SENATE AMENDED

 

PRIOR PRINTER'S NOS. 791, 3953, 4003

PRINTER'S NO.  4460

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

712

Session of

2009

  

  

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

  

  

SENATOR YAW, URBAN AFFAIRS AND HOUSING, IN SENATE, AS AMENDED, OCTOBER 12, 2010   

  

  

  

AN ACT

  

1

Providing for the creation of land banks for the conversion of

2

vacant or tax-delinquent properties into productive use.

3

The General Assembly of the Commonwealth of Pennsylvania

4

hereby enacts as follows:

5

Section 1.  Short title.

6

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

7

Act.

8

Section 2.  Legislative findings and purpose.

9

The General Assembly finds and declares that:

10

(1)  Pennsylvania's communities are important to the

11

social and economic vitality of this Commonwealth. Whether

12

urban, suburban or rural, many communities are struggling to

13

cope with vacant, abandoned and tax-delinquent properties.

14

(2)  Citizens of this Commonwealth are affected adversely

15

by vacant, abandoned and tax-delinquent properties, including

 


1

properties that have been vacated or abandoned due to

2

mortgage foreclosure.

3

(3)  Vacant, abandoned and tax-delinquent properties

4

impose significant costs on neighborhoods, communities and

5

municipalities by lowering property values, increasing fire

6

and police protection costs, decreasing tax revenues and

7

undermining community cohesion.

8

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

9

problems caused by vacant, abandoned and tax-delinquent

10

properties through the creation of new tools for

11

municipalities in order to enable municipalities to turn

12

vacant spaces into vibrant places.

13

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

14

by communities and municipalities to facilitate the return of

15

vacant, abandoned and tax-delinquent properties to productive

16

use.

17

Section 3.  Definitions.

18

The following words and phrases when used in this act shall

19

have the meanings given to them in this section unless the

20

context clearly indicates otherwise:

21

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

22

land bank.

23

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

24

established in accordance with the provisions of this act.

25

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

26

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

27

Redevelopment Law, possessing the authority to create a

28

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

29

Urban Redevelopment Law.

30

"Owner-occupied."  Real property with one or two residential

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1

units, at least one of which has been continuously occupied for

2

a period of three months by the person or persons in whom title

3

or ownership is vested. Title or ownership may be legal or

4

equitable interest evidenced by deed of record, unrecorded deed,

5

by will or testamentary inheritance, by action of law, by

6

intestate inheritance or by any other means recognized by the

7

laws of this Commonwealth.

8

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

9

easements, air rights, franchises and incorporeal hereditaments

10

and every estate and right therein, legal and equitable,

11

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

12

or otherwise and any and all fixtures and improvements located

13

thereon.

14

"School district."  Any of the classifications of school

15

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

16

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

17

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

18

conveyed by a land bank, the school district within whose

19

geographical jurisdiction the real property is located.

20

Section 4.  Creation and existence.

21

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

22

create a land bank by the adoption of an ordinance, subject to

23

the approval of the mayor in a city or the county executive in a

24

home rule county and in accordance with law or a home rule

<--

25

charter, to create a binding legal obligation, which action must

26

specify the following:

27

(1)  The name of the land bank.

28

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

29

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

30

less than five members nor more than eleven members.

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1

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

2

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

3

(4)  The qualifications, manner of selection or

4

appointment and terms of office of members of the board.

5

(5)  The governing body of the land bank jurisdiction

6

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

7

ordinance to be filed with the Department of State and a

8

duplicate with the Department of Community and Economic

9

Development. After receipt of the ordinance, the Secretary of

10

the Commonwealth shall issue a certificate of incorporation.

11

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

12

by any of the following:

13

(1)  A land bank jurisdiction.

14

(2)  Two or more land bank jurisdictions pursuant to

15

intergovernmental cooperation agreements.

16

(3)  A land bank jurisdiction and one or more

17

municipalities pursuant to intergovernmental cooperation

18

agreements.

19

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

20

that a land bank is established under an intergovernmental

21

agreement in accordance with subsection (b), the

22

intergovernmental cooperation agreement shall specify matters

23

identified in subsection (a).

24

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

25

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

26

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

27

acquire real property only in those portions of the county

28

located outside of the geographical boundaries of any other land

29

bank established by any other land bank jurisdiction located

30

partially or entirely within the county.

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1

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

2

participate in a land bank pursuant to an intergovernmental

3

cooperation agreement, which agreement shall specify the

4

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

5

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

6

approval by the school district.

7

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

8

public body corporate and politic, and shall have permanent and

9

perpetual duration until terminated and dissolved in accordance

10

with the provisions of section 14.

11

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

12

other municipal entities may enter into intergovernmental

13

cooperation agreements relative to the operations of a land

14

bank.

15

Section 5.  Board of directors.

16

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

17

determined in accordance with section 4. Unless restricted by

18

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

19

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

20

adjusted in accordance with bylaws of the land bank.

21

(b)  Eligibility to serve on board.--

22

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

23

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

24

acceptance of the appointment shall neither terminate nor

25

impair that public office. Any municipal employee shall be

26

eligible to serve as a board member.

27

(2)  Each established land bank board shall include at

28

least one voting member who:

29

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

30

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

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1

and

2

(iii)  maintains membership with a recognized civic

3

organization within the land bank jurisdiction.

4

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

5

means a person who is elected to a municipal office. 

6

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

7

annually from among themselves a chairman, vice chairman,

8

secretary, treasurer and such other officers as the board may

9

determine and shall establish their duties as may be regulated

10

by rules adopted by the board.

11

(d)  Rules and regulations.--

12

(1)  The board shall establish rules and regulations

13

relative to the attendance and participation of members in

14

its regular and special meetings. The rules and regulations

15

may prescribe a procedure where, should any member fail to

16

comply with the rules and regulations, the member may be

17

disqualified and removed automatically from office by no less

18

than a majority vote of the remaining members of the board

19

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

20

day of the next calendar month.

21

(2)  Any person removed under the provisions of this

22

subsection shall be ineligible for reappointment to the

23

board, unless the reappointment is confirmed unanimously by

24

the board.

25

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

26

the same manner as the original appointment.

27

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

28

compensation. The board may reimburse a member for expenses

29

actually incurred in the performance of duties on behalf of the

30

land bank.

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1

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

2

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

3

in special session as convened by the chairman or upon written

4

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

5

majority of the entire board membership shall constitute a

6

quorum.

7

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

8

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

9

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

10

authorized on the following matters unless approved by a

11

majority of the entire board membership:

12

(1)  Adoption of bylaws and other rules and regulations

13

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

14

members of the board, not including vacancies, shall

15

constitute a quorum for the conduct of business.

16

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

17

the land bank. This function may by majority vote be

18

delegated by the board to a specified officer or committee of

19

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

20

that the board may specify.

21

(3)  Incurring of debt.

22

(4)  Adoption or amendment of the annual budget.

23

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

24

property, improvements or personal property with a value of

25

more than $50,000.

26

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

27

personally on the bonds or other obligations of the land bank

28

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

29

against the land bank.

30

(j)  Proxy voting prohibited.--

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1

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

2

voting by proxy.

3

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

4

resolution or action of the land bank.

5

Section 6.  Staff.

6

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

7

and legal staff and such technical experts, other agents and

8

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

9

determine the qualifications and fix the compensation and

10

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

11

contracts and agreements with municipalities for staffing

12

services to be provided to the land bank by municipalities or

13

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

14

such staffing services to municipalities or agencies or

15

departments thereof.

16

Section 7.  Powers.

17

A land bank shall constitute a public body, corporate and

18

politic, exercising public powers of the Commonwealth, which

19

powers shall include all powers necessary or appropriate to

20

carry out and effectuate the purposes and provisions of this

21

act, including the following powers:

22

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

23

of its affairs and the conduct of its business.

24

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

25

impleaded in all civil actions, including, but not limited

26

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

27

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

28

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

29

from the Commonwealth or from Federal Government funds, as

30

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

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1

bank.

2

(5)  To issue negotiable revenue bonds and notes

3

according to the provisions of this act.

4

(6)  To procure insurance or guarantees from the

5

Commonwealth or Federal Government of the payments of any

6

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

7

premiums in connection therewith.

8

(7)  To enter into contracts and other instruments

9

necessary, incidental or convenient to the performance of its

10

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

11

limited to, intergovernmental cooperation agreements under 53

12

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

13

cooperation), for the joint exercise of powers under this

14

act.

15

(8)  To enter into contracts and intergovernmental

16

cooperation agreements with municipalities for the

17

performance of functions by municipalities on behalf of the

18

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

19

(9)  To make and execute contracts and other instruments

20

necessary or convenient to the exercise of the powers of the

21

land bank. Any contract or instrument when signed by the

22

chairman or vice chairman of the land bank or by an

23

authorized use of their facsimile signatures, and by the

24

secretary or assistant secretary, or treasurer or assistant

25

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

26

facsimile signatures, shall be held to have been properly

27

executed for and on behalf of the land bank.

28

(10)  To procure insurance against losses in connection

29

with the real property, assets or activities of the land

30

bank.

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1

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

2

of the board, in instruments, obligations, securities or

3

property determined proper by the board and name and use

4

depositories for its money.

5

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

6

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

7

land bank.

8

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

9

reconstruct, rehabilitate, renovate, relocate and otherwise

10

improve real property or rights or interests in real

11

property.

12

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

13

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

14

services provided by the land bank.

15

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

16

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

17

the land bank.

18

(16)  To enter into partnerships, joint ventures and

19

other collaborative relationships with municipalities and

20

other public and private entities for the ownership,

21

management, development and disposition of real property.

22

(17)  To organize and reorganize the executive,

23

administrative, clerical and other departments of the land

24

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

25

employees, agents and consultants of the land bank.

26

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

27

achieve the objectives and purposes of the land bank or other

28

laws that relate to the purposes and responsibility of the

29

land bank.

30

Section 8.  Eminent domain.

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1

A land bank shall neither possess nor exercise the power of

2

eminent domain.

3

Section 9.  Acquisition of property.

4

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

5

income and operations are exempt from all taxation by the

6

Commonwealth and by any of its political subdivisions, provided,

7

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

8

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

9

real property is continuously leased to a private third party.

10

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

11

property or interests in real property by gift, devise,

12

transfer, exchange, foreclosure, purchase or otherwise on terms

13

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

14

(c)  Acquisitions from municipalities.--

15

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

16

contracts, lease purchase agreements, installment sales

17

contracts, land contacts and may accept transfers from

18

municipalities upon such terms and conditions as agreed to by

19

the land bank and the municipality.

20

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

21

municipality may transfer to a land bank real property and

22

interests in real property of the municipality on such terms

23

and conditions and according to such procedures as determined

24

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

25

within the jurisdiction of the land bank.

26

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

27

property in accordance with the laws and ordinances of the

28

jurisdiction in which the real property is located.

29

(e)  Prohibition.--

30

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

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1

bank shall not own or hold real property located outside the

2

jurisdictional boundaries of the entities which created the

3

land bank pursuant to section 4(b).

4

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

5

intergovernmental cooperation agreement with a municipality

6

to manage and maintain real property located within the

7

jurisdiction of the municipality.

8

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

9

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

10

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

11

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

12

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

13

(g)  Acquisition of tax delinquent properties.--

14

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

15

bank jurisdictions that created a land bank, or otherwise by

16

intergovernmental cooperation agreement, a land bank may

17

accept donations of real property in accordance with section

18

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

19

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

20

the Real Estate Tax Sale Law and extinguish delinquent claims

21

for taxes as to such property.

22

(2)  Claims of a school district shall be extinguished

23

only if the school district has designated the land bank as

24

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

25

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

26

Estate Tax Sale Law.

27

Section 10.  Disposition of property.

28

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

29

its own name all real property acquired by the land bank

30

irrespective of the identity of the transferor of the property.

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1

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

2

and make available for public review and inspection an inventory

3

of all real property held by the land bank.

4

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

5

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

6

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

7

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

8

interests of the land bank.

9

(d)  Consideration.--

10

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

11

consideration necessary to convey, exchange, sell, transfer,

12

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

13

interests in, upon or to real property.

14

(2)  Consideration may take the form of monetary payments

15

and secured financial obligations, covenants and conditions

16

related to the present and future use of the property,

17

contractual commitments of the transferee and such other

18

forms of consideration as determined by the board to be in

19

the best interest of the land bank.

20

(e)  Policies and procedures.--

21

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

22

policies and procedures the general terms and conditions for

23

consideration to be received by the land bank for the

24

transfer of real property and interests in real property.

25

(2)  Requirements that may be applicable to the

26

disposition of real property and interests in real property

27

by municipalities shall not be applicable to the disposition

28

of real property and interests in real property by a land

29

bank.

30

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

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1

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

2

land bank jurisdictions creating a single land bank in the

3

applicable intergovernmental cooperation agreement, establish a

4

hierarchical ranking of priorities for the use of real property

5

conveyed by a land bank, including, but not limited to:

6

(1)  Use for purely public spaces and places.

7

(2)  Use for affordable housing.

8

(3)  Use for retail, commercial and industrial

9

activities.

10

(4)  Use as conservation areas.

11

(g)  Specific voting and approval requirements.--

12

(1)  A land bank jurisdiction may, in its ordinance

13

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

14

jurisdictions and municipalities creating a single land bank

15

in the applicable intergovernmental cooperation agreement,

16

require that any particular form of disposition of real

17

property, or any disposition of real property located within

18

specified jurisdictions, be subject to specified voting and

19

approval requirements of the board.

20

(2)  Except and unless restricted or constrained as

21

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

22

and employees the authority to enter into and execute

23

agreements, instruments of conveyance and all other related

24

documents pertaining to the conveyance of real property by

25

the land bank.

26

Section 11.  Financing of land bank operations.

27

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

28

grants and loans from the land bank jurisdiction or land bank

29

jurisdictions which created the land bank, from municipalities,

30

from the Commonwealth, from the Federal Government and from

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1

other public and private sources.

2

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

3

for services rendered, for rents and leasehold payments

4

received, for consideration for disposition of real and personal

5

property, for proceeds of insurance coverage for losses

6

incurred, for income from investments and for any other asset

7

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

8

(c)  Allocated real property taxes.--

9

(1)  A taxing jurisdiction may authorize the remittance

10

or dedication of a portion of real property taxes collected

11

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

12

real property conveyed by a land bank.

13

(2)  Allocation of property tax revenues in accordance

14

with this subsection, if authorized by the taxing

15

jurisdiction, must commence with the first taxable year

16

following the date of conveyance and continue for a period of

17

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

18

aggregate property tax revenues generated by the property.

19

(3)  Remittance or dedication of real property taxes

20

shall include the real property taxes of a school district

21

only if the school district enters into an agreement with the

22

land bank for the remittance or dedication.

23

Section 12.  Borrowing and issuance of bonds.

24

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

25

its corporate purposes, the principal and interest of which are

26

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

27

secured by a pledge of any revenues, including grants or

28

contributions from the Commonwealth, the Federal Government or

29

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

30

property of the land bank.

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1

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

2

have all the qualities of negotiable instruments under the law

3

of negotiable instruments of the Commonwealth.

4

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

5

provisions of this act and the income therefrom shall at all

6

times be free from taxation for Commonwealth or local purposes

7

under any law of the Commonwealth.

8

(d)  Procedure.--

9

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

10

resolution of the board and shall be limited obligations of

11

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

12

and other costs incidental thereto shall be payable solely

13

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

14

other disposition of the assets of the land bank.

15

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

16

additionally secured by mortgage or other security device

17

covering all or part of the project from which the revenues

18

so pledged may be derived.

19

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

20

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

21

the proceeds of the refunding bonds and shall not constitute

22

an indebtedness or pledge of the general credit of any

23

political subdivision within the meaning of any

24

constitutional or statutory limitation of indebtedness and

25

shall contain a recital to that effect.

26

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

27

shall be in such denominations, shall bear interest, shall

28

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

29

members of the board as provided in the resolution

30

authorizing the issuance thereof.

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1

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

2

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

3

the resolution authorizing the issuance thereof.

4

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

5

guarantee, insure or otherwise become primarily or secondarily

6

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

7

to all other provisions of law of the Commonwealth applicable to

8

municipal indebtedness.

9

(f)  Sale.--

10

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

11

and delivered in accordance with the terms and provisions of

12

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

13

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

14

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

15

interests of the land bank.

16

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

17

newspaper of general circulation within the jurisdiction in

18

which the land bank is located.

19

(g)  Liability.--

20

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

21

executing the bonds of a land bank shall be liable personally

22

on the bonds by reason of the issuance thereof.

23

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

24

not be a debt of any political subdivision or of the

25

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

26

municipality or the Commonwealth nor any revenues or any

27

property of any municipality or the Commonwealth be liable

28

for the bonds or other obligations.

29

Section 13.  Public records and public meetings.

30

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

- 17 -

 


1

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

2

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

3

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

4

as the Right-to-Know Law.

5

Section 14.  Dissolution of land bank.

6

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

<--

7

body corporate and politic 60 calendar days after that has:

<--

8

(1)  finally paid and discharged or defeased all bonds

9

issued and outstanding which have been secured by a pledge of

10

any of its revenues or property and the interest due on them;

11

and

12

(2)  settled all other outstanding claims against it may

13

seek to terminate its existence by an affirmative resolution

14

approved by two-thirds of the membership of the board.

15

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

<--

16

consideration of a resolution of dissolution shall be given to

17

the land bank jurisdiction or land bank jurisdictions that

18

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

19

of general circulation and shall be sent certified mail to the

20

trustee of any outstanding bonds of the land bank.

21

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

22

all real property, personal property and other assets of the

23

land bank shall become the assets of the municipality in which

24

the property is located.

25

(b)  Certificate.--

<--

26

(1)  A land bank seeking to terminate its existence shall

27

submit a certificate to each land bank jurisdiction which

28

created it.

29

(2)  If the certificate is approved by each land bank

30

jurisdiction by ordinance, subject to the approval of the

- 18 -

 


1

mayor in a city or the county executive in a home rule

2

county, the certificate shall be filed in the office of the

3

Secretary of the Commonwealth, and the secretary shall note

4

the termination of existence on the record of incorporation

5

and return the certificate with approval to the board. The

6

secretary shall also notify the Department of Community and

7

Economic Development of the termination of existence of the

8

land bank.

9

(3)  The board shall cause the certificate to be recorded

10

in the office of the recorder of deeds of the county in which

11

the property is located.

12

(4)  Upon recording, the property of the land bank shall

13

pass to the municipality in which the property is located and

14

the land bank shall cease to exist.

15

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

<--

16

more land bank jurisdictions create a land bank in accordance

17

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

18

bank jurisdictions shall not result in the dissolution of the

19

land bank unless the intergovernmental cooperation agreement so

20

provides and there is no land bank jurisdiction that desires to

21

continue the existence of the land bank.

22

Section 15.  Conflicts of interest.

23

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

24

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

25

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

26

Adverse Interest Act,.

27

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

28

supplemental rules and regulations addressing potential

29

conflicts of interest and ethical guidelines for members of the

30

board and land bank employees. Board members and land bank

- 19 -

 


1

employees are subject to the ethical standards specified in 65

2

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

3

disclosure).

4

Section 16.  Construction, intent and scope of act.

5

This act shall be construed liberally to effectuate the

6

legislative intent and the purposes as complete and independent

7

authorization for the performance of each and every act and

8

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

9

broadly interpreted to effectuate the intent and purposes and

10

not as a limitation of powers.

11

Section 17.  Delinquent property tax enforcement.

12

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

13

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

14

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

15

taxes owed to the entities that created the land bank

16

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

17

intergovernmental cooperation agreement with the land bank,

18

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

19

extinguish any and all such liens or claims.

20

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

21

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

22

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

23

resolution of the board, discharge and extinguish any and all

24

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

25

school district has approved each discharge and

26

extinguishment.

27

(3)  The land bank shall file evidence of the

28

extinguishment and dissolution of liens or claims with the

29

county tax claim bureau, including copies of the resolution

30

by the board, the intergovernmental agreement, receipt of

- 20 -

 


1

payment or and other necessary and appropriate documentation.

<--

2

This requirement shall be satisfied no later than ten days

3

prior to the conveyance of the property or within 30 days

4

after the extinguishment and dissolution of liens or claims,

5

whichever comes first.

6

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

7

receives payments of any kind attributable to liens or claims

8

for real property taxes owed to a municipality or school

9

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

10

shall remit the full amount of the payments to the municipality

11

or school district, as applicable.

12

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

13

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

14

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

15

and a land bank exists in the municipality, the following

16

provisions shall apply:

17

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

18

Tax Sale Law, the municipality may direct the county tax

19

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

20

under such terms as are mutually acceptable to the

21

municipality and land bank and shall otherwise confer

22

upon the land bank the rights, privileges and remedies of

23

an assignee as set forth in section 316 of the Real

24

Estate Tax Sale Law.

25

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

26

Estate Tax Sale Law, a municipality having complied with

27

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

28

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

29

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

30

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

- 21 -

 


1

Tax Sale Law upon such terms and conditions as are

2

mutually acceptable to the municipality and shall

3

otherwise confer upon the land bank the rights,

4

privileges and remedies of an assignee as set forth in

5

section 316 of the Real Estate Tax Sale Law.

6

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

7

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

8

in an amount equal to or greater than the minimum amount

9

described in section 605 of the Real Estate Tax Sale Law

10

as may be mutually agreed in writing by the municipality

11

and the land bank.

12

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

13

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

14

specified upset sale price, then the property shall be

15

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

16

the upset sale costs, and all liens, claims and

17

subordinate encumbrances shall be discharged by the sale.

18

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

19

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

20

ordered pursuant to a judgment on a tax claim, the

21

purchaser of the property is a land bank and the sales

22

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

23

plaintiff in the claim, then the form, substance and

24

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

25

be according to the agreement as is mutually acceptable

26

to the plaintiff and the land bank.

27

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

28

accordance with the agreement shall be deemed to be in

29

full satisfaction of the tax claim which was the basis

30

for the judgment.

- 22 -

 


1

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

2

have an absolute title to the property sold, free and

3

discharged of all tax and municipal claims, liens,

4

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

5

(4)  The notice and advertisement contemplated by

6

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

7

contain reference to a potential bid by the land bank.

8

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

9

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

10

delivered and acknowledged and recorded within 30 days of the

11

date of confirmation.

12

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

13

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

14

municipal tax liens, may combine in a single petition

15

multiple tracts of real property if the petition and

16

accompanying affidavits provide:

17

(A)  Identification of each tract of real

18

property.

19

(B)  The identities of all parties having an

20

interest in each respective tract of real property.

21

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

22

owing, together with all interest, costs and fees

23

associated with them.

24

(D)  The nature of the notice of the proposed

25

sale provided to the interested parties.

26

(ii)  The court may authorize in a single final

27

judgment that all or part of the real properties

28

identified in the petition be sold free and clear of all

29

tax and municipal claims, mortgages, liens, charges and

30

estates and ground rents. 

- 23 -

 


1

(d)  Procedure relating to Municipal Claim and Tax Lien

2

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

3

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

4

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

5

municipality, the following provisions shall apply:

6

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

7

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

8

the Municipal Claim and Tax Lien Law upon such terms and

9

conditions as are mutually acceptable to the municipality and

10

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

11

rights, privileges and remedies of an assignee as stated in

12

section 33 of the Municipal Claim and Tax Lien Law.

13

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

14

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

15

advance in an amount as mutually agreed in writing by a

16

municipality and land bank.

17

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

18

sale price and no one bids a higher price than the

19

specified upset sale price, then the property shall be

20

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

21

the upset sale costs, and all liens, claims and

22

subordinate encumbrances shall be discharged by the sale.

23

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

24

the Municipal Claim and Tax Lien Law, when a judicial

25

sale is ordered pursuant to a judgment on a tax or

26

municipal claim, the purchaser of the property is a land

27

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

28

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

29

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

30

sales price may be according to the agreement as is

- 24 -

 


1

mutually acceptable to the plaintiff and the land bank.

2

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

3

accordance with the agreement shall be deemed to be in

4

full satisfaction of the municipal claim which was the

5

basis for the judgment.

6

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

7

have an absolute title to the property sold, free and

8

discharged of all tax and municipal claims, liens,

9

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

10

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

11

and 31.2 of the Municipal Claim and Tax Lien Law and

12

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

13

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

14

of vacant land located in areas certified as conservation

15

areas in counties of the first class, under a judgment

16

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

17

providing for the discharge of all liens, mortgages,

18

ground rents, estates and claims against the property by

19

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

20

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

21

the total amount of all municipal claims and liens which

22

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

23

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

24

the land bank regardless of any of bids by any other

<--

25

third parties.

26

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

27

its form, substance and timing according to an agreement

28

that is mutually acceptable to the plaintiff and the land

29

bank. The obligation of the land bank to perform in

30

accordance with the agreement shall be deemed to be in

- 25 -

 


1

full satisfaction of the tax or municipal claim which was

2

the basis for the judgment.

3

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

4

have an absolute title to the property sold, free and

5

discharged of all tax and municipal claims, liens,

6

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

7

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

8

acknowledged and delivered within 30 days of the sale.

9

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

10

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

11

municipal tax liens, may combine in a petition multiple

12

tracts of real property so long as the petition and

13

accompanying affidavits provide:

14

(A)  Identification of each tract of real

15

property.

16

(B)  The identities of all parties having an

17

interest in each respective tract of real property.

18

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

19

owing, together with all interest, costs and fees

20

associated with them.

21

(D)  The nature of the notice of the proposed

22

sale provided to such interested parties.

23

(ii)  The court may authorize in a single final

24

judgment that all or part of the real properties

25

identified in the petition be sold free and clear of all

26

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

27

charges and estates.

28

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

29

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

30

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

- 26 -

 


1

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

2

Act, the following provisions shall apply:

3

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

4

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

5

the Second Class City Treasurer's Sale and Collection Act

6

upon such terms and conditions as are mutually acceptable to

7

the municipality and land bank and shall otherwise confer

8

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

9

municipality under the Second Class City Treasurer's Sale and

10

Collection Act.

11

(2)  (i)  The upset sale price authorized by under 

<--

12

section 301 of the Second Class City Treasurer's Sale and

13

Collection Act may be set in an amount as mutually agreed

<--

14

in writing by the municipality and land bank.

15

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

16

agreed upset sale price.

17

(iii)  Notwithstanding the provisions of section 301

18

of the Second Class City Treasurer's Sale and Collection

19

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

20

form, substance and timing according to an agreement that

21

is mutually acceptable to the municipality and land bank.

22

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

23

accordance with the agreement shall be deemed to be in

24

full satisfaction of the claims and liens which was the

25

basis for the sale.

26

(3)  The notice and advertisement contemplated by

27

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

28

Sale and Collection Act shall contain reference to a

29

potential bid by the land bank.

30

(4)  Subject to the redemption rights set forth in

- 27 -

 


1

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

2

Collection Act and confirmation by the court of common pleas

3

in accordance with section 305 of the Second Class City

4

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

5

purchaser at the sale shall have an absolute title to the

6

property sold, free and discharged of all tax and municipal

7

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

8

of any kind.

9

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

10

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

11

Act shall be delivered, acknowledged and recorded within 30

12

days of the date of confirmation.

13

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

14

municipality or a land bank if it is the holder of

15

municipal tax liens, may combine in a single petition

16

multiple tracts of real property so long as the petition

17

and accompanying affidavits provide:

18

(A)  Identification of each tract of real

19

property.

20

(B)  The identities of all parties having an

21

interest in each respective tract of real property.

22

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

23

owing, together with all interest, costs and fees

24

associated with them.

25

(D)  The nature of the notice of the proposed

26

sale provided to the interested parties.

27

(ii)  The court may authorize in a single final

28

judgment that all or part of the real properties

29

identified in the petition be sold free and clear of all

30

tax and municipal claims, mortgages, liens, charges and

- 28 -

 


1

estates and ground rents.

2

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

3

property pursuant to the provisions of this section shall be

4

deemed to have acquired such real property as an involuntary

5

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

6

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

7

Hazardous Sites Cleanup Act.

8

(g)  Hardship protections.--

<--

9

(1)  A land bank jurisdiction may, in its ordinance

10

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

11

jurisdictions creating a single land bank in an applicable

12

intergovernmental cooperation agreement, provide for the

13

creation or adoption of hardship policies and procedures

14

protecting occupied residential properties.

15

(2)  Notwithstanding any other provision of law, a land

16

bank may not have the authority to override a hardship

17

agreement entered into pursuant to section 39.4 of the act of

18

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

19

Claim and Tax Lien Law, and sections 503.1 and 504 of the act

20

of July 7, 1947 (P.L.1368, No.542), known as the Real Estate

21

Tax Sale Law.

22

(h)  Owner-occupied equity protection and payment.--When an

23

owner-occupied property is acquired by a land bank pursuant to

24

the powers set forth in this act such that:

25

(1)  the acquired owner-occupied property was not exposed

26

to public sale at an upset sale, judicial sale or other form

27

of public sale or auction; or

28

(2)  the acquired owner-occupied property was exposed to

29

public sale at an upset sale, judicial sale or other form of

30

public sale or auction, but, as provided under this act, the

- 29 -

 


1

owner-occupied property was deemed sold to the land bank

2

regardless of any bids by any other third parties, then the

3

following provisions shall apply:

4

(i)  When owner-occupied property is acquired by the

5

land bank and the former owner-occupant is ejected,

6

otherwise legally removed or voluntarily vacates the

7

property, the former owner-occupant shall be entitled to

8

a payment from the land bank in an amount equal to 50% of

9

the remaining equity value of the property. For purposes

10

of this subsection, "remaining equity value" of the

11

property shall mean the fair market value of the property

12

after deducting the amount of all tax and municipal

13

claims due on the property and all reasonable expenses

14

actually incurred by the land bank for legal fees and

15

costs, attorney's fees, acquisition costs, maintenance

16

costs, management fees, disposition costs and any other

17

reasonable amounts actually incurred by the land bank and

18

associated with the property. The fair market value of

19

the property shall be determined by a written appraisal

20

conducted by an independent licensed real estate

21

appraiser and shall be completed prior to the former

22

owner-occupant's ejectment or vacating of the property.

23

Except as provided below, an equity payment owed to the

24

former owner-occupant under this subsection shall be paid

25

to the former owner-occupant within ten days after the

26

property has been vacated.

27

(ii)  Where there is more than one former owner-

28

occupants eligible for the equity payment provided for in

29

this subsection, the land bank shall not be required to

30

pay the full amount of the equity payment to each

- 30 -

 


1

individual owner-occupant. Instead, the land bank shall

2

pay a fraction of the equity payment to each eligible

3

owner-occupant, which fraction shall be equivalent to the

4

amount of each eligible owner-occupant's corresponding

5

legal or equitable interest in the property. If the

6

multiple owner-occupants are unable to determine or agree

7

how the equity payment should be disbursed between

8

multiple eligible persons, the land bank shall not be

9

required to disburse an equity payment until the multiple

10

owner-occupants have resolved the ambiguities or disputes

11

regarding title or ownership. The land bank may adopt

12

policies and procedures regarding how such disputes may

13

be resolved by the owner-occupants.

14

(iii)  A land bank's authority and its powers as

15

otherwise provided under this act, and the land bank's

16

ability to act pursuant to those powers, shall not be

17

stayed based on a land bank's inability to disburse an

18

equity payment as required under this subsection due to

19

unresolved title issues or other disputes regarding the

20

amount owed to eligible former owner-occupants.

21

Section 18.  Expedited quiet title proceedings.

22

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

23

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

24

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

25

be deemed to be the holder of sufficient legal and equitable

26

interests and possessory rights so as to qualify the land bank

27

an adequate complainant in the action.

28

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

29

an action to quiet title the land bank shall conduct an

30

examination of title to determine the identity of any person and

- 31 -

 


1

entity possessing a claim or interest in or to the real

2

property. Service of the complaint to quiet title shall be

3

provided to all such interested parties by the following

4

methods:

5

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

6

reasonably ascertainable by an inspection of public records.

7

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

8

mail, addressed to "Occupant."

9

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

10

property.

11

(4)  By publication.

12

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

13

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

14

title, the land bank must file an affidavit identifying all

15

parties potentially having an interest in the real property and

16

the form of notice provided.

17

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

18

complaint within 90 days following filing of the complaint and

19

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

20

interested party, the court shall issue its final judgment

21

within 120 days of the filing of the complaint.

22

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

23

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

24

Section 19.  Notifications to occupants of residential

<--

25

properties.

26

(a)  Determination of occupancy.--Prior to filing a tax

27

foreclosure action, tax lien action or commencement of any other

28

judicial proceeding relating to real property, the land bank

29

shall determine whether the real property is either:

30

(1)  owner-occupied; or

- 32 -

 


1

(2)  a residential property occupied by a tenant. Upon

2

this determination, the following shall apply:

3

(i)  In the event the real property is determined to

4

be owner-occupied, the land bank shall notify each owner-

5

occupant at least 30 days prior to the filing or the

6

commencement of legal action. The notice shall inform

7

each owner-occupant of the land bank's intention to

8

commence or file legal action as well as the nature of

9

that legal action. The notice shall also inform each

10

owner-occupant of his rights under this act and of any

11

hardship policies and procedures established under

12

section 17(g). A single notice shall be sent to each

13

residential unit which is owner-occupied. The land bank

14

shall not be required to send individual notice to

15

multiple occupants residing in a single residential unit.

16

Notice addressed to the owner-occupant shall be sent by

17

first class United States mail, as well as by registered

18

or certified United States mail. Notice as required under

19

this subsection shall be a jurisdictional prerequisite to

20

the commencement or filing of a legal action by the land

21

bank in a court of competent jurisdiction.

22

(ii)  In the event the property is determined to be a

23

residential property occupied by a tenant, within 30 days

24

after the filing or commencement of legal action, the

25

land bank shall notify the tenant of the land bank's

26

commencement or filing of legal action as well as the

27

nature of that legal action. The notice shall also inform

28

the tenant of his rights under this act and of any

29

hardship policies and procedures established under

30

section 17(g). A single notice shall be sent to each

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1

residential unit which is occupied by a tenant. The land

2

bank shall not be required to send individual notice to

3

multiple tenants residing in a single residential unit.

4

Notice addressed to the tenant shall be sent by first

5

class United States mail, as well as by registered or

6

certified United States mail.

7

(b)  Determination of tenant occupation of acquired real

8

property.--Within 60 days after a land bank acquires legal title

9

to a property, the land bank shall determine whether the real

10

property is a residential property occupied by a tenant. In the

11

event the real property is a residential property occupied by a

12

tenant, the following shall apply:

13

(1)  The land bank shall notify the tenant of the land

14

bank's acquisition of the real property. Such notice shall be

15

provided to the tenant within 30 days after a determination

16

is made that the property is a residential property occupied

17

by a tenant. A single notice shall be sent to each

18

residential unit which is occupied by a tenant. The land bank

19

shall not be required to send individual notice to multiple

20

tenants residing in a single residential unit. Notice

21

addressed to the tenant shall be sent by first class United

22

States mail, as well as by registered or certified United

23

States mail.

24

(2)  In the event the land bank takes title to the

25

property, the land bank shall be bound by all existing leases

26

as long as the lease has a term of not more than one year.

27

Under no circumstances shall a land bank be bound by a lease

28

with a term of more than one year. Moreover, the land bank

29

shall be considered a landlord under the terms of the act of

30

April 6, 1951 (P.L.69, No.20), known as The Landlord and

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1

Tenant Act of 1951. Where the land bank is bound by an

2

existing lease, prior to terminating the lease at the end of

3

the lease period, the land bank shall provide the tenant with

4

90 days' notice of termination.

5

Section 19 20.  Annual audit and report.

<--

6

The following shall apply:

7

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

8

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

9

expenditures, together with a report of its activities for

10

the preceding year, to the Department of Community and

11

Economic Development.

12

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

13

filed with the governing body of the land bank jurisdiction

14

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

15

municipality or school district that opted to participate in

16

the land bank pursuant to an intergovernmental agreement.

17

Section 30.  Effective date.

18

This act shall take effect immediately.

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