THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GALLOWAY, CALTAGIRONE, CARROLL, D. COSTA, GEORGE, GIBBONS, JOSEPHS, McGEEHAN, MURT, MYERS AND YOUNGBLOOD, JANUARY 26, 2012

REFERRED TO COMMITTEE ON URBAN AFFAIRS, JANUARY 26, 2012  

AN ACT

Amending Title 68 (Real and Personal Property) of the

Pennsylvania Consolidated Statutes, establishing the Office

of the Cooperative and Condominium Ombudsman and providing

for its powers and duties; imposing a residential unit fee;

and establishing the Office of the Cooperative and

Condominium Ombudsman Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 68 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

CHAPTER 35

OFFICE OF THE COOPERATIVE AND

CONDOMINIUM OMBUDSMAN

Sec.

3501.  Definitions.

3502.  Office of the Cooperative and Condominium Ombudsman.

3503.  Powers and duties of office.

3504.  Principal offices and satellite offices.

3505.  Reports to the Governor, Attorney General and General

Assembly.

3506.  Residential unit fee.

3507.  Office of the Cooperative and Condominium Ombudsman Fund.

§ 3501.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Cooperative."  As defined in section 4103 (relating to

definitions).

"Fund."  The Office of the Cooperative and Condominium

Ombudsman Fund established under this chapter.

"Local agency."  Any department, board, bureau, commission,

division, office, council, officer or agency of a city, town or

village.

"Master association."  An association as defined in section

3103 (relating to definitions) or 4103 (relating to

definitions).

"Office."  The Office of the Cooperative and Condominium

Ombudsman established under this chapter.

"Ombudsman."  The chief administrative officer of the Office

of the Cooperative and Condominium Ombudsman.

"Proprietary lessees' association."  As defined in section

4103 (relating to definitions).

"State agency."  Any department, board, bureau, commission,

division, office, council or agency of the State, or a public

benefit corporation or authority authorized under the laws of

this Commonwealth.

§ 3502.  Office of the Cooperative and Condominium Ombudsman.

(a)  Establishment.--The Office of the Cooperative and

Condominium Ombudsman is established within the Office of

Attorney General to have and exercise the functions, powers and

duties provided by the provisions of this chapter and any other

provision of law. The Attorney General shall be responsible for

oversight of the office.

(b)  Ombudsman.--The head of the office shall be the

cooperative and condominium ombudsman who shall be appointed by

the Attorney General. The ombudsman shall hold office until the

end of the term of the Attorney General by whom the ombudsman

was appointed and until his or her successor is appointed and

has qualified. The ombudsman may be removed by the Attorney

General for cause, after being given an opportunity to be heard.

A vacancy shall be filled in the same manner as the original

appointment.

(c)  Salary.--The ombudsman shall receive an annual salary to

be fixed by the Attorney General within the amount made

available by an appropriation and shall be allowed the actual

expenses necessary in the performance of the ombudsman's duties.

(d)  Requirement.--The ombudsman shall be an attorney with

extensive experience in real estate, cooperative and condominium

law and in conflict and alternative dispute resolution.

(e)  Duties.--The ombudsman shall direct the work of the

office and shall be the chief executive officer of the office.

The ombudsman may appoint such officers and employees as the

ombudsman may deem necessary, prescribe their powers and duties,

fix their compensation and provide for the reimbursement of

their expenses, all within amounts made available by

appropriation. The officers and employees shall include

attorneys and other professionals with experience in real

estate, cooperative and condominium law and in conflict and

alternative dispute resolution.

(f)  Code of ethics.--The ombudsman and officers and

employees of the office shall adhere to a code of ethics in

order to inspire public confidence and trust in the fairness and

impartiality of the office. The ombudsman shall prescribe the

code of ethics. The code shall require that the ombudsman and

officers and employees of the office:

(1)  respect and comply with the law;

(2)  not use or attempt to use their positions to secure

privileges or exemptions for themselves or others;

(3)  not solicit, accept or agree to accept any gifts or

gratuities from persons having or likely to have any official

transaction with the office;

(4)  not request or accept any payment in addition to

their regular compensation for assistance given as part of

their official duties; and

(5)  not perform any function in a manner that improperly

favors any person or party.

(g)  Restrictions on political activities.--The ombudsman and

officers and employees of the office shall not:

(1)  serve as officers or employees of a political party

or a club or organization related to a political party;

(2)  receive remuneration for activities on behalf of any

candidate for public office or party position; or

(3)  engage in soliciting votes or other activities on

behalf of a candidate for public office or party position.

(h)  Coordination with State agencies.--All State agencies

shall provide the ombudsman with assistance in advancing the

purposes of the office, and the office shall coordinate with the

activities of State agencies providing related services.

§ 3503.  Powers and duties of office.

The office shall have the following powers and duties:

(1)  To educate and inform proprietary lessees of

cooperatives and unit owners of condominiums, proprietary

lessees' associations, unit owners' associations, master

associations, property managers, professionals working with

and for the associations and other interested parties of

their legal rights and responsibilities under the Federal,

State and local laws and regulations applicable to

cooperative and condominium housing in this Commonwealth and

under the cooperative and condominium documents governing the

respective properties.

(2)  To coordinate and assist in the preparation and

publication of educational and reference materials about

residential cooperatives and condominiums, to make those

resources known and available to the widest possible

audience.

(3)  To organize and conduct meetings, workshops,

conferences, public hearings and forums and to utilize all

forms of communications media to disseminate accurate and

timely information of interest to persons residing in, owning

and managing cooperative and condominium housing.

(4)  To provide meetings, mediation, arbitration and

other forms of alternative dispute resolution services to

cooperative and condominium sponsors and developers,

cooperative proprietary lessees, condominium unit owners,

their associations, prospective proprietary lessees and unit

owners and other parties so as to avoid costly and lengthy

litigation and reduce expenses for those involved in

disputes.

(5)  To subpoena and enforce the attendance of witnesses,

administer oaths or affirmations and examine witnesses under

oath and require the production of any books and papers

deemed relevant or material to the resolution of any dispute

pending before the office.

(6)  To engage with the courts, State and local agencies

and with alternative dispute resolution programs maintained

by the Administrative Office of Pennsylvania Courts in order

to provide specialized expertise in the resolution of

cooperative and condominium disputes as an alternative to

litigation.

(7)  To offer procedures, monitors and vote counting

services to assure fair elections for members and officers of

an executive board of a cooperative proprietary lessees'

association and condominium unit owners' association. Fifteen

percent of the total voting interests in a cooperative or

condominium or proprietary lessees or unit owners of six

residential units, whichever is greater, may petition the

office to attend and conduct an election of executive board

members and officers. All costs associated with the election

monitoring process shall be paid by the cooperative or

condominium.

(8)  To refer any complaint received to the appropriate

law enforcement agency for prosecution, if deemed appropriate

by the office.

(9)  To perform any other functions that are necessary or

appropriate to fulfill the duties and responsibilities of the

office.

§ 3504.  Principal offices and satellite offices.

The office shall maintain its principal offices in

Philadelphia and Pittsburgh and shall have satellite offices in

other locations within this Commonwealth where there are

significant concentrations of cooperative or condominium

housing.

§ 3505.  Reports to the Governor, Attorney General and General

Assembly.

The office shall make an annual report, to be received on or

before January 1, to the Governor, Attorney General and the

General Assembly concerning the activities undertaken by the

office, recommendations for legislative proposals, data

concerning program activities and other pertinent information as

may be required.

§ 3506.  Residential unit fee.

(a)  Fee.--A proprietary lessees' association or unit owners'

association shall pay an annual fee of $6 per year for each

residential unit located in a building or buildings owned or

operated by such corporation or association. The fee shall be

payable to the Department of Revenue. All revenue from the fee

shall be paid by the department to the State Treasurer to be

deposited into the fund.

(b)  Fee adjustment.--Beginning on January 1, 2013, and each

January 1 thereafter, the fee under subsection (a) shall be

increased by the percentage of increase in the Consumer Price

Index for All Urban Consumers (CPI-U) for the United States for

all items for the immediate preceding calendar year. The

adjusted fee shall be published in the Pennsylvania Bulletin

annually by the Department of Revenue on or before the preceding

November 30.

§ 3507.  Office of the Cooperative and Condominium Ombudsman

Fund.

(a)  Establishment.--There is established in the State

Treasury a special fund to be known as the Office of the

Cooperative and Condominium Ombudsman Fund.

(b)  Transfers.--The fund shall consist of moneys

appropriated to the fund, funds transferred from any other fund

or sources and moneys deposited in the fund under section 3506

(relating to residential unit fee).

(c)  Use.--The moneys in the fund shall be allocated to and

expended by the Office of Attorney General solely for the

staffing and administration of the office.

Section 2.  This act shall take effect in 60 days.