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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY DAVIS, CALTAGIRONE, CRUZ, DALEY, DeLUCA, FREEMAN, HALUSKA, JOSEPHS, KULA, MAHONEY, MILLARD, PAYTON, SABATINA AND STURLA, JANUARY 23, 2012 |
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| REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 23, 2012 |
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| AN ACT |
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1 | Providing for foreclosed property maintenance; and imposing |
2 | penalties. |
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 Foreclosed |
7 | Property Maintenance Act. |
8 | Section 2. Definitions. |
9 | The following words and phrases when used in this act shall |
10 | have the meanings given to them in this section unless the |
11 | context clearly indicates otherwise: |
12 | "Agreement." A municipal maintenance agreement. |
13 | "Department." The Department of Community and Economic |
14 | Development of the Commonwealth. |
15 | "Foreclosed property." Any real property consisting of |
16 | buildings or grounds that, as a result of default by a purchaser |
17 | of a financial agreement between a lender and purchaser, has |
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1 | been placed in the legal process by the lender to recover the |
2 | property. |
3 | "Foreclosure proceedings." Legal actions taken by a |
4 | mortgagee under section 403-C of the act of December 3, 1959 |
5 | (P.L.1688, No.621), known as the Housing Finance Agency Law. |
6 | "Legal occupant." A person renting or leasing a foreclosed |
7 | property from the owner under a rental or lease contract or a |
8 | party to a mortgage agreement in which the owner has initiated |
9 | foreclosure proceedings and allows the occupants to continue to |
10 | inhabit the foreclosed property during the mitigation process. |
11 | "Legally occupied." The rental or lease of a foreclosed |
12 | property by an owner or agreed habitation during the foreclosure |
13 | mitigation process. |
14 | "Locally based." Residing within or maintaining one's |
15 | primary place of business within the same municipality as, or |
16 | within 20 miles of, the property being registered. |
17 | "Municipal maintenance agreement." A contractual agreement |
18 | between an owner or responsible party of a foreclosed property |
19 | and a municipality in which the owner or responsible party |
20 | compensates a municipality to maintain the foreclosed property |
21 | in accordance with section 7(a). |
22 | "Owner." A person, entity, service company, property |
23 | manager or real estate broker who alone or severally with |
24 | others: |
25 | (1) has legal or equitable title to any dwelling, |
26 | dwelling unit, mobile dwelling unit or parcel of land, vacant |
27 | or otherwise, including a mobile home park; |
28 | (2) has care, charge or control of any dwelling, |
29 | dwelling unit, mobile dwelling unit or parcel of land, vacant |
30 | or otherwise, including a mobile home park, in any capacity |
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1 | including, but not limited to, agent, executor, |
2 | administrator, trustee or guardian or holder of legal title; |
3 | (3) is a mortgagee in possession of property; |
4 | (4) is an officer or trustee of the association of unit |
5 | owners of a condominium; |
6 | (5) is an operator or proprietor of a rooming house; or |
7 | (6) is a trustee who holds, owns or controls mortgage |
8 | loans for mortgage-backed securities transactions and has |
9 | initiated the foreclosure process. |
10 | "Residential property." A property that contains one or more |
11 | dwelling units used, intended or designed to be occupied as a |
12 | primary residence. |
13 | "Responsible party." Any of the following: |
14 | (1) a creditor including, but not limited to, service |
15 | companies, lenders in a mortgage agreement and any agent, |
16 | officer or employee of the mortgagee, or any successor in |
17 | interest and assignee of the mortgagee's rights, interests or |
18 | obligations under the mortgage agreement; |
19 | (2) a party contracted by the owner to manage the |
20 | property or to act as an agent for the owner; or |
21 | (3) a legal occupant. |
22 | "Secure" or "securing." Rendering a property inaccessible to |
23 | unauthorized persons and the maintaining of the property or area |
24 | surrounding any building, including landscaping and rodent and |
25 | pest mitigation. |
26 | "Vacant." Not currently legally occupied. |
27 | Section 3. Foreclosed property registration. |
28 | (a) General rule.--The owner of a foreclosed property shall |
29 | register the property with the municipality in which the |
30 | property is located within seven calendar days of initiating |
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1 | foreclosure proceedings on an application developed by the |
2 | department, but provided by the municipality or obtained from |
3 | the department's Internet website. |
4 | (b) Registration applications.--Foreclosed property |
5 | registration applications shall be signed by both the municipal |
6 | code officer and the owner or responsible party for the |
7 | foreclosed property. The application shall include the following |
8 | information: |
9 | (1) The owner's name, telephone number and a mailing |
10 | address that is a non-post office box number. |
11 | (2) The name, telephone number and non-post office box |
12 | address for a locally based responsible party. |
13 | (3) Certification that the property was inspected and is |
14 | secure. |
15 | (i) If a property is certified as vacant, the owner |
16 | shall designate and retain a local responsible party to |
17 | secure and maintain the property. This designation shall |
18 | include: |
19 | (A) The responsible party's name. |
20 | (B) The responsible party's telephone number. |
21 | (C) The responsible party's local non-post |
22 | office box mailing address. |
23 | (D) A plan detailing regular maintenance of the |
24 | property, including landscaping, rodent and pest |
25 | mitigation and security checks. |
26 | (ii) If a property is certified as not vacant or |
27 | legally occupied, the owner shall provide proof that the |
28 | property is legally occupied in the form of a rent or |
29 | lease agreement. Proof is not required if the property is |
30 | occupied by a party to the mortgage agreement with the |
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1 | consent of the owner or initiator of foreclosure |
2 | proceedings during the foreclosure mitigation process. |
3 | (c) Registrations.--Foreclosed property registrations are |
4 | valid for one year from the date of the initial filing. An |
5 | annual registration fee of $100 and a certified copy of the deed |
6 | to the property shall accompany the registration application. |
7 | Subsequent annual registrations and fees are due within 30 days |
8 | of the expiration of the previous registration and shall certify |
9 | whether the foreclosing or foreclosed property is or remains |
10 | vacant. |
11 | (d) Municipal notification.--The owner or responsible party |
12 | shall notify the municipality within 15 days of closing if the |
13 | property is sold, becomes legally occupied or transferred to |
14 | another party. |
15 | (e) Transfers.--If the property is transferred to another |
16 | party, the new party must reregister the property with the |
17 | municipality within 15 calendar days of the transfer. |
18 | (f) Fees.--Except as provided under section 8(c), all |
19 | application fees, fines and penalties shall be payable to the |
20 | municipality to be used at the discretion of the municipality. |
21 | Section 4. Maintenance requirements. |
22 | (a) General rule.--The owner or responsible party of a |
23 | foreclosed property shall ensure that the requirements for |
24 | securing and maintaining the foreclosed property are satisfied. |
25 | (b) Monthly inspection of property.--The owner or |
26 | responsible party shall maintain the property on a monthly basis |
27 | while the property is vacant. |
28 | (c) Adherence to applicable codes.--The owner or responsible |
29 | party shall ensure that the foreclosed property is maintained in |
30 | accordance with local sanitary codes, building codes and other |
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1 | local laws, ordinances and regulations concerning external and |
2 | visible maintenance. |
3 | (d) Securing.--Vacant property shall be secured from outside |
4 | entry by unauthorized persons or pests. Doors, windows and other |
5 | avenues for entry shall remain locked, and exterior walls and |
6 | roofs shall remain intact and without holes. |
7 | (e) Posting of contact information.--The name and 24-hour |
8 | contact telephone number of the local responsible party or the |
9 | owner of the foreclosed property shall be posted on the front |
10 | door of the property so that it is clearly visible. |
11 | (f) Temporary securing.--Untreated plywood or similar |
12 | structural panels or temporary construction fencing may be used |
13 | to temporarily secure doors, windows and other openings for a |
14 | maximum period of 14 days. |
15 | (g) Emergency securing.--The municipality may take steps to |
16 | immediately secure a vacant property at its discretion in |
17 | emergency circumstances. If emergency repairs are deemed |
18 | necessary, the municipality shall receive full reimbursement |
19 | within 60 days of the completion of the repairs from the owner |
20 | or responsible party. |
21 | (h) Fire safety and security systems.--Owners shall do the |
22 | following in accordance with applicable statutes, codes and |
23 | ordinances: |
24 | (1) Owners of nonresidential vacant buildings shall |
25 | maintain all fire protection systems, appliances and |
26 | assemblies in operating condition and maintain underwriter |
27 | laboratories monitoring of all systems. |
28 | (2) Owners of vacant properties shall remove and |
29 | properly dispose of all hazardous materials and hazardous |
30 | refuse that could present a fire hazard or contribute to the |
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1 | spread of fire as well as all garbage, swill, filth or other |
2 | waste materials located in or on the vacant property. |
3 | (3) Owners of vacant properties shall properly maintain |
4 | all police protection alarm systems in operating condition. |
5 | (i) Plumbing fixtures.--Plumbing fixtures connected to a |
6 | water system, sewage system or natural gas utility system shall |
7 | be installed and be maintained in sound condition and good |
8 | repair or removed and the service terminated in adherence with |
9 | applicable codes. The water system of a vacant building must be |
10 | protected against freezing. |
11 | (j) Electrical.--Electrical service lines, wiring, outlets |
12 | and fixtures not installed or maintained in accordance with |
13 | codes must be repaired, removed or the electrical services |
14 | terminated in accordance with applicable codes. |
15 | (k) Lighting.--Exterior lighting fixtures shall be |
16 | maintained in good repair, and illumination shall be provided to |
17 | the building and all walkways in the same manner as provided at |
18 | the time the building was last legally occupied. |
19 | (l) Heating.--Heating systems in vacant buildings shall be |
20 | removed, rendered inoperable or maintained in accordance with |
21 | applicable codes. |
22 | (m) Termination of utilities.--The following provisions |
23 | shall apply: |
24 | (1) For safety reasons, municipalities may require the |
25 | termination of utility services to a vacant property, |
26 | including water, sewer, electricity or gas service. |
27 | (2) Prior to the termination of any utility service, the |
28 | municipality shall provide the owner or responsible party |
29 | with written notice. |
30 | (3) Utility service required to be terminated or |
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1 | disconnected by the municipality shall not be reconnected or |
2 | restored without prior consent of the municipality. |
3 | (4) An owner or responsible party may request that |
4 | utilities be terminated or disconnected as part of a |
5 | submitted and approved maintenance plan. |
6 | (5) The municipality may authorize immediate termination |
7 | of utility services in emergency circumstances. |
8 | (n) Exterior maintenance.--The owner or responsible party |
9 | shall comply with all applicable exterior property maintenance |
10 | statutes, codes and ordinances including, but not limited to, |
11 | the following: |
12 | (1) Any and all activity on the property that |
13 | constitutes a public nuisance shall be eliminated. |
14 | (2) Vegetation shall be regularly maintained. |
15 | (3) Abandoned vehicles and vehicles without a valid |
16 | registration shall be removed from the property. |
17 | (4) Refuse shall be properly stored and removed from the |
18 | property. |
19 | (5) All animals and pests shall be removed from the |
20 | property. |
21 | (6) Any diseased, dead or hazardous trees or branches |
22 | shall be removed from the property. |
23 | (7) Graffiti shall be removed from the property. |
24 | (8) Swimming pools shall be maintained in good operating |
25 | condition, treated to prevent pest harborage or properly |
26 | drained and emptied. All swimming pools on foreclosed |
27 | properties shall be secured. |
28 | Section 5. Inspection responsibilities. |
29 | The municipal code officials, as defined under the act of |
30 | November 10, 1999 (P.L.491, No.45), known as the Pennsylvania |
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1 | Construction Code Act, shall have the authority to conduct |
2 | inspections to ensure compliance with this act. |
3 | Section 6. Emergency abatement. |
4 | In addition to the instances listed in section 4, a |
5 | municipality may authorize immediate abatement of any public |
6 | nuisance or maintenance item if the municipality deems the |
7 | property an immediate threat to the public health and safety. |
8 | Section 7. Municipal maintenance agreement. |
9 | (a) General rule.--An owner or responsible party may enter |
10 | into a municipal maintenance agreement, developed by the |
11 | department and provided by the municipality or on the |
12 | department's Internet website, with the municipality in which a |
13 | foreclosed property is located to compensate the municipality |
14 | for performing the exterior maintenance required under section |
15 | 4(n)(1), (2), (3), (4), (5), (6) or (7) in accordance with |
16 | applicable statutes, codes and ordinances. |
17 | (b) Municipal maintenance agreements.--Municipal maintenance |
18 | agreements shall be signed by both the municipal code officer |
19 | and the owner or responsible party for the foreclosed property. |
20 | The agreement shall include the following information: |
21 | (1) The name, telephone number and non-post office box |
22 | mailing address. |
23 | (2) The name, telephone number and non-post office box |
24 | mailing address for a locally based responsible party. |
25 | (3) The municipality's responsibilities in accordance |
26 | with this act. |
27 | (c) Terms of agreement.--A municipal maintenance agreement |
28 | is valid for one year from the initial date of filing. |
29 | Subsequent municipal maintenance agreements must be signed |
30 | within 30 days of the expiration of the existing agreement. |
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1 | (d) Limitations.--An owner or responsible party entering |
2 | into a municipal maintenance agreement shall be limited to one |
3 | registered property per agreement. Nothing may prevent an owner |
4 | or responsible party from entering into multiple municipal |
5 | maintenance agreements with a municipality. |
6 | (e) Fees.--A municipal maintenance agreement shall require |
7 | the owner or responsible party to pay a fee to the municipality |
8 | as determined by the municipality. |
9 | (f) Records and notification.--A municipality shall maintain |
10 | accurate records of all maintenance work completed in accordance |
11 | with the municipal maintenance agreement. A municipality shall |
12 | notify the owner or responsible party of all maintenance work |
13 | performed in accordance with a municipal maintenance agreement |
14 | within 15 days of completion. |
15 | Section 8. Duties of department. |
16 | (a) General rule.--The department shall create a standard |
17 | foreclosure registration application and standard municipal |
18 | maintenance agreement in accordance with this act. |
19 | (b) Department notification.--The foreclosure registration |
20 | application and municipal maintenance agreement shall be made |
21 | available to municipalities and owners or responsible parties by |
22 | request. A municipality shall submit a copy of each completed |
23 | registration application to the department within 30 calendar |
24 | days of receipt of the application from the owner or responsible |
25 | party. |
26 | (c) Fees.--Ten percent of the annual registration |
27 | application fee shall be directed to the department by the |
28 | municipality for administrative costs incurred under this act. |
29 | (d) Regulations.--The department may promulgate rules and |
30 | regulations necessary to administer its duties under this act. |
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1 | Section 9. Public records. |
2 | The department and municipalities shall retain completed |
3 | registration applications and municipal maintenance agreements |
4 | and maintain all records in accordance with the act of February |
5 | 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law. |
6 | Section 10. Penalties. |
7 | (a) Municipal authority.--In addition to the penalties under |
8 | any other law, a municipality may impose the following fines for |
9 | violations of this act: |
10 | (1) A violation of section 3 shall be punishable by a |
11 | fine of not more than $500. |
12 | (2) A violation of section 4 shall be punishable by a |
13 | fine of not more than $1,000 for the first offense and no |
14 | more than an additional $500 for every five calendar-day |
15 | period the violation is not reconciled by the owner or |
16 | responsible party. |
17 | (b) Limitations.--A municipality shall not fine an owner or |
18 | responsible party of a foreclosed property for violations of |
19 | section 4(n)(1), (2), (3), (4), (5), (6) and (7) when a |
20 | municipal maintenance agreement exists between the municipality |
21 | and the owner or responsible party of the foreclosed property. |
22 | Section 11. Effective date. |
23 | This act shall take effect in 60 days. |
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