Regular Session 2015-2016 House Bill 1437 P.N. 3952

SENATE AMENDED

PRIOR PRINTER'S NOS. 2024, 2460, 3196

PRINTER'S NO. 3952

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1437

Session of

2015

INTRODUCED BY GOODMAN, BISHOP, COHEN, D. COSTA, FARINA, KOTIK,

MAHONEY, MASSER, McNEILL, MURT, O'BRIEN, ROZZI, SAINATO,

SCHREIBER, SCHWEYER, TAYLOR, DeLUCA, NEILSON, KINSEY, BARBIN

AND DAVIS, JULY 6, 2015

SENATOR WAGNER, URBAN AFFAIRS AND HOUSING, IN SENATE, AS

AMENDED, SEPTEMBER 27, 2016

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 FOR

APPLICABILITY; 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

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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.] an 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

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of a property incident to the resale of the property that

reveals a violation but no substantial violation, and the

purpose of the 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.

"Temporary access 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 the

certificate is to authorize the purchaser to access the property

for the purpose of correcting substantial violations pursuant to

the maintenance and repair provisions of this act. No person may

occupy a property during the term of a temporary access

certificate, but the owner shall be permitted to store

personalty that is related to the proposed use or occupancy of

the property or is needed to repair the substantial violations

during the time of the temporary access certificate.

"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

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 stipulating that the property meets all ordinances

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and codes and may be used or occupied as intended.

"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 SECTIONS

to read:

Section 2.1. Issuance of use and occupancy certificate.

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

occupancy certificate shall issue the certificate in the

following manner:

(1) If the municipal inspection reveals no violations.

(2) If the municipal inspection reveals at least one

violation, but no substantial violations, the municipality

shall issue a temporary use and occupancy certificate.

(3) If the municipal inspection reveals at least one

substantial violation, the municipality shall specifically

note those items on the inspection report and shall issue a

temporary access 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.

prohibit a municipality from requiring an owner, prior to

accessing the property, to acquire the necessary permits and

meet all other related obligations in other statutes that

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pertain to building, property maintenance, fire codes or other

health or safety codes.

SECTION 2.2. APPLICABILITY.

(A) APPLICABILITY.--EXCEPT AS SET FORTH IN SUBSECTION (B),

THIS ACT SHALL NOT APPLY TO, AND A MUNICIPALITY MAY NOT REQUIRE,

A CERTIFICATE OF OCCUPANCY, A TEMPORARY USE AND OCCUPANCY

CERTIFICATE OR A TEMPORARY ACCESS CERTIFICATE FOR A REAL ESTATE

TRANSFER, INCLUDING A RESIDENTIAL OR NONRESIDENTIAL TRANSFER, AS

PROVIDED UNDER 68 PA.C.S. § 7103(B)(2) (RELATING TO APPLICATION

OF PART), TO ANY OF THE FOLLOWING WHICH TAKE TITLE TO PROPERTY

FOR THE PURPOSE OF HOLDING THE PROPERTY FOR SALE TO OFFSET

LOSSES INCURRED ON A LOAN OR OTHER OBLIGATION IN DEFAULT SECURED

BY A MORTGAGE, DEED OF TRUST OR OTHER LIEN ON THE PROPERTY:

(1) BANK.

(2) SAVINGS ASSOCIATION.

(3) CREDIT UNION.

(4) MORTGAGE LENDER.

(5) FINANCIAL INSTITUTION SIMILAR TO AN INSTITUTION

LISTED IN PARAGRAPHS (1) THROUGH (4).

(6) SUBSIDIARY OF A FINANCIAL INSTITUTION LISTED IN

PARAGRAPHS (1) THROUGH (5).

(B) EXCEPTION.--A FINANCIAL INSTITUTION NOT SUBJECT TO THIS

ACT UNDER SUBSECTION (A) MAY BE REQUIRED BY A MUNICIPALITY TO

CORRECT A SUBSTANTIAL VIOLATION.

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

Section 3. Compliance requirement.

(a) General rule.--Within [18] 12 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

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or more substantial violations of municipal codes relating to

building, housing, property maintenance or fire shall:] the

issuance of a temporary access certificate, 12 months of the

date of the issuance of a temporary use and occupancy

certificate or 12 months of the date of settlement or transfer

of title PURCHASE , the purchaser of a property KNOWN TO BE IN

VIOLATION OF A MUNICIPAL CODE OR ORDINANCE SHALL , at his option,

shall either:

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

building or structure] PROPERTY into compliance with [those]

municipal codes or ordinances; or

(2) demolish the building or structure in accordance

with law.

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

the property owner, the municipality may negotiate, at its

discretion, longer time periods for maintenance and repair of

the structure 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

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 access 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 access permit.

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(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 or codes 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

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

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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.]

(F) EXCEPTION.--A VIOLATION OF A MUNICIPAL CODE OR

ORDINANCE, FOR WHICH A FINE, OTHER PENALTY OR A JUDGMENT TO

ABATE OR CORRECT WAS IMPOSED BY A MAGISTERIAL DISTRICT JUDGE OR

MUNICIPAL COURT, OR A JUDGMENT AT LAW OR IN EQUITY WAS IMPOSED

BY A COURT OF COMMON PLEAS PRIOR TO PURCHASE, SHALL NOT BE

SUBJECT TO THE REQUIREMENTS OF THIS SECTION.

(f) (G) Nonapplicability.--This section shall not apply

where the municipality denies the certificate or permit pursuant

to 53 Pa.C.S. Ch. 61 (relating to neighborhood blight

reclamation and revitalization).

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

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