Regular Session 2021-2022 House Bill 0372 P.N. 0344

PRINTER'S NO. 344

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

372

Session of

2021

INTRODUCED BY A. DAVIS, GUENST, HILL-EVANS, SCHLOSSBERG,

SANCHEZ, PISCIOTTANO, HOHENSTEIN, LEE AND CIRESI,

FEBRUARY 3, 2021

REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 3, 2021

AN ACT

Providing for foreclosed property maintenance; imposing powers

and duties on the Department of Community and Economic

Development and municipalities; and prescribing 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:

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Foreclosed property." Real property consisting of buildings

or grounds that, as a result of default by a purchaser of a

financial agreement between a lender and purchaser, has been

placed in the legal process by the lender to recover the

property.

"Foreclosure proceeding." Legal action 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 proceedings.

"Legally occupied." The rental or lease of a foreclosed

property by an owner or agreed habitation during the foreclosure

proceeding.

"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 the municipality to maintain the foreclosed property

in accordance with section 7(a).

"Owner." An individual, entity, service company, property

manager or real estate broker who alone or severally with

others:

(1) has legal or equitable title to a 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 a dwelling, dwelling

unit, mobile dwelling unit or parcel of land, vacant or

otherwise, including a mobile home park, in any capacity,

including agent, executor, administrator, trustee or guardian

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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 foreclosure proceedings.

"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 service company lender in a

mortgage agreement and an agent, officer or employee of the

mortgagee, or a successor in interest and assignee of the

mortgagee's rights, interests or obligations under the

mortgage agreement;

(2) a party contracted by an 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 a 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

property is located within seven calendar days of initiating

foreclosure proceedings on an application developed by the

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department, but provided by the municipality or obtained from

the department's Internet website.

(b) Registration applications.--A foreclosed property

registration application must 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 not a 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. The certification shall include the following:

(i) If the property is 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.

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 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

consent of the owner or initiator of foreclosure

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proceedings during the proceedings.

be 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

foreclosed property is sold, becomes legally occupied or is

transferred to another party.

(e) Transfers.--If the foreclosed 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 property.

(b) Monthly inspection of property.--The owner or

responsible party shall maintain a foreclosed property on a

monthly basis while the property is vacant.

party shall maintain a foreclosed property in accordance with

local sanitary codes, building codes and other local laws,

ordinances and regulations concerning external and visible

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maintenance.

(d) Securing.--Vacant foreclosed 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 immediately

secure a vacant foreclosed property at the municipality's

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 of

foreclosed property shall satisfy the following duties in

accordance with applicable statutes, codes and ordinances:

(1) If the foreclosed property is a nonresidential

vacant building, the owner shall maintain the fire protection

systems, appliances and assemblies in operating condition and

maintain underwriter laboratories monitoring of the systems.

(2) If the foreclosed property is vacant, the owner

shall remove and properly dispose of all hazardous materials

and hazardous refuse that could present a fire hazard or

contribute to the spread of fire as well as all garbage,

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swill, filth or other waste materials located in or on the

vacant property.

(3) If the foreclosed property is vacant, the owner

shall properly maintain the police protection alarm systems

in operating condition.

(i) Plumbing fixtures.--Plumbing fixtures of a foreclosed

property connected to a water system, sewage system or natural

gas utility system shall be installed and maintained in sound

condition and good repair or removed and the service terminated

in adherence with applicable codes. The water system of a

foreclosed property that is vacant shall be protected against

freezing.

(j) Electrical.--Electrical service lines, wiring, outlets

and fixtures of a foreclosed property that are 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 of a foreclosed

property 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 a foreclosed property that

is vacant 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 foreclosed property that

is vacant, including water, sewer, electricity or gas

service.

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(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

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 of

a foreclosed property shall comply with all applicable exterior

property maintenance statutes, codes and ordinances, including,

but not limited to, the following:

(1) 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 and, if the foreclosed property is

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vacant, shall be secured from entry.

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

compliance with this act.

Section 6. Emergency abatement.

In addition to the instances listed in section 4, a

municipality may authorize immediate abatement of a foreclosed

property that is a 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 of a

foreclosed property 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 the 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 municipal maintenance 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

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mailing address for a locally based responsible party.

(3) The municipality's responsibilities in accordance

with this act.

shall be valid for not more than one year from the initial date

of filing. Subsequent municipal maintenance agreements must be

signed within 30 days of the expiration of the existing

municipal maintenance agreement.

(d) Limitations.--

(1) An owner or responsible party entering into a

municipal maintenance agreement shall be limited to one

registered property per municipal maintenance agreement.

(2) Nothing in this act may 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

maintenance work completed in accordance with the municipal

maintenance agreement.

(2) A municipality shall notify the owner or responsible

party of 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.--

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(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.

application fee shall be transferred by the municipality to the

department for administrative costs incurred by the department

under this act.

(d) Regulations.--The department may promulgate rules and

regulations necessary to administer the department's 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

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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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