Trial Engrossment of Amendment A03973 to House Bill 1791 P.N. 2033, Regular Session 2021-2022

A03973

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,

establishing a grant program for municipalities to establish

code enforcement programs and hire code enforcement

personnel, providing for powers and duties of the Department

of Community and Economic Development, establishing the

Municipal Property Maintenance Code Assistance Fund 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 B.1

MUNICIPAL PROPERTY MAINTENANCE CODE ASSISTANCE

Sec.

6121. Scope of subchapter.

6122. Legislative intent.

6123. Definitions.

6124. Code enforcement grant program.

6125. Fund.

6126. Surcharge.

6127. Report to General Assembly.

6128. Guidelines.

§ 6121. Scope of subchapter.

This subchapter relates to municipal property maintenance

code assistance.

§ 6122. Legislative intent.

The purpose of this subchapter is to provide funding for

individual municipalities, two or more municipalities under

Subchapter A of Chapter 23 (relating to intergovernmental

cooperation), councils of governments or a multimunicipal code

enforcement entity, for the purpose of municipal property

maintenance code enforcement within that county or region in

A03973 - 2 -

order to prevent and eradicate blighted property conditions.

§ 6123. 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.

"Fund." The Municipal Property Maintenance Code Assistance

Fund established in this subchapter.

§ 6124. Code enforcement grant program.

(a) Establishment.--The department shall issue grants to

municipalities for the purpose of reducing blighted property

conditions through any of the following:

(1) The establishment of special code enforcement

programs to address blighted property conditions, where a

municipal code enforcement program already exists.

(2) The establishment of code enforcement programs and

the hiring and training of code enforcement personnel in

those municipalities without an existing code enforcement

program.

(b) Competitive awards.--The department shall issue grants

under this section to municipalities on a competitive basis.

section, a municipality must submit an application acceptable to

the department. The department shall establish the application

process, including the form and manner in which the application

must be submitted to the department. A municipality shall

include all of the following information in an application

submitted under this subsection:

(1) The age of the existing housing stock in the

A03973 - 3 -

municipality.

(2) The municipality's current tax base and mileage

rate.

(3) The overall financial condition of the municipality.

(d) Authorized uses.--A municipality may only use a grant

issued under this section for any of the following purposes:

(1) Protecting the health, safety and welfare of the

general public.

(2) Protecting the health, safety and welfare of

individuals using public buildings, including public

facilities.

(3) Encouraging homeowners, landlords and tenants to

maintain the appearance and value of their dwellings.

(4) Reducing crime in neighborhoods.

(e) Matching funds.--A municipality shall provide its own

funds or in-kind contributions, approved by the department as

determined by guidelines established by the department under

section 6127 (relating to guidelines), equal to the amount of

the grant provided, and shall dedicate and expend those funds

for the purpose for which the grant was awarded.

(f) Limitations.--

(1) Grants issued under this section shall not be

provided to the same recipient for more than three

consecutive years.

(2) A grant issued under this section may not exceed

$100,000.

(3) No grant issued under this section may be used to

pay code enforcement personnel unless the individual has

acquired relevant certification or training in property

maintenance.

A03973 - 4 -

(4) Grants issued under this section may not exceed the

amount of money in the fund.

§ 6125. Fund.

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

Assistance Fund is established within the State Treasury.

(b) Transfers.--For the fiscal year beginning July 1, 2022,

the State Treasurer shall transfer $10,000,000 from the General

Fund to the fund from the amount of money generated from the

realty transfer tax imposed under section 1102-C of the act of

March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

1971.

exclusively for the purpose of issuing the grants provided for

under section 6124 (relating to code enforcement grant program).

T he department shall be reimbursed from the fund for the

department's administrative costs associated with issuing the

grants under section 6124.

§ 6126. Surcharge.

(a) Imposition.--Subject to the provisions of subsection

(b):

(1) Upon each subsequent inspection by a local code

official, a surcharge of $250 may be imposed on a real

property owner in violation of one or more provisions of a

municipal code for which the owner was previously cited for

violating.

(2) The surcharge imposed under paragraph (1) may be in

addition to any other applicable fee or charge imposed and

collected by the municipality as provided by law.

(b) Time to remedy.--

(1) With the exception of a serious violation, a

A03973 - 5 -

property owner shall have a minimum of 90 days following the

initial inspection by a local code official to remedy a

violation of a municipal code, for which the owner was

previously cited for violating, before the surcharge may be

imposed.

(2) For a serious violation, a property owner shall have

a minimum of 120 days following the initial inspection by a

local code official to remedy the serious violation, for

which the owner had been previously cited for violating,

before the surcharge may be imposed.

(1) The municipality shall collect the surcharge under

subsection (a) and remit the money to the department on a

quarterly basis for deposit into the fund.

(2) The department shall use the money collected under

paragraph (1) for grants under section 6124 (relating to code

enforcement grant program).

§ 6127. Report to General Assembly.

The department shall submit an annual report to the Urban

Affairs and Housing Committee of the Senate and the Urban

Affairs Committee of the House of Representatives concerning the

implementation of this subchapter. The report shall include the

total amount of money collected and deposited into the fund as

well as the number of grants awarded and the recipients of those

grants.

§ 6128. Guidelines.

Within 180 days of the effective date of this section, the

department shall establish guidelines to carry out the

provisions of this subchapter.

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

A03973 - 6 -

§ 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).

A03973 - 7 -

(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

A03973 - 8 -

(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

A03973 - 9 -

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

A03973 - 10 -

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.

A03973 - 11 -

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. B.1 shall

take effect in 90 days.

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

days.

A03973 - 12 -