The Housing Alliance of Pennsylvania

Addressing blight is a local concern But solutions are largely governed by State law PA General Assembly has modernized laws Now there are a variety of new tools that can be used to address these issues

These new tools are divided into three categories: 1. Blight Prevention Strong enforcement = effective prevention 2. Disposition Transfer property for beneficial use 3. Redevelopment Incentives Encourage private investment in blighted properties

Tools WE HAVE to Address Blight and Abandonment

Strong Enforcement = Effective Prevention

Person purchases property with known code violations Purchase of building 18 months to correct violations or demolish structure Purchase of a lot 12 months to correct violations Code Enforcement Official inspects property at sale month re-inspection Violations not corrected Violations corrected Citation issued and fines from $1,000-$10,000 Purpose: Purchasers of property must correct known violations within months

Owner of a property subject building, housing or property maintenance codes Convicted at least 4 times for same code violation No reasonable attempt to abate Purpose: Multiple code convictions are misdemeanor criminal offenses Threatens health, safety, property Violations remain unabated Code Enforcement Official requests prosecution by ADA ADA approves and prosecutes Code Officials conduct periodic inspections to support prosecution Offender punished by incarceration Five plus summary convictions = 1 st degree misdemeanor Four summary convictions = 2 nd degree misdemeanor

Purpose: Court appointed third party may take control of blighted property Vacant buildings with code violations/ public nuisance conditions Not occupied for 1 year Not marketed for 60 days Not part of foreclosure action Owned longer than 6 months Court action initiated by owner, lien holder, nonprofit municipality, resident/business owner within 500 feet 3 rd party (conservator) appointed to: Take possession Bring building up to code Carry out court- approved rehabilitation plan Demolish building (Can be financed by court approved conservators lien)

Transfer property for beneficial use

Purpose: Makes it easier for non-profit Community Development Corporations (CDCs) to purchase property owned by a municipality Property titled in the name of the municipality A CDC involved in affordable housing or commercial industrial redevelopment approaches municipality to purchase property Municipality confirms prospective purchaser’s non-profit CDC status Property sold to CDC without advertising or bidding

Purpose: Makes it easier for non-profit organizations to purchase property owned by a county Property titled to a county government Non-profit organization engaged in construction of affordable housing/community industrial or commercial development approaches municipality to purchase property County confirms prospective purchaser’s non-profit status and activities Property sold to non-profit

Purpose: Allows Redevelopment Authorities to become personal representative of deceased person’s estate Vacant property that is titled in the name of a deceased person RA that serves the political subdivision where the property is located petitions for Letters of Administration Probate Clerk, County Register of Wills grants petition RA may administer estate for limited purpose of transferring title on real estate that is titled in the name of the deceased person only to an interested party

Purpose: Allows for judge to terminate conservatorship if certain conditions occur Vacant buildings under court ordered conservatorship (control by 3 rd party) Conservator requests the sale of the property from the court Owner reimburses conservator Owner may regain possession Owner does not reimburse conservator Court may approve free and clear sale of property Proceeds distributed in order specified in statute Court costs/governmental liens Conservator costs Owner receives balance after all other costs paid

Encourage private investment in blighted properties

Purpose: Distinguishes new construction code and existing building rehabilitation code Properties with existing structures Property developers and Code Official apply codes for existing structures to rehabilitation work Existing structure undergoes rehabilitation work Facilitates rehabilitation of existing structures in a safe and economical manner Eliminates application of construction codes to building rehabs

Purpose: Exempts from real estate taxes the amount of improvements and provides for abatements over a ten year period Deteriorated properties in designated “deteriorated neighborhood” Municipality adopts an ordinance setting out terms of abatements Owner applies for abatement Owner exempt from real property taxes the assessed valuation of improvements to deteriorated property

Purpose: Allows property owners in a Neighborhood Improvement District (NID) to pool money from a special property assessment for district improvements Properties with boundaries determined for a NID Governing body of municipality adopts the NID by resolution or ordinance Local municipalities, businesses and residents may agree to pool funds to provide services and improvements specifically for their neighborhood Municipality should designate a NID management association to manage oversight