priority is necessary in order to induce
     2     another lender to provide financing on reasonable terms.
     3  § 6136.  Sale of property.
     4     (a)  Sale by owner or lienholder.--If a property subject to
     5  conservatorship is sold by the owner or foreclosed upon by a
     6  lienholder or if any interest in the property is transferred,
     7  such sale, foreclosure or transfer shall be subject to the
     8  conservatorship.
     9     (b)  Sale by conservator.--Upon application of the
    10  conservator, the court may order the sale of the property if the
    11  court finds that:
    12         (1)  Notice was given to each record owner of the
    13     building and each lienholder of record.
    14         (2)  The conservator has been in control of the building
    15     for more than six months and the owner has not successfully
    16     petitioned to terminate the conservatorship under section
    17     6137 (relating to termination of conservatorship).
    18     (c)  Sale free and clear.--
    19         (1)  The court may authorize the conservator to sell the
    20     building free and clear of all liens, claims and
    21     encumbrances, provided that the proceeds of the sale are
    22     distributed pursuant to subsection (d) at settlement.
    23         (2)  In the event that the proceeds of the sale are
    24     insufficient to pay all existing liens, claims and
    25     encumbrances, the proceeds shall be distributed according to
    26     the priorities set forth under subsection (d), and all unpaid
    27     liens, claims or encumbrances shall be extinguished.
    28     (d)  Distribution.--The proceeds of the sale shall be applied
    29  in accordance with the following priorities to:
    30         (1)  All court costs.
    20080S1291B2447                 - 24 -     

     1         (2)  Municipal or other governmental liens.
     2         (3)  Costs and expenses of sale.
     3         (4)  Principal and interest on any borrowing or
     4     incurrence of indebtedness granted priority over existing
     5     liens and security interest under section 6135(b) (relating
     6     to incurring indebtedness).
     7         (5)  Costs of rehabilitation and any fees and expenses
     8     incurred by the conservator in connection with the sale or
     9     the safeguarding, insuring or maintaining of the property.
    10         (6)  Valid liens and security interests in accordance
    11     with their priority.
    12         (7)  Any unpaid obligations of the conservator.
    13         (8)  Costs incurred by the petitioner in requesting the
    14     court to place the property in conservatorship.
    15         (9)  The owner.
    16  § 6137.  Termination of conservatorship.
    17     Upon request of a party in interest or the conservator, the
    18  court may order the termination of the conservatorship if it
    19  determines:
    20         (1)  the conditions that were the grounds for the
    21     petition and all other code violations have been abated or
    22     corrected, the obligations, expenses and improvements of the
    23     conservatorship, including all fees and expenses of the
    24     conservator, have been fully paid or provided for and the
    25     purposes of the conservatorship have been fulfilled;
    26         (2)  the owner, mortgagee or lienholder has requested the
    27     conservatorship be terminated and has provided adequate
    28     assurances to the court that the conditions that constituted
    29     grounds for the petition will be promptly abated, all
    30     obligations, expenses and improvements of the
    20080S1291B2447                 - 25 -     

     1     conservatorship, including all fees and expenses of the
     2     conservator, have been fully paid or provided for and the
     3     purposes of the conservatorship have been fulfilled;
     4         (3)  the building has been sold by the conservator and
     5     the proceeds distributed in accordance with section 6136(d)
     6     (relating to sale of property); or
     7         (4)  the conservator has been unable after diligent
     8     effort to present a plan that could be approved under section
     9     6133(b)(3) (relating to powers and duties of conservator) or
    10     implement a previously approved plan or, for any reason, the
    11     purposes of the conservatorship cannot be fulfilled.
    12                           SUBCHAPTER E D                           <--
    13             STATE AND LOCAL GOVERNMENT PERMIT DENIALS
    14  Sec.
    15  6141.  State permit denials.
    16  6142.  Municipal permit denial.
    17  § 6141.  State permit denials.
    18     (a)  General rule.--A department, board or commission may      <--
    19  deny an applicant a State permit, certification, license or
    20  approval for contemplated action requiring such approval, if the
    21  applicant owns any real property in this Commonwealth and any of
    22  the following apply:
    23         (1)  The applicant owns real property in a municipality
    24     for which taxes, water or sewer or refuse collection charges
    25     are delinquent.
    26         (2)  The applicant owns real property in this
    27     Commonwealth that has been determined to be in serious
    28     violation of applicable State or municipal housing, building,
    29     property maintenance or fire safety code requirements and has
    30     not taken substantial steps to bring the property into code
    20080S1291B2447                 - 26 -     

     1     compliance.
     2         (3)  The real property is in violation of an applicable
     3     State or municipal housing, building, property maintenance or
     4     fire safety code requirement and the property owner has taken
     5     no substantial steps to correct within 60 days following
     6     notification of the violation.
     7     (A)  DENIAL.--                                                 <--
     8         (1)  A DEPARTMENT, BOARD OR COMMISSION MAY DENY AN
     9     APPLICANT A STATE PERMIT, CERTIFICATION, LICENSE OR APPROVAL
    10     FOR CONTEMPLATED ACTION REQUIRING SUCH APPROVAL, IF THE
    11     APPLICANT OWNS ANY REAL PROPERTY IN THIS COMMONWEALTH AND ANY
    12     OF THE FOLLOWING FINAL AND UNAPPEALABLE TAX, WATER, SEWER OR
    13     REFUSE COLLECTION DELINQUENCIES OR CODE VIOLATIONS APPLY:
    14             (I)  THE APPLICANT OWNS REAL PROPERTY IN A
    15         MUNICIPALITY FOR WHICH TAXES, WATER, SEWER OR REFUSE
    16         COLLECTION CHARGES ARE DELINQUENT.
    17             (II)  THE APPLICANT OWNS REAL PROPERTY IN THIS
    18         COMMONWEALTH THAT HAS BEEN DETERMINED TO BE IN SERIOUS
    19         VIOLATION OF APPLICABLE STATE OR MUNICIPAL HOUSING,
    20         BUILDING, PROPERTY MAINTENANCE OR FIRE SAFETY CODE
    21         REQUIREMENTS AND HAS NOT TAKEN SUBSTANTIAL STEPS TO BRING
    22         THE PROPERTY INTO CODE COMPLIANCE.
    23             (III)  THE REAL PROPERTY IS IN VIOLATION OF AN
    24         APPLICABLE STATE OR MUNICIPAL HOUSING, BUILDING, PROPERTY
    25         MAINTENANCE OR FIRE SAFETY CODE REQUIREMENT AND THE
    26         PROPERTY OWNER HAS TAKEN NO SUBSTANTIAL STEPS TO CORRECT
    27         WITHIN 60 DAYS FOLLOWING NOTIFICATION OF THE VIOLATION.
    28         (2)  THE STATE PERMIT DENIAL SHALL NOT APPLY TO AN
    29     APPLICANT'S ACTION TO CORRECT A VIOLATION OF AN APPLICABLE
    30     STATE OR MUNICIPAL HOUSING, BUILDING, PROPERTY MAINTENANCE OR
    20080S1291B2447                 - 27 -     

     1     FIRE SAFETY CODE FOR WHICH THE STATE PERMIT, CERTIFICATION,
     2     LICENSE OR APPROVAL FOR CONTEMPLATED ACTION REQUIRING SUCH
     3     APPROVAL IS REQUIRED.
     4         (3)  THE STATE PERMIT DENIAL SHALL NOT APPLY TO AN
     5     APPLICANT'S DELINQUENCY ON TAXES, WATER, SEWER OR REFUSE
     6     COLLECTION CHARGES THAT ARE UNDER APPEAL OR OTHERWISE
     7     CONTESTED THROUGH A COURT OR ADMINISTRATIVE PROCESS.
     8     (b)  Proof of compliance.--
     9         (1)  A State permit, certification, license or approval
    10     may be withheld until the applicant obtains a letter from the
    11     appropriate State agency, municipality or school district
    12     which indicates the following:
    13             (i)  The property in question is not presently tax
    14         delinquent or does not owe sewer, water or refuse
    15         collection charges.
    16             (ii)  The property in question is now in code
    17         compliance.
    18             (iii)  The property owner of the property in question
    19         has taken substantial steps to bring the property into
    20         code compliance.
    21         (2)  Letters required under this subsection shall be
    22     verified by the appropriate State officials before the
    23     official may issue the applicant a State permit,
    24     certification, license or approval.
    25     (c)  Availability of information.--Information contained in
    26  the property maintenance code violation report shall be subject
    27  to the provisions of the act of February 14, 2008 (P.L.30,
    28  No.3), known as the Right-to-Know Law.
    29  § 6142.  Municipal permit denial.
    30     (a)  Denial.--A municipality may deny issuing to an applicant  <--
    20080S1291B2447                 - 28 -     

     1  a building permit, zoning permit, zoning variance, municipal
     2  license, municipal permit or municipal approval for contemplated
     3  action that requires the approval of the municipality, if any of
     4  the following apply:
     5         (1)  The applicant owns real property in any municipality
     6     for which taxes or water, sewer or refuse collection charges
     7     are delinquent.
     8         (2)  The applicant owns any property in any municipality
     9     that has been determined to be in serious violation of
    10     applicable State or municipal housing, building, property
    11     maintenance or fire safety code requirements and has not
    12     taken substantial steps to bring the property into code
    13     compliance.
    14         (3)  The applicant owns any property in any municipality
    15     which is in violation of an applicable State or municipal
    16     housing, building, property maintenance or fire safety code
    17     requirement and has taken no substantial steps to correct the
    18     violation within six months following notification of the
    19     violation.
    20     (A)  DENIAL.--                                                 <--
    21         (1)  A MUNICIPALITY MAY DENY ISSUING TO AN APPLICANT A
    22     BUILDING PERMIT, ZONING PERMIT, ZONING VARIANCE, MUNICIPAL
    23     LICENSE, MUNICIPAL PERMIT OR MUNICIPAL APPROVAL FOR
    24     CONTEMPLATED ACTION THAT REQUIRES THE APPROVAL OF THE
    25     MUNICIPALITY, IF ANY OF THE FOLLOWING FINAL AND UNAPPEALABLE
    26     TAX, WATER, SEWER OR REFUSE COLLECTION DELINQUENCIES OR CODE
    27     VIOLATIONS APPLY:
    28             (I)  THE APPLICANT OWNS REAL PROPERTY IN ANY
    29         MUNICIPALITY FOR WHICH TAXES, WATER, SEWER OR REFUSE
    30         COLLECTION CHARGES ARE DELINQUENT.
    20080S1291B2447                 - 29 -     

     1             (II)  THE APPLICANT OWNS REAL PROPERTY IN ANY
     2         MUNICIPALITY THAT HAS BEEN DETERMINED TO BE IN SERIOUS
     3         VIOLATION OF APPLICABLE STATE OR MUNICIPAL HOUSING,
     4         BUILDING, PROPERTY MAINTENANCE OR FIRE SAFETY CODE
     5         REQUIREMENTS AND HAS NOT TAKEN SUBSTANTIAL STEPS TO BRING
     6         THE PROPERTY INTO CODE COMPLIANCE.
     7             (III)  THE APPLICANT OWNS ANY PROPERTY IN ANY
     8         MUNICIPALITY WHICH IS IN VIOLATION OF AN APPLICABLE STATE
     9         OR MUNICIPAL HOUSING, BUILDING, PROPERTY MAINTENANCE OR
    10         FIRE SAFETY CODE REQUIREMENT AND HAS TAKEN NO SUBSTANTIAL
    11         STEPS TO CORRECT WITHIN SIX MONTHS FOLLOWING NOTIFICATION
    12         OF THE VIOLATION.
    13         (2)  THE MUNICIPAL PERMIT DENIAL SHALL NOT APPLY TO AN
    14     APPLICANT'S ACTION TO CORRECT A VIOLATION OF AN APPLICABLE
    15     STATE OR MUNICIPAL HOUSING, BUILDING, PROPERTY MAINTENANCE OR
    16     FIRE SAFETY CODE FOR WHICH THE BUILDING PERMIT, ZONING
    17     PERMIT, ZONING VARIANCE, MUNICIPAL LICENSE, MUNICIPAL PERMIT
    18     OR MUNICIPAL APPROVAL FOR CONTEMPLATED ACTION REQUIRING SUCH
    19     APPROVAL IS REQUIRED.
    20         (3)  THE MUNICIPAL PERMIT DENIAL SHALL NOT APPLY TO AN
    21     APPLICANT'S DELINQUENCY ON TAXES, WATER, SEWER OR REFUSE
    22     COLLECTION CHARGES THAT ARE UNDER APPEAL OR OTHERWISE
    23     CONTESTED THROUGH A COURT OR ADMINISTRATIVE PROCESS.
    24     (b)  Proof of compliance.--
    25         (1)  All municipal variances, approvals, permits or
    26     licenses may be withheld until an applicant obtains a letter
    27     from the appropriate State agency, municipality or school
    28     district indicating the following:
    29             (i)  The property in question is not presently tax
    30         delinquent.
    20080S1291B2447                 - 30 -     

     1             (ii)  The property in question is now in code
     2         compliance.
     3             (iii)  The owner of the property in question has
     4         taken substantial steps to bring the property into code
     5         compliance.
     6         (2)  Letters required under this subsection shall be
     7     verified by the appropriate municipal officials before
     8     issuing to the applicant a municipal variance, approval,
     9     permit or license.
    10                           SUBCHAPTER F E                           <--
    11                STATE BLIGHT DATA COLLECTION SYSTEM
    12  Sec.
    13  6151.  Property Maintenance Code Violations Registry.
    14  6152.  Property maintenance code violation reports.
    15  6153.  Dissemination of information by department.
    16  6154.  Expungement.
    17  6155.  Administrative requirements.
    18  6156.  Audit.
    19  6157.  Imposition of surcharge.
    20  § 6151.  Property Maintenance Code Violations Registry.
    21     (a)  Establishment.--The Property Maintenance Code Violations
    22  Registry is hereby established. The department shall implement
    23  and administer the registry.
    24     (b)  Purpose.--The registry shall contain property
    25  maintenance code violation reports filed by municipalities under
    26  section 6152 (relating to property maintenance code violation
    27  reports).
    28  § 6152.  Property maintenance code violation reports.
    29     (a)  Municipalities to file.--A municipality shall file a
    30  property maintenance code violation report for any person who
    20080S1291B2447                 - 31 -     

     1  owns real property within that municipality with current
     2  property maintenance code violations that have gone unabated for
     3  90 days or more.
     4     (b)  Forms provided.--Property maintenance code violation
     5  reports may be made on forms provided by the department or may
     6  be made electronically.
     7     (c)  Information included.--Property maintenance code
     8  violation reports shall include the following information:
     9         (1)  The name of the convicted property maintenance code
    10     violator.
    11         (2)  Where owned by a corporation, the information on
    12     record at the Department of Transportation in connection with
    13     the individual drivers' licenses for each officer of the
    14     corporation.
    15         (3)  The legal description of the real property which is
    16     in violation of the municipal property maintenance code.
    17         (4)  A description of the condition of the real property
    18     which resulted in the property maintenance code violation.
    19         (5)  The date of the original property maintenance code
    20     violation.
    21         (6)  The amount of penalties owed or liens attached to
    22     the property with maintenance code violations.
    23         (7)  The name of the municipality filing the report.
    24     (d)  Duty of municipality.--A municipality that files a
    25  property maintenance code violation report shall follow the
    26  guidelines for expungement under section 6154 (relating to
    27  expungement).
    28  § 6153.  Dissemination of information by department.
    29     (a)  Availability of information.--Information contained in
    30  the property maintenance code violation report shall be subject
    20080S1291B2447                 - 32 -     

     1  to the provisions of the act of February 14, 2008 (P.L.  ,
     2  No.3), known as the Right-to-Know Law.
     3     (b)  Requests by municipalities.--
     4         (1)  Municipalities may request a copy of a property
     5     maintenance code violation report on any pending applicant
     6     for a municipal permit by submitting a property maintenance
     7     code violation report request form to the department or
     8     requesting the form electronically.
     9         (2)  The department shall disseminate all property
    10     maintenance code violation reports relating to a municipal
    11     permit applicant to the requesting municipality within two
    12     weeks of receipt of a property maintenance code violation
    13     report request from that municipality.
    14         (3)  The municipality shall notify an applicant in
    15     writing of the reasons for a decision which denies the
    16     applicant a municipal permit if the decision is based in
    17     whole or in part on information contained in the Property
    18     Maintenance Code Violations Registry.
    19     (c)  Requests by Commonwealth.--
    20         (1)  Commonwealth agencies may request a copy of any
    21     property maintenance code violation report on any pending
    22     applicant for licensing or certification by submitting a
    23     property maintenance code violation report request form to
    24     the department or requesting the form electronically.
    25         (2)  The department shall disseminate all property
    26     maintenance code violation reports relating to a State
    27     license or certification applicant to a requesting
    28     Commonwealth agency within two weeks of receipt of a property
    29     maintenance code violation report request from the agency.
    30         (3)  The Commonwealth agency shall notify an applicant in
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     1     writing of the reasons for a decision which denies the
     2     licensing or certification requested by that applicant if the
     3     decision is based in whole or in part on information
     4     contained in the Property Maintenance Code Violations
     5     Registry.
     6     (d)  Hearing.--If requested by an applicant, a hearing shall
     7  be scheduled to appeal a decision made as a result of municipal
     8  property maintenance code violation convictions under subsection
     9  (b)(3) or (c)(3). If the applicant can show cause why the
    10  municipal property maintenance code violation convictions should
    11  not be considered, the State shall reevaluate any request by the
    12  applicant for a State license or certification, and the
    13  municipality shall likewise reevaluate any request by the
    14  applicant for a municipal permit.
    15     (e)  Record of dissemination.--The department shall maintain
    16  a listing of Commonwealth agencies and all municipalities that
    17  have requested information on a particular real property owner
    18  and the date on which the information was disseminated. This
    19  listing shall be maintained separate from the registry.
    20     (f)  Fee.--There shall be no fee assessed for the
    21  dissemination of property maintenance code violation
    22  information.
    23  § 6154.  Expungement.
    24     A municipality that files a report with the department shall
    25  subsequently notify the department when the real property is
    26  brought into code compliance. Upon notification by the
    27  municipality, the department shall include the information as
    28  part of the official record for the specific property and
    29  violator.
    30  § 6155.  Administrative requirements.
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     1     (a)  Regulations.--The department shall establish procedures
     2  for the completeness and accuracy of information in the registry
     3  and shall promulgate the regulations necessary to carry out its
     4  duty of maintaining the registry.
     5     (b)  Forms.--The department shall develop property
     6  maintenance code violation report forms and property maintenance
     7  code violation report request forms, as well as procedures to
     8  obtain the information electronically.
     9     (c)  Security requirements.--The department shall ensure the
    10  confidentiality and security of the information contained in the
    11  registry by providing that:
    12         (1)  Procedures have been instituted to reasonably
    13     protect the registry from theft, fire, sabotage, flood, wind
    14     or other natural or manmade disasters.
    15         (2)  All personnel authorized to have access to registry
    16     information are selected, supervised and trained accordingly.
    17  § 6156.  Audit.
    18     (a)  Duty of Auditor General.--The Auditor General shall
    19  conduct annual performance audits of registry operations.
    20     (b)  Access to records.--The department shall provide
    21  auditors with access to all records, reports and listings
    22  required to conduct an audit of property maintenance code
    23  violations record information. Persons having supervision of or
    24  authorized to receive registry information shall cooperate with
    25  auditors and provide requested information.
    26     (c)  Contents of audit.--The audit shall report in writing
    27  any deficiencies and any recommendations for correcting the
    28  deficiencies. The department shall respond to the audit
    29  recommendations within a reasonable period of time unless the
    30  audit report is appealed to the Auditor General and the appeal
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     1  is upheld.
     2     (d)  Modification of recommendations.--Upon appeal of the
     3  audit recommendations by the department, the Auditor General may
     4  modify corrective measures recommended by auditors.
     5  § 6157.  Imposition of surcharge.
     6     There is imposed on each property owner who is in violation
     7  of a municipal property maintenance code a surcharge in the
     8  amount of $100 for each INSPECTION BY A LOCAL CODES OFFICIAL      <--
     9  THAT REVEALS ONE OR MORE municipal property maintenance code
    10  violation. This surcharge shall be in addition to any other
    11  applicable fees or charges lawfully collected by the
    12  municipality and court. The municipality shall collect the
    13  surcharge and remit all funds to the department on a quarterly
    14  basis. Funds generated by the surcharge shall be used to finance
    15  the Statewide implementation of the Property Maintenance Code
    16  Violations Registry and to conduct training of the judiciary in
    17  accordance with section 6192 (relating to education and training
    18  programs for judges).
    19                           SUBCHAPTER G F                           <--
    20                               GRANTS
    21  Sec.
    22  6161.  Municipal Code Enforcement Grant Program.
    23  6162.  Regulations.
    24  § 6161.  Municipal Code Enforcement Grant Program.
    25     (a)  Establishment.--The department shall issue grants to
    26  eligible municipalities for the purpose of reducing blighted
    27  property conditions.
    28     (b)  Purpose.--The purpose of the Municipal Code Enforcement
    29  Grant Program is to encourage the establishment of special code
    30  enforcement programs to address blighted property and the hiring
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     1  and training of code enforcement personnel in those
     2  municipalities with an existing code enforcement program.
     3     (c)  Eligibility.--In order to receive a grant under this
     4  subchapter, a municipality must submit an application to the
     5  department and satisfy the eligibility criteria established by
     6  the department.
     7     (d)  Matching funds.--A municipality shall provide its own
     8  funds or in-kind contributions, approved by the department as
     9  determined by regulations promulgated by the department under
    10  section 6162 (relating to regulations) equal to the amount of
    11  the grant provided and shall dedicate and expend those funds for
    12  the purpose for which the grant was awarded.
    13     (e)  Limitation.--Grants provided under this section shall
    14  not be provided to the same recipient for more than three
    15  consecutive years.
    16  § 6162.  Regulations.
    17     Within 90 days following the effective date of this
    18  subchapter, the department shall promulgate rules and
    19  regulations to carry out the provisions of this subchapter. The
    20  regulations to implement section 6161(b) (relating to Municipal
    21  Code Enforcement Grant Program) may include, but not be limited
    22  to:
    23         (1)  The age of the existing housing in the municipality.
    24         (2)  The municipality's existing tax base.
    25         (3)  The existing financial condition of the
    26     municipality.
    27                            SUBCHAPTER H                            <--
    28             SALE OF BLIGHTED AND ABANDONED PROPERTIES
    29  Sec.
    30  6165.  Applicability.
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     1  6166.  Tax sales.
     2  6167.  Requirements for purchaser of abandoned property.
     3  § 6165.  Applicability.
     4     The provisions of this subchapter shall be in addition to the
     5  provisions of the act of July 7, 1947 (P.L.1368, No.542), known
     6  as the Real Estate Tax Sale Law. If there is a conflicting
     7  provision, this subchapter and not the Real Estate Tax Sale Law
     8  shall prevail where the tax sale affects blighted or abandoned
     9  property.
    10  § 6166.  Tax sales.
    11     (a)  Publication of tax sale properties.--At least 60 days
    12  prior to the date scheduled for a tax sale, the county shall
    13  make public a list of properties to be offered at the sale. The
    14  county shall provide a copy of the list to the mayor, or
    15  comparable municipal official, of any municipality in which
    16  property scheduled for sale is located.
    17     (b)  Notification about abandoned properties.--Within 30 days
    18  following receipt of the list, the municipality shall notify the
    19  county of any properties within its jurisdiction which are
    20  abandoned properties. Not less than 15 days prior to the
    21  scheduled tax sale, the county shall make public a revised list
    22  of properties to be offered for sale indicating which are
    23  abandoned.
    24  § 6167.  Requirements for purchaser of abandoned property.
    25     In addition to requirements under the act of May 16, 1923
    26  (P.L.207, No.153), referred to as the Municipal Claim and Tax
    27  Lien Law, the act of July 7, 1947 (P.L.1368, No.542), known as
    28  the Real Estate Tax Sale Law, or the act of October 11, 1984
    29  (P.L.876, No.171), known as the Second Class City Treasurer's
    30  Sale and Collection Act, a purchaser of an abandoned property
    20080S1291B2447                 - 38 -     

     1  shall:
     2         (1)  Enter into a redevelopment agreement with the
     3     municipality in which the property is located, obligating the
     4     purchaser to redevelop the property in accordance with all
     5     municipal codes and any officially adopted plans for the
     6     geographic area in which the property is located. The
     7     redevelopment agreement shall include, at a minimum:
     8             (i)  A specified time by which the redevelopment must
     9         be completed, which time shall not be less than 12
    10         months.
    11             (ii)  A description of the redevelopment work to be
    12         completed.
    13             (iii)   Remedies for noncompliance, including the
    14         right of the municipality to acquire title to the
    15         property if the redevelopment is not completed by the
    16         agreed-upon date.
    17         (2)  Post a bond to ensure compliance with the
    18     redevelopment agreement, naming the municipality as the
    19     beneficiary.
    20                           SUBCHAPTER I G                           <--
    21                      MISCELLANEOUS PROVISIONS
    22  Sec.
    23  6191.  Unfair insurance practices.
    24  6192.  Education and training programs for judges.
    25  6193.  County housing courts.
    26  § 6191.  Unfair insurance practices.
    27     In addition to the provisions of section 5 of the act of July
    28  22, 1974 (P.L.589, No.205), known as the Unfair Insurance
    29  Practices Act, the act of refusing to issue or renew an
    30  insurance policy on real property on the basis of the condition
    20080S1291B2447                 - 39 -     

     1  of surrounding properties or because surrounding properties are
     2  unoccupied is prohibited as an unfair method of competition and
     3  unfair insurance practices.
     4  § 6192.  Education and training programs for judges.
     5     Funds provided under section 6157 (relating to imposition of
     6  surcharge) shall be used to develop and implement annual and
     7  ongoing education and training programs for judges, including
     8  magisterial district judges, regarding the laws of this
     9  Commonwealth relating to blighted and abandoned property and the
    10  economic impact that blighted and abandoned properties have upon
    11  municipalities. The education and training programs shall
    12  include, but not be limited to:
    13         (1)  The importance and connection of municipal housing
    14     code violations and crime.
    15         (2)  Time-in-fact violations as they relate to property
    16     maintenance code violations.
    17         (3)  Conduct of witnesses in prosecuting property
    18     maintenance code violations.
    19         (4)  Limiting continuances in property maintenance code
    20     violations.
    21         (5)  Use of indigency hearings in the prosecution of
    22     property maintenance code violations.
    23  § 6193.  County housing courts.
    24     Upon a request or approval of a resolution by the county
    25  commissioners, the president judge of a county may establish a
    26  housing court to hear and decide matters arising under this
    27  chapter and other laws relating to real property matters.
    28     Section 2.  This act shall take effect in 90 days.


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