On October 27, 2010, the Governor signed into law Act 90 of 2010 known as the Neighborhood Blight Reclamation and Revitalization Act (the “Act”). I The Act, which takes effect on April 25, 2011, provides municipalities the ability to file actions against property owners for failure to repair deteriorating property and to deny “municipal permits” due to deteriorating property and failure to pay property taxes or municipal claims.2 A copy of the Act is attached.

Actions Against Owner of Deteriorated Property
The Act authorizes municipalities to initiate actions against owners of property with a “serious violation” or determined to be a public nuisance at common law or by the appropriate municipal official. A “serious violation” is defined by the Act as “a violation of a 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.”) An action may be initiated personally against the owner after the owner fails to take substantial steps to correct the violation within six months from a final order to make said corrections. Municipalities may bring an action against the owner to collect all penalties imposed against the owner by the code including the costs incurred to remedy the violation. Municipalities may place a lien against the property owner’s assets after obtaining a judgment, decree or order entered by the court.

Permit Denials
The Act authorizes municipalities to deny “municipal permits” to any property owner with property in the Commonwealth subject to an unapealable delinquent real estate tax or municipal claim or having a “serious violation”. The municipality may withhold the permit until the property owner provides confirmation of compliance in accordance with the terms of the Act. For municipalities to deny the permit on grounds of a “serious violation” the owner must fail to take “substantial steps” to correct the violation within six months after receiving notice and the imposing of a fine, penalty, or judgment by the court.

Procedure for Permit Denial
The Act provides specific procedures for denying a “municipal permit”. The written denial shall include the following information regarding the property that is the basis of the denial:

• street address;
• municipality;
• county;
• court and docket number for the tax or municipal claim or court order; and
• a statement that the applicant may request a letter of compliance from the appropriate state agency, municipality or school district.

Upon the failure by a state agency, municipality, or school district to issue a response to a request for a confirmation of compliance within 45 days, the property shall be deemed compliant.

Recommendations
The following are suggested steps and procedures to be taken prior to the effective date of the Act.

• Review all applicable codes to verify the code provides for the declaration of a public nuisance, where appropriate, by the appropriate code officer, and require written declarations of a public nuisance to the property owner.
• Review ordinances to determine if the ordinance grants a privilege to real property allowing the right to deny municipal permits pursuant to the Act.
• Prepare a written policy to include procedures for the following in accordance with the terms of the Act:
  1. review of Township records for additional properties owned by applicant located within the municipality and performance of an investigation to ensure all such properties are in compliance pursuant to the Act;
  2. review and authentication of compliance letters submitted by applicant;
  3. issuance of denied municipal permits after receipt of acceptable compliance letter; and
  4. response to compliance requests to ensure response is provided within the 45 day requirement.
• Determine the need for a policy regarding the investigation of compliance for properties owned outside the municipality.
• Prepare a compliance response form pursuant to the Act.

Please contact our office for further explanation.

Vincent M. Pompo
Voice (610) 430-8000
Fax (610) 692-6210
vpompo@lambmcerlane.com

Robert T. McClintock
Voice (610) 430-8000
Fax (610) 692-6210
bmcclintock@lambmcerlane.com