PRIOR PRINTER'S NO. 682
PRINTER'S NO. 1693
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
291
Session of
2023
INTRODUCED BY KRAJEWSKI, CEPHAS, SOLOMON, ISAACSON, SMITH-WADE-
EL, HOHENSTEIN, GUENST, SCHLOSSBERG, MADDEN, RABB, HILL-
EVANS, SANCHEZ, GALLOWAY, D. WILLIAMS, FIEDLER, PARKER,
FLEMING, NEILSON, KINKEAD, OTTEN, N. NELSON, WAXMAN, STURLA,
PASHINSKI, T. DAVIS AND WEBSTER, MARCH 28, 2023
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 22, 2023
AN ACT
Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An
act providing when, how, upon what property, and to what
extent, liens shall be allowed for taxes and for municipal
improvements, for the removal of nuisances, and for water
rents or rates, sewer rates, and lighting rates; for the
procedure upon claims filed therefor; the methods for
preserving such liens and enforcing payment of such claims;
the effect of judicial sales of the properties liened; the
distribution of the proceeds of such sales, and the
redemption of the property therefrom; for the lien and
collection of certain taxes heretofore assessed, and of
claims for municipal improvements made and nuisances removed,
within six months before the passage of this act; and for the
procedure on tax and municipal claims filed under other and
prior acts of Assembly," further providing for municipal lien
priority.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3(a)(1) of the act of May 16, 1923
(P.L.207, No.153), referred to as the Municipal Claim and Tax
Lien Law, is amended to read:
Section 3. (a) (1) All municipal claims, municipal liens,
taxes, tax claims and tax liens which may hereafter be lawfully
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imposed or assessed on any property in this Commonwealth, and
all such claims heretofore lawfully imposed or assessed within
six months before the passage of this act and not yet liened, in
the manner and to the extent hereinafter set forth, shall be and
they are hereby declared to be a lien on said property, together
with all charges, expenses, and fees incurred in the collection
of any delinquent account, including reasonable attorney fees
under subsection (a.1), added thereto for failure to pay
promptly; and municipal claims and municipal liens shall arise
when lawfully imposed and assessed and shall have priority to
and be fully paid and satisfied out of the proceeds of any
judicial sale of said property, before any other obligation,
judgment, claim, lien, or estate with which the said property
may become charged, or for which it may become liable, save and
except only the costs of the sale and of the writ upon which it
is made, and the taxes, tax claims and tax liens imposed or
assessed upon said property. Modifications of purchase money
mortgages as provided under 42 Pa.C.S. § 8141 (relating to time
from which liens have priority) that are insured, guaranteed,
administered or securitized by a Federal agency listed under 15
U.S.C. § 1639c(b)(3)(B)(ii)(I), (II), (III) and (IV) (relating
to minimum standards for residential mortgage loans) or by an
enterprise as defined under section 4502(10) of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992
(Public Law 102-550, 106 Stat. 3941) 12 U.S.C. § 4502(10)
(RELATING TO DEFINITIONS) shall retain priority from the date on
which the purchase money mortgage was first delivered as
provided under 42 Pa.C.S. § 8141 over any municipal claims and
municipal liens that are imposed, assessed or liened thereafter,
regardless of the date such modification agreement evidencing
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the mortgage modification is delivered for recording. IMPOSED OR
ASSESSED PRIOR TO THE MORTGAGE MODIFICATION BEING DELIVERED FOR
RECORDING. ANY MUNICIPAL CLAIMS OR MUNICIPAL LIENS FILED AFTER
THE MORTGAGE MODIFICATION HAS BEEN RECORDED SHALL BE GIVEN
PRIORITY AS DETERMINED BY THIS ACT.
* * *
Section 2. This act shall take effect immediately.
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