Regular Session 2019-2020 Senate Bill 0941 P.N. 1386

PRINTER'S NO. 1386

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

941

Session of

2019

INTRODUCED BY DiSANTO, ARGALL, BROWNE, MENSCH, YUDICHAK,

BREWSTER, MASTRIANO AND K. WARD, NOVEMBER 18, 2019

REFERRED TO URBAN AFFAIRS AND HOUSING, NOVEMBER 18, 2019

AN ACT

Amending the act of July 7, 1947 (P.L.1368, No.542), entitled

"An act amending, revising and consolidating the laws

relating to delinquent county, city, except of the first and

second class and second class A, borough, town, township,

school district, except of the first class and school

districts within cities of the second class A, and

institution district taxes, providing when, how and upon what

property, and to what extent liens shall be allowed for such

taxes, the return and entering of claims therefor; the

collection and adjudication of such claims, sales of real

property, including seated and unseated lands, subject to the

lien of such tax claims; the disposition of the proceeds

thereof, including State taxes and municipal claims recovered

and the redemption of property; providing for the discharge

and divestiture by certain tax sales of all estates in

property and of mortgages and liens on such property, and the

proceedings therefor; creating a Tax Claim Bureau in each

county, except counties of the first and second class, to act

as agent for taxing districts; defining its powers and

duties, including sales of property, the management of

property taken in sequestration, and the management, sale and

disposition of property heretofore sold to the county

commissioners, taxing districts and trustees at tax sales;

providing a method for the service of process and notices;

imposing duties on taxing districts and their officers and on

tax collectors, and certain expenses on counties and for

their reimbursement by taxing districts; and repealing

existing laws," in short title and definitions, further

providing for definitions; and, in sale of property, further

providing for notice of sale, for deed, for hearing and order

for judicial sale and for additional restrictions and

providing for condemnation orders.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 102 of the act of July 7, 1947 (P.L.1368,

No.542), known as the Real Estate Tax Sale Law, is amended by

adding a definition to read:

Section 102. Definitions.--As used in this act, the

following words shall be construed as herein defined, unless the

context clearly indicates otherwise:

* * *

"Condemnation order," a declaration by an authorized official

of a municipality that a dwelling, building, structure or

premises is unfit for human habitation or other use or

conditions exist that are dangerous or injurious to the health

or safety of the occupants of the dwelling, building, structure

or premises, the occupants of neighboring dwellings or other

residents of the municipality and which declaration includes a

demand for the owner to take corrective action to the dwelling,

building, structure or premises.

* * *

Section 2. Section 602(a) of the act is amended and the

section is amended by adding subsections to read:

Section 602. Notice of Sale.--(a) At least thirty (30) days

prior to any scheduled sale the bureau shall give notice

thereof, not less than once in two (2) newspapers of general

circulation in the county, if so many are published therein, and

once in the legal journal, if any, designated by the court for

the publication of legal notices. Such notice shall set forth

(1) the purposes of such sale, (2) the time of such sale, (3)

the place of such sale, (4) the terms of the sale including the

approximate upset price, (5) the descriptions of the properties

to be sold as stated in the claims entered and the name of the

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owner and (6) the statements set forth in subsection (j).

* * *

(g.1) For properties subject to condemnation orders, all

notices required by this section other than the newspaper notice

and notice in the legal journal shall contain the following

provision which shall be conspicuously placed upon said notices

and set in at least 10-point type in a box as follows:

NOTICE RELATING TO CONDEMNATION ORDER

"YOUR PROPERTY IS SUBJECT TO A CONDEMNATION ORDER BY THE

MUNICIPALITY IN WHICH YOUR PROPERTY IS LOCATED. YOUR PROPERTY

HAS BEEN DECLARED UNFIT FOR HUMAN HABITATION AND PLACARDED TO

PREVENT ITS ILLEGAL USE UNTIL THE PROPERTY IS BROUGHT INTO

COMPLIANCE WITH APPLICABLE CODES. THE DETAILS CONCERNING THE

CONDEMNATION ORDER MAY BE OBTAINED FROM THE PUBLIC MUNICIPAL

RECORDS AND DISCUSSIONS WITH THE MUNICIPAL CODE ENFORCEMENT

OFFICIALS. A PURCHASER OF YOUR PROPERTY IS REQUIRED BY LAW TO

ACKNOWLEDGE THE EXISTENCE OF THE CONDEMNATION ORDER AND IS

LIABLE FOR BRINGING THE PROPERTY INTO COMPLIANCE WITHOUT FURTHER

NOTICE. THE PURCHASER WILL BE SUBJECT TO FINES AND OTHER

ENFORCEMENT REMEDIES FOR FAILURE TO COMPLY WITH THE CODES AND

AND MAY BE LIABLE FOR INJURY TO PERSONS AND PROPERTY DUE TO A

PARTIAL OR TOTAL COLLAPSE OF ANY STRUCTURE ON THE PROPERTY OR

OTHER EVENT, INCLUDING A PEST INFESTATION. "

* * *

(j) The newspaper notice and notice in the legal journal

required by this section shall include the following statements:

"Some of the properties listed for sale in this notice

are subject to condemnation orders by the municipalities in

which the properties are located. The properties subject to

condemnation orders are indicated on the list. A property

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subject to a condemnation order has been declared unfit for

human habitation and placarded to prevent its illegal use

until the property is brought into compliance with applicable

codes. The details concerning the condemnation order may be

obtained from the public municipal records and discussions

with the municipal code enforcement officials. Purchasers of

the properties subject to the condemnation orders are

required by law to acknowledge the existence of the

condemnation orders and are liable for bringing the

properties into compliance without further notice. The

purchasers of properties subject to condemnation orders will

be subject to fines and other enforcement remedies, upon

taking deed to the property, for failure to comply with the

codes and may be liable for injury to persons and property

due to a partial or total collapse of any structure on the

property or other event, including a pest infestation."

Section 3. Sections 608 and 612(a) of the act are amended to

read:

Section 608. Deed.--After the court has confirmed the sale

and the purchaser has paid the amount of his bid, it shall be

the duty of the bureau to make to the said purchaser, his or

their heirs or assigns a deed in fee simple for the property

sold. Before recording the deed, the bureau shall attach to the

deed any condemnation order for such property as provided by the

applicable municipality. Each such deed shall be in the name of

the bureau as trustee grantor and shall be executed and duly

acknowledged before the prothonotary by the director and a

notation of such deed and acknowledgement shall be duly entered

on the proper records. The deed and any attached condemnation

order shall, before delivery, be recorded in the office for the

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recording of deeds at the cost of the purchaser.

Section 612. Hearing and Order for Judicial Sale.--

(a) If upon hearing, the court is satisfied that service of

the rule has been made upon the parties named in the rule, in

the manner provided by this act, and that the facts stated in

the petition are true, it shall order and decree that said

property be sold at a subsequent day to be fixed by the court,

freed and cleared of all tax and municipal claims, mortgages,

liens, charges and estates, except separately taxed ground rents

and condemnation orders that have not been vacated in accordance

with section 619.2(b), to the highest bidder, and that the

purchaser at such sale shall take and thereafter have an

absolute title to the property sold free and clear of all tax

and municipal claims, mortgages, liens, charges and estates of

whatsoever kind, except ground rents and condemnation orders

that have not been vacated in accordance with section 619.2(b),

separately taxed. Out of the proceeds of such sale shall be paid

the costs set forth in the upset price at the prior sale, and

the additional costs incurred relative to this sale, including

the fee for title search. The court order may specify that no

sale shall be made except to the county unless a bid equal to

such costs is offered. The remainder of said proceeds shall be

distributed by the office designated by the county commissioners

under section 205. After the purchaser shall have paid over the

purchase price, the bureau shall make and deliver a deed in the

manner hereinbefore provided.

* * *

Section 4. Section 619.1 of the act is amended by adding a

subsection to read:

Section 619.1. Additional Restrictions.--* * *

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(a.1) Each purchaser at an upset or tax sale of a property

subject to a condemnation order shall, upon making the

successful bid, sign a written acknowledgment and deliver it to

the sheriff. The acknowledgment shall state that the purchaser

recognizes that, upon taking deed to the property, the purchaser

is subject to liability for fines and other enforcement remedies

for failure to comply with the codes and that the purchaser may

be liable for injury to persons and property due to a partial or

total collapse of any structure on the property or other event,

including a pest infestation.

* * *

Section 5. The act is amended by adding a section to read:

Section 619.2. Condemnation Orders.--(a) Notwithstanding

any other provision of law to the contrary, a municipal code

officer who issues a condemnation order on a property shall file

a copy of the condemnation order with the tax claim bureau of

the county in which the property is located within fifteen (15)

days of issuance of the condemnation order. A copy of the

condemnation order may also be recorded by the municipal code

officer in the office for the recording of deeds within fifteen

(15) days of issuance of the condemnation order.

(b) If the municipal code officer determines that the

property upon which a condemnation order has been issued is no

longer in noncompliance with the applicable building and

property maintenance codes and vacates the condemnation order by

issuing a use and occupancy certificate for the property or

taking other similar action, the municipal code officer shall

file a statement with the tax claim bureau indicating that the

condemnation order has been vacated. The statement shall be

filed within fifteen (15) days of the condemnation order being

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vacated. If the condemnation order was recorded with a deed

under subsection (a) or section 608, the statement shall also be

recorded by the municipal code officer in the office for the

recording of deeds at no cost and within fifteen (15) days of

the condemnation order being vacated.

Section 6. This act shall take effect in 60 days.

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