[HISTORY: Adopted by the City Council of
the City of Lancaster 8-23-2016 by Ord. No. 10-2016. Amendments noted where applicable.]
GENERAL REFERENCES
Municipal authorities — See Ch. 17.
A.
Legislative findings.
(1)
The City Council of the City of Lancaster finds that the social and
economic vitality of the City of Lancaster is adversely affected by
the City of Lancaster being home to a large inventory of vacant, abandoned,
and tax delinquent properties. These properties continuously impose
significant cost on neighborhoods and communities throughout the City
by lowering property values, increasing fire and protection costs,
undermining public health and sanitation efforts, decreasing tax revenues
and undermining community cohesion. Returning these properties to
productive use will help to battle and deter blight and solve the
aforesaid problems.
(2)
It is the intent and purpose of this chapter to Create the City of
Lancaster Land Bank Authority to facilitate the return of vacant,
abandoned, tax delinquent and blighted properties to productive use,
to combat community deterioration, to create economic growth and to
stabilize the housing and job markets within the City of Lancaster.
(3)
The City of Lancaster Land Bank Authority will acquire, hold and
transfer interests in real property throughout the City of Lancaster
as approved by the Authority's Board of Directors to deter the
spread of blight, to promote redevelopment and reuse of vacant and
abandoned tax delinquent properties, to support targeted efforts to
stabilize neighborhoods, to stimulate residential, commercial and
industrial development, and in any other ways that are consistent
with the goals and priorities established by this chapter, local governmental
partners and other community stakeholders.
(4)
As set forth in this chapter, the City of Lancaster and the Redevelopment
Authority of the City of Lancaster shall identify all surplus vacant
property which meet the criteria for redevelopment as set forth in
this chapter and notify the City of Lancaster Land Bank Authority
of their desire to have these properties acquired and developed by
the Authority.
B.
Authority. This chapter is adopted in accordance with the provisions
of Act 153 of 2012, P.L. 1239, an enactment of the Pennsylvania General
Assembly signed by the Governor on October 24, 2012, and codified
at 68 Pa.C.S.A. § 2101 et seq.
As used in this chapter, the terms set forth below have the
meanings given to them, unless the context clearly indicates otherwise.
The Board of Directors of the City of Lancaster Land Bank
Authority.
The City of Lancaster.
The separate public body corporate in politic established
pursuant to and in accordance with the provisions of this chapter
and the Land Bank Act.
Pennsylvania Act 153-2012, 68 Pa.C.S.A. § 2101
et seq., as it exists on the effective date, and as it may be hereafter
amended or replaced.
As defined in the Land Bank Act, a county, a city, borough,
township and/or incorporated town with a population of more than 10,000
people or two or more municipalities with populations less than 10,000
people that enter into an intergovernmental cooperation agreement
to establish and maintain a land bank.
The City and, after formation of the City of Lancaster Land
Bank Authority, any land bank jurisdiction or municipality that combines
with the City of Lancaster Land Bank Authority, and any taxing jurisdiction
that participates with the City of Lancaster Land Bank Authority for
the purpose of discharge of liens and claims as provided for in Section
2117(a) of the Land Bank Act.[1]
This chapter creating the City of Lancaster Land Bank Authority.
As defined in the Land Bank Act, a natural person with a
legal or equitable ownership interest in property which was the primary
residence of the person for at least three consecutive months at any
point in the year preceding the date of initial delinquency.
An individual, authority, a limited liability company, partnership,
firm, corporation, organization, association, joint venture, trust,
governmental entity or other legal entity.
As defined in the Land Bank Act, land and all structures
and fixtures thereon and all estates and interests in land, including
easements, covenants and leasehold interests.
The Redevelopment Authority of the City of Lancaster.
As defined in the Land Bank Act, any of the classifications
of school districts specified in Section 202 of the Act of March 10,
1949 (P.L. 30, No. 14), known as the "Public School Code of 1949."[2] The term includes, as to any real property acquired, owned
or conveyed by a land bank, the school district within whose geographical
jurisdiction the real property is located.
A county, city, borough, incorporated town, township, school
district, or body politic in corporate created as a municipal authority
pursuant to law that may have claims against property that is subject
to delinquent tax enforcement procedures and any other similar entities
as anticipated or implied by Section 2117(e.1) of the Land Bank Act.[3]
The City Council of the City of Lancaster hereby authorizes
the creation of a public body corporate in politic to be named the
"Lancaster City Land Bank Authority" and hereby establishes the same
as a separate legal entity and a public body corporate in politic
for the purpose of acting as a land bank under the Land Bank Act and
implementing and administering the terms of this chapter. The City
of Lancaster Land Bank Authority shall exist until terminated and
dissolved in accordance with the terms of this chapter.
A.
General acquisition. The Land Bank is authorized to acquire real
property or real property interests through donation, gift, purchase,
or any other legal means, including tax sale or judicial sale, or
by transfer from the Lancaster Tax Claim Bureau.
B.
Purchase. The Land Bank may acquire real property or real property
interests by purchase contract, lease purchase agreement, installment
sales contract, land contract and other similar agreements.
C.
Transfers. The Land Bank may accept transfers from the City, the
Redevelopment Authority of the City of Lancaster, the school district,
the County of Lancaster, authorities of the City of Lancaster, other
municipalities or any other public or private entity or person upon
terms and conditions agreed to by the Land Bank and the transferring
entity or person.
D.
Transfer of property from the Redevelopment Authority. Pursuant to
Section 2109(d)(3) of the Land Bank Act,[1] the Redevelopment Authority of the City of Lancaster may,
without a redevelopment contract, transfer property which it acquired
before the effective date of this chapter to the City of Lancaster
Land Bank Authority, which conveyance shall be through fee simple
title, free of all liens and encumbrances.
[1]
Editor's Note: See 68 Pa.C.S.A. § 2109(d)(3).
E.
Rights or interests. The Land Bank may acquire real property or rights
or interests in real property for any purpose that the Land Bank considers
necessary to carry out the purposes of this chapter and the Land Bank
Act.
F.
Owner-occupant policies. When the City of Lancaster Land Bank Authority
acquires residential properties that are occupied by the owners at
the time of acquisition, it shall be the policy of the Land Bank to
show a preference for keeping the former owner-occupants in their
homes, whenever feasible.
G.
Eminent domain. The City of Lancaster Land Bank Authority shall not
have the power of eminent domain.
H.
Prohibition on out-of-boundary real property ownership. The City
of Lancaster Land Bank Authority shall not own or hold real property
or real property interests outside of its jurisdictional boundaries.
I.
Civil action. The City of Lancaster Land Bank Authority may institute
a civil action to prevent, restrain or enjoin the waste of or unlawful
removal of any real property title to which is held by the Land Bank.
J.
Applicable laws. The Land Bank shall maintain its real property and
real property interests in accordance with applicable statutes, laws
and codes, with a preference for locally sourcing its partnerships,
joint ventures, contracts, and other collaborative relationships with
private entities for the maintenance, management, and rehabilitation
of real property of the Land Bank. In conjunction therewith, the Land
Bank may control, hold, manage, maintain, operate, lease as lessor,
secure, prevent the waste or deterioration of, demolish, or take all
other action necessary to preserve the value of the real property
that it owns or holds, and fix, charge, and collect rent, fees and
charges for use of Land Bank real property, or real property interests,
or for services provided by the Land Bank Authority.
K.
Website. The Land Bank shall maintain and make publically accessible
on its website and at its offices during normal business hours an
up-to-date inventory of property owned or held by the Land Bank and
a record of all properties conveyed by the Land Bank to other parties
within the previous and current calendar year.
L.
Environmental issues. Should the Land Bank have reason to believe
that real property held by the Land Bank may be the site of environmental
contamination, the Land Bank shall provide the Pennsylvania Department
of Environmental Protection (DEP) with any information in the possession
of the Land Bank that suggests that the real property may contain
such conditions. The Land Bank shall cooperate with the DEP with regard
to any requests made or action taken by DEP with respect to such properties.
Subject to the policies and procedures of the Board, provisions
of this chapter, Land Bank Act, and other applicable laws, the Land
Bank may convey, exchange, sell, transfer, lease, grant, or mortgage
interests in its real property or real property interests, to any
public or private person on terms and conditions, in the form of and
by method determined to be in the best interest of the Land Bank through
any means authorized under Section 2110 of the Land Bank Act[1] and under the following terms and conditions:
A.
Consistency with land use plans and planning provisions. All proposed
uses of land or buildings on real property disposed of by the City
of Lancaster Land Bank Authority shall be consistent with the provisions
of the City's Comprehensive Plan.
B.
Board disposition policies. The Board shall adopt policies and procedures
governing the disposition of real property interests. Real property
or real property interests shall be conveyed in accordance with the
Land Bank Act and according to criteria determined in the discretion
of the Board as set forth in policies and procedures adopted by the
Board. Those policies may include procedures establishing priorities
for a transferee's use of real property conveyed by the Land
Bank, which priorities may be for the entire Land Bank jurisdiction
or may be set according to the needs of different neighborhoods or
other locations within the Land Bank jurisdiction, or according to
the nature of the real property.
C.
Delegation of authority. The Board may delegate disposition authority
to the staff of the City of Lancaster Land Bank, except in the following
circumstances where the Land Bank is required to approve/deny the
disposition by formal action:
D.
Coordination. The Land Bank shall coordinate with the Redevelopment
Authority of the City of Lancaster where a redevelopment or project
involves properties acquired by the Redevelopment Authority of the
City of Lancaster, as well as properties acquired and/or owned by
the City of Lancaster Land Bank Authority, and shall strive to ensure
a synchronized disposition process.
E.
Consideration. The Board shall state in its policies and procedures
the general terms and conditions for consideration to be received
by the Land Bank for the transfer of real property and real property
interests. The Board shall determine the amount and form of consideration
necessary to convey, exchange, sell, transfer, lease, grant, or mortgage
interests in real property. Consideration may take the form of monetary
payments and secured financial obligations, covenants and conditions
related to the present and future use of the property, contractual
commitments of the transferee and other forms of consideration as
determined by the Board to be in the best interest of the Land Bank.
F.
Municipal disposition requirements not applicable. Requirements which
may be applicable to the disposition of real property and interests
in real property of the City of Lancaster shall not be applicable
to the disposition of real property and interests in real property
by the City of Lancaster Land Bank Authority pursuant to Section 2110(d)(2)
of the Land Bank Act.[2]
[2]
Editor's Note: See 68 Pa.C.S.A. § 2110(d)(2).
[1]
Editor's Note: See 68 Pa.C.S.A. § 2110.
A.
Market value shall be determine by up-to-date data and by using the
valuation method that the Land Bank or its staff had determined is
most appropriate given the particular conditions of the property and
surrounding market.
B.
Nominal or reduced-price disposition shall be an option for any property
owned by the Land Bank.
C.
In calculating a reduced sales price, the discount shall take into
account the benefit provided by the proposed use, and the amount of
discount needed to make the project both initially financially feasible
and continually sustainable.
D.
For housing projects servicing households at a mix of income levels,
the Land Bank may count the number of low and moderate income households
served and provide proportionate discounting.
E.
The Land Bank shall make available an appeals process wherein a potential
purchaser may submit evidence relevant to the value of the property.
F.
The Land Bank shall enforce any provisions agreed upon as conditions
of sale between the transferee and the Land Bank through legally binding
mechanisms, including but not limited to deed restrictions, covenants,
and mortgages.
The City of Lancaster Land Bank Authority is authorized to discharge
liens and other municipal claims, charges or fines of the City of
Lancaster and may seek to enter into an agreement for discharges from
the applicable municipal body against the properties that it acquires.
For the duration of the time a property is held by the City of Lancaster
Land Bank Authority, the Land Bank is authorized to abate all real
estate taxes, water and sewer charges and other municipal charges
by the City of Lancaster and, to the extent necessary, may seek abatement
or non-taxable status from other applicable government entities.
A.
The City of Lancaster Land Bank Authority shall not spend any public
funds on political activities. Subject to the foregoing, this section
is not intended to prohibit the Land Bank from engaging in activities
authorized by applicable law.
B.
No provision of this chapter is intended, nor shall it be construed,
as a waiver by the City of any governmental immunity provided to the
City or the Land Bank under any applicable law.
C.
The Land Bank shall comply with all applicable laws prohibiting discrimination.
The Land Bank shall be committed to assure that the public body, its
Board, its staff, and those under its direction and control shall
provide services in a manner that does not discriminate against an
individual because of religion, race, color, natural origin, age,
sex, sexual orientation, height, weight, marital status, partisan
considerations, disability or genetic information. The Land Bank shall
not fail or refuse to hire, recruit, promote, demote, discharge, or
otherwise discriminate against an individual with respect to employment,
compensation, or a term, condition or privilege of employment, because
of religion, race, color, natural origin, age, sex, sexual orientation,
height, weight, marital status, partisan considerations, disability
or genetic information.
A.
Board of Directors.
(1)
Appointments. The Land Bank shall be governed by a Board of Directors
comprised of seven members who reflect the diversity and range of
interests affected by the Land Bank's activities. Each member
of the Redevelopment Authority on the date of creation of the Land
Bank shall serve on the Land Bank Authority for the same term as his
or her term on the Redevelopment Authority of the City of Lancaster,
and the Lancaster City Council shall appoint two additional members
who are residents of Lancaster City and at least one of whom shall
not be a public official or municipal employee and shall maintain
a membership with a recognized civic organization in Lancaster City.
(a)
The members of the Redevelopment Authority shall serve on the
Land Bank Authority Board for so long as they serve on the Redevelopment
Authority, and the Lancaster City Council shall appoint two additional
members who also shall serve a four-year staggered term with the first
member appointed to serve a four-year term from January 1 of the year
of the creation of the Land Bank Authority and the second member appointed
to serve a two-year term from January 1 of the year of the creation
of the Land Bank Authority. Members may be appointed for consecutive
terms thereafter, with each term being for four years or the unexpired
portion thereof. Newly appointed members of the Redevelopment Authority
shall automatically be a member of the Board of Directors of the Land
Bank for a term the same as his or her term on the Redevelopment Authority.
(b)
Members shall continue to serve until their successors have
been appointed and confirmed.
(c)
Members shall serve without compensation and may seek reimbursement
for expenses associated with duties relating to Land Bank activities.
(d)
Members of the Board of the Land Bank and its employees shall
be subject to the Act of July 19, 1957 (P.L. 101), No. 451, known
as the "State Adverse Interest Act" and the ethical standards and
disclosure requirements of 65 Pa.C.S.A. Chapter 11 and any other supplemental
rules and guidelines adopted by the Board of the Land Bank.
(2)
Officers. The Land Bank members shall elect officers to serve as
Chair, Vice Chair, Secretary and Treasurer to serve one-year terms.
Members may be reelected to serve successive terms. The duties of
officers shall be established by the Board according to law.
(3)
Vacancies. Any vacancy in the two members appointed by the Lancaster
City Council shall be filled by appointment by the Lancaster City
Council. Vacancies in members serving by virtue of appointment to
the Redevelopment Authority of the City of Lancaster shall be filled
by the person appointed to fill that vacancy at the Redevelopment
Authority.
(4)
Meetings.
(a)
The Land Bank shall hold regular public meetings, shall make
each meeting's agenda available on the Land Bank's website
in advance of such meeting and shall allow for public comment on matters
under deliberation at each such public meeting. The place, date and
time of the Land Bank meetings shall be determined at the discretion
of the Board of Directors. All meetings of the Board of Directors
shall comply with the Pennsylvania Sunshine Act.[1] The Chair of the Board may call special meetings by written
notice of at least 24 hours to each Board member and in accordance
with the Pennsylvania Sunshine Act.
[1]
Editor's Note: See 65 Pa.C.S.A. § 701 et seq.
(b)
A quorum shall be necessary for the transaction of any business
by the Board of Directors. A majority of the members of the Board
of Directors, excluding vacancies on the Board, shall constitute a
quorum. The Board of Directors shall act by a majority vote of the
members at a meeting at which a quorum is present, except as otherwise
provided in this chapter. No voting by proxy shall be permitted.
(c)
Minutes of all meetings of the Board of Directors and its committees
shall be made and maintained.
(5)
Land Bank powers. The directors of the Land Bank are under a fiduciary
duty to conduct the activities and affairs of the Land Bank in the
best interest of the residents of the City of Lancaster, including
the safekeeping and use of all Land Bank monies and assets. The Board
of Directors shall discharge its duties in good faith, with the care
an ordinary prudent person in a like position would exercise under
similar circumstances. The Land Bank shall have the following powers
and duties:
(a)
To develop stewardship and management plans for each acquired
interest not inconsistent with or detrimental to the purpose/rationale
which justifies its acquisition;
(b)
To supervise the management of the property interests acquired;
(c)
To develop annual reports of Land Bank activity;
(d)
To conduct real property appraisals;
(e)
To negotiate real property purchases or trades;
(f)
To provide for a system of accounting;
(g)
To adopt, amend and/or repeal policies and procedure for contracting
and procurement which must be consistent with the provisions set forth
in the Lancaster City Codified Ordinances;
(h)
To borrow money from private lenders, for cities or counties,
for the state or from federal government funds to further or carry
out the Land Bank's public purpose by executing leases, trust
indentures, trust agreements, agreements for the sale notes, loan
agreements, mortgages, deeds to secure debt, trust deeds, security
agreements, assignments, and such other agreements or instruments
as may be necessary or desirable, in the judgment of the Land Bank,
to evidence and to provide security for such borrowing;
(i)
To make application directly or indirectly to any federal, state,
county or municipal government or agency or to any other source, whether
public or private, for loans, grants, gifts, guarantees, labor, or
other aid or financial assistance in furtherance of the Land Bank's
public purpose and to accept and use the same upon such terms and
conditions as are prescribed by such federal, state, county, or municipal
government or agency or other source;
(j)
The City hereby assents to real estate tax payment allocation
to the Land Bank for properties returned to the tax rolls after Land
Bank ownership with regard to Lancaster City real estate taxes to
the extent allowed by state law, and the Land Bank Authority is authorized
to seek allocation of real estate taxes on return of land to the tax
rolls after Land Bank ownership by agreement with other applicable
taxing authorities; and
(k)
All other powers and duties provided for, authorized or allocated
under Act 153 of 2012, 68 Pa.C.S.A. § 2107.
A.
Employees. The Land Bank may engage staff and/or employ in conjunction
with the Redevelopment Authority or other partnering public entities,
including an executive director, counsel and technical experts and
other individuals.
B.
Contract. The Land Bank may enter into a contract or memorandum of
understanding or intergovernmental cooperation agreement with a municipality
for:
A.
The Land Bank shall obtain insurance to defend and indemnify the
Land Bank and the members of the Board of Directors with respect to
all claims or judgments arising out of their activities as members
with respect to all negligence claims or judgments arising out of
Land Bank activities performed on behalf of the Land Bank or City.
Insurance may be through coverage by the City of Lancaster.
B.
The City of Lancaster shall indemnify the Land Bank and the members
of the Board of Directors, except it shall not be obligated to indemnify
the Land Bank Board members for:
C.
To be eligible for defense and indemnification, the Land Bank or
Board members shall be obligated to:
(1)
Notify, within five days of receipt, the City of Lancaster of any
claim made against the members or Land Bank and deliver all written
demands, complaints and other legal papers received with respect to
such claim.
(2)
Cooperate during the investigation and defense of any claim against
the City or any member of the Land Bank, including, but not limited
to, preparing for and attending depositions, hearings and trials and
otherwise assisting in securing and giving evidence.
A taxing jurisdiction may participate in the City of Lancaster
Land Bank Authority pursuant to an intergovernmental cooperation agreement.
The agreement must specify the membership, if any, of the taxing jurisdiction
on the Board and the actions of the City of Lancaster Land Bank Authority
which are subject to approval by the taxing jurisdiction.
A.
Third-party beneficiaries. Except as otherwise specifically provided,
this chapter does not create in any person, other than the City, and
is not intended to create by implication or otherwise, any direct
or indirect benefit, obligation, duty, promise, right to be indemnified
(such as contractually, legally, equitably, or by implication), or
right to be subrogated to the City's rights under this chapter,
or any other right or benefit.
B.
Immunity. Except as they might otherwise contractually agree, the
City and any municipality or taxing jurisdiction that combines or
participates in the Land Bank after the effective date hereof shall
not be liable personally on the bonds or other obligations of the
City of Lancaster Land Bank Authority. Rights or creditors of the
City of Lancaster Land Bank Authority shall be solely against the
Land Bank pursuant to Section 2105(i) of the Land Bank Act.[1]
[1]
Editor's Note: See 68 Pa.C.S.A. § 2105(i).
The Mayor, Solicitor and other proper officials of the City
of Lancaster be and hereby are directed by the City Council of the
City of Lancaster to take any and all actions necessary to effectuate
the provisions of this chapter and the creation of the City of Lancaster
Land Bank Authority, including, without limitation, the filing of
this chapter with the Pennsylvania Department of Community and Economic
Development and the Department of State.
