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Tools to Address Blight and Abandonment

Tools to Address Blight and Abandonment. The Housing Alliance of Pennsylvania. Introduction. Addressing blight is a local concern But solutions are largely governed by State law PA General Assembly has modernized laws

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Tools to Address Blight and Abandonment

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  1. Tools to Address Blight and Abandonment The Housing Alliance of Pennsylvania

  2. Introduction • 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

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

  4. Tools WE HAVE to Address Blight and Abandonment

  5. Blight Prevention Strong Enforcement = Effective Prevention

  6. Blight Prevention – Code EnforcementMunicipal Code and Ordinance Compliance Act(Applies everywhere in Pennsylvania) Purpose: Purchasers of property must correct known violations within 12-18 months Person purchases property with known code violations Code Enforcement Official inspects property at sale Purchase of building Purchase of a lot 18 months to correct violations or demolish structure 12 months to correct violations 12-18 month re-inspection Violations not corrected Violations corrected Citation issued and fines from $1,000-$10,000

  7. Blight Prevention – Code EnforcementCrime of Municipal Housing Code Avoidance(Applies to all of PA) Purpose: Multiple code convictions are misdemeanor criminal offenses Owner of a property subject building, housing or property maintenance codes Convicted at least 4 times for same code violation Violations remain unabated Threatens health, safety, property No reasonable attempt to abate 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 = 1st degree misdemeanor Four summary convictions = 2nd degree misdemeanor

  8. Blight Prevention – Code EnforcementBlighted and Abandonment Property Conservatorship Law(Applies to all of PA) 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 3rd party (conservator) appointed to: Take possession Carry out court-approved rehabilitation plan Demolish building Bring building up to code (Can be financed by court approved conservators lien)

  9. Disposition Transfer property for beneficial use

  10. Disposition – Municipal Owner PropertiesWaiver of Bid Requirements for CDCs(Applies in 3rd Class Cities, Boroughs and 1st and 2nd Class Townships) 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

  11. Disposition – County Owner PropertiesWaiver of Fair Market Value Requirements for Non-Profits(Applies in all classes of counties) 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

  12. Disposition – Estate (Deceased Owner) PropertiesRedevelopment Authority Estate Administration(Applies to all of PA) 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

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

  14. Redevelopment Incentives Encourage private investment in blighted properties

  15. Redevelopment Incentives – Private Owners/InvestorsExisting Structures Code(Applies to all of PA) Purpose: Distinguishes new construction code and existing building rehabilitation code Properties with existing structures Existing structure undergoes rehabilitation work Property developers and Code Official apply codes for existing structures to rehabilitation work Facilitates rehabilitation of existing structures in a safe and economical manner Eliminates application of construction codes to building rehabs

  16. Redevelopment Incentives – Tax AbatementsImprovement of Deteriorating Real Property or Areas Tax Exemption Act(Applies everywhere deteriorated neighborhoods are designated by taxing body) 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

  17. Redevelopment Incentives – Improvement DistrictsNeighborhood Improvement District Act(Applies everywhere a special property assessment is approved by property owners) 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 Municipality should designate a NID management association to manage oversight Local municipalities, businesses and residents may agree to pool funds to provide services and improvements specifically for their neighborhood

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