neighborhood blight reclamation and revitalization act · 4/15/2015 1 neighborhood blight...

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Neighborhood Blight Neighborhood Blight Neighborhood Blight Neighborhood Blight Reclamation and Revitalization ActReclamation and Revitalization ActReclamation and Revitalization ActReclamation and Revitalization Act

PA STATE ASSOCIATION OF BOROUGHS WEBINARPA STATE ASSOCIATION OF BOROUGHS WEBINARPA STATE ASSOCIATION OF BOROUGHS WEBINARPA STATE ASSOCIATION OF BOROUGHS WEBINAR

APRIL 16, 2015APRIL 16, 2015APRIL 16, 2015APRIL 16, 2015

Christopher Gulotta, PresenterChristopher Gulotta, PresenterChristopher Gulotta, PresenterChristopher Gulotta, Presenter

�Served as Executive Director of the Cumberland County

Redevelopment and Housing Authorities from 1980-2010

�Formed The Gulotta Group, LLC in 2010 to provide training and technical assistance regarding community development issues

�Graduate of Dickinson College, Penn State Harrisburg

(Masters in Urban and Regional Planning) and the Dickinson

School of Law.

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Neighborhood Blight Neighborhood Blight Neighborhood Blight Neighborhood Blight Reclamation and Revitalization ActReclamation and Revitalization ActReclamation and Revitalization ActReclamation and Revitalization Act

�Legal Citation: 53 Pa.C.S.A. Section 6111

�Enacted October 27, 2010

�Empowers municipalities to take legal action against owners of deteriorated properties and deny municipal permits in some cases

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Permit Denials Permit Denials Permit Denials Permit Denials

A municipality or board may deny a municipal permit if the applicant owns real property in anymunicipality for which there exists on the property:� A final and unappealable tax, water, sewer or refuse collection

delinquency/charge; or

�A serious violation of state law or code and the owner has taken no substantial steps to correct the violation within six months following the notification of violations and for which fines or other penalties or a judgment to abate or correct were imposed by a magisterial justice or municipal court or a judgment was imposed by the Court of Common Pleas (anywhere in Pennsylvania)

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Permit Denials: DefinitionsPermit Denials: DefinitionsPermit Denials: DefinitionsPermit Denials: Definitions

�Under the law, a municipal permit is defined as “privileges relating to real property granted by a municipality, including but not limited to building permits, exceptions to zoning ordinances and occupancy permits.”

�This definition could be interpreted to include a rental license as well as an occupancy permit.

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Permit Denials: Definitions, cont.Permit Denials: Definitions, cont.Permit Denials: Definitions, cont.Permit Denials: Definitions, cont.

�“Tax delinquent property” is defined as tax delinquent under one of the state real estate tax sale laws. This is the case if the taxes have not paid in the penalty period or earlier.

�Property taxes are delinquent if not paid by December 31st

according to the Real Estate Tax Sale Law.


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Permit Denials (cont.)Permit Denials (cont.)Permit Denials (cont.)Permit Denials (cont.)

�Permit denial does not apply to situations where the delinquency (taxes, utility or refuse charges) have been appealed or otherwise contested through a court or administrative process.

�As indicated previously, the permit may also be denied if there exists on the real property a serious violation of state law or code and the owner has taken no substantial steps to correct the violation within six months after receiving notice of the violation and for which fines or other penalties or a judgment to abate or correct was imposed by a magisterial justice or municipal court or a judgment was imposed by the Court of Common Pleas.


Permit Denials: Definitions, cont.Permit Denials: Definitions, cont.Permit Denials: Definitions, cont.Permit Denials: Definitions, cont.

�“Serious violation” is defined as a violation of state law or a code that poses an imminent threat to the health and safety of a dwelling occupant, occupants in surrounding structures, or passersby.”

�“Substantial step” is defined as an affirmative action as determined by a property maintenance official or officer of the court on the part of a property owner or managing agent to remedy a serious violation of a state law or municipal code including, but not limited to physical improvements or repairs to the property…”


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The law indicates that municipal permit denial provision shall not apply if the issuance of a municipal permit is necessary to correct a violation of the state law or code.

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Permit DenialsPermit DenialsPermit DenialsPermit Denials

Query

If the structure is commercial in nature, is not in close proximity to other buildings, and is set back from the road or sidewalks, is the definition of “serious violation” met?

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Permit Denials: ProcessPermit Denials: ProcessPermit Denials: ProcessPermit Denials: Process

1. The municipality or board shall indicate the street address, municipality, and county of the property in question (i.e. the property that is tax or utility delinquent or adjudicated code issues) is located.

2. If applicable, the municipality or Board shall indicate the court and docket number for each parcel cited as the basis for denial.

3. The denial shall also state that the applicant may request a letter of compliance from the appropriate state agency, municipality, or school district in a form specified by such entity.

Permit Denials: Process, cont.Permit Denials: Process, cont.Permit Denials: Process, cont.Permit Denials: Process, cont.

The burden now shifts to the applicant to produce a letter of compliance from the appropriate jurisdiction that:� The property in question has no final and unappealable tax, water, sewer, or refuse delinquencies;

� The property in question is now in state law and code compliance; or

� The owner of the property has presented and the appropriate state agency or municipality has accepted a plan to begin remediation of a serious violation.

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Permit Denials: Process, cont.Permit Denials: Process, cont.Permit Denials: Process, cont.Permit Denials: Process, cont.

�If such a letter (indicating that the property is in compliance) is requested by the applicant and is not provided by the state agency, municipality, or school district or in the alternative, the jurisdiction does not indicate that the applicant is out of compliance within 45 days of the request, state law deems the property to be in compliance.

�This makes it imperative that the state agency, municipality or school district respond one way or another when requested by the applicant to document compliance or non-compliance.


If the owner of the property has presented and the appropriate state agency or municipality has accepted a plan to begin remediation of a serious violation, acceptance of the plan of remediation may be contingent upon:

�The owner beginning the remediation within no fewer than 30 days or sooner (if both parties agree) following acceptance of the plan; and

�Completing the remediation plan within no fewer than 90 days or sooner (if both parties agree).

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Permit Denials, cont.Permit Denials, cont.Permit Denials, cont.Permit Denials, cont.

�A permit may be denied to an owner or an agent of the owner.

�A denial of a permit shall be subject to the provisions of 2 Pa.C.S. Chapters 5 Subch.B (relating to practice and procedure of local agency actions) or the PA MPC, for denials subject to that act.


AOPC SearchAOPC SearchAOPC SearchAOPC Search

The Administrative Office of Pennsylvania Courts website lists all docketed cases before District Justice and the Court of Common Pleas.

Link: http://ujsportal.pacourts.us/DocketSheets/MDJ.aspx

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Asset AttachmentAsset AttachmentAsset AttachmentAsset Attachment

Act 90 also authorizes municipalities to place a lien against the assets of an owner of any real property that is:

� In serious violation of a code; or

� Is regarded as a public nuisance after a judgment decree or order is entered by a court of competent jurisdiction against the owner for the failure to correct a condition which causes the property to be regarded as a public nuisance.

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Asset Attachment (cont.)Asset Attachment (cont.)Asset Attachment (cont.)Asset Attachment (cont.)

�Public Nuisance is defined as a “Property which, because of its physical condition or use, is regarded as a public nuisance atcommon law or has been declared by the appropriate official as a public nuisance in accordance with a municipal code.”

�This means that if a municipality incurs costs in remediating the serious violations, it may obtain a judgment against the owner for costs and penalties, and may encumber all real estate owned by that person in Pennsylvania in that amount.

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Asset Attachment (cont.)Asset Attachment (cont.)Asset Attachment (cont.)Asset Attachment (cont.)It is not be financially feasible for your attorney to do a deed search for every property owned by an individual in PA; however, you should search deeds in your county, and if finances permit, adjoining counties.

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ExtraditionExtraditionExtraditionExtradition

�Act 90 allows the extradition of owners from other states that have been convicted of code violations under the PA Crimes Code; this would include the Crime of Municipal Housing Code Avoidance, which can rise to the level of a first degree misdemeanor if the owner is convicted of five code violations for the same offense at the same property.

�However, it is unlikely the Governor’s Office will spend time to process an extradition for a misdemeanor.

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Miscellaneous Miscellaneous Miscellaneous Miscellaneous

When property is inherited by will (or by intestacy), the heir shall be given the opportunity to make payments on reasonable terms to correct code violations, or to enter into a remediation agreement with a municipality to avoid subjecting the heir’s other properties to asset attachment or denial of permits and approvals on other properties owned by the heirs.

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Neighborhood Blight Reclamation and Neighborhood Blight Reclamation and Neighborhood Blight Reclamation and Neighborhood Blight Reclamation and Revitalization Act Revitalization Act Revitalization Act Revitalization Act Advantages

•Gets the attention of the problem property owner by imposing consequences for bad behavior

• Failure to pay taxes or utilities

• Failure to repair property in a timely manner

by denying permits or encumbering other properties with municipal liens.

•Administratively efficient compared to other tools but does require some due diligence

Disadvantages

•Asset attachment can be avoided if the property is titled as an LLC

•Permit denial probably not useful unless there is a rental housing ordinance which licenses rental units

•Extradition probably not feasible

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ConclusionConclusionConclusionConclusion•Neighborhood Blight Reclamation and Revitalization Act gives municipal jurisdictions more leverage to deal with problem property owners.

• The process prescribed by the law requires that municipal officials document certain circumstances (delinquent taxes, delinquent utilities, or serious code violations that have been adjudicated) but this process is easier and less costly than tools that require litigation such as eminent domain or a conservatorship action).

Conclusion (cont.)Conclusion (cont.)Conclusion (cont.)Conclusion (cont.)No tool to address blight is a silver bullet but the implementation of the Neighborhood Blight Reclamation and Revitalization Act can be a very effective approach in tandem with:

◦ enforcement of a strong property maintenance code

◦ adoption of a rental housing ordinance which includes rental licensing and the appointment of a local agent in the case of absentee owners

◦ disqualifying bidders at tax sales (for delinquent taxes and code violations)

◦ enactment of an ordinance that would phase-in or real estate taxes on improvements when those improvements result in an increase in assessed value.

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Contact InformationContact InformationContact InformationContact Information

Christopher Gulotta

The Gulotta Group, LLC

[email protected]

717-580-0439

neighborhood blight reclamation and revitalization act · 4/15/2015 1 neighborhood blight...

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