Trial Engrossment of Amendment A03933 to House Bill 1791 P.N. 2033, Regular Session 2021-2022

A03933

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1791

Session of

2021

INTRODUCED BY TWARDZIK, SCHLOSSBERG, MERSKI, HILL-EVANS, CIRESI,

LEWIS DELROSSO, SCHLEGEL CULVER, R. BROWN, DAY, SMITH,

GAYDOS, PENNYCUICK, STURLA, SOLOMON, SCHMITT AND MERCURI,

AUGUST 16, 2021

REFERRED TO COMMITTEE ON URBAN AFFAIRS, AUGUST 16, 2021

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in neighborhood blight reclamation and

revitalization, further providing for definitions and,

providing for State blight data collection system; making an

appropriation; and providing for vacant property registration

and annual assessment.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 6103 of Title 53 of the Pennsylvania

Consolidated Statutes is amended by adding a definition to read:

§ 6103. 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:

* * *

"Vacant." A condition in which a structure that is designed

for human occupancy:

(1) has not been legally occupied for at least 90

consecutive days and has no evidence of utility usage within

the past 90 days; or

(2) is partially constructed or incomplete without a

valid building permit.

"Vacant blighted property." A blighted property that is also

vacant.

Section 2. Chapter 61 of Title 53 is amended by adding a

subchapter to read:

SUBCHAPTER C.1

STATE BLIGHT DATA COLLECTION SYSTEM

Sec.

6135.1. Definitions.

6135.2. Property Maintenance Code Violations Registry.

6135.3. Property maintenance code violation reports.

6135.4. Dissemination of information by department.

6135.5. Compliance .

6135.6. Administrative requirements.

6135.7. Audit.

6135.8. Imposition of surcharge.

6135.9. Duty of Attorney General.

6135.10. Appropriation.

§ 6135.1. Definitions.

The following words and phrases when used in this subchapter

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.

"Municipal claim." The term shall mean the same as defined

in the act of May 16, 1923 (P.L.207, No.153), referred to as the

Municipal Claim and Tax Lien Law.

"Registry." The Property Maintenance Code Violations

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Registry established under section 6135.2 (relating to Property

Maintenance Code Violations Registry).

§ 6135.2. Property Maintenance Code Violations Registry.

(a) Establishment.--The Property Maintenance Code Violations

Registry is established. The department shall implement and

administer the registry.

(b) Purpose.--The registry shall contain property

maintenance code violation reports filed by municipalities under

section 6135.3 (relating to property maintenance code violation

reports).

§ 6135.3. Property maintenance code violation reports.

(a) Duty to file report.--A municipality may file a property

maintenance code violation report for a person who owns real

property within the municipality with current serious property

maintenance code violations that remain unabated for at least

120 days.

(b) Forms provided.--Property maintenance code violation

reports shall be made on forms provided by the department and

submitted electronically.

violation reports shall include the following information:

(1) The name of the property owner whose real property

has been cited for a serious property maintenance code

violation. If the real property is owned by a limited

liability company or other entity that does not list each

principal of the limited liability company or other entity,

the department shall find the names of the principals and add

their names and the name of the limited liability company or

other entity to the registry.

(2) A copy of the citation issued to the real property.

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(3) The physical address and county of the real

property.

(4) The number of municipal claims or liens attached to

the real property.

(d) Access.--The department shall make the registry

accessible electronically to all municipalities. The department

shall make the registry searchable by property owner or by

property address.

§ 6135.4. Dissemination of information by department.

(a) Availability of information.--Information contained in a

property maintenance code violation report shall be accessible

for inspection and duplication in accordance with the act of

February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

(b) Requests by municipalities.--

(1) A municipality may request a copy of a property

maintenance code violation report on a pending applicant for

a municipal permit by submitting a property maintenance code

violation report request form to the department or requesting

the form electronically.

(2) The department shall disseminate a property

maintenance code violation report relating to a municipal

permit applicant to the requesting municipality within 10

business days of receipt of a property maintenance code

violation report request from the municipality.

(3) The municipality shall notify an applicant in

writing of the reasons for a decision that denies the

applicant a municipal permit if the decision is based in

whole or in part on information contained in the registry.

(1) A Commonwealth agency may request a copy of a

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property maintenance code violation report on a pending

applicant for licensing or certification by submitting a

property maintenance code violation report request form to

the department or requesting the form electronically.

(2) The department shall disseminate a property

maintenance code violation report relating to a State license

or certification applicant to a requesting Commonwealth

agency within two weeks of receipt of a property maintenance

code violation report request from the agency.

(3) The Commonwealth agency shall notify the applicant

in writing of the reasons for a decision that denies the

licensing or certification requested by the applicant if the

decision is based in whole or in part on information

contained in the registry.

(d) Hearing.--If requested by an applicant, the department

shall hold a hearing regarding the purpose for which the

property owner is listed on the registry, as applicable. If the

applicant submits a certificate or letter of code compliance

from the municipality to the department, the department shall

immediately update the official record in the registry within 48

hours based on the information in the certificate or letter.

(e) Record of dissemination.--The department shall maintain

a listing of Commonwealth agencies and all municipalities that

have requested information on a particular real property owner

and the date on which the information was disseminated. This

listing shall be maintained separate from the registry.

(f) Fee.--The department may not assess a fee for the

dissemination of property maintenance code violation

information.

§ 6135.5. Compliance.

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A municipality that files a property maintenance code

violation report with the department shall subsequently provide

the property owner with a certificate or letter of code

compliance when the real property is declared to be in code

compliance. If the property owner seeks to have the real

property removed from the registry, the property owner shall

forward a copy of the certificate or letter of code compliance

to the department. The department shall include the information

in the certificate or letter of code compliance as part of the

official record in the registry for the real property and

property owner.

§ 6135.6. Administrative requirements.

(a) Procedures .--The department shall establish procedures

for the completeness and accuracy of information in the registry

and shall promulgate the procedures in regulations necessary to

carry out the department's duty of maintaining the registry.

(b) Forms.--The department shall develop property

maintenance code violation report forms and property maintenance

code violation report request forms, as well as procedures to

obtain the information electronically.

the security of the information contained in the registry . The

following apply :

(1) Procedures shall be instituted to reasonably protect

the registry from theft, fire, sabotage, flood, wind or other

natural or manmade disasters.

(2) All personnel authorized to access registry

information shall be selected, supervised and trained

accordingly.

(3) The registry shall be available to the public.

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§ 6135.7. Audit.

(a) Duty of Auditor General.--The Auditor General shall

conduct annual performance audits of registry operations for the

first three years of the registry's existence and then every

five years thereafter.

(b) Access to records.--The department shall provide

auditors with access to all records, reports and listings

required to conduct an audit of property maintenance code

violations record information. Persons that have supervision of

or are authorized to receive registry information shall

cooperate with auditors and provide requested information.

deficiencies and recommendations for correcting the

deficiencies. The department shall respond to the audit

recommendations within a reasonable period of time.

§ 6135.8. Imposition of surcharge.

A property owner that is in violation of a municipal property

maintenance code for more than 120 days may be subject to a

registry surcharge in the amount of $500 for each violation . The

following apply to the surcharge:

(1) The surcharge shall be in addition to any other

applicable fees or charges lawfully collected by the

municipality and court.

(2) The surcharge shall take the form of a lien on the

real property and the municipality shall file the lien with

the county prothonotary or equivalent office.

(3) The county prothonotary or registry shall collect

the surcharge and remit all money to the department on a

quarterly basis.

(4) Money generated by the surcharge shall be used to

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finance the ongoing operation of the registry and to

reimburse the department for its administrative costs in

implementing the registry under this subchapter.

(5) Each fiscal year, the department shall transfer 10%

of the money generated by the surcharge in the prior fiscal

year to the unified judicial system to conduct training of

the judiciary in accordance with 42 Pa.C.S. § 1907 (relating

to deteriorated real property education and training program

for judges).

§ 6135.9. Duty of Attorney General.

(a) Out-of-State property owners.--For a person who lives or

has a principal place of residence outside this Commonwealth and

owns real estate property in this Commonwealth, upon written

request by a municipality, the Attorney General may assist the

municipality in pursuing compliance of the property owner in

order to bring the property up to municipal code if:

(1) A serious code violation has been cited.

(2) The property owner is charged under 18 Pa.C.S.

(relating to crimes and offenses).

(3) The property owner was properly notified of the

violations.

(b) Remedies.--For a violation under subsection (a), the

Attorney General may send a warning letter to the property owner

or file a court proceeding on behalf of the municipality.

§ 6135.10. Appropriation.

The sum of $1,000,000 is hereby appropriated from the General

Fund to the department for the initial Statewide implementation

of the registry for the fiscal year beginning July 1, 2022, and

ending June 30, 2023.

Section 2 3. Section 6141 of Title 53 is amended to read:

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§ 6141. [(Reserved).] Vacant property registration and annual

assessment.

(a) Authorization.--

(1) A municipality may impose and collect, by ordinance,

a vacant property registration fee and a vacant property

annual assessment consistent with this section on properties

deemed vacant and on properties deemed vacant blighted

properties.

(2) A municipality with a vacant property registration

ordinance in place prior to the effective date of this

subsection shall not be required to amend the ordinance to

comply with the provisions of this section.

(b) Listing required.--

(1) A municipality that elects to impose and collect a

fee and annual assessment under this section shall compile

and maintain a vacant and vacant blighted properties list

that identifies by address and owner all vacant and vacant

blighted properties in the municipality. Each listing shall

contain the date the property was listed and whether the

property is a vacant or vacant blighted property.

(2) The municipality shall update the municipality's

vacant and vacant blighted properties list annually and

submit the list to the county assessment office or comparable

office in a home rule county.

(3) The municipality shall submit the municipality's

first vacant and vacant blighted properties list to the

county assessment or comparable office in a home rule county

within six months of the enactment of an ordinance under this

section. All other submissions shall be submitted as provided

under paragraph (2).

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(1) A property deemed vacant and ineligible for an

exemption as provided in subsection (d) shall be subject to

an annual assessment at the rate of $5 per every $100 of

assessed value.

(2) A property deemed a vacant blighted property and

ineligible for an exemption as provided in subsection (d)

shall be subject to an annual assessment at the rate of $10

per every $100 of assessed value.

(d) Exempt vacant properties.--A vacant property shall be

exempt from inclusion on the vacant and vacant blighted

properties list under subsection (b), except as otherwise

provided in paragraph (3), and from annual assessment under

subsection (c) if the vacant or vacant blighted property is:

(1) Owned by the Federal Government or one of its

instrumentalities.

(2) Under active construction or undergoing active

rehabilitation, renovation or repair and a permit to make the

property fit for human occupancy was issued, renewed or

extended within 12 months of the required registration date.

(3) In compliance with all Federal, State and local laws

and the owner or the owner's agent has been actively seeking

in good faith to rent or sell the property. T he time frame

for sale or rent does not exceed:

(i) one year from the initial listing, offer or

advertisement of sale, in the case of a residential

property;

(ii) two years from the initial listing, offer or

advertisement of sale, in the case of a commercial

property; or

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(iii) one year from the initial listing, offer or

advertisement to rent, provided that any leased property

exempt under this paragraph has a valid certificate of

occupancy from the municipality.

The owner of a vacant property that satisfies the conditions

of this paragraph shall be subject to the duty to register

and pay the annual registration fee required by subsection

(e).

(4) Exempted by the municipality upon a showing of

economic hardship by the owner and that the owner is working

with the municipality to bring the property into compliance

with all Federal, State and local codes. An exemption under

this paragraph shall be subject to the following provisions:

(i) the exemption may be granted for a time frame

not to exceed 12 months from the required registration

date, subject to renewal on the basis of continuing

economic hardship. The municipality may withdraw the

exemption at any time;

(ii) the exemption may be granted for a time frame

not to exceed 24 months, if the property is subject to a

probate proceeding or the title is the subject of

litigation, not including a foreclosure of the right of

redemption action;

(iii) the exemption may be granted for a time frame

not to exceed 12 months, if the property is subject to a

pending application for a necessary approval for

development before State, regional or municipal planning

or zoning authorities and is maintained according to all

Federal, State and local laws; or

(iv) the cumulative time frame for an exemption from

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registration and annual assessment as provided under this

paragraph for a vacant property under the same,

substantially similar or related ownership shall not

exceed 36 consecutive months.

(5) Owned by a member of the United States military

presently on active duty, provided that the property is in

compliance with all Federal, State or local codes.

(e) Duties of owner and amount of registration fee.--The

owner of a vacant property shall maintain the property in

compliance with the requirements of all Federal, State and local

requirements and, within 30 days after the property is

determined to be vacant, shall register the property with the

municipality and pay an annual registration fee of $25 to the

municipality. If the name or address of the owner changes for

any reason other than by transfer or conveyance, the change

shall be reported to the municipality in writing within 30 days.

(f) Effect of conveyance.--If a present interest in a vacant

property registered under this section is transferred or

otherwise conveyed by deed, the deed shall not be recorded by

the recorder of deeds until a new vacancy registration is filed

with the municipality and the applicable fees are paid to the

municipality in accordance with this section.

(g) Penalties.--

(1) An owner who fails to comply with the registration

requirements required by this section shall be assessed a

penalty of $25 per day for residential properties and $50 per

day for commercial or industrial properties for each day that

the owner fails to register the vacant property with the

municipality. The owner shall also be subject to penalties

assessed under all other applicable Federal, State and local

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laws.

(2) The amount of any unpaid fee or annual assessment

authorized under this subsection shall constitute a lien

against the property and shall be collected in the same

manner as municipal claims by the municipality.

(h) Blight remediation and eradication fund.--

(1) A municipality that imposes a vacant property

registration fee and a vacant property annual assessment

shall establish a blight remediation and eradication fund

into which must be deposited all vacancy registration fees,

annual assessments and penalties the municipality collects.

(2) A municipality may use the funds in the

municipality's blight remediation and eradication fund to:

(i) acquire tax delinquent and foreclosed

properties;

(ii) donate to a land bank established by local

ordinance or State law;

(iii) apply to conservatorship projects as provided

in the act of November 26, 2008 (P.L.1672, No.135), known

as the Abandoned and Blighted Property Conservatorship

Act;

(iv) remediate blight conditions in the

municipality; and

(v) educate the municipality's residents about the

costs and dangers of vacancy and blight.

(3) A municipality may use up to 5% of the blight

remediation and eradication fund for administrative costs of

carrying out the provisions of an ordinance enacted under

this section.

Section 3. This act shall take effect in 60 days.

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Section 4. This act shall take effect as follows:

(1) This section shall take effect immediately.

(2) The addition of 53 Pa.C.S. Ch. 61 Subch. C.1 shall

take effect in 120 days.

(3) The remainder of this act shall take effect in 60

days.

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