THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY J. TAYLOR, PERZEL, GEIST, BEYER, DERMODY, FREEMAN, HARPER, HESS, W. KELLER, KILLION, KORTZ, MANN, MARSHALL, MILLER, MURT, M. O'BRIEN, REICHLEY, SAYLOR, SIPTROTH, K. SMITH, SWANGER, THOMAS, WALKO, YUDICHAK, HARHART, D. COSTA, DEASY AND WAGNER, MARCH 4, 2009

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 28, 2010   

AN ACT

Providing for the creation of land banks for the conversion of

vacant or tax-delinquent properties into productive use.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Land Bank

Act.

Section 2.  Legislative findings and purpose.

The General Assembly finds and declares that:

(1)  Pennsylvania's communities are important to the

social and economic vitality of this Commonwealth. Whether

urban, suburban or rural, many communities are struggling to

cope with vacant, abandoned and tax-delinquent properties.

(2)  Citizens of this Commonwealth are affected adversely

by vacant, abandoned and tax-delinquent properties, including

properties that have been vacated or abandoned due to

mortgage foreclosure.

(3)  Vacant, abandoned and tax-delinquent properties

impose significant costs on neighborhoods, communities and

municipalities by lowering property values, increasing fire

and police protection costs, decreasing tax revenues and

undermining community cohesion.

(4)  There is an overriding public need to confront the

problems caused by vacant, abandoned and tax-delinquent

properties through the creation of new tools for

municipalities in order to enable municipalities to turn

vacant spaces into vibrant places.

(5)  Land banks are one of the tools that can be utilized

by communities and municipalities to facilitate the return of

vacant, abandoned and tax-delinquent properties to productive

use.

Section 3.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Board of directors" or "board."  The board of directors of a

land bank.

"Land bank."  A public body and a body corporate and politic

established in accordance with the provisions of this act.

"Land bank jurisdiction."  A city or county as defined by the

act May 24, 1945 (P.L.991, No.385), known as the Urban

Redevelopment Law, possessing the authority to create a

redevelopment authority pursuant to section 4(c) and (d) of the

Urban Redevelopment Law.

"Real property."  Lands, structures and any and all

easements, air rights, franchises and incorporeal hereditaments

and every estate and right therein, legal and equitable,

including terms for years and liens by way of judgment, mortgage

or otherwise and any and all fixtures and improvements located

thereon.

"School district."  Any of the classifications of school

districts specified in section 202 of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949. The

term includes, as to any real property acquired, owned or

conveyed by a land bank, the school district within whose

geographical jurisdiction the real property is located.

Section 4.  Creation and existence.

(a)  General rule.--Any land bank jurisdiction may elect to

create a land bank by the adoption of an ordinance, rule or

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resolution as appropriate to the land bank jurisdiction as

necessary subject to the approval of the mayor in a city or the

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county executive in a home rule county and in accordance with

law or a home rule charter, to create a binding legal

obligation, which action must specify the following:

(1)  The name of the land bank.

(2)  The number of members of the board of directors,

which shall consist of an odd number of members and be not

less than five members nor more than eleven members.

(3)  The initial individuals to serve as members of the

board and the length of terms for which they will serve.

(4)  The qualifications, manner of selection or

appointment and terms of office of members of the board.

(5)  The governing body of the land bank jurisdiction

which creates a land bank shall cause a certified copy of the

ordinance or resolution to be filed with the Department of

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State and a duplicate with the Department of Community and

Economic Development. After receipt of the ordinance or

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resolution, the Secretary of the Commonwealth shall issue a

certificate of incorporation.

(b)  Entities that may establish.--A land bank may be created

by any of the following:

(1)  A land bank jurisdiction.

(2)  Two or more land bank jurisdictions pursuant to

intergovernmental cooperation agreements.

(3)  A land bank jurisdiction and one or more

municipalities pursuant to intergovernmental cooperation

agreements.

(c)  Intergovernmental cooperation agreement.--In the event

that a land bank is established under an intergovernmental

agreement in accordance with subsection (b), the

intergovernmental cooperation agreement shall specify matters

identified in subsection (a).

(d)  Limitation.--Except when a land bank is established

under subsection (b)(2) or (3), in the event a county

establishes a land bank, the land bank shall have the power to

acquire real property only in those portions of the county

located outside of the geographical boundaries of any other land

bank established by any other land bank jurisdiction located

partially or entirely within the county.

(e)  Participation by school district.--A school district may

participate in a land bank pursuant to an intergovernmental

cooperation agreement, which agreement shall specify the

membership, if any, of the school district on the board of the

land bank or the actions of the land bank which are subject to

approval by the school district.

(f)  Legal status of land bank.--A land bank shall be a

public body corporate and politic, and shall have permanent and

perpetual duration until terminated and dissolved in accordance

with the provisions of section 14.

(g)  Collaboration.--A land bank, a political subdivision and

other municipal entities may enter into intergovernmental

cooperation agreements relative to the operations of a land

bank.

Section 5.  Board of directors.

(a)  Membership.--The initial size of a board shall be

determined in accordance with section 4. Unless restricted by

the actions or agreements specified in section 4, and subject to

the limits stated in this section, the size of the board may be

adjusted in accordance with bylaws of the land bank.

(b)  Eligibility to serve on board.--

(1)  Notwithstanding any law to the contrary, a public

officer shall be eligible to serve as a board member and the

acceptance of the appointment shall neither terminate nor

impair that public office. Any municipal employee shall be

eligible to serve as a board member.

(2)  Each established land bank board shall include at

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least one voting member who:

(i)  is a resident of the land bank jurisdiction;

(ii)  is not a public official or municipal employee;

and

(iii)  maintains membership with a recognized civic

organization within the land bank jurisdiction.

(2) (3)  For purposes of this subsection, "public

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officer" means a person who is elected to a municipal office. 

(c)  Officers.--The members of the board shall select

annually from among themselves a chairman, vice chairman,

secretary, treasurer and such other officers as the board may

determine and shall establish their duties as may be regulated

by rules adopted by the board.

(d)  Rules and regulations.--

(1)  The board shall establish rules and regulations

relative to the attendance and participation of members in

its regular and special meetings. The rules and regulations

may prescribe a procedure where, should any member fail to

comply with the rules and regulations, the member may be

disqualified and removed automatically from office by no less

than a majority vote of the remaining members of the board

and that member's position shall be vacant as of the first

day of the next calendar month.

(2)  Any person removed under the provisions of this

subsection shall be ineligible for reappointment to the

board, unless the reappointment is confirmed unanimously by

the board.

(e)  Vacancies.--A vacancy on the board shall be filled in

the same manner as the original appointment.

(f)  Compensation.--Board members shall serve without

compensation. The board may reimburse a member for expenses

actually incurred in the performance of duties on behalf of the

land bank.

(g)  Meetings.--The board shall meet in regular session

according to a schedule adopted by the board and also shall meet

in special session as convened by the chairman or upon written

notice signed by a majority of the members. The presence of a

majority of the entire board membership shall constitute a

quorum.

(h)  Voting.--All actions of the board must be approved by

the affirmative vote of a majority of the members of the board

present and voting. However, no action of the board shall be

authorized on the following matters unless approved by a

majority of the entire board membership:

(1)  Adoption of bylaws and other rules and regulations

for conduct of the land bank's business. A majority of the

members of the board, not including vacancies, shall

constitute a quorum for the conduct of business.

(2)  Hiring or firing of any employee or contractor of

the land bank. This function may by majority vote be

delegated by the board to a specified officer or committee of

the land bank, under such terms, conditions and to the extent

that the board may specify.

(3)  Incurring of debt.

(4)  Adoption or amendment of the annual budget.

(5)  Sale, lease, encumbrance or alienation of real

property, improvements or personal property with a value of

more than $50,000.

(i)  Immunity.--A member of a board shall not be liable

personally on the bonds or other obligations of the land bank

and the rights of creditors of a land bank shall be solely

against the land bank.

(j)  Proxy voting prohibited.--

(1)  A member of the board shall be prohibited from

voting by proxy.

(2)  A member may request a recorded vote on any

resolution or action of the land bank.

Section 6.  Staff.

A land bank may employ an executive director, its own counsel

and legal staff and such technical experts, other agents and

employees, permanent or temporary, as it may require, and may

determine the qualifications and fix the compensation and

benefits of those persons. A land bank may also enter into

contracts and agreements with municipalities for staffing

services to be provided to the land bank by municipalities or

agencies or departments thereof, or for a land bank to provide

such staffing services to municipalities or agencies or

departments thereof.

Section 7.  Powers.

A land bank shall constitute a public body, corporate and

politic, exercising public powers of the Commonwealth, which

powers shall include all powers necessary or appropriate to

carry out and effectuate the purposes and provisions of this

act, including the following powers:

(1)  To adopt, amend and repeal bylaws for the regulation

of its affairs and the conduct of its business.

(2)  To sue and be sued in its own name and plead and be

impleaded in all civil actions, including, but not limited

to, actions to clear title to property of the land bank.

(3)  To adopt a seal and to alter the same at pleasure.

(4)  To borrow from private lenders, from municipalities,

from the Commonwealth or from Federal Government funds, as

may be necessary, for the operation and work of the land

bank.

(5)  To issue negotiable revenue bonds and notes

according to the provisions of this act.

(6)  To procure insurance or guarantees from the

Commonwealth or Federal Government of the payments of any

debts or parts thereof incurred by the land bank, and to pay

premiums in connection therewith.

(7)  To enter into contracts and other instruments

necessary, incidental or convenient to the performance of its

duties and the exercise of its powers, including, but not

limited to, intergovernmental cooperation agreements under 53

Pa.C.S. Ch. 23, Subch. A (relating to intergovernmental

cooperation), for the joint exercise of powers under this

act.

(8)  To enter into contracts and intergovernmental

cooperation agreements with municipalities for the

performance of functions by municipalities on behalf of the

land bank or by the land bank on behalf of municipalities.

(9)  To make and execute contracts and other instruments

necessary or convenient to the exercise of the powers of the

land bank. Any contract or instrument when signed by the

chairman or vice chairman of the land bank or by an

authorized use of their facsimile signatures, and by the

secretary or assistant secretary, or treasurer or assistant

treasurer of the land bank, or by an authorized use of their

facsimile signatures, shall be held to have been properly

executed for and on behalf of the land bank.

(10)  To procure insurance against losses in connection

with the real property, assets or activities of the land

bank.

(11)  To invest money of the land bank, at the discretion

of the board, in instruments, obligations, securities or

property determined proper by the board and name and use

depositories for its money.

(12)  To enter into contracts for the management of, the

collection of rent from or the sale of real property of the

land bank.

(13)  To design, develop, construct, demolish,

reconstruct, rehabilitate, renovate, relocate and otherwise

improve real property or rights or interests in real

property.

(14)  To fix, charge and collect rents, fees and charges

for the use of real property of the land bank and for

services provided by the land bank.

(15)  To grant or acquire a license, easement, lease, as

lessor or lessee, or option with respect to real property of

the land bank.

(16)  To enter into partnerships, joint ventures and

other collaborative relationships with municipalities and

other public and private entities for the ownership,

management, development and disposition of real property.

(17)  To organize and reorganize the executive,

administrative, clerical and other departments of the land

bank and to fix the duties, powers and compensation of all

employees, agents and consultants of the land bank.

(18)  To do all other things necessary or convenient to

achieve the objectives and purposes of the land bank or other

laws that relate to the purposes and responsibility of the

land bank.

Section 8.  Eminent domain.

A land bank shall neither possess nor exercise the power of

eminent domain.

Section 9.  Acquisition of property.

(a)  Tax exemption.--The real property of a land bank and its

income and operations are exempt from all taxation by the

Commonwealth and by any of its political subdivisions, provided,

however, that the exemption shall not apply to any real property

of a land bank after the fifth consecutive year in which the

real property is continuously leased to a private third party.

(b)  Methods of acquisition.--A land bank may acquire real

property or interests in real property by gift, devise,

transfer, exchange, foreclosure, purchase or otherwise on terms

and conditions and in a manner the land bank considers proper.

(c)  Acquisitions from municipalities.--

(1)  A land bank may acquire real property by purchase

contracts, lease purchase agreements, installment sales

contracts, land contacts and may accept transfers from

municipalities upon such terms and conditions as agreed to by

the land bank and the municipality.

(2)  Notwithstanding any other law to the contrary, a

municipality may transfer to a land bank real property and

interests in real property of the municipality on such terms

and conditions and according to such procedures as determined

by the municipality, so long as the real property is located

within the jurisdiction of the land bank.

(d)  Maintenance.--A land bank shall maintain all of its real

property in accordance with the laws and ordinances of the

jurisdiction in which the real property is located.

(e)  Prohibition.--

(1)  Subject to the provisions of paragraph (2), a land

bank shall not own or hold real property located outside the

jurisdictional boundaries of the entities which created the

land bank pursuant to section 4(b).

(2)  A land bank may be granted authority pursuant to an

intergovernmental cooperation agreement with a municipality

to manage and maintain real property located within the

jurisdiction of the municipality.

(f)  Tax claim bureaus.--Any tax claim bureau may transfer to

a land bank any real property of the county held by the tax

claim bureau, as trustee for the county, in a repository for

unsold property pursuant to section 626 of the act of July 7,

1947 (P.L.1368, No.542), known as the Real Estate Tax Sale Law.

(g)  Acquisition of tax delinquent properties.--

(1)  If authorized by the land bank jurisdiction or land

bank jurisdictions that created a land bank, or otherwise by

intergovernmental cooperation agreement, a land bank may

accept donations of real property in accordance with section

5.1 of the act of May 16, 1923 (P.L.207, No.153), referred to

as the Municipal Claim and Tax Lien Law, or section 303 of

the Real Estate Tax Sale Law and extinguish delinquent claims

for taxes as to such property.

(2)  Claims of a school district shall be extinguished

only if the school district has designated the land bank as

its agent in accordance with section 5.1(f) of the Municipal

Claim and Tax Lien Law or section 303(b)(6) of the Real

Estate Tax Sale Law.

Section 10.  Disposition of property.

(a)  Title to be held in its name.--A land bank shall hold in

its own name all real property acquired by the land bank

irrespective of the identity of the transferor of the property.

(b)  Public access to inventory.--A land bank shall maintain

and make available for public review and inspection an inventory

of all real property held by the land bank.

(c)  Power.--A land bank may convey, exchange, sell,

transfer, lease as lessor, grant, mortgage, as mortgagor, any

and all interests in, upon or to real property of the land bank

in some form and by such method as determined to be in the best

interests of the land bank.

(d)  Consideration.--

(1)  A land bank shall determine the amount and form of

consideration necessary to convey, exchange, sell, transfer,

lease as lessor, grant, release or demise, pledge and

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hypothecate and mortgage, as mortgagor, any interests in,

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upon or to real property.

(2)  Consideration may take the form of monetary payments

and secured financial obligations, covenants and conditions

related to the present and future use of the property,

contractual commitments of the transferee and such other

forms of consideration as determined by the board to be in

the best interest of the land bank.

(e)  Policies and procedures.--

(1)  A board shall determine and state in the land bank

policies and procedures the general terms and conditions for

consideration to be received by the land bank for the

transfer of real property and interests in real property.

(2)  Requirements that may be applicable to the

disposition of real property and interests in real property

by municipalities shall not be applicable to the disposition

of real property and interests in real property by a land

bank.

(f)  Ranking of priorities.--A land bank jurisdiction may, in

its resolution or ordinance creating a land bank, or, in the

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case of multiple land bank jurisdictions creating a single land

bank in the applicable intergovernmental cooperation agreement,

establish a hierarchical ranking of priorities for the use of

real property conveyed by a land bank, including, but not

limited to:

(1)  Use for purely public spaces and places.

(2)  Use for affordable housing.

(3)  Use for retail, commercial and industrial

activities.

(4)  Use as conservation areas.

(g)  Specific voting and approval requirements.--

(1)  A land bank jurisdiction may, in its resolution or 

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ordinance creating a land bank, or, in the case of multiple

land bank jurisdictions and municipalities creating a single

land bank in the applicable intergovernmental cooperation

agreement, require that any particular form of disposition of

real property, or any disposition of real property located

within specified jurisdictions, be subject to specified

voting and approval requirements of the board.

(2)  Except and unless restricted or constrained as

provided in paragraph (1), the board may delegate to officers

and employees the authority to enter into and execute

agreements, instruments of conveyance and all other related

documents pertaining to the conveyance of real property by

the land bank.

Section 11.  Financing of land bank operations.

(a)  General rule.--A land bank may receive funding through

grants and loans from the land bank jurisdiction or land bank

jurisdictions which created the land bank, from municipalities,

from the Commonwealth, from the Federal Government and from

other public and private sources.

(b)  Funding.--A land bank may receive and retain payments

for services rendered, for rents and leasehold payments

received, for consideration for disposition of real and personal

property, for proceeds of insurance coverage for losses

incurred, for income from investments and for any other asset

and activity lawfully permitted to a land bank under this act.

(c)  Allocated real property taxes.--

(1)  A taxing jurisdiction may authorize the remittance

or dedication of a portion of real property taxes collected

pursuant to the laws of the Commonwealth to a land bank on

real property conveyed by a land bank.

(2)  Allocation of property tax revenues in accordance

with this subsection, if authorized by the taxing

jurisdiction, must commence with the first taxable year

following the date of conveyance and continue for a period of

up to five years and may not exceed a maximum of 50% of the

aggregate property tax revenues generated by the property.

(3)  Remittance or dedication of real property taxes

shall include the real property taxes of a school district

only if the school district enters into an agreement with the

land bank for the remittance or dedication.

Section 12.  Borrowing and issuance of bonds.

(a)  General rule.--A land bank may issue bonds for any of

its corporate purposes, the principal and interest of which are

payable from its revenues generally. Any of the bonds may be

secured by a pledge of any revenues, including grants or

contributions from the Commonwealth, the Federal Government or

any agency or instrumentality thereof, or by a mortgage of any

property of the land bank.

(b)  Nature of bonds.--The bonds issued by a land bank shall

have all the qualities of negotiable instruments under the law

of negotiable instruments of the Commonwealth.

(c)  Tax exempt.--The bonds of a land bank created under the

provisions of this act and the income therefrom shall at all

times be free from taxation for Commonwealth or local purposes

under any law of the Commonwealth.

(d)  Procedure.--

(1)  Bonds issued by a land bank must be authorized by

resolution of the board and shall be limited obligations of

the land bank. The principal and interest, costs of issuance

and other costs incidental thereto shall be payable solely

from the income and revenue derived from the sale, lease or

other disposition of the assets of the land bank.

(2)  In the discretion of the land bank, the bonds may be

additionally secured by mortgage or other security device

covering all or part of the project from which the revenues

so pledged may be derived.

(3)  Any refunding bonds issued shall be payable from any

source described in this act or from the investment of any of

the proceeds of the refunding bonds and shall not constitute

an indebtedness or pledge of the general credit of any

political subdivision within the meaning of any

constitutional or statutory limitation of indebtedness and

shall contain a recital to that effect.

(4)  Bonds of the land bank shall be issued in such form,

shall be in such denominations, shall bear interest, shall

mature in such manner, and shall be executed by one or more

members of the board as provided in the resolution

authorizing the issuance thereof.

(5)  Bonds of the land bank may be subject to redemption

at the option of and in the manner determined by the board in

the resolution authorizing the issuance thereof.

(e)  Powers of municipalities.--A municipality may elect to

guarantee, insure or otherwise become primarily or secondarily

obligated on the indebtedness of a land bank subject, however,

to all other provisions of law of the Commonwealth applicable to

municipal indebtedness.

(f)  Sale.--

(1)  Bonds issued by a land bank shall be issued, sold,

and delivered in accordance with the terms and provisions of

a resolution adopted by the board. The board may sell such

bonds in such manner, either at public or at private sale,

and for such price as it may determine to be in the best

interests of the land bank.

(2)  The resolution issuing bonds shall be published in a

newspaper of general circulation within the jurisdiction in

which the land bank is located.

(g)  Liability.--

(1)  Neither the members of a land bank nor any person

executing the bonds of a land bank shall be liable personally

on the bonds by reason of the issuance thereof.

(2)  The bonds or other obligations of a land bank shall

not be a debt of any political subdivision or of the

Commonwealth, and shall so state on their face, nor shall any

municipality or the Commonwealth nor any revenues or any

property of any municipality or the Commonwealth be liable

for the bonds or other obligations.

Section 13.  Public records and public meetings.

A board shall cause minutes and a record to be kept of all

its proceedings. Except as otherwise provided in this act, the

land bank shall be subject to 65 Pa.C.S. Ch. 7 (relating to open

meetings) and the act of February 14, 2008 (P.L.6, No.3), known

as the Right-to-Know Law.

Section 14.  Dissolution of land bank.

(a)  General rule.--A land bank may be dissolved as a public

body corporate and politic 60 calendar days after an affirmative

resolution approved by two-thirds of the membership of the

board.

(b)  Notice.--Sixty calendar days' advance written notice of

consideration of a resolution of dissolution shall be given to

the land bank jurisdiction or land bank jurisdictions that

created the land bank, shall be published in a local newspaper

of general circulation and shall be sent certified mail to the

trustee of any outstanding bonds of the land bank.

(c)  Transfer of assets.--Upon dissolution of the land bank,

all real property, personal property and other assets of the

land bank shall become the assets of the municipality in which

the property is located.

(d)  Multiple jurisdictions.--In the event that two or more

land bank jurisdictions create a land bank in accordance with

section 4(b)(2) or (3), the withdrawal of one or more land bank

jurisdictions shall not result in the dissolution of the land

bank unless the intergovernmental cooperation agreement so

provides and there is no land bank jurisdiction that desires to

continue the existence of the land bank.

Section 15.  Conflicts of interest.

(a)  General rule.--The acts and decisions of members of a

board and of employees of a land bank shall be subject to the

act of July 19, 1957 (P.L.1017, No.451), known as the State

Adverse Interest Act,.

(b)  Supplemental rules and regulations.--The board may adopt

supplemental rules and regulations addressing potential

conflicts of interest and ethical guidelines for members of the

board and land bank employees. Board members and land bank

employees are subject to the ethical standards specified in 65

Pa.C.S. Ch. 11 (relating to ethics standards and financial

disclosure).

Section 16.  Construction, intent and scope of act.

This act shall be construed liberally to effectuate the

legislative intent and the purposes as complete and independent

authorization for the performance of each and every act and

thing authorized by this act, and all powers granted shall be

broadly interpreted to effectuate the intent and purposes and

not as a limitation of powers.

Section 17.  Delinquent property tax enforcement.

(a)  Power to discharge liens and claims.--

(1)  Whenever any real property is acquired by a land

bank and is encumbered by a lien or claim for real property

taxes owed to the entities that created the land bank

pursuant to section 4(b) or to municipalities having an

intergovernmental cooperation agreement with the land bank,

the land bank may, by resolution of the board, discharge and

extinguish any and all such liens or claims.

(2)  Whenever any real property is acquired by a land

bank and is encumbered by a lien or claim for real property

taxes owed to a school district, the land bank may, by

resolution of the board, discharge and extinguish any and all

such liens or claims if and only if the governing body of the

school district has approved each discharge and

extinguishment.

(3)  The land bank shall file evidence of the

extinguishment and dissolution of liens or claims with the

county tax claim bureau, including copies of the resolution

by the board, the intergovernmental agreement, receipt of

payment or other necessary and appropriate documentation.

This requirement shall be satisfied no later than ten days

prior to the conveyance of the property or within 30 days

after the extinguishment and dissolution of liens or claims,

whichever comes first.

(b)  Remittance of payments.--To the extent that a land bank

receives payments of any kind attributable to liens or claims

for real property taxes owed to a municipality or school

district on property acquired by the land bank, the land bank

shall remit the full amount of the payments to the municipality

or school district, as applicable.

(c)  Procedure relating to Real Estate Tax Sale Law.--In a

municipality which follows the provisions of the act of July 7,

1947 (P.L.1368, No.542), known as the Real Estate Tax Sale Law, 

and a land bank exists in the municipality, the following

provisions shall apply:

(1)  (i)  For any tax claim filed under the Real Estate

Tax Sale Law, the municipality may direct the county tax

claim bureau to assign the claim or lien to a land bank

under such terms as are mutually acceptable to the

municipality and land bank and shall otherwise confer

upon the land bank the rights, privileges and remedies of

an assignee as set forth in section 316 of the Real

Estate Tax Sale Law.

(ii)  For any tax claim to be filed under the Real

Estate Tax Sale Law, a municipality having complied with

section 26 of the act of May 25, 1945 (P.L.1050, No.394),

known as the Local Tax Collection Law, and section 306 of

the Real Estate Tax Sale Law may assign and transfer to a

land bank any tax claim to be filed under the Real Estate

Tax Sale Law upon such terms and conditions as are

mutually acceptable to the municipality and shall

otherwise confer upon the land bank the rights,

privileges and remedies of an assignee as set forth in

section 316 of the Real Estate Tax Sale Law.

(2)  (i)  The upset sale price contemplated by section

605 of the Real Estate Tax Sale Law may be set in advance

in an amount equal to or greater than the minimum amount

described in section 605 of the Real Estate Tax Sale Law

as may be mutually agreed in writing by the municipality

and the land bank.

(ii)  In the event there is such an agreement on the

upset sale price and no one bids a higher price than the

specified upset sale price, then the property shall be

sold to the land bank upon payment by the land bank for

the upset sale costs, and all liens, claims and

subordinate encumbrances shall be discharged by the sale.

(3)  (i)  Notwithstanding the provisions of section 612

of the Real Estate Tax Sale Law, when a judicial sale is

ordered pursuant to a judgment on a tax claim, the

purchaser of the property is a land bank and the sales

price is an amount agreed to by the land bank and the

plaintiff in the claim, then the form, substance and

timing of the land bank's payment of the sales price may

be according to the agreement as is mutually acceptable

to the plaintiff and the land bank.

(ii)  The obligation of the land bank to perform in

accordance with the agreement shall be deemed to be in

full satisfaction of the tax claim which was the basis

for the judgment.

(iii)  The land bank, as purchaser at the sale, shall

have an absolute title to the property sold, free and

discharged of all tax and municipal claims, liens,

mortgages, ground rents, charges and estates of any kind.

(4)  The notice and advertisement contemplated by

sections 602 and 607(a) of the Real Estate Tax Sale Law shall

contain reference to a potential bid by the land bank.

(5)  The deed to the land bank contemplated by sections

608 and 615 of the Real Estate Tax Sale Law shall be

delivered and acknowledged and recorded within 30 days of the

date of confirmation.

(6)  (i)  In a petition for a judicial sale, a

municipality or a land bank, if it is the holder of

municipal tax liens, may combine in a single petition

multiple tracts of real property if the petition and

accompanying affidavits provide:

(A)  Identification of each tract of real

property.

(B)  The identities of all parties having an

interest in each respective tract of real property.

(C)  The amount of the tax liens then due and

owing, together with all interest, costs and fees

associated with them.

(D)  The nature of the notice of the proposed

sale provided to the interested parties.

(ii)  The court may authorize in a single final

judgment that all or part of the real properties

identified in the petition be sold free and clear of all

tax and municipal claims, mortgages, liens, charges and

estates and ground rents. 

(d)  Procedure relating to Municipal Claim and Tax Lien

Law.--In a municipality which follows the provisions of the act

of May 16, 1923 (P.L.207, No.153), referred to as the Municipal

Claim and Tax Lien Law, and a land bank exists in such

municipality, the following provisions shall apply:

(1)  The municipality may assign and transfer to the land

bank any tax or municipal claim filed or to be filed under

the Municipal Claim and Tax Lien Law upon such terms and

conditions as are mutually acceptable to the municipality and

land bank, and shall otherwise confer upon the land bank the

rights, privileges and remedies of an assignee as stated in

section 33 of the Municipal Claim and Tax Lien Law.

(2)  (i)  The upset sale price authorized by section 29

of the Municipal Claim and Tax Lien Law may be set in

advance in an amount as mutually agreed in writing by a

municipality and land bank.

(ii)  In the event there is an agreement on the upset

sale price and no one bids a higher price than the

specified upset sale price, then the property shall be

sold to the land bank upon payment by the land bank for

the upset sale costs, and all liens, claims and

subordinate encumbrances shall be discharged by the sale.

(3)  (i)  Notwithstanding the provisions of section 31 of

the Municipal Claim and Tax Lien Law, when a judicial

sale is ordered pursuant to a judgment on a tax or

municipal claim, the purchaser of the property is a land

bank and the sales price is an amount agreed to by the

land bank and the plaintiff in the claim, then the form,

substance and timing of the land bank's payment of the

sales price may be according to the agreement as is

mutually acceptable to the plaintiff and the land bank.

(ii)  The obligation of the land bank to perform in

accordance with the agreement shall be deemed to be in

full satisfaction of the municipal claim which was the

basis for the judgment.

(iii)  The land bank, as purchaser at the sale shall

have an absolute title to the property sold, free and

discharged of all tax and municipal claims, liens,

mortgages, ground rents, charges and estates of any kind.

(4)  (i)  Notwithstanding the provisions of sections 31.1

and 31.2 of the Municipal Claim and Tax Lien Law and

sections 4 and 6 of the act of March 1, 1956 (1955

P.L.1196, No.372), entitled "An act authorizing the sale

of vacant land located in areas certified as conservation

areas in counties of the first class, under a judgment

obtained on a tax claim, by the sheriff of the county;

providing for the discharge of all liens, mortgages,

ground rents, estates and claims against the property by

sale; and limiting the right of redemption," the land

bank may tender a bid at the sale in an amount equal to

the total amount of all municipal claims and liens which

were the basis for the judgment. In the event of tender

by the land bank, the property shall be deemed sold to

the land bank regardless of any of bids by any other

third parties.

(ii)  The bid of the Land Bank shall be paid as to

its form, substance and timing according to an agreement

that is mutually acceptable to the plaintiff and the land

bank. The obligation of the land bank to perform in

accordance with the agreement shall be deemed to be in

full satisfaction of the tax or municipal claim which was

the basis for the judgment.

(iii)  The land bank as purchaser at the sale shall

have an absolute title to the property sold, free and

discharged of all tax and municipal claims, liens,

mortgages, ground rents, charges and estates of any kind.

(iv)  The deed to the land bank shall be executed,

acknowledged and delivered within 30 days of the sale.

(5)  (i)  In a petition for a judicial sale, a

municipality, or a land bank if it is the holder of

municipal tax liens, may combine in a petition multiple

tracts of real property so long as the petition and

accompanying affidavits provide:

(A)  Identification of each tract of real

property.

(B)  The identities of all parties having an

interest in each respective tract of real property.

(C)  The amount of the tax liens then due and

owing, together with all interest, costs and fees

associated with them.

(D)  The nature of the notice of the proposed

sale provided to such interested parties.

(ii)  The court may authorize in a single final

judgment that all or part of the real properties

identified in the petition be sold free and clear of all

tax and municipal claims, mortgages, liens, ground rents,

charges and estates.

(e)  Procedure relating to Second Class City Treasurer's Sale

and Collection Act.--In any municipality which follows the

provisions of the act of October 11, 1984 (P.L.876, No.171),

known as the Second Class City Treasurer's Sale and Collection

Act, the following provisions shall apply:

(1)  A municipality may assign and transfer to a land

bank any tax or municipal claim filed or to be filed under

the Second Class City Treasurer's Sale and Collection Act

upon such terms and conditions as are mutually acceptable to

the municipality and land bank and shall otherwise confer

upon the land bank the rights, privileges and remedies of the

municipality under the Second Class City Treasurer's Sale and

Collection Act.

(2)  (i)  The upset sale price authorized by section 301

of the Second Class City Treasurer's Sale and Collection

Act may be set an amount as mutually agreed in writing by

the municipality and land bank.

(ii)  The land bank may tender a bid for the mutually

agreed upset sale price.

(iii)  Notwithstanding the provisions of section 301

of the Second Class City Treasurer's Sale and Collection

Act, the bid of the land bank shall be paid as to its

form, substance and timing according to an agreement that

is mutually acceptable to the municipality and land bank.

(iv)  The obligation of the land bank to perform in

accordance with the agreement shall be deemed to be in

full satisfaction of the claims and liens which was the

basis for the sale.

(3)  The notice and advertisement contemplated by

sections 203 and 204 of the Second Class City Treasurer's

Sale and Collection Act shall contain reference to a

potential bid by the land bank.

(4)  Subject to the redemption rights set forth in

section 304 of the Second Class City Treasurer's Sale and

Collection Act and confirmation by the court of common pleas

in accordance with section 305 of the Second Class City

Treasurer's Sale and Collection Act, the land bank as

purchaser at the sale shall have an absolute title to the

property sold, free and discharged of all tax and municipal

claims, liens, mortgages, ground rents, charges and estates

of any kind.

(5)  The deed to the land bank contemplated by section

303 of the Second Class City Treasurer's Sale and Collection

Act shall be delivered, acknowledged and recorded within 30

days of the date of confirmation.

(6)  (i)  In a petition for a judicial sale a

municipality or a land bank if it is the holder of

municipal tax liens, may combine in a single petition

multiple tracts of real property so long as the petition

and accompanying affidavits provide:

(A)  Identification of each tract of real

property.

(B)  The identities of all parties having an

interest in each respective tract of real property.

(C)  The amount of the tax liens then due and

owing, together with all interest, costs and fees

associated with them.

(D)  The nature of the notice of the proposed

sale provided to the interested parties.

(ii)  The court may authorize in a single final

judgment that all or part of the real properties

identified in the petition be sold free and clear of all

tax and municipal claims, mortgages, liens, charges and

estates and ground rents.

(f)  Involuntary transfers.--A land bank which acquires real

property pursuant to the provisions of this section shall be

deemed to have acquired such real property as an involuntary

transfer within the meaning of section 701(b)(1)(vi)(B) of the

act of October 18, 1988 (P.L.756, No.108), known as the

Hazardous Sites Cleanup Act.

Section 18.  Expedited quiet title proceedings.

(a)  General rule.--A land bank may file an action to quiet

title as to any real property in which the land bank has an

interest. For purposes of any such action, the land bank shall

be deemed to be the holder of sufficient legal and equitable

interests and possessory rights so as to qualify the land bank

an adequate complainant in the action.

(b)  Examination of title required.--Prior to the filing of

an action to quiet title the land bank shall conduct an

examination of title to determine the identity of any person and

entity possessing a claim or interest in or to the real

property. Service of the complaint to quiet title shall be

provided to all such interested parties by the following

methods:

(1)  First Class mail to such identity and address as

reasonably ascertainable by an inspection of public records.

(2)  In the case of occupied real property by First Class

mail, addressed to "Occupant."

(3)  By posting a copy of the notice on the real

property.

(4)  By publication.

(5)  Such other methods as the court may order.

(c)  Affidavit required.--As part of the complaint to quiet

title, the land bank must file an affidavit identifying all

parties potentially having an interest in the real property and

the form of notice provided.

(d)  Hearing.--The court shall schedule a hearing on the

complaint within 90 days following filing of the complaint and

as to all matters upon which an answer was not filed by an

interested party, the court shall issue its final judgment

within 120 days of the filing of the complaint.

(e)  Joinder of parcels.--A land bank may join in a single

complaint to quiet title one or more parcels of real property.

Section 19.  Annual audit and report.

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The following shall apply:

(1)  The land bank shall annually, within 120 days after

the end of the fiscal year, submit an audit of all income and

expenditures, together with a report of its activities for

the preceding year, to the Department of Community and

Economic Development.

(2)  A duplicate of the audit and the report shall be

filed with the governing body of the land bank jurisdiction

which created the land bank and with the governing body of a

municipality or school district that opted to participate in

the land bank pursuant to an intergovernmental agreement.

Section 30.  Effective date.

This act shall take effect immediately.