PRIOR PRINTER'S NOS. 3126, 3698 PRINTER'S NO. 4061
No. 2188 Session of 2008
INTRODUCED BY WALKO, PETRONE, J. TAYLOR, ARGALL, BELFANTI, BRENNAN, CALTAGIRONE, CAPPELLI, COHEN, CURRY, FRANKEL, FREEMAN, GEIST, GEORGE, GINGRICH, HALUSKA, HARKINS, HENNESSEY, JOSEPHS, KOTIK, LONGIETTI, McGEEHAN, MELIO, MICOZZIE, MYERS, PRESTON, READSHAW, ROEBUCK, SAYLOR, K. SMITH, THOMAS, WANSACZ, J. WHITE, YOUNGBLOOD, YUDICHAK, LENTZ, PAYTON, WAGNER AND MOYER, JANUARY 23, 2008
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 25, 2008
AN ACT 1 Providing for court-appointed conservators to bring residential, 2 commercial and industrial buildings into municipal code 3 compliance when owners fail to comply. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Short title. 7 This act shall be known and may be cited as the Abandoned and 8 Blighted Property Conservatorship Act. 9 Section 2. Legislative findings and purpose. 10 The General Assembly finds and declares that: 11 (1) Pennsylvanian's older communities are important to 12 the Commonwealth's economic health by providing a focal point 13 for businesses and services and to this Commonwealth's 14 quality of life with its rich histories and diverse 15 communities. However, many older communities suffer from
1 blighted properties that have been abandoned by their owners. 2 (2) Many citizens of this Commonwealth are adversely 3 affected by abandoned and blighted residential, commercial 4 and industrial properties, including those citizens who live 5 in proximity to such substandard buildings as well as those 6 who own property in the vicinity of such buildings. 7 (3) Substandard, deteriorating and abandoned 8 residential, commercial and industrial structures are a 9 public safety threat and nuisance and their blighting effect 10 diminishes property values in the communities in which these 11 properties are located. 12 (4) If these buildings are not rehabilitated, they are 13 likely to remain abandoned and further deteriorate, resulting 14 in increased costs to the Commonwealth, municipality and 15 taxpayers to secure and ultimately demolish them. 16 (5) Providing a mechanism to transform abandoned and 17 blighted buildings into productive reuse is an opportunity 18 for communities to modernize, revitalize and grow and to 19 improve the quality of life for neighbors who are already 20 there. 21 (6) If the owner of a residential, commercial or 22 industrial building fails to maintain the property in 23 accordance with applicable municipal codes or standards of 24 public welfare or safety, it is in the best interests of the 25 Commonwealth, the municipality and the community for the 26 court, pursuant to the provisions of this act, to appoint a 27 conservator to make the necessary improvements before the 28 building deteriorates further and necessitates demolition, 29 resulting in the removal of the building from the housing 30 supply or prohibiting future productive economic use. 20080H2188B4061 - 2 -
1 Section 3. Definitions.
2 The following words and phrases when used in this act shall
3 have the meanings given to them in this section unless the
4 context clearly indicates otherwise:
5 "Building." A residential, commercial or industrial building
6 or structure and the land appurtenant thereto.
7 "Code." A building, housing, property maintenance, fire,
8 health or other public safety ordinance enacted by a
9 municipality.
10 "Competent entity." A person or entity, including a
11 governmental unit with experience in the rehabilitation of
12 residential, commercial or industrial buildings and the ability
13 to provide or obtain the necessary financing for such
14 rehabilitation.
15 "Cost "COSTS of rehabilitation." Costs and expenses for <--
16 construction, stabilization, rehabilitation, MAINTENANCE AND <--
17 OPERATION or demolition, including reasonable nonconstruction
18 costs associated with the project, including, but not limited
19 to, environmental remediation, architectural, engineering and
20 legal fees, permits, financing fees and a developer's fee
21 consistent with the standards for developers' fees established
22 by the Pennsylvania Housing Finance Agency.
23 "Court." The appropriate court of common pleas.
24 "Historic property." A property which is listed on the
25 National Register of Historic Places or is a contributing
26 property in a national register historic district or is located
27 in a local government ordinance historic district.
28 "Immediate family." A parent, spouse, child, brother or
29 sister.
30 "Nonprofit corporation." A nonprofit corporation that has as
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1 one of its purposes community development activities, including 2 economic development, historic preservation or the promotion or 3 enhancement of affordable housing opportunities. 4 "Owner." The holder or holders of title to, or of a legal or 5 equitable interest in, a residential, commercial or industrial 6 building. The term shall include an heir, assignee, trustee, 7 beneficiary and lessee provided the ownership interest is a 8 matter of public record. 9 "Party in interest." A person or entity who has a direct and 10 immediate interest in a residential, commercial or industrial 11 building, including: 12 (1) The owner. 13 (2) A lienholder and other secured creditor of the 14 owner. 15 (3) A resident or business owner within 500 feet of the 16 building. 17 (4) A nonprofit corporation within the municipality 18 where the building is located, including a redevelopment 19 authority. 20 (5) A municipality or school district in which the 21 building in located. 22 "Public nuisance." A property that, because of physical 23 condition or use, has been declared a public nuisance in 24 accordance with the local housing, building, health, fire or 25 related code or is determined to be a public nuisance by the 26 court. 27 Section 4. Initiation of action. 28 (a) Filing of petition.--A petition for the appointment of a 29 conservator to take possession and to undertake the 30 rehabilitation of a building may be filed by a party in interest 20080H2188B4061 - 4 -
1 in a court in the county in which the building is located. The 2 proceeding on the petition shall constitute an action in rem. 3 (b) Contents.--The petition submitted to the court shall 4 include a concise statement of the reasons a conservator should 5 be appointed and, to the extent available to the petitioner: 6 (1) A copy of any citation charging the owner with being 7 in violation of municipal code requirements or declaring the 8 building to be a public nuisance. 9 (2) A recommendation as to which person or entity should 10 be appointed conservator. 11 (3) A preliminary plan with initial cost estimates for 12 rehabilitation of the building to bring it into compliance 13 with all municipal codes and duly adopted plans for the area 14 in which the building is located and anticipated funding 15 sources. 16 (c) Notice of lis pendens.--The petitioner shall file a 17 notice of lis pendens in the office of the recorder of deeds for 18 the county in which the property is located. 19 (d) Notification of owner, political subdivisions and 20 lienholders.-- 21 (1) Upon filing the petition with the court, the 22 petitioner shall notify the current owner of the property, 23 all political subdivisions in which the property is located 24 and all lienholders of the filing by registered or certified 25 mail to the last known address of each and by posting a copy 26 of the notice on the building. 27 (2) In the event the registered or certified mail is 28 returned with notation by the postal authorities that the 29 recipient refused to accept the mail, the petitioner may mail 30 a copy to the recipient at the same address by ordinary mail 20080H2188B4061 - 5 -
1 with the return address of the petitioner appearing thereon. 2 (3) Service by ordinary mail shall be presumed complete 3 if the mail is not returned to the petitioner within 15 days 4 after mailing. 5 (4) In the event the registered or certified mail is 6 returned with the notation by the postal authorities that it 7 was unclaimed, the notice shall be personally served. 8 (5) In the event that the personal service is not able 9 to be made after two such attempts, then the petitioner shall 10 mail the petition to the recipient at the same address by 11 ordinary mail with the return address of the petitioner 12 appearing thereon with service by ordinary mail deemed 13 complete if the mail is not returned to the petitioner within 14 15 days after the mailing. 15 (6) The petitioner shall also notify the owner and each 16 lienholder of the hearing date and provide notice that the 17 owner and lienholders may petition to intervene in the 18 action. 19 Section 5. Appointment of conservator. 20 (a) General rule.--The court shall act upon a petition 21 submitted by holding a hearing within 120 days of receipt of the 22 petition and rendering a decision no later than 30 days after 23 completion of the hearing. 24 (b) Intervention.--Subject to the court's discretion, a 25 party in interest may intervene in the proceeding and be heard 26 with respect to the petition, the requested relief or any other 27 matter which may come before the court in connection with the 28 proceeding. 29 (c) Hearing.--At the hearing, any party in interest shall be 30 permitted to present evidence to support or contest the 20080H2188B4061 - 6 -
1 petition. 2 (d) Conditions for conservatorship.--If a petition is filed 3 under section 4, the court may appoint a conservator if all of 4 the following apply: 5 (1) The building has not been legally occupied for at 6 least the previous 12 months. 7 (2) The building has not been actively marketed during 8 the 60 days prior to the date of the petition. 9 (3) The building is not subject to an existing 10 foreclosure action. 11 (4) The current owner fails to present sufficient 12 evidence that he has acquired the property within the 13 preceding six months. The evidence shall not include 14 instances where the prior owner is a member of the immediate 15 family of the current owner, UNLESS THE TRANSFER OF TITLE <-- 16 RESULTS FROM THE DEATH OF THE PRIOR OWNER, or where the 17 current or prior owner is a corporation, partnership or other 18 entity in which either owner or the immediate family of 19 either owner has an interest in excess of 5%. 20 (5) The court finds at least three of the following: 21 (i) The building or physical structure is a public 22 nuisance. 23 (ii) The building is in need of substantial 24 rehabilitation and no rehabilitation has taken place 25 during the previous 12 months. 26 (iii) The building is unfit for human habitation, 27 occupancy or use. 28 (iv) The condition and vacancy of the building 29 materially increase the risk of fire to the building and 30 to adjacent properties. 20080H2188B4061 - 7 -
1 (v) The building is subject to unauthorized entry 2 leading to potential health and safety hazards and one of 3 the following applies: 4 (A) The owner has failed to take reasonable and 5 necessary measures to secure the building. 6 (B) The municipality has secured the building in 7 order to prevent such hazards after the owner has 8 failed to do so. 9 (vi) The property is an attractive nuisance to 10 children, including, but not limited to, the presence of 11 abandoned wells, shafts, basements, excavations and 12 unsafe structures. 13 (vii) The presence of vermin or the accumulation of 14 debris, uncut vegetation or physical deterioration of the 15 structure or grounds has created potential health and 16 safety hazards and the owner has failed to take 17 reasonable and necessary measures to remove the hazards. 18 (viii) The dilapidated appearance or other condition 19 of the building negatively affects the economic well- 20 being of residents and businesses in close proximity to 21 the building, including decreases in property value and 22 loss of business, and the owner has failed to take 23 reasonable and necessary measures to remedy appearance or 24 the condition. 25 (ix) The property is an attractive nuisance for 26 illicit purposes, including, prostitution, drug use and 27 vagrancy. 28 (e) Appointment.-- 29 (1) If the court determines after a hearing that the 30 property has met the conditions of subsection (d), the court 20080H2188B4061 - 8 -
1 may appoint a conservator and grant such other relief as may 2 be just and appropriate. 3 (2) The court shall give first consideration for 4 appointment as conservator to the senior lienholder on the 5 property. 6 (3) In the event the senior lienholder is found to be 7 not competent or declines the appointment, the court may 8 appoint a nonprofit corporation or other competent entity. In 9 appointing a conservator, the court shall: 10 (i) consider any recommendations contained in the 11 petition or otherwise presented by a party in interest; 12 and 13 (ii) give preference to the appointment of a 14 nonprofit corporation or governmental unit over an 15 individual. 16 (f) Conditional relief.-- 17 (1) If the court finds after a hearing that the 18 conditions for conservatorship set forth in subsection (d) 19 have been established, but the owner represents that the 20 violations or nuisance or emergency condition will be abated 21 in a reasonable period, the court may allow the owner to 22 proceed to remedy the conditions. 23 (2) If the conditions set forth in paragraph (1) have 24 been satisfied, the court shall enter an order providing 25 that, in the event that the violations or nuisance or 26 emergency conditions are not abated by the owner by a 27 specific date or that other specified remedial activities 28 have not occurred by a specific date or dates, an order 29 granting the relief requested in the petition shall be 30 entered. 20080H2188B4061 - 9 -
1 (3) The court may also require the owner to post a bond 2 in the amount of the repair costs estimated in the petition 3 as a condition to retaining possession of the building. 4 (g) Hearing on conservator's final plan for abatement.--At <-- 5 the time the court appoints a conservator, the court shall set a 6 date for hearing on the conservator's final plan for abatement 7 to be held within 120 days. 8 (h) (G) Conservator's lien.--The conservator may file a lien <-- 9 against the property in an amount based on the costs incurred 10 during the conservatorship. The lien amount may be adjusted from 11 time to time. 12 (i) (H) Immediate possession.--The conservator shall <-- 13 promptly take possession of the building and other property 14 subject to the conservatorship and shall immediately be 15 authorized to exercise all powers of this act. 16 (j) (I) Removal by court.--A conservator may be removed by <-- 17 the court at any time upon the request of the conservator or 18 upon a showing by a party to the action that the conservator is 19 not carrying out its responsibilities under this act. 20 Section 6. Powers and duties of conservator. 21 (a) Full powers and duties.--The conservator shall have all 22 powers and duties necessary or desirable, from time to time, for 23 the efficient operation, management and improvement of the 24 building in order to bring it into compliance with all municipal 25 building and housing code requirements and to fulfill the 26 conservator's responsibilities under this act. Such powers and 27 duties shall include, but not be limited to, the power to: 28 (1) Take possession and control of the building, 29 appurtenant land and any personal property of the owner used 30 with respect to the building, including any bank or operating 20080H2188B4061 - 10 -
1 account for the building. 2 (2) Collect outstanding accounts receivable. 3 (3) Pursue all claims or causes of action of the owner 4 with respect to the building and all other property subject 5 to the conservator. 6 (4) Contract for the repair and maintenance of the 7 building. The contracts shall be appropriately documented and 8 included in the reports and accounting which the conservator 9 is required to submit or file under the provisions of this 10 act. 11 (5) Borrow money and incur credit in accordance with 12 section 8. 13 (6) Contract and pay for the maintenance and restoration 14 of utilities to the building. 15 (7) Purchase materials, goods and supplies to accomplish 16 repairs and operate the building. 17 (8) With the court's approval, enter into new rental 18 contracts and leases for a period not to exceed one year. 19 (9) Affirm, renew or enter into contracts providing for 20 insurance coverage on the building. 21 (10) Engage and pay legal, accounting, appraisal and 22 other professionals to aid the conservator in the conduct of 23 the conservatorship. 24 (11) When the building has been designated a historic 25 property, consult with the municipality's historical 26 commission or board of historical and architectural review, a 27 local historic preservation organization or, in the absence 28 thereof, the Pennsylvania Historical and Museum Commission 29 for recommendations on preserving the property's historic 30 character. 20080H2188B4061 - 11 -
1 (12) Apply for and receive public grants or loans. 2 (13) Sell the building in accordance with section 9. 3 (14) Exercise all authority that an owner of the 4 building would have to improve, maintain and otherwise manage 5 the building. 6 (b) Affirmative duty.--While in possession of the building, 7 the conservator shall: 8 (1) Maintain, safeguard and insure the building. 9 (2) Apply all revenue generated from the building 10 consistent with the provisions of this act. 11 (3) (i) Develop a final plan for abatement of the 12 conditions which caused the petition to be granted or, if 13 no such feasible final plan can be developed, to develop 14 alternatives, including the closing, sealing or 15 demolition of all or part of the building. 16 (ii) When the building has been designated a 17 historic property, rehabilitate architectural features 18 that define the property's historic character. 19 (iii) When demolition of a property in a historic 20 district is necessary, design any replacement 21 construction on the site to comply with applicable 22 standards under current law. 23 (4) Implement the final plan referred to in paragraph 24 (3) upon approval by the court. 25 (5) Submit a status report to the court and parties to 26 the action annually or more frequently as the court may deem 27 appropriate. The status report shall include: 28 (i) A copy of any contract entered into by the 29 conservator regarding the improvement of the building. 30 (ii) An account of the disposition of all revenue 20080H2188B4061 - 12 -
1 generated from the building. 2 (iii) An account of all expenses and improvements. 3 (iv) The status of developing and implementing the 4 final plan pursuant to this subsection. 5 (v) A description of any proposed actions to be 6 taken in the next six months to improve the building. 7 (c) Submission of final plan.-- <-- 8 (1) The final plan referred to under subsection (b)(3) 9 shall be submitted to the court and to all parties to the 10 action. 11 (2) After notice and an opportunity for a hearing, the 12 court may amend the final plan. 13 (C) HEARING ON CONSERVATOR'S FINAL PLAN FOR ABATEMENT.-- <-- 14 (1) AT THE TIME THE COURT APPOINTS A CONSERVATOR, A 15 HEARING DATE ON THE CONSERVATOR'S FINAL PLAN FOR ABATEMENT 16 SHALL BE SET WITHIN 120 DAYS OF THE APPOINTMENT. 17 (2) THIRTY DAYS PRIOR TO THE DATE OF THE HEARING, THE 18 CONSERVATOR SHALL SUBMIT THE PLAN TO THE COURT AND TO ALL 19 PARTIES TO THE ACTION. 20 (3) THE PLAN SHALL INCLUDE A COST ESTIMATE, A FINANCING 21 PLAN AND EITHER A DESCRIPTION OF THE WORK TO BE DONE FOR THE 22 REHABILITATION OF THE BUILDING OR, IF REHABILITATION IS NOT 23 FEASIBLE, A PROPOSAL FOR THE CLOSING, SEALING OR DEMOLITION 24 OF THE BUILDING. 25 (4) THE PLAN SHALL CONFORM WITH ALL EXISTING MUNICIPAL 26 CODES, DULY ADOPTED PLANS FOR THE AREA AND HISTORIC 27 PRESERVATION REQUIREMENTS. 28 (5) AT THE TIME OF THE HEARING, ALL PARTIES SHALL BE 29 ALLOWED TO COMMENT ON THE PLAN, AND THE COURT SHALL TAKE ALL 30 COMMENTS INTO CONSIDERATION WHEN ASSESSING THE FEASIBILITY OF 20080H2188B4061 - 13 -
1 THE PLAN AND THE PROPOSED FINANCING. 2 (6) WITHIN 15 DAYS OF THE HEARING, THE COURT SHALL ISSUE 3 A DECISION APPROVING THE PLAN OR REQUIRING THAT THE PLAN BE 4 AMENDED. 5 (7) IF THE COURT DECISION REQUIRES THAT THE PLAN BE 6 AMENDED, A HEARING DATE SHALL BE SET WITHIN 60 DAYS FROM THE 7 DATE OF THE DECISION. 8 (d) Accounting.--Upon the implementation of the final plan 9 approved by the court, the conservator shall file with the court 10 a full accounting of all income and expenditures during the 11 period of time it took to implement the final plan. 12 Section 7. Ownership of property. 13 (a) Ownership interest of conservator.--A conservator 14 appointed under section 5 shall be deemed to have an ownership 15 interest in and legal control of the property for the purposes 16 of filing plans with public agencies and boards, seeking and 17 obtaining construction permits and other approvals and 18 submitting applications for financing or other assistance to 19 public or private entities. 20 (b) Liability of owner.--Notwithstanding the appointment of 21 a conservator under section 5, nothing in this act shall be 22 construed to relieve the owner of any civil or criminal 23 liability or of any obligation to pay taxes, municipal liens and 24 charges, mortgages, private liens or other fees or charges, 25 whether incurred before or after the appointment of the 26 conservator and no such liability shall transfer to the 27 conservator. 28 (c) Limitation of conservator's environmental liability.-- 29 (1) Notwithstanding any law to the contrary, the 30 conservator shall not be held liable for any environmental 20080H2188B4061 - 14 -
1 damage to the building or the real property upon which the 2 building is located that existed prior to the appointment by 3 the court of the conservator. 4 (2) Paragraph (1) does not apply to the owner or any 5 other person or entity regarding the building and its real 6 property that is subject to an appointed conservator under 7 this act. 8 Section 8. Incurring indebtedness. 9 (a) Borrowing.--From time to time a conservator may borrow 10 money or incur indebtedness in order to cover the cost of <-- 11 rehabilitation, improve, preserve, insure, manage or operate the 12 building COSTS OF REHABILITATION or to otherwise fulfill the <-- 13 conservator's obligations under this act. 14 (b) Liens.--In order to facilitate the borrowing of funds 15 for the rehabilitation of the building COSTS OF REHABILITATION, <-- 16 the court may grant a lien or security interest with priority 17 over all other liens with the exception of municipal or other 18 governmental liens, provided, however, that prior to granting a 19 priority lien, the court has found that: 20 (1) The conservator sought to obtain the necessary 21 financing from the senior lienholder, but the lienholder 22 declined to provide financing for reasonable improvements OR <-- 23 OTHER COSTS OF REHABILITATION on reasonable terms. 24 (2) Lien priority is necessary in order to induce 25 another lender to provide financing on reasonable terms. 26 (c) Lien status of rehabilitation expenses.--Should the 27 senior lienholder agree to provide financing for the 28 rehabilitation on the building COSTS OF REHABILITATION, any <-- 29 funds lent to cover the costs of such rehabilitation shall be <-- 30 deemed to be added to the senior lienholder's preexisting first 20080H2188B4061 - 15 -
1 lien. 2 (D) APPROVAL OF FINANCING.--THE COURT MAY APPROVE FINANCING <-- 3 FOR THE COSTS OF REHABILITATION, THE TERMS OF WHICH MAY INCLUDE 4 DEFERRED REPAYMENT AND USE RESTRICTIONS. THE TERMS OF THE 5 FINANCING MAY REMAIN WITH THE PROPERTY AFTER THE CONSERVATORSHIP 6 HAS ENDED AND BE ASSUMED BY ANY OF THE FOLLOWING: 7 (1) THE OWNER, IF THE OWNER REGAINS POSSESSION OF THE 8 PROPERTY UNDER SECTION 10(2). 9 (2) THE BUYER WHO TAKES TITLE UNDER SECTION 9. 10 Section 9. Sale of property. 11 (a) Sale by owner or lienholder.--If a property subject to 12 conservatorship is sold by the owner or foreclosed upon by a 13 lienholder or if any interest therein is transferred, such sale, 14 foreclosure or transfer shall be subject to the conservatorship. 15 (b) Sale by conservator.--Upon application of the 16 conservator, the court may order the sale of the property if the 17 court finds that: 18 (1) Notice was given to each record owner of the <-- 19 building and each lienholder of record. 20 (1) NOTICE AND AN OPPORTUNITY TO PROVIDE COMMENT TO THE <-- 21 COURT WAS GIVEN TO EACH RECORD OWNER OF THE PROPERTY AND EACH 22 LIENHOLDER. 23 (2) The conservator has been in control of the building 24 for more than six months and the owner has not successfully 25 petitioned to terminate the conservatorship under section 10. 26 (3) THE TERMS AND CONDITIONS OF THE SALE ARE ACCEPTABLE <-- 27 TO THE COURT, AND THE BUYER HAS A REASONABLE LIKELIHOOD OF 28 MAINTAINING THE PROPERTY. 29 (c) Sale free and clear.-- 30 (1) The court may authorize the conservator to sell the 20080H2188B4061 - 16 -
1 building free and clear of all liens, claims and 2 encumbrances, provided that the proceeds of the sale are 3 distributed pursuant to subsection (d) at settlement. 4 (2) In the event that the proceeds of the sale are 5 insufficient to pay all existing liens, claims and 6 encumbrances, the proceeds shall be distributed according to 7 the priorities set forth in subsection (d) and all unpaid 8 liens, claims or encumbrances WHICH HAVE NOT BEEN ASSUMED <-- 9 UNDER SECTION 8(D) shall be extinguished. 10 (d) Distribution.--The proceeds of the sale shall be applied 11 in accordance with the following priorities to: 12 (1) All court costs. 13 (2) Municipal or other governmental liens. 14 (3) Costs and expenses of sale. 15 (4) Principal and interest on any borrowing or 16 incurrence of indebtedness granted priority over existing 17 liens and security interest under section 8(b). 18 (5) Costs of rehabilitation and any fees and expenses 19 incurred by the conservator in connection with the sale or 20 the safeguarding, insuring or maintaining of the property and <-- 21 OF THE PROPERTY for which the lien authorized under section <-- 22 5(h) (5)(G) was filed. <-- 23 (6) Valid liens and security interests in accordance 24 with their priority. 25 (7) Any unpaid obligations of the conservator. 26 (8) Costs incurred by the petitioner in requesting the 27 court to place the property in conservatorship. 28 (9) The owner. 29 (e) Owner's proceeds as unclaimed property.--In the event 30 the owner cannot be located, any proceeds from the sale which 20080H2188B4061 - 17 -
1 belong to the owner shall be presumed to be abandoned and
2 unclaimed and shall be subject to the custody and control of the
3 Commonwealth pursuant to Article XIII.1 of the act of April 9,
4 1929 (P.L.343, No.176), known as The Fiscal Code.
5 Section 10. Termination of conservatorship.
6 Upon request of a party in interest or the conservator, the
7 court may order the termination of the conservatorship if it
8 determines:
9 (1) the conditions that were the grounds for the
10 petition and all other code violations have been abated or
11 corrected, the obligations, expenses and improvements of the
12 conservatorship, including all fees and expenses of the
13 conservator, have been fully paid or provided for and the
14 purposes of the conservatorship have been fulfilled;
15 (2) the owner, mortgagee or lienholder has requested the
16 conservatorship be terminated and has provided adequate
17 assurances to the court that the conditions that constituted
18 grounds for the petition will be promptly abated, all
19 obligations, expenses and improvements of the
20 conservatorship, including all fees and expenses of the
21 conservator, have been fully paid or provided for and the
22 purposes of the conservatorship have been fulfilled;
23 (3) the building has been sold by the conservator and
24 the proceeds distributed in accordance with section 9(d); or
25 (4) the conservator has been unable after diligent
26 effort to present a plan that could be approved under section
27 6(b)(3) or implement a previously approved plan or, for any
28 reason, the purposes of the conservatorship cannot be
29 fulfilled.
30 Section 11. Inapplicability to service members. <--
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1 This act shall not be applicable if the property owner is a 2 member of the Pennsylvania National Guard or other reserve 3 component of the armed forces of the United States who is called 4 or ordered to active duty, other than active duty for training, 5 and who has vacated the property in order to perform the 6 military service. 7 SECTION 11. APPLICABILITY. <-- 8 (A) GENERAL INAPPLICABILITY.--THIS ACT SHALL NOT APPLY TO 9 COMMERCIAL AND RESIDENTIAL BUILDINGS, STRUCTURES OR LAND OWNED 10 BY OR HELD IN TRUST FOR THE FEDERAL GOVERNMENT AND REGULATED 11 UNDER THE UNITED STATES HOUSING ACT OF 1937 (PUBLIC LAW 75-412, 12 50 STAT. 888, 42 U.S.C. § 1437 ET SEQ.) AND REGULATIONS 13 PROMULGATED UNDER THAT ACT. 14 (B) INAPPLICABILITY TO SERVICE MEMBERS.--THIS ACT SHALL NOT 15 APPLY IF THE PROPERTY OWNER HAS VACATED THE PROPERTY IN ORDER TO 16 PERFORM MILITARY SERVICE IN TIME OF WAR OR ARMED CONFLICT AS A 17 MEMBER OF THE UNITED STATES ARMED FORCES OR ITS RESERVE 18 COMPONENT. 19 Section 20. Effective date. 20 This act shall take effect in 90 days. A16L68DMS/20080H2188B4061 - 19 -