Regular Session 2015-2016 House Bill 1480 P.N. 2093

PRINTER'S NO. 2093

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1480

Session of

2015

INTRODUCED BY SANTORA, DAVIS, YOUNGBLOOD, TOEPEL, THOMAS,

R. BROWN, A. HARRIS, MUSTIO, MASSER, SAINATO, KORTZ, EMRICK,

HEFFLEY, SAYLOR, PHILLIPS-HILL, PETRI, KILLION, CARROLL, DAY,

DEASY, KAUFFMAN, KNOWLES AND GIBBONS, AUGUST 10, 2015

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, AUGUST 10, 2015

AN ACT

Amending the act of December 20, 2000 (P.L.724, No.99), entitled

"An act requiring purchasers of real estate with buildings

thereon to bring the buildings into compliance with municipal

codes; providing for nuisance abatement; and imposing

penalties," further providing for definitions; providing for

issuance of use and occupancy certificate; and further

providing for compliance requirement.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 2 of the act of December 20, 2000

(P.L.724, No.99), known as the Municipal Code and Ordinance

Compliance Act, is amended to read:

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:

["Constructive knowledge." Knowledge of a violation listed

on the seller's property disclosure statement made pursuant to

the act of July 2, 1996 (P.L.500, No.84), known as the Real

Estate Seller Disclosure Act, a violation appearing on a buyer's

notification certificate provided by a municipality or a

violation that is a matter of public record.]

"Date of purchase." The [closing] date on which title and

right to possess the property transfers to the purchaser or, in

cases where the property is sold pursuant to the act of May 16,

1923 (P.L.207, No.153), referred to as the Municipal Claim and

Tax Lien Law, the first day following the right of redemption

period authorized under the Municipal Claim and Tax Lien Law.

["Known to have." Knowledge of a violation based on actual

or constructive knowledge.]

"Municipality." Any city, borough, incorporated town,

township, home rule municipality, optional plan municipality,

optional charter municipality or any similar general purpose

unit of government which may be created or authorized by

statute.

"Substantial violation." A violation of a [building,

housing, property maintenance or fire code, which violation

posed a threat to health, safety or property but not a violation

of such a code deemed by a court to be de minimis.] properly

adopted building, housing, property maintenance or fire code or

maintenance, health or safety nuisance ordinance that makes a

building, structure or any part thereof unfit for human

habitation and is discovered during the course of a municipal

inspection of a property and disclosed to the record owner or

prospective purchaser of the property through issuance of a

municipal report.

"Temporary use and occupancy certificate." A certificate

issued by a municipality as a result of the municipal inspection

of a property incident to the resale of the property that

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reveals a violation but no substantial violation, and the

purpose of which certificate is to authorize the purchaser to

fully utilize or reside in the property while correcting

violations pursuant to the maintenance and repair provisions of

this act. The term includes a certificate that meets this

definition, regardless of the terminology utilized by a

municipality, including, but not limited to, "resale

certificate" or "certificate of occupancy."

"Temporary use certificate." A certificate issued by a

municipality as a result of the municipal inspection of a

property incident to the resale of the property that identifies

at least one substantial violation, and the purpose of which

certificate is to authorize the purchaser to utilize the

property for the purpose of correcting substantial violations

pursuant to the maintenance and repair provisions of this act.

The term includes a certificate that meets this definition,

regardless of the terminology utilized by a municipality,

including, but not limited to, "resale certificate" or

"certificate of occupancy." No person may occupy a property

during the term of a temporary use certificate, but the owner

shall be permitted to store personalty in the property during

that time.

"Unfit for human habitation." A condition which renders a

building, structure, or any part thereof, dangerous or injurious

to the health, safety or physical welfare of an occupant or the

occupants of neighboring dwellings. The condition may include

substantial violations of a property that show evidence of: a

significant increase to the hazards of fire or accident;

inadequate sanitary facilities; vermin infestation; or a

condition of disrepair, dilapidation or structural defects such

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that the cost of rehabilitation and repair would exceed one-half

of the agreed-upon purchase price of the property.

"Use and occupancy certificate." A certificate issued by a

municipality as a result of the municipal inspection of a

property incident to the resale of the property that does not

reveal a violation and the purpose of which certificate is to

authorize the purchaser to fully utilize or reside in the

property. The term includes a certificate that meets this

definition, regardless of the terminology utilized by a

municipality, including, but not limited to, "resale

certificate" or "certificate of occupancy."

"Violation." A violation of a properly adopted building,

housing, property maintenance or fire code or maintenance,

health or safety nuisance ordinance that does not rise to the

level of a substantial violation and is discovered during the

course of a municipal inspection of a property and disclosed to

the record owner or prospective purchaser of the property

through issuance of a municipal report.

Section 2. The act is amended by adding a section to read:

Section 2.1. Issuance of use and occupancy certificate.

(a) General rule.--A municipality requiring use and

occupancy certificates may not deny a certificate under any

circumstances, and shall issue the certificates in the following

manner:

(1) If the inspection reveals no violations, the

municipality shall issue a use and occupancy certificate.

(2) If the inspection reveals at least one violation,

but no substantial violations, the municipality shall issue a

temporary use and occupancy certificate.

(3) If the inspection reveals at least one substantial

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violation, the municipality shall specifically note those

items on the inspection report and shall issue a temporary

use certificate.

(b) Escrows and bonds prohibited.--A municipality may not

require the escrowing of funds or posting of a bond, or impose

any similar financial security as a condition of issuing a

certificate.

Section 3. Section 3 of the act is amended to read:

Section 3. Compliance requirement.

(a) General rule.--[Within 18 months of the date of purchase

or longer subject to an agreement between the purchaser and the

municipality, any purchaser of any building, structure or part

of a building or structure known to have one or more substantial

violations of municipal codes relating to building, housing,

property maintenance or fire shall:] If the municipality issues

either a temporary use and occupancy certificate or a temporary

use certificate, within 18 months from the purchase date, or 12

months from the purchase date for nuisance ordinance violations,

the purchaser, at his option, shall either:

(1) bring the building, structure or that part of a

building or structure into compliance with those codes or

ordinances; or

(2) demolish the building or structure in accordance

with law.

(a.1) Negotiation of longer time periods.--At its

discretion, the municipality may negotiate longer time periods

for maintenance and repair under a temporary certificate, but

the time periods stated in subsection (a) may not be shortened.

(a.2) Reinspection of property.--

(1) At the expiration of the time period set forth in

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subsection (a) or before that time, if requested by the

property owner, the municipality shall reinspect the property

for the purpose of determining compliance with the cited

violations.

(2) If a temporary use permit has been issued and

reinspection indicates that the noted substantial violations

have been corrected but other cited violations have not yet

been corrected, the municipality shall issue a temporary use

and occupancy permit to be valid for the time remaining on

the original temporary use permit.

(3) If the reinspection indicates that all noted

violations have been corrected, the municipality shall issue

a use and occupancy certificate for the property.

(b) Penalty.--

(1) Failure to comply with the requirements of

subsection (a) shall result in [the]:

(i) Revocation of the temporary certificate.

(ii) The purchaser being subject to any existing

municipal ordinances relating to the occupation of a

property without a use and occupancy certificate.

(iii) The purchaser being personally liable for the

costs of maintenance, repairs or demolition sufficient to

correct the cited violations, and a fine of not less than

$1,000 and not more than $10,000.

(2) Fines shall be remitted to the municipality in which

the building, structure or part of a building or structure is

located.

(3) In municipalities with low-income housing, not less

than one-third of the fine imposed specifically for code

violations shall be used by the municipality for low-income

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housing in a manner determined by the municipality.

[(c) Nuisance ordinances.--

(1) Any purchaser of any lot or parcel of land known to

have one or more substantial violations of municipal nuisance

ordinances relating to maintenance, health or safety is

required to make a reasonable attempt to abate the nuisance

within one year of the date of purchase.

(2) Failure to comply with the requirements of this

subsection shall result in the purchaser being personally

liable for the cost of maintenance and a fine of not less

than $1,000 and not more than $10,000. Fines shall be

remitted to the municipality in which the lot or parcel of

land is located.

(d) Enforcement.--Local municipalities are authorized to

enforce the provisions of this section.

(e) Coordination with other requirements.--In connection

with the purchase of a building, structure, part of a building

or structure, lot or parcel of land subject to subsection (a) or

(c), a municipality shall not refuse to issue a use and

occupancy certificate or similar permit on the basis of a

substantial violation or require the correction of a substantial

violation as a condition to issuing a use and occupancy

certificate or similar permit unless the substantial violation

renders the property unfit for habitation.]

Section 4. This act shall take effect in 60 days.

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