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public assistance ran into two signicant hurdles. First, many municipalies simply lack the funding to pursue aggressive enforcement against blight. It is not uncommon for the demolion procedures to cost tens of thousands of dollars, none of which is generally budgeted for by the municipality. Second, many municipalies are hesitant to take primary responsibility for blighted structures within private communies.
Before the ABPCA, an associaon’s opons for dealing with blight were as bleak as the properes themselves.
HELP FROM HARRISBURG An innovave opon for addressing blight was delivered by the General Assembly in the form of the Abandoned and Blighted Property Conservatorship Act, 68 Pa. C.S. § 1103, et seq. From a review of the statute, it appears that the original intent was to allow urban redevelopment groups to tear down or rehabilitate blighted structures in their neighborhoods. Fortunately, a court in Monroe County has expanded the scope of the ABPCA to include planned community associaons as well.
The ABPCA permits for the appointment of a “competent enty” to serve as a conservator over the property and oversee its demolion or rehabilitaon. See Secon 1103. The Act empowers any nonprot corporaon whose purposes include “community development acvies” to seek relief under the Act. Id. The ABPCA goes on to dene a “party in interest” as a nonprot corporaon located in the same municipality as the structure. Id.
Before proceeding, recognize that the statute contains two exclusions: a) the structure in queson cannot be a government building or one held in trust by the government, and b) a peon cannot be led against an owner acvely serving in the military. See Secon 1110.
The statute authorizes the appointment of a conservator to address blighted structures that require “substanal rehabilitaon.” This term applies if: a) the repairs cost more than 15% of the property’s value; or b) more than one major building component (roof, ceiling, wall, oor, foundaon, plumbing, heang,
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electrical) must be replaced.
As a praccal pointer, associaons interested in pursuing relief under the ABPCA should rst seek relief from the owner. If no acon is taken, try to exhaust your nonligaon opons before ling a peon under the Act. It is prudent to ask the municipality for assistance and to document any violaons occurring on the property before going to court. An associaon’s goal should be to show that the associaon pursued all opons before seeking relief under the ABPCA. If you’ve exhausted all other opons and cannot get any resoluon, it is prudent to order a full tle search and then begin developing your proposed peon.
THE LITIGATION PROCESS A peon under the ABPCA is an in rem acon, which means it is an acon solely against the land and does not seek monetary relief. The inial peon must contain a recommendaon for the proposed conservator and a preliminary plan for rehabilitang the structure. The preliminary plan must include cost esmates, idenfy funding sources, and ensure that the property is brought into compliance with local regulaons.
Once the peon is led, inial service of process must be provided via cered mail to the owner and all interested pares, i.e. municipalies and lienholders. If service cannot be accomplished through cered mail, the statute requires service via sheri or constable (within PA) or private service (outside of PA). This rst noce advises the interested party that the peon has been led and includes a copy of the peon. The court must then schedule a hearing within 120 days of ling. At that me, a second noce is required, which includes a noce of the hearing, a copy of the peon, and an explanaon of the interested pares’ right to intervene in the suit.
At the hearing, the peoner needs to prove ve elements: 1) the building has not been occupied for 12 months; 2) the building has not been acvely marketed for the last 60 days; 3) the building is not subject to foreclosure; 4) the current owner has not acquired the property within the last six months; and 5) the property is in poor condion.
The last factor requires the peoner to
show that at least three of nine factors are present, specically that the property: a) is a public nuisance; b) needs substanal rehabilitaon and no work has been done in the prior 12 months; c) is unt for human habitaon; d) poses greater risk of re; e) is subject to unauthorized entry and i) owner has failed to take steps to secure the building or ii) the municipality has secured the building; f) is an aracve nuisance to children; g) is a health hazard based on vermin, debris, vegetaon, etc.; h) negavely aects the economic wellbeing of residents and businesses in close proximity; and i) is an aracve nuisance for illicit purposes such as drug use, prostuon and vagrancy.
Aer hearing, the Court has 30 days to render a decision on whether to appoint a conservator. If the peoner can establish all these elements, the Court can appoint a conservator for the property, with rst consideraon going to the most senior lienholder.
Understand that the Act does give the owner a nal opportunity to cure. Specically, the ABPCA allows for an 11th hour reprieve if the owner goes to court and commits to rehabilitang the property. The court, in its discreon, can set parameters on the proposed rehabilitaon and can also require the owner to post a bond to ensure the work is done.
THE ROLE OF THE CONSERVATOR Once appointed, the Conservator has broad powers. The Conservator can: 1) take possession of the property, 2) contract for repairs, 3) borrow money, 4) purchase goods and supplies, 5) insure the structure, 6) pay professional fees, 7) sell the building, 8) exercise ownership powers over the structure, and 9) seek municipal approvals. The conservator’s rst job, though, is to develop the nal plan.
The ABPCA requires the approved plan to have a cost esmate, a nancing plan, and approved scope of work. If the Conservator borrows, the Court can grant lien priority to the lender and give the rst lienholder the opon to grant the loan. The plan must ensure that, once complete, the structure will comply with all local ordinances. The Conservators shall provide the court and interested pares with a copy of the nal plan and then a hearing shall be held to adopt the
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