PRINTER'S NO. 996

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

811

Session of

2021

INTRODUCED BY FONTANA, MENSCH, COSTA AND L. WILLIAMS,

JULY 20, 2021

REFERRED TO URBAN AFFAIRS AND HOUSING, JULY 20, 2021

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

hereby enacts as follows:

Section 1. Sections 3(b), 31.2(a), (b.1) and (b.2)(1) and

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

as the Municipal Claim and Tax Lien Law, are amended to read:

Section 3. * * *

(b) With the exception of those claims which have been

assigned, any municipal claim, municipal lien, tax, tax claim or

tax lien, including interest, penalty and costs, imposed by a

city of the first [class,] or second class or by a county of the

second class or by a municipality therein, shall be a judgment

shall be within the prothonotary's discretion. All tax claims,

rates heretofore filed are hereby ratified, confirmed and made

valid subsisting liens as of the date of their original filing.

* * *

Section 31.2. (a) In addition to the remedies prescribed in

sections [28,] 31 and 31.1 of this act, in cities of the first

[class,] or second class and counties of the second class and

any municipalities therein, whenever a claimant has filed its

tax or municipal claim in accordance with the requirements of

this act, it may file its petition in the court in which the

proceeding is pending, setting forth the facts necessary to show

thereupon the court shall grant a rule upon all parties thus

shown to be interested, to appear and show cause why a decree

should not be made that the property be sold, freed and cleared

of their respective claims, liens, mortgages, ground rents,

charges and estates. If upon a hearing, the court is satisfied

that service had been made of the rule upon the parties

respondent in the manner provided in [this act for the service

therein, if any,] section 39.2 and that the facts stated in the

sold at a subsequent sheriff's sale at a time to be fixed

thereafter by the claimant, clear of all claims, liens,

mortgages, ground rents, charges and estates, to the highest

bidder at such sale and after payment of the tax or municipal

lien the balance of the proceeds realized therefrom, shall be

distributed in accordance with the priority of the remaining

claims, liens, mortgages, ground rents, charges and estates, and

the purchaser at such sale shall take and forever thereafter

have, an absolute title to the property sold, free and

discharged of all tax and municipal claims, liens, mortgages,

(b.1) A city of the first or second class may, within thirty

days of any sale held under this section, petition the court of

common pleas to prohibit the transfer of any deed for any

property exposed for any sale under this act which is located in

that city to any purchaser who is proven to meet any of the

criteria set forth in subsection (b.2).

(b.2) (1) The petition of a city of the first or second

(i) failed to maintain property owned by the purchaser in a

or property; or

(ii) permitted the use of property in an unsafe, illegal or

unsanitary manner such that it posed a threat to health, safety

or property.

* * *

Section 32. (a) The owner of any property sold under a tax

or municipal claim, or his assignees, or any party whose lien or

estate has been discharged thereby, may, except as provided in

subsection (c) of this section, redeem the same if the property

is not located in a city of the second class or a county of the

the amount bid at such sale; the cost of drawing, acknowledging,

and recording the sheriff's deed; the amount of all taxes and

municipal claims, whether not entered as liens, if actually

paid; the principal and interest of estates and encumbrances,

not discharged by the sale and actually paid; the insurance upon

the property, and other charges and necessary expenses of the

property, actually paid, less rents or other income therefrom,

was lowest in lien at the time of sale shall have the prior

lien. Within nine months if the property is not located in a

city of the second class or a county of the second class or a

municipality therein or within three months if the property is

located in a city of the second class or a county of the second

class or a municipality therein, one who was lower in lien may

redeem from one higher in lien who has already redeemed, and the

owner may redeem from him; and so on throughout, in each case by

paying the claim of the one whose right was higher; and one

higher in lien may redeem from one lower in lien, unless his

claim is paid; but in each case the right must be exercised

therein, notice of a rule to show cause why a property should

not be sold free and clear of all encumbrances issued by a court

pursuant to a petition filed by a claimant under section 31.2 of

this act shall be served by the claimant upon owners,

mortgagees, holders of ground rents, liens and charges or

estates of whatsoever kind as follows:

(1) By posting a true and correct copy of the petition and

tax information certificate that identifies interested parties

section 39.1 of this act, the [city] claimant shall mail by

first class mail and either by certified mail, return receipt

requested, or by registered mail to such addresses as appear on

the respective records relating to the premises a true and

correct copy of the petition and rule.

Service of notice pursuant to this section shall be deemed

accomplished on the date of mailing. The [city] claimant shall

file an affidavit of service with the court prior to seeking a

decree ordering the sale of the premises.

(a.1) In counties of the second class and municipalities

(1) By posting a true and correct copy of the petition and

rule on the most public part of the property.

(2) By reviewing a title search, title insurance policy or

tax information certificate that identifies interested parties

of record, the county or municipality shall mail by first class

mail and either by certified mail, return receipt requested, or

by certificate of mailing to such addresses as appear on the

the premises.

search, title insurance policy or tax information certificate or

who failed to accurately register his interest and address

pursuant to section 39.1 of this act shall have standing to

complain of improper notice if the [city] claimant shall have

complied with subsection (a) of this section. This provision

shall not apply if the mortgage or interest was otherwise

properly recorded in the Office of the Recorder of Deeds or the

Department of Real Estate, as applicable, and the document

contains a current address sufficient to satisfy the notice

requirements of this section. Notwithstanding any other

to record or properly record its interest, shall have standing

to complain of improper notice if the county or municipality

shall have complied with subsection (a.1). This provision shall

not apply if the mortgage or interest was otherwise properly

recorded in the Office of the Recorder of Deeds or the

Department of Real Estate, as applicable, and the document

contains a current address sufficient to satisfy the notice

together with the time, place and date of the sale, shall be

petition and rule, on any parties whose interest appeared of

record after the filing of the petition but before the court's

decree and on any creditor who has obtained judgment against the

owner of the premises prior to the date of the decree. The

[city] claimant shall file an affidavit of service of these

notices prior to the date of the sale.

* * *

Section 3. The act is amended by adding a section to read:

Section 39.6. The m ayor of a city of the second class may

designate an agency for the acquisition, administration,

class to act as an agent on each taxing authority's behalf. A

city of the second class acting as an agent for a taxing

authority under this section may take any actions necessary to

protect and defend a taxing authority's rights and obligations

under this act.

Section 4. The amendment of section 32(a) of the act shall

apply to a sheriff's sale conducted on or after the effective