[HISTORY: Adopted by the Board of Commissioners
of the Township of Cheltenham as indicated in article histories. Amendments
noted where applicable.]
[Adopted 11-21-1995 by Ord. No. 1846-95]
A.
Municipal claims filed upon the assessment for amounts
remaining unpaid for improvements to real estate shall, upon filing,
have added thereto a penalty of five percent (5%) of the amount of
the claim.
B.
Municipal claims filed upon the failure to pay for
services rendered or provided shall, upon filing, have added thereto
a penalty of 10% of the amount of the claim.
C.
In addition, upon collection of any municipal claim,
there shall be added thereto interest on the claim and penalty at
the rate of 10% per annum from the date of the filing of the lien
or the completion of the work, whichever shall last occur; except
that, where a municipal claim is filed arising out of a project financed
by the issuance of township bonds, interest shall be collectible at
the rate of interest paid on the bonds, or at the rate of 12% per
annum, whichever is less.
[Adopted 11-16-2011 by Ord. No. 2229-11; amended in its entirety 4-26-2023 by Ord. No. 2457-23]
The following terms in this article shall be defined as follows:
The Municipal Claims and Tax Liens Act, 53 P.S. § 7101
et seq., as amended, and capitalized terms used but not defined in
this article shall have the meanings ascribed to such terms in the
Act.
The Charges, Expenses, Commissions and Fees incurred in the
collection of the Unpaid Claims.
The collection of certain Unpaid Claims pursuant to the Act.
Taxes, Tax Claims, Tax Liens, Municipal Claims and/or Municipal
Liens owed to the Township that become delinquent.
The Attorney Fees and Collection Fees set forth below are hereby
adopted, approved and determined to be reasonable, including, without
limitation, as contemplated by § 7106 of the Act. The Attorney
Fees and Collection Fees set forth below shall be included and added
to the applicable MCTLA Unpaid Claim in an amount equal to the amount
set forth in this section.
A.
Attorney fees.
|
Initial review and sending first legal demand letter
|
$175
|
|
File Lien and prepare Satisfaction
|
$250
|
|
Prepare Writ of Scire Facias
|
$250
|
|
Prepare and mail letter under Pa.R.C.P. 237.1
|
$50
|
|
Prepare Default Judgment
|
$175
|
|
Research, prepare and obtain re-issued Writ
|
$175
|
|
Prepare Praecipe to Amend
|
$100
|
|
Prepare Motion to Amend
|
$150
|
|
Prepare Motion for Alternate Service
|
$250
|
|
Prepare Motion to Consolidate Claims
|
$250
|
|
Amend claim to add United States as defendant
|
$250
|
|
Prepare Writ of Execution
|
$800
|
|
Preparation for sheriff's sale; review schedule of distribution
and resolve distribution issues
|
$400
|
|
Prepare Motion to Continue Sheriff's Sale
|
$50
|
|
Prepare Petition for Free and Clear Sale
|
$400
|
|
Preparation and service of Subpoena
|
$100
|
|
Presentation of Motion or Petition
|
$50
|
|
Services not covered above
|
At an hourly rate between $75 to $275 per hour
|
B.
Collection fees.
|
Validation notice
|
$25 per notice
|
|
Notice of delinquent claim and fee shifting
|
$40 per notice, plus applicable postage
|
|
Bookkeeping fee for payment plan of 3 months or less
|
$25
|
|
Bookkeeping fee for payment plan of more than 3 months
|
$50
|
|
Handling fee for returned check
|
$25
|
In addition to the Collection Fees set forth under § 120-3 above, the amount of out-of-pocket charges, costs, expenses, commissions and fees incurred in connection with the filing, preservation and collection of the MCTLA Unpaid Claims, including, but not limited to, prothonotary fees and charges, sheriff fees and charges, postage expenses, title search expenses, vehicle identification number (VIN) search expenses, skip tracing and/or other investigatory service expenses, and the costs, fees, charges and/or expenses arising out of any payment by any credit card, debit card or any other payment medium are hereby approved and shall be included, upon incurrence, together with the applicable MCTLA Unpaid Claim.
Interest will be assessed upon the Unpaid Claims at a rate of
10% per annum and added to the Unpaid Claims. The Township is permitted
to waive any interest on any Unpaid Claim when the Township or any
attorney and/or third party collector collecting the Unpaid Claim
believes, in its discretion, that such amount is de minimis or that
the cost or burden of continuing collection outweighs the benefit
of collecting the interest.
The following collection procedures are hereby established in
accordance with the Act:
A.
At least 30 days' prior to assessing or imposing attorney fees
in connection with the collection of an Unpaid Claim account, the
Township or its designee shall mail or cause to be mailed, by certified
mail, return receipt requested, a notice of such intention to the
property owner or other entity liable for the account (the "property
owner").
B.
If the certified mail notice is undelivered, then, at least 10 days'
prior to assessing or imposing such attorney fees, the Township or
its designee shall mail or cause to be mailed, by first-class mail,
a second notice to the property owner.
C.
All notices required by this article shall be mailed to the property
owner's last known post office address as recorded in the records
or other information of the Township or such other address obtained
by the Township from the County Tax Assessment Office.
D.
Each notice as described above shall include the following:
(1)
The type of municipal claim or other charge, the year that it became
due and the amount owed, including penalty and interest;
(2)
A statement of the Township's intent to impose or assess attorney
fees no earlier than 30 days after receipt of the first notice, or
no earlier than 10 days after receipt of the second notice;
(3)
The manner in which the assessment or imposition of attorney fees
may be avoided by payment of the account; and
(4)
The place of payment for accounts and the name and telephone number
of the Township's representative designated as responsible for
collection matters.
The proper officials of the Township are hereby authorized and
empowered to take such additional action as they may deem necessary
or appropriate to implement this article.
The Township appoints a Solicitor[1] for the limited purpose of collecting the Unpaid Claims
and hereby authorizes her, and all attorneys employed by Portnoff
Law Associates, Ltd., to sign any and all documents, including municipal
claims and liens, on behalf of the Township.
[1]
Editor's Note: The Solicitor's name is included
in the text of Ord. No. 2457-23, a complete copy of which is on file
in the Township offices.
