[Ord. 2169, 11/13/2017]
It is the intent and purpose of this Part to create the Pottstown
Borough Land Bank, which will use available resources to facilitate
the return of vacant, blighted, abandoned, and tax-delinquent properties
to productive use, thereby combatting community deterioration, creating
economic growth and stabilizing the housing and job markets in the
Borough of Pottstown.
[Ord. 2169, 11/13/2017]
1.
The social and economic vitality of the Borough of Pottstown has
been adversely affected by vacant, blighted, abandoned and tax-delinquent
properties. Likewise, many commercial and industrial properties are
not marketable due to small and irregular parcel sizes.
2.
Vacant, blighted, abandoned and tax-delinquent properties continuously
impose significant costs on neighborhoods and communities throughout
the Borough of Pottstown, by lowering property values, increasing
fire and police protection costs, undermining public health and sanitation
efforts, decreasing tax revenues and undermining community cohesion.
3.
Municipalities are now empowered to establish land banks as a tool
to better combat blight and facilitate the return of vacant, abandoned
and tax-delinquent properties to productive use.
4.
Land banks have the power to acquire vacant, abandoned, and tax-delinquent
properties, clear title and extinguish liens on those properties,
and transfer them to new owners with the capacity to return them to
productive use in accordance with local plans and priorities.
5.
The Borough of Pottstown has a need for a land bank to function within
the territorial limits of the Borough.
[Ord. 2169, 11/13/2017]
This Part is adopted pursuant to the provisions of Act 153 of
2012, enacted by the Pennsylvania General Assembly and signed into
law by the Governor on February 24, 2012, 68 Pa.C.S.A. §§ 2101-2120.
[Ord. 2169, 11/13/2017]
As used in this Part, the following terms shall have the meanings
indicated:
The Board of Directors of the Pottstown Borough Land Bank.
The Borough of Pottstown, Montgomery County, Pennsylvania.
The Burgess and Town Council of the Borough of Pottstown.
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
A bank, savings association, operating subsidiary of a bank
or savings association, credit union, or an association licensed to
originate mortgage loans or an assignee of a mortgage or note originated
by such an institution.
The Board of Directors of the Land Bank succeeding the Interim
Board, consisting of the representatives described in and appointed
in accordance with § 1607, Subsection 3, of this Part.
The initial Board of Directors of the Land Bank, consisting
of those individuals named in § 1607, Subsection 2, of this
Part for the exclusive and limited purpose stated therein.
Act 153 of 2012, 68 Pa.C.S.A. §§ 2101-2120,
as it exists on the effective date, and as it may be hereafter amended
or replaced.
As defined in the Land Bank Act, a natural person with a
legal or equitable ownership interest in the 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.
A housing unit occupied by the owner which is sold or recorded
as sold at market rate.
An individual, authority, limited-liability company, partnership,
firm, corporation, organization, association, joint venture, trust,
governmental entity or other legal entity.
The separate public body corporate and politic established
pursuant to and in accordance with the provisions of this Part.
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 leaseholders.
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.
The Commonwealth of Pennsylvania.
A county, city, borough, incorporated town, township, school
district, or a body politic and corporate created as a municipal authority
pursuant to law that may have claims against property that is subject
to delinquent tax enforcement procedures.
[Ord. 2169, 11/13/2017]
1.
Creation. The Land Bank is established as a separate legal entity
and a public body corporate and politic, to be known as the "Pottstown
Borough Land Bank," for the purposes of acting as a Land Bank under
the Land Bank Act and implementing and administering this Part. The
Land Bank shall have duration until terminated and dissolved under
§ 1617 of this Part.
2.
Bylaws, and Policies and Procedures. The Inaugural Board of Directors
shall adopt bylaws consistent with the provisions of this Part and
the Land Bank Act. The Inaugural Board of Directors shall adopt policies
and procedures consistent with the provisions of this Part, in particular,
§ 1615, and the Land Bank Act after the Inaugural Board
of Directors is seated.
3.
Tax Exemption. In accordance with the Land Bank Act Section 2109(b),[1] the real property of the Land Bank and its income and
operations are exempt from state and local tax, except where specifically
enumerated in the Land Bank Act. This tax exemption does not apply
to real property of the Land Bank after the fifth consecutive year
in which the real property is continuously leased to a private third
party. However, real property shall continue to be exempt from state
and local taxes if it is leased to a nonprofit or governmental agency
at substantially less than fair market value.
[1]
Editor's Note: See 68 Pa.C.S.A. § 2109(b).
4.
Compliance with Law. The Land Bank shall comply with all federal
and state laws, rules, regulations and orders applicable to this Part.
5.
Obligations of the Land Bank. The Land Bank shall not obligate the
Borough, nor shall any obligation of the Land Bank constitute an obligation
of the Borough.
6.
Authority. All personnel, facilities, equipment and supplies within
the Land Bank shall be governed by a Board of Directors as provided
herein.
[Ord. 2169, 11/13/2017]
The mission of the Land Bank is to deter blight and to return
vacant and underutilized property to productive use through a unified,
predictable, and transparent process, thereby revitalizing neighborhoods,
creating opportunities for economic development, and strengthening
the Borough of Pottstown's tax base.
[Ord. 2169, 11/13/2017]
1.
Governance. The Land Bank shall be governed by a Board of Directors
as provided herein.
2.
Interim Board.
A.
Upon the effective date of this Part, an Interim Board of Directors
shall be constituted for the exclusive and limited purpose of compliance
with Section 2104(a)(3) of the Land Bank Act[1] that requires this Part to specify the names of individuals
to serve as initial members of the Board.
[1]
Editor's Note: See 68 Pa.C.S.A. § 2104(a)(3).
B.
The Interim Board shall have no power or authority to adopt governing
documents like the bylaws or policies. The Interim Board of the Land
Bank shall consist of the five members of the Borough's Blighted Property
Review Committee.
3.
Inaugural Board; Number; Terms. The Interim Board shall be replaced
by the Inaugural Board of Directors of the Land Bank. Any individual
or organization may submit to Council recommendations for Board membership
to be considered in making appointments. The Inaugural Board and all
subsequent Boards of Directors of the Land Bank shall be constituted
and seated as follows:
A.
The Inaugural Board and all subsequent Boards of the Land Bank shall
be comprised of five members appointed by the Council.
B.
The Inaugural Board shall be appointed for staggered terms as follows:
two members shall be appointed to serve three-year terms; two members
shall be appointed to serve two-year terms; and one member shall be
appointed to serve a one-year term. All subsequent Board appointments
and reappointments shall be for terms of three years. Members shall
continue to serve until their successors have been appointed.
4.
Qualifications.
A.
Members of the Board shall include individuals with expertise in
relevant areas, including, but not limited to, planning, real estate
development, open space, and architecture.
C.
All Board members shall live or have a primary office in the Borough,
unless the Board member is an official or employee of Montgomery County
or its agencies.
5.
Compensation and Expenses. Members of the Board shall serve without
compensation and may seek reimbursement for expenses associated with
the duties relating to Land Bank activities.
6.
Ethical Standards. 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,"[2] 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.
[2]
Editor's Note: See 71 P.S. § 776.1 et seq.
7.
Officers. The Board members shall annually elect officers to serve
as Chair, Vice Chair, Secretary and Treasurer, each officer to serve
a one-year term. Members may be re-elected to serve successive terms.
The duties of officers shall be established by the Board according
to law.
8.
Vacancies. Any vacancy in the Board shall be filled for the balance
of the unexpired term by and through appointment of the Council.
9.
Removal. Board members serve at the pleasure of the Council and may
be removed by the Council at any time with or without cause, or may
be removed pursuant to any other provision of Pennsylvania law.
10.
Quorum. A quorum shall be necessary for the transaction of any business
by the Board. A majority of the members of the Board, excluding vacancies
on the Board, shall constitute a quorum. The Board shall act by a
majority vote of the members at a meeting at which a quorum is present,
except as otherwise provided in this Part or the Land Bank Act. No
voting by proxy shall be permitted.
11.
Bylaws. The Board shall adopt bylaws, inclusive of rules, on all
of the following:
12.
Meetings of the Board. The Inaugural Board shall conduct its first
meeting no later than 30 calendar days after the Board is appointed.
The Land Bank shall hold regular public meetings monthly 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. All meetings of
the Board shall comply with the Pennsylvania Sunshine Act.[3] The Chair of the Board may call special meetings by written
notice at least 24 hours in advance to each Board member and in accordance
with the Pennsylvania Sunshine Act. Special meetings may also be called
upon written notice signed by a majority of the Board members and
delivered at least 24 hours in advance to each Board member and advertised
in accordance with the Pennsylvania Sunshine Act.
[3]
Editor's Note: See 65 Pa.C.S.A. § 701 et seq.
13.
Minutes. Minutes of all meetings of the Board and its committees
shall be made and maintained.
14.
Committees. The Board may establish such committees as may be needed
to assist the Board in conducting the business of the Land Bank. Committee
members shall be appointed by the Chair, and each committee shall
include at least one member of the Board. Any business proposed by
a committee shall require approval by the Board.
15.
Fiduciary Duty. The members of the Board are under a fiduciary duty
to conduct the activities and affairs of the Land Bank in the best
interests of the residents of the Borough, including the safekeeping
and use of all Land Bank monies and assets. Fidelity bonding shall
be obtained by the Land Bank for officers and staff who are responsible
for the finances of the Land Bank. The Board shall discharge its duties
in good faith, with the care an ordinarily prudent person in a like
position would exercise under similar circumstances.
[Ord. 2169, 11/13/2017]
The Land Bank may exercise all of the powers, duties, functions
and responsibilities of a Land Bank under the Land Bank Act as authorized
by Section 2107 and any other provisions of the Land Bank Act and
any other Pennsylvania law.
[Ord. 2169, 11/13/2017]
1.
Employees. The Land Bank may employ or enter into a contract for
an Executive Director, counsel and legal staff, technical experts
and other individuals, and may determine the qualifications and fix
the compensation and benefits of those employees. The Land Bank may
arrange for any such staff in conjunction with the Borough or other
partnering public entities.
2.
Municipal Contracts for Services. The Land Bank may enter into a
contract or memorandum of understanding or intergovernmental cooperation
agreement with a municipality for:
[Ord. 2169, 11/13/2017]
1.
The Land Bank is authorized to acquire real property or interests
in real property through donation, gift, purchase, or any other legal
means, including tax sale or by transfer from the Montgomery County
Tax Claim Bureau. The Land Bank shall hold in its own name all real
property it acquires.
2.
Acquiring Occupied Homes. When the Land Bank 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.
3.
Any individual or organization may submit recommendations to the
Land Bank Board or staff for real property that could be acquired
by the Land Bank and the purpose for which such properties could be
developed.
[Ord. 2169, 11/13/2017]
The Land Bank shall maintain and make available for public review
and inspection an inventory of real property held by the Land Bank.
The inventory shall be maintained as a public record and shall be
filed in the principal office of the Land Bank.
[Ord. 2169, 11/13/2017]
1.
The Land Bank is authorized to discharge liens and other municipal
claims, charges, or fines of the Borough, and the Land Bank may seek
to enter into an agreement for discharges from the applicable municipal
body against the properties it acquires.
2.
For the duration of the time a property is held by the Land Bank,
the Land Bank is authorized to abate all real estate taxes, water
and sewer charges, and other municipal charges by the Borough and,
to the extent necessary, may seek abatement or nontaxable status from
other applicable taxing jurisdictions and government entities.
[Ord. 2169, 11/13/2017]
1.
The Land Bank is authorized to convey, exchange, sell, transfer,
lease, grant, or mortgage interests in real property of the Land Bank
in the form and by the method determined to be in the best interests
of the Land Bank, except where expressly limited in this section.
2.
The Board of Directors may delegate this disposition authority to
the staff of the Land Bank, except in the following circumstances
in which the Board itself must review and approve transfers of property
at a public meeting:
3.
Priorities. Section 2110(e) of the Land Bank Act[1] authorizes land bank jurisdictions to establish a hierarchical
ranking of priorities for the use of real property conveyed by the
Land Bank. The ranking of priorities for the use of real property
conveyed by the Pottstown Borough Land Bank shall be the following
in the order in which each appears:
A.
Owner-occupied market-rate housing units;
B.
Retail, commercial and industrial activities, including mixed-use
development;
C.
Housing options for every income level;
D.
Vacant residential parcels conveyed to neighboring property owners
for side and rear yards;
E.
Urban agriculture and community open space; and
F.
Public purpose.
[1]
Editor's Note: See 68 Pa.C.S.A. § 2110(e).
4.
The Land Bank shall consider all duly adopted land use plans and
make reasonable efforts to coordinate the disposition of Land Bank
real property with such land use plans.
[Ord. 2169, 11/13/2017]
1.
The Board shall state in the Land Bank policies the general terms
and conditions for consideration to be received by the Land Bank for
the transfer of real property and interests in real property. The
Board shall determine the amount and form of consideration necessary
to convey, exchange, sell, transfer, lease as lessor, grant or mortgage
interests in real property.
2.
As determined by the Board and to be set forth in policies and procedures,
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 determined to be in the best interest
of the Land Bank.
[Ord. 2169, 11/13/2017]
1.
The Land Bank shall develop policies and procedures consistent with
the provisions of this Part and the Land Bank Act. These policies
and procedures shall be guided by the Land Bank's mission, purpose,
and priorities as set forth in this Part. In addition, the following
goals shall guide the activities and policies of the Land Bank:
A.
Facilitate the acquisition of vacant and abandoned property by qualified
developers for redevelopment as owner-occupied market-rate housing
units.
B.
Facilitate land assembly to promote commercial, industrial and mixed-use
developments.
C.
Encourage the revitalization of neighborhoods by extending nominal
or reduced-price dispositions to projects that demonstrate beneficial
community impact, by supplying housing options for all income levels,
including, but not limited to: mixed-income housing that is accessible;
economic development that creates jobs for community residents; community
facilities that provide needed services and enrichment opportunities;
side and rear yards; urban agriculture; and community open space.
D.
Use up-to-date data and analysis to identify different neighborhood
inventory and market conditions.
2.
Land Bank policies and procedures, including, but not limited to,
the acquisition and disposition of real property by the Land Bank,
shall initially be adopted and thereafter reviewed at least every
other year by the Board of Directors of the Land Bank, with opportunity
for public input and comment. The initial policies and procedures
of the Land Bank and any subsequently adopted policies and procedures
shall be approved by resolution of the Council. Policies and procedures
shall be published on the Land Bank's website.
3.
As part of its policies and procedures, the Land Bank shall adopt
strict ethical guidelines for Land Bank Board members and employees
and promulgate rules addressing and protecting against potential conflicts
of interest. These guidelines and rules shall supplement any applicable
state and local laws.
4.
Residents shall have the following means of supplying input into
the Land Bank decisionmaking process:
A.
Any individual or organization may submit recommendations for Board
membership to the Council for its consideration in making appointments.
B.
Any individual or organization may submit recommendations to the
Land Bank Board or staff for real property that could be acquired
by the Land Bank and the purpose for which such properties could be
developed.
C.
Any individual or representative of an organization may provide public
comment at any public meeting of the Land Bank Board of Directors.
[Ord. 2169, 11/13/2017]
1.
To the extent allowed by law, the Land Bank shall retain proceeds
from the sale of any properties to cover or contribute to operating
costs, maintenance of inventory, and to support additional strategic
property acquisition.
2.
The Borough authorizes the remittance or dedication to the Land Bank
of 50% of the real estate taxes collected pursuant to the laws of
the state on real property conveyed by the Land Bank. Said remittance
or dedication shall commence with the first taxable year following
the date of conveyance and continue for a period of five years pursuant
to Section 2111(c) of the Land Bank Act, 68 Pa.C.S.A. § 2111(c).
The Land Bank 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 jurisdictions.
3.
The Land Bank may finance its operations through any means authorized
in Sections 2111 and 2112 of the Act of October 24, 2012, P.L. 1239,
No. 153 (68 Pa.C.S.A. §§ 2111 and 2112).
[Ord. 2169, 11/13/2017]
The Land Bank may be dissolved according to the requirements
of state law upon a finding adopted by a two-thirds majority of the
Board, and approved by the Council, that there is no longer any need
for a Land Bank to function within the territorial limits of the Borough.
Assets, upon dissolution of the Land Bank, shall be distributed according
to law.
[Ord. 2169, 11/13/2017]
1.
The Land Bank shall obtain insurance to defend and indemnify the
Land Bank, members of the Board, and staff with respect to all claims
or judgments arising out of their activities with respect to all negligence
claims, and claims or judgments arising out of Land Bank activities
performed on behalf of the Land Bank or Borough. Insurance may be
through coverage by the Borough.
2.
To be eligible for defense and indemnification, a Land Bank Board
member or staff person shall be obligated to:
A.
Notify, within five days of receipt, the Board Chair of the Land
Bank, and the Manager of the Borough, about any claim made against
the member or staff and deliver all written demands, complaints and
other legal papers received with respect to such claim.
B.
Cooperate during the investigation and defense of any claim against
the Borough, the Land Bank or any member or staff 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.
[Ord. 2169, 11/13/2017]
The Borough Manager shall file a copy of this Part with the
Pennsylvania Department of Community and Economic Development and
with the Pennsylvania Department of State.
[Ord. 2169, 11/13/2017]
If any provision of this Part shall be found to be invalid or
unenforceable by a court of competent jurisdiction, such provision
shall be stricken therefrom, and the remainder of this Part shall
remain in effect. It is the intent of the Council that this Part be
severable.
