1 Q G UICK UIDE New Tools to Address Blight and Abandonment Contributors Ashley S. Beers, J.D. Candidate, 2011 Cynthia Witman Daley, Esquire, Policy Director, Housing Alliance of PA Irene McLaughlin, J.D. Gillian Pavlek, J.D. Candidate, 2011 February 2011 The Housing Alliance of Pennsylvania Elizabeth G. Hersh, Executive Director 2 Introduction This Quick Guide provides a compilation and brief description of state laws recently enacted for Pennsylvania’s communities to address the problem of vacant, abandoned and blighted private property. While addressing blight is a local concern, the solutions are largely enabled by state law. Over the past several years the Pennsylvania General Assembly, in response to demand by local communities, has begun to modernize antiquated laws that stand in the way of local efforts. New individual laws are beginning to weave a “policy infra- structure,” or toolkit to transform blighted and abandoned property into quality homes people can afford, gardens and farms for fresh food, new business and indus- try that create local jobs. This Quick Guide describes these NEW TOOLS WE HAVE. This Quick Guide also includes NEW TOOLS WE NEED (but do not yet have), to craft a strong, innovative land recycling system for Pennsylvania. Without these new tools, local communities will continue to be stymied in their efforts to reclaim the blighted and abandoned property that plagues them. Organization of this Quick Guide: • A TABLE OF CONTENTS lists the tools in the categories described below. • A NEW TOOLS MATRIX lists new tools alphabetically and jurisdictional application (cities, counties, etc.), so you can see what laws apply to your borough, township, city or county. • A GLOSSARY of legal terms helps to decode what these laws actually mean. • Each TOOL WE HAVE (new laws) and TOOL WE NEED is briefly described on its own page with an overview of what it is intended to do and how to use it. The legal citation is provided so you can ask your local solicitor for more information and guidance. All the NEW TOOLS described (both those WE HAVE and those WE NEED), are organ- ized into four categories based on their role in a land recycling strategy: 1) Blight Prevention – because strong code enforcement is the most effective preven- tion 2) Acquisition – tools to take control of blighted and abandoned property while deal- ing with all its liabilities 3) Disposition – tools to transfer property for beneficial reuse 4) Redevelopment Incentives – to encourage and support private market investments in formerly blighted and abandoned properties We hope you find this guide helpful. We intend to update it as new tools become avail- able. Please let us know what you think! Elizabeth G. Hersh, Executive Director, The Housing Alliance of Pennsylvania 3 Table of Contents References Alphabetical Index by Jurisdiction 6-7 Glossary 8-12 Pennsylvania Tax Sale Laws 13 New Tools WE HAVE to Address Blight and Abandonment Category Applicable Law BLIGHT PREVENTION Property Code Enforcement Municipal Code and Ordinance Compliance Act 17 Crime of Municipal Housing Code Avoidance 18 3rd Class Cities Escalated Code Citations and Penalties 19 Blighted and Abandoned Property Conservatorship Law 20 Neighborhood Blight Reclamation and Revitaliza- 21 tion Act — Private Asset Attachment Neighborhood Blight Reclamation and Revitalization Act — 22 Extradition of Out-of-State Property Owners Neighborhood Blight Reclamation and Revitaliza- 23 tion Act — Permit Denial ACQUISITION — of Blighted, Abandoned Property (First Step in Beneficial Reuse) Eminent Domain Code Amendments — Reorganized and Updated Code 24 Code Amendments — Private Enterprise Prohibitions and 25 Exceptions Abandoned Property Urban Redevelopment Law 26 Real Estate Tax Delinquency Donation 27 Tax Sale Reforms Joint Petitions 28 Changes to Post-Sale Redemption 29 Single Free and Clear Sale (Allegheny & Philadel- 30 phia Counties) Preventing Property Speculation Discharge/Right of First Refusal 31 Prohibited Purchasers at Tax Sale Landlords with Revoked Rental License 32 Delinquent Property Owners 33 Housing Code Violators 34 Philadelphia Housing Code Violators 35 4 Table of Contents DISPOSITION — of Blighted Property (Reuse) Municipal-Owned Properties Waiver of Bid Requirements for CDCs 36 Waiver of Fair Market Value Requirements for Non- County-Owned Properties 37 profits Estate (Deceased Owner) Redevelopment Authority Estate Administration 38 Properties Blighted and Abandoned Property Conservatorship Privately Owned Properties 39 Law REDEVELOPMENT INCENTIVES Private Owners/Investors Existing Structures Code 40 Improvement of Deteriorating Real Property or Ar- Tax Abatements 41 eas Tax Exemption Act Improvement Districts Neighborhood Improvement District Act 42 New Tools WE NEED to Address Blight and Abandonment Category Applicable Law ACQUISITION — of Blighted, Abandoned Property (First Step in Beneficial Reuse) Real Estate Tax Delinquency Land Bank Authorizing Legislation 45 Tax Sale Reforms Bulk Sales 46 Elimination of Post-Sale Redemption 47 Single Free and Clear Sale (Statewide) 48 Preventing Property Right of First Refusal 49 Speculation Prohibited Purchasers at Landlords with Revoked Rental License 50 Tax Sale REDEVELOPMENT INCENTIVES Private Owners/Investors Smart Rehab Code 51 Residential Title Claims 52 5 n d ps ctio 1st & 2nClass ownshi XX XX XX XX XX XX XX XX XX XX T i d s s ri ntie X X X X X X X X X X X X X X X u u X X X X X X X X X X X X X X X o J C y b s h d oug XX XX XX XX XX XX XX XX XX XX e or c B n e s fer d Clas Cities XX XX XX XX XX XX XX XX XX XX XX XX e 3r R ss- Class Cities nton) X X X X X X X X X X X Cro 2nd “A” (Scra X X X X X X X X X X X s s h) s g ool d ClaCitiessbur XX XX XX XX XX XX XX XX XX XX XX T 2n Pitt ( w e s hia) of N 1st ClasCitieshiladelp XX XX XX XX XX XX XX XX XX XX XX P ( x de ge 0, 9 8 9 3 1 7 5 4 0 2 4 1 8 2 7 2 n Pa 23 1 1 3 3 2 2 2 4 2 3 4 2 3 1 4 I Alphabetical List of New Tools WE HAVE Blighted and Abandoned Property Conservator-ship Law Crime of Municipal Housing Code Avoidance 3Class Cities Escalated Code Citations and RD Penalties Delinquent Property Owners, Prohibited Pur-chasers Discharge/Right of First Refusal Donation Eminent Domain Code Amendments: Private Enterprise Prohibitions and Exceptions Eminent Domain Code Amendments: Reorgan-ized and Updated Code Existing Structures Code Extradition of Out-of-State Property Owners Housing Code Violators, Prohibited Purchasers Improvement of Deteriorating Real Property or Areas Tax Exemption Act Joint Petitions Landlords with Revoked Rental License, Pro-hibited Purchasers Municipal Code and Ordinance Compliance Act Neighborhood Improvement District Act 6 d ps d ps 1st & 2nClass ownshi XX XX XX XX XX 1st & 2nClass ownshi XX XX XX XX XX XX T T s s e e unti XX XX XX XX XX XX unti XX XX XX XX XX XX o o C C s s h h oug XX XX XX XX XX oug XX XX XX XX XX XX r r o o B B s s d Clas Cities XX XX XX XX XX XX d Clas Cities XX XX XX XX XX XX XX XX r r 3 3 Class Cities nton) X X X X X Class Cities nton) X X X X X X X X 2nd “A” (Scra X X X X X 2nd “A” (Scra X X X X X X X X s h) s h) s g s g d ClaCitiessbur XX XX XX XX XX XX d ClaCitiessbur XX XX XX XX XX XX XX XX 2n Pitt 2n Pitt ( ( s hia) s hia) 1st ClasCitieshiladelp XX XX XX XX XX XX XX 1st ClasCitieshiladelp XX XX XX XX XX XX XX XX P P ( ( ge 3 5 1 9 8 0 6 6 7 ge 6 5 0 7 2 9 8 1 a 2 3 2 2 3 3 2 3 3 a 4 4 5 4 5 4 4 5 P P - s, ni & nt h Alphabetical List of New Tools WE HAVE Permit Denial Philadelphia Housing Code Violators, Prohibited Purchasers Private Asset Attachment Redemption, Post-Sale, Changes to Redevelopment Authority Estate Admistration Single Free and Clear Sale (Allegheny Philadelphia Counties) Urban Redevelopment Law AmendmeAbandoned Property Waiver of Bid Requirements for CDCs Waiver of Fair Market Value Require-ments for Nonprofits Alphabetical List of New Tools WE NEED Bulk Sales Land Banks Prohibited Purchasers - Landlords witRevoked Rental License Redemption, Elimination of Post-Sale Residential Title Claims Right of First Refusal Single Free and Clear Sale (Statewide) Smart Rehab Code 7 Glossary of Terms Related to Blight and Abandonment Abandoned Property Technically, property that the owner voluntarily surrenders or relinquishes title to, with the intention of terminating ownership and possession, but without granting the property to an- other person. In practice, the word is used to describe property that no one is caring for. Few owners formally surrender title to properties, but owners or their heirs do walk away from properties, leaving them “abandoned.” Abate/Abatement Eliminating or lessening a problem. Affidavit A voluntary declaration of facts written down and sworn to by the person declaring before an officer authorized to administer oaths, such as a notary public. Appointment Judge in the court with jurisdiction over a property designates a specific person or entity for a specific job, such as a Conservator under the Blighted and Abandoned Property Conservator- ship Law, Act 2008-135. Articles of Incorporation Governing documents that detail the terms of a corporation’s existence including the number and classes of shares, the purpose and duration of the corporation. Blight This term has never been defined by the courts; rather it is defined by a variety of specific laws. Therefore, a variety of conditions may be required to determine a property blighted, de- pending on the law(s) applied. That being said, ‘blight’ refers generally to deteriorating property conditions that have deleterious effects on the community in which the property is situated. CDC Community Development Corporation (CDC) is a broad term referring to private nonprofit enti- ties, typically serving a low-income community constituency, governed by a community-based board, producing affordable housing, commercial, and/or industrial business-enterprise devel- opment, and usually serving a specific geographic location such as a neighborhood or a town. Code A building, housing, property maintenance, fire, health or other public safety ordinance en- acted by a political subdivision. Conservator A person or entity determined to be competent and appointed by a Court of Common Pleas Judge for the protection, rehabilitation or demolition of a property under the Blighted and Abandoned Property Conservatorship Law, Act 2008-135. Condemnation The process of taking private property for public use through the power of eminent domain. Consideration Something bargained for and received; the reason for entering into a contract. The term often refers to the purchase price for a property. 8