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PRINTER'S NO. 941
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
795
Session of
2015
INTRODUCED BY DAVIS, KINSEY, COHEN, CALTAGIRONE, SCHLOSSBERG,
MILLARD, PASHINSKI, MATZIE, CARROLL, MURT, DeLUCA, GIBBONS,
McCARTER, ROZZI, WATSON, MOUL, C. PARKER, D. COSTA, V. BROWN,
SCHREIBER, McNEILL, KORTZ, BROWNLEE, TOOHIL AND RADER,
MARCH 17, 2015
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 17, 2015
AN ACT
Providing for foreclosed property maintenance; and imposing
penalties.
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 Foreclosed
Property Maintenance Act.
Section 2. 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:
"Agreement." A municipal maintenance agreement.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Foreclosed property." Any real property consisting of
buildings or grounds that, as a result of default by a purchaser
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of a financial agreement between a lender and purchaser, has
been placed in the legal process by the lender to recover the
property.
"Foreclosure proceedings." Legal actions taken by a
mortgagee under section 403-C of the act of December 3, 1959
(P.L.1688, No.621), known as the Housing Finance Agency Law.
"Legal occupant." A person renting or leasing a foreclosed
property from the owner under a rental or lease contract or a
party to a mortgage agreement in which the owner has initiated
foreclosure proceedings and allows the occupants to continue to
inhabit the foreclosed property during the mitigation process.
"Legally occupied." The rental or lease of a foreclosed
property by an owner or agreed habitation during the foreclosure
mitigation process.
"Locally based." Residing within or maintaining one's
primary place of business within the same municipality as, or
within 20 miles of, the property being registered.
"Municipal maintenance agreement." A contractual agreement
between an owner or responsible party of a foreclosed property
and a municipality in which the owner or responsible party
compensates a municipality to maintain the foreclosed property
in accordance with section 7(a).
"Owner." A person, entity, service company, property manager
or real estate broker who alone or severally with others:
(1) has legal or equitable title to any dwelling,
dwelling unit, mobile dwelling unit or parcel of land, vacant
or otherwise, including a mobile home park;
(2) has care, charge or control of any dwelling,
dwelling unit, mobile dwelling unit or parcel of land, vacant
or otherwise, including a mobile home park, in any capacity,
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including, but not limited to, agent, executor,
administrator, trustee or guardian or holder of legal title;
(3) is a mortgagee in possession of property;
(4) is an officer or trustee of the association of unit
owners of a condominium;
(5) is an operator or proprietor of a rooming house; or
(6) is a trustee who holds, owns or controls mortgage
loans for mortgage-backed securities transactions and has
initiated the foreclosure process.
"Residential property." A property that contains one or more
dwelling units used, intended or designed to be occupied as a
primary residence.
"Responsible party." Any of the following:
(1) a creditor, including, but not limited to, service
companies, lenders in a mortgage agreement and any agent,
officer or employee of the mortgagee, or any successor in
interest and assignee of the mortgagee's rights, interests or
obligations under the mortgage agreement;
(2) a party contracted by the owner to manage the
property or to act as an agent for the owner; or
(3) a legal occupant.
"Secure" or "securing." Rendering a property inaccessible to
unauthorized persons and the maintaining of the property or area
surrounding any building, including landscaping and rodent and
pest mitigation.
"Vacant." Not currently legally occupied.
Section 3. Foreclosed property registration.
(a) General rule.--The owner of a foreclosed property shall
register the property with the municipality in which the
property is located within seven calendar days of initiating
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foreclosure proceedings on an application developed by the
department, but provided by the municipality or obtained from
the department's Internet website.
(b) Registration applications.--Foreclosed property
registration applications shall be signed by both the municipal
code officer and the owner or responsible party for the
foreclosed property. The application shall include the following
information:
(1) The owner's name, telephone number and a mailing
address that is a non-post office box number.
(2) The name, telephone number and non-post office box
address for a locally based responsible party.
(3) Certification that the property was inspected and is
secure.
(i) If a property is certified as vacant, the owner
shall designate and retain a local responsible party to
secure and maintain the property. This designation shall
include:
(A) The responsible party's name.
(B) The responsible party's telephone number.
(C) The responsible party's local non-post
office box mailing address.
(D) A plan detailing regular maintenance of the
property, including landscaping, rodent and pest
mitigation and security checks.
(ii) If a property is certified as not vacant or
legally occupied, the owner shall provide proof that the
property is legally occupied in the form of a rent or
lease agreement. Proof is not required if the property is
occupied by a party to the mortgage agreement with the
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consent of the owner or initiator of foreclosure
proceedings during the foreclosure mitigation process.
(c) Registrations.--Foreclosed property registrations are
valid for one year from the date of the initial filing. An
annual registration fee of $100 and a certified copy of the deed
to the property shall accompany the registration application.
Subsequent annual registrations and fees shall be due within 30
days of the expiration of the previous registration and shall
certify whether the foreclosing or foreclosed property is or
remains vacant.
(d) Municipal notification.--The owner or responsible party
shall notify the municipality within 15 days of closing if the
property is sold, becomes legally occupied or is transferred to
another party.
(e) Transfers.--If the property is transferred to another
party, the new party shall reregister the property with the
municipality within 15 calendar days of the transfer.
(f) Fees.--Except as provided under section 8(c), all
application fees, fines and penalties shall be payable to the
municipality to be used at the discretion of the municipality.
Section 4. Maintenance requirements.
(a) General rule.--The owner or responsible party of a
foreclosed property shall satisfy the requirements for securing
and maintaining the foreclosed property.
(b) Monthly inspection of property.--The owner or
responsible party shall maintain the property on a monthly basis
while the property is vacant.
(c) Adherence to applicable codes.--The owner or responsible
party shall maintain the foreclosed property in accordance with
local sanitary codes, building codes and other local laws,
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ordinances and regulations concerning external and visible
maintenance.
(d) Securing.--Vacant property shall be secured from outside
entry by unauthorized persons or pests. Doors, windows and other
avenues for entry shall remain locked, and exterior walls and
roofs shall remain intact and without holes.
(e) Posting of contact information.--The name and 24-hour
contact telephone number of the local responsible party or the
owner of the foreclosed property shall be posted on the front
door of the property so that it is clearly visible.
(f) Temporary securing.--Untreated plywood or similar
structural panels or temporary construction fencing may be used
to temporarily secure doors, windows and other openings for a
maximum period of 14 days.
(g) Emergency securing.--The municipality may take steps to
immediately secure a vacant property at its discretion in
emergency circumstances. If emergency repairs are deemed
necessary, the municipality shall receive full reimbursement
within 60 days of the completion of the repairs from the owner
or responsible party.
(h) Fire safety and security systems.--An owner shall
satisfy the following duties in accordance with applicable
statutes, codes and ordinances:
(1) The owner of a nonresidential vacant building shall
maintain all fire protection systems, appliances and
assemblies in operating condition and maintain underwriter
laboratories monitoring of all systems.
(2) An owner of vacant property shall remove and
properly dispose of all hazardous materials and hazardous
refuse that could present a fire hazard or contribute to the
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spread of fire as well as all garbage, swill, filth or other
waste materials located in or on the vacant property.
(3) An owner of vacant property shall properly maintain
all police protection alarm systems in operating condition.
(i) Plumbing fixtures.--Plumbing fixtures connected to a
water system, sewage system or natural gas utility system shall
be installed and be maintained in sound condition and good
repair or removed and the service terminated in adherence with
applicable codes. The water system of a vacant building shall be
protected against freezing.
(j) Electrical.--Electrical service lines, wiring, outlets
and fixtures not installed or maintained in accordance with
codes shall be repaired, removed or the electrical services
terminated in accordance with applicable codes.
(k) Lighting.--Exterior lighting fixtures shall be
maintained in good repair, and illumination shall be provided to
the building and all walkways in the same manner as provided at
the time the building was last legally occupied.
(l) Heating.--Heating systems in vacant buildings shall be
removed, rendered inoperable or maintained in accordance with
applicable codes.
(m) Termination of utilities.--
(1) For safety reasons, municipalities may require the
termination of utility services to a vacant property,
including water, sewer, electricity or gas service.
(2) Prior to the termination of any utility service, the
municipality shall provide the owner or responsible party
with written notice.
(3) Utility service required to be terminated or
disconnected by the municipality shall not be reconnected or
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restored without prior consent of the municipality.
(4) An owner or responsible party may request that
utilities be terminated or disconnected as part of a
submitted and approved maintenance plan.
(5) The municipality may authorize immediate termination
of utility services in emergency circumstances.
(n) Exterior maintenance.--The owner or responsible party
shall comply with all applicable exterior property maintenance
statutes, codes and ordinances, including, but not limited to,
the following:
(1) Any and all activity on the property that
constitutes a public nuisance shall be eliminated.
(2) Vegetation shall be regularly maintained.
(3) Abandoned vehicles and vehicles without a valid
registration shall be removed from the property.
(4) Refuse shall be properly stored and removed from the
property.
(5) All animals and pests shall be removed from the
property.
(6) Any diseased, dead or hazardous trees or branches
shall be removed from the property.
(7) Graffiti shall be removed from the property.
(8) Swimming pools shall be maintained in good operating
condition, treated to prevent pest harborage or properly
drained and emptied. All swimming pools on foreclosed
properties shall be secured.
Section 5. Inspection responsibilities.
A municipal code official, as defined under the act of
November 10, 1999 (P.L.491, No.45), known as the Pennsylvania
Construction Code Act, may conduct inspections to ensure
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compliance with this act.
Section 6. Emergency abatement.
In addition to the instances listed in section 4, a
municipality may authorize immediate abatement of any public
nuisance or maintenance item if the municipality deems the
property an immediate threat to the public health and safety.
Section 7. Municipal maintenance agreement.
(a) General rule.--An owner or responsible party may enter
into a municipal maintenance agreement, developed by the
department and provided by the municipality or on the
department's Internet website, with the municipality in which a
foreclosed property is located to compensate the municipality
for performing the exterior maintenance required under section
4(n)(1), (2), (3), (4), (5), (6) or (7) in accordance with
applicable statutes, codes and ordinances.
(b) Municipal maintenance agreements.--Municipal maintenance
agreements shall be signed by both the municipal code officer
and the owner or responsible party for the foreclosed property.
The agreement shall include the following information:
(1) The name, telephone number and non-post office box
mailing address.
(2) The name, telephone number and non-post office box
mailing address for a locally based responsible party.
(3) The municipality's responsibilities in accordance
with this act.
(c) Terms of agreement.--A municipal maintenance agreement
is valid for one year from the initial date of filing.
Subsequent municipal maintenance agreements must be signed
within 30 days of the expiration of the existing agreement.
(d) Limitations.--
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(1) An owner or responsible party entering into a
municipal maintenance agreement shall be limited to one
registered property per agreement.
(2) Nothing in this act shall be construed to prevent an
owner or responsible party from entering into multiple
municipal maintenance agreements with a municipality.
(e) Fees.--A municipal maintenance agreement shall require
the owner or responsible party to pay a fee to the municipality
as determined by the municipality.
(f) Records and notification.--
(1) A municipality shall maintain accurate records of
all maintenance work completed in accordance with the
municipal maintenance agreement.
(2) A municipality shall notify the owner or responsible
party of all maintenance work performed in accordance with a
municipal maintenance agreement within 15 days of completion.
Section 8. Duties of department.
(a) General rule.--The department shall create a standard
foreclosure registration application and standard municipal
maintenance agreement in accordance with this act.
(b) Department notification.--
(1) The department shall make the foreclosure
registration application and municipal maintenance agreement
available to municipalities and owners or responsible parties
by request.
(2) A municipality shall submit a copy of each completed
registration application to the department within 30 calendar
days of receipt of the application from the owner or
responsible party.
(c) Fees.--Ten percent of the annual registration
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application fee shall be directed to the department by the
municipality for administrative costs incurred under this act.
(d) Regulations.--The department may promulgate rules and
regulations necessary to administer its duties under this act.
Section 9. Public records.
The department and municipalities shall retain completed
registration applications and municipal maintenance agreements
and maintain all records in accordance with the act of February
14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.
Section 10. Penalties.
(a) Municipal authority.--In addition to the penalties under
any other law, a municipality may impose the following fines for
violations of this act:
(1) A violation of section 3 shall be punishable by a
fine of not more than $500.
(2) A violation of section 4 shall be punishable by a
fine of not more than $1,000 for the first offense and no
more than an additional $500 for every five calendar-day
period the violation is not reconciled by the owner or
responsible party.
(b) Limitations.--A municipality may not fine an owner or
responsible party of a foreclosed property for violations of
section 4(n)(1), (2), (3), (4), (5), (6) and (7) when a
municipal maintenance agreement exists between the municipality
and the owner or responsible party of the foreclosed property.
Section 11. Effective date.
This act shall take effect in 60 days.
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