Contributing
Authors
Rachel Blake
John Caddell
Cynthia Witman Daley
John Kromer
Irene McLaughlin
Catherine L. Meehan
CONSERVATORSHIP HANDBOOK
How to Use Conservatorship to Address Blighted and Abandoned Property
for Pennsylvania Community Leaders
Contributing
Authors
Rachel Blake
John Caddell
Cynthia Witman Daley
John Kromer
Irene McLaughlin
Catherine L. Meehan
Published by the Housing Alliance of Pennsylvania
Spring 2013
This Handbook is a publication of the
Housing Alliance of Pennsylvania
all rights reserved.
This publication is intended to be used as a resource for anyone who is interested in
learning about the Blighted and Abandoned Property Conservatorship law,
Pennsylvania’s Act 135. But it is designed especially for generalists – for people who want
to know more about conservatorship but have little or no background in real estate
development or real estate law.
An earlier publication, the Conservatorship Implementation and Best Practices Manual by
Regional Housing Legal Services (RHLS), available at http://rhls.org/wp-content/
uploads/ConservatorshipManual_Final_05102011.pdf, provides more detailed
information that can be particularly useful to legal counsel or others who are more familiar
with real estate practices and associated legislation and regulations.
In preparing the Handbook, the Housing Alliance used the RHLS Conservatorship
Implementation and Best Practices Manual on an ongoing basis, and we very much
appreciate having had the opportunity to consult the Manual frequently during the
preparation of this Housing Alliance publication. For any reader who reads this
publication first and wants to consider pursuing a conservatorship action, we strongly
recommend having your team review the RHLS Manual as a next step.
Elizabeth G. Hersh
Executive Director
Housing Alliance of Pennsylvania
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Blighted and Abandoned Property Conservatorship Handbook
Introduction
Purpose of This Handbook
The purpose of The Conservatorship Handbook is to help community leaders throughout Pennsylvania make use of
a new tool for restoring neglected properties to productive use and increase their potential to become valued assets
in neighborhood real estate markets. This tool, created by Pennsylvania Act 135 of 2008, authorizes the use of a new
anti-blight strategy known as conservatorship. (Note: “Act 135” and “conservatorship” are used interchangeably
throughout this handbook.)
The concept of conservatorship is easy to understand: In response to a request from a petitioner, a judge may designate
a conservator—a responsible private or nonprofit entity—to bring a blighted property into compliance with property
maintenance and building codes. The process leading to a conservatorship action can be complicated, however, and,
because the legislation is relatively new, not many examples of successful conservatorship actions exist. With those
considerations in mind, the Handbook is designed to help community leaders gain a better understanding of the
conservatorship process so that they can take full advantage of the powers available through Act 135.
As community leaders become more knowledgeable about the use of conservatorship as a blight elimination strategy,
we believe that this tool has the potential to become more widely used in Pennsylvania and elsewhere, producing
beneficial outcomes for everyone concerned about eliminating blight and revitalizing communities.
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Housing Alliance of Pennsylvania
Table of Contents
This Conservatorship Handbook consists of six chapters:
PAG E
Chapter One: What Is Conservatorship? 3
Includes a description of the legislation and an explanation of its uses.
Chapter Two: Is Conservatorship the Right Tool? 5
Provides criteria that can be used to determine whether a conservatorship action is the most
effective way of dealing with a particular neglected property, in preference to other options.
Chapter Three: Researching Your Case 11
Describes the initial research that needs to be completed in preparation for the filing of a
conservatorship petition.
Chapter Four: The Conservator and the Improvement Plan 17
Describes the role of the court-appointed conservator and the elements of the
improvement plan that must be authorized by the court.
Chapter Five: Going to Court 23
Summarizes the four basic steps involved in a legal action leading to the appointment
of a conservator.
Chapter Six: Getting the Job Done 27
Describes what happens after a conservator is appointed and the opportunity to take
action that will improve the property has finally arrived.
The Handbook has the following more technical appendices:
Appendix A: Act 135 at a Glance 29
Appendix B: Sample Petition for Conservatorship in Allegheny County 32
Which includes:
– Sample Petition for the Appointment of a Conservator
– Sample Notice of Filing of a Petition for the Appointment of a Conservator
– Sample Lis Pendens
Appendix C: The Abandoned and Blighted Property Conservatorship Act 49
68 P.S. §1101, Act 2008-135 (H.B. 2188)
Appendix D: Glossary 59
Appendix E: Contributing Authors’ Bios 61
We hope that this publication will be helpful to community leaders who are concerned about property
blight and who want to take action to bring new value to the places they care about.
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Blighted and Abandoned Property Conservatorship Handbook
Chapter One
What Is Conservatorship?
Background
Blighted and abandoned properties can be found in every region of Pennsylvania. Property neglect is no longer an
“inner-city” issue; deteriorating or vacant properties can now be found in many rural and suburban communities,
as well as in cities. Some residential blocks that had been fully occupied and well maintained not long ago are now
experiencing “incipient blight,” as property conditions worsen and vacancy increases.
All Pennsylvania counties are experiencing problems with blighted properties, from dilapidated and vandalized row
houses on city streets to boarded-up, detached homes on suburban lots. Neglected properties destabilize residential
communities; when they appear, nearby property owners start thinking about moving out. Because such properties
have the potential to become centers of criminal activity, their presence makes a community less safe and increases
the cost of police and fire services. A deteriorated or vacant property is a symptom of declining or failing real estate—
and when no one takes action to improve its condition or status, market conditions begin to worsen and threats to
community well-being increase.
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1
Act 135 § 2(4); 68 P.S. § 1102(4).
Purpose of Act 135, Blighted and Abandoned Property Conservatorship
Growing public concern about blighted properties influenced the General Assembly to approve Act 135, the
introductory section of which states: “If these buildings are not rehabilitated, they are likely to remain abandoned
and further deteriorate, resulting in increased costs to the Commonwealth, municipality and taxpayers to secure
and ultimately demolish them.”
1
Property owners are responsible for complying with health and safety code standards associated with the real estate
they own. When owners cannot or will not comply with those standards, their properties fall into disrepair and
become community problems. Unfortunately, the problems cannot be resolved quickly, even in cases of extreme
negligence. Because property rights have fundamental importance in the United States, the process by which
government may take control of neglected properties or threaten their owners with code enforcement are cumbersome.
Until Act 135 was approved, options for neighbors and other concerned parties to act were few.
The Blighted and Abandoned Property Conservatorship Act, enacted in 2008, creates a new opportunity for citizens
and organizations, as well as local governments, to take constructive action in order to deal with serious cases of
property neglect. Under the act, a neighbor, nonprofit organization, municipality, school district, or redevelopment
authority can ask a judge to appoint a responsible party to take charge of a neglected property and bring it into
compliance with code standards. The party appointed for this purpose, known as a conservator, is given the
responsibility to stabilize, rehabilitate or demolish the structure in order to address seriously blighting conditions
that the owner has been unwilling or unable to deal with.
A judge’s decision to appoint a conservator is based on hearing evidence that a property owner is unwilling or unable
to comply with codes and that the property in its dilapidated condition presents a serious threat to the community
where it is located. The conservatorship process provides a legal, court-supervised way to enter onto someone else’s
property and complete the improvements needed to make it safe.
Although conservatorship is new to Pennsylvania, similar laws have existed in other states for many years.
(In some places, the court action is referred to as “receivership” rather than conservatorship.) States with existing
conservatorship or receivership laws include Louisiana, Maryland, Massachusetts, Missouri, New Jersey, Ohio and
Oregon. Some of the Pennsylvania legislators who supported the approval of Act 135 did so after becoming aware
of the positive results that have been achieved elsewhere.
Because conservatorship is a judicial intervention that is different from routine code enforcement, interested parties
have to spend a lot of time and pay for legal expertise in order to organize and fully document a presentation to the
court. For these reasons, conservatorship is not a blight-prevention strategy that can readily be used to bring hundreds
of properties into compliance at once. Instead, conservatorship is a specialized action designed to be used in a worst-
case situation, in which no reasonable alternative course of action appears to be available to community members—
a situation in which a favorable court decision will have been worth the time, money and paperwork involved in
preparing a strong presentation to a judge.
The following chapter provides information that can help you determine whether conservatorship is the best way
to address a blighted-property problem about which you are concerned and summarizes other strategies that you
can use to acquire the property or alleviate the problem.
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Blighted and Abandoned Property Conservatorship Handbook
Chapter Two
Is Conservatorship the Right Tool?
Threshold Issues
The Act 135 process requires a lot of research and some expert legal advice before a decision can be made as to
whether a particular property is a good candidate for conservatorship. The property must meet certain criteria laid
out in the law and should be financially feasible for rehabilitation or demolition and reuse of the site. You will need
a team of professionals to use the law successfully.
The Team
A conservatorship action is a team endeavor. To prepare a credible case, you will need to recruit the following
team members.
• A real estate lawyer who is knowledgeable about Act 135 and the outcomes of recent conservatorship
actions in Pennsylvania
• An architect who has experience in developing or upgrading the type of property that will be the subject
of the conservatorship action
• A project manager whose role is to serve as the team’s primary contact person and to keep things moving.
By starting the process and recruiting the other team members, you may have already self-selected
yourself for this role!
• A potential conservator – someone who is capable of taking possession immediately upon court
appointment, of maintaining, safeguarding and insuring the building, and of completing the rehab
or demolition of the property
The team will have to gather the evidence showing that the property meets the requirements for conservatorship,
develop a realistic plan for the improvement of the property, and identify the sources of funding that the court-
appointed conservator will need to repair and maintain the property.
Finding a Lawyer
As described in Chapter Three, some of the initial research and preparation for a conservatorship action can be
completed without an attorney. Just bear in mind that this handbook is a source of information and advice but is
not a substitute for legal counsel.
You will need to engage and maintain ongoing communication with an attorney during the period leading up to
the filing of a conservatorship petition. State law requires that any corporation filing a conservatorship petition—
nonprofit or other—must be represented by an attorney. Although individuals have the option of representing
themselves, the engagement of an attorney is strongly recommended.
If you are seeking legal advice, call your county’s bar association to find out whether it offers a lawyer referral service
that can direct you to a real estate lawyer. If there is a law school in the area where the property is located, it may have
law students seeking credit through clinical experience or independent study who may be available to assist with a
conservatorship action. Call the law school and ask for contact information of professors who supervise legal clinics
or independent studies. Additionally, the staff at the Housing Alliance may be aware of lawyers in your area who are
familiar with Act 135:
Housing Alliance of Pennsylvania
(215) 576-7044
6
Housing Alliance of Pennsylvania
2
RHLS Manual at 11-13.
Budget
Along with budgeting for the services of an attorney and architect (if those services are not provided on a volunteer
basis), you should be aware of the expenses associated with the filing of a conservatorship petition and proceeding
with the case. It would be worthwhile for you to be aware of the costs in advance. See the “What It Might Cost”
subsection of Chapter Five for more information.
Ineligible Properties
Before starting, you should determine whether the property for which you want to prepare a conservatorship petition
is eligible for conservatorship.
A property is not eligible for conservatorship if it:
• Has been listed for sale within the past 60 days
• Is owned and/or regulated under the Public Housing Act
• Is occupied by someone other than a squatter or has not been vacant for at least 12 months
• Has been owned by the current owner for less than 6 months
• Is in foreclosure
• Is owned by someone who is absent from the property on active military duty in time of war
You will need to complete a little research in order to determine whether a property meets any of those criteria,
and you will need to assemble some documentation on the above items and other issues to prove that the property
qualifies for conservatorship. Detailed information and advice are provided in the next chapter.
Properties with Complications
A property that does not fall into the ineligible categories listed above may still have characteristics that would
complicate a conservatorship action. Organizing a conservatorship action for a property with complications will
probably need more planning on the front end of the process, and that planning is likely to involve consultation with
experts who have specialized knowledge of the issues about which you are concerned. In each of the cases below,
consultation with an attorney is a good first step.
The following are seven of the most commonly recognized complications associated with conservatorship:
2
1. The property is owned by the Commonwealth of Pennsylvania or by a municipal government.
A property that is owned by the Commonwealth of Pennsylvania, or by any local government, may appear to
be eligible for conservatorship, but it is unlikely that you will prevail in seeking the appointment of a third-party
conservator on government property.
2. The property is subject to a drug forfeiture taking.
If the property is subject to seizure by the government for drug-related offenses, clearing title to the property
can be difficult. If you are unsure about whether a property may be subject to forfeiture, check with your county’s
district attorney’s office.
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Blighted and Abandoned Property Conservatorship Handbook
3. The property is a “Brownfield” site.
The designation of a property as a Brownfield means that existing environmental hazards (such as contaminated
soil on the site) must be addressed, in compliance with federal and/or state regulations, as part of a development
or improvement project. Dealing with Brownfields is likely to make a conservatorship action more complicated
and more expensive. The associated time and cost factors need to be evaluated in advance so that the conservator
can make an accurate assessment of the feasibility of moving ahead with such a project.
4. The property is historically certified.
A property being considered for conservatorship may be historically certified. Some historically certified
properties are located within designated historic districts, while others may be located on blocks where no nearby
properties are historically certified. To determine whether a property is historically certified, check with planning
or community development department staff in the municipality or county where the property is located. The
National Register of Historic Places web site at http://www.nps.gov/nr/ is a useful source of information and
guidance.
The upgrading of a historically certified property is subject to standards that may significantly add to the cost of
rehabilitation. In some instances, demolishing a historically certified property is not permitted.
5. The property is located in a floodplain.
The first complication is the need for flood insurance, an added expense. You should also seriously consider
whether it is worthwhile investing in a property that is subject to flooding, unless your goal is to restore wetlands.
6. The property is not zoned for the use you want to achieve.
Contact the municipal zoning officer or the county planning department to determine the zoning classification for
a specific property. If the existing zoning is not compatible with the end use you have in mind, you may be able
to obtain a variance. If you are unable to obtain a variance for your intended use, you will need to consider other
possible uses for the property. Conservatorship makes sense only if the property is useful for the allowed purposes
or if the court will be able to authorize transferring the title to someone who can use it.
7. The property has government liens on its title.
A conservatorship action does not remove federal, state and local government liens from the title to the property.
Obtain a title report to learn whether government liens need to be satisfied before clear title can be obtained. If you
discover a government lien, you and your attorney should find out whether the governmental entity that filed the
lien could be persuaded to remove it, possibly in exchange for the payment of an amount less than the total owed.
Under some circumstances, government officials may be willing to consider reducing or forgiving the debt
associated with a property proposed for conservatorship. For example, a school board or a county or municipal
government might agree to compromise all or part of the taxes owed on a property that has remained vacant for
a long time and has become a public nuisance, with no likelihood that the accumulated debt will be paid while the
property is vacant. A successful conservatorship action would return such a property to the tax rolls and eliminate
the nuisance. From this perspective, government officials might view conservatorship as being in their best interest
and might support a conservatorship action by compromising public debt.
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Housing Alliance of Pennsylvania
Insurable Title
Act 135 says, under certain circumstances, “the court may authorize the conservator to sell the building free and clear
of all liens, claims and encumbrances” (see Termination of Conservatorship subsection in Chapter Six). In addition to
this authorization, free and clear title or insurable title, depends on whether the holder of the property interest—lien,
claim, encumbrance—was provided adequate notice that his or her property interest would be cleared. Act 135 sets out
notification requirements, but long-standing federal constitutional notice standards apply to the divesting of property
interests, and Pennsylvania Rules of Civil Procedure set out methods and procedures for giving notice to parties that
have an interest in real estate. The First Judicial District (Philadelphia) adopted General Court Regulations for
implementation of Act 135 that require adherence to civil procedural rules.
In the early stages of preparing a conservatorship action, it is crucial to thoroughly research who gets notice and how
to give notice to each identified party and to do so with eye toward the possibility of a conservator’s sale of the
property. A title examination or title report will identify the property owner and the holder of any liens, claims and
encumbrances on the property. Most likely, your lawyer will obtain a title report and review it with you. For the title to
be insurable to a buyer who purchases from a court-approved conservator sale, it will be helpful for your lawyer to
review the title report with the title underwriter, because a conservatorship sale is a novel real estate transaction and
the title underwriter may have his or her own requirements for notifying those with a property interest.
A title report and service in accordance with Pennsylvania Rules of Procedure are some of the primary expenses that
may be related to a conservatorship action. See the “What It Might Cost” subsection in Chapter Five: Going to Court.
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Blighted and Abandoned Property Conservatorship Handbook
Exploring Other Possibilities
Pennsylvania’s conservatorship legislation was drafted in part because few options are available to residents who
want to ensure that long-neglected properties are brought into compliance with health and safety code standards
and made suitable for occupancy. However, conservatorship is just one of several tools available to address problem
properties. While conservatorship is a flexible legal tool that can be used by a variety of petitioners, including
neighbors, municipalities, school districts, nonprofit organizations and other entities, it may not be the most
appropriate tool for your problem property.
Although a local government’s capability to bring neglected properties into compliance is limited, some options
are available, and you should consider them before pursuing a conservatorship action. Information about tools for
dealing with blighted properties in your neighborhood can be found in the Quick Guide: New Tools to Address Blight
and Abandonment from the Housing Alliance of Pennsylvania (home page at www.housingalliancepa.org). Work with
your municipal officials and make sure they are aware of the Quick Guide and are taking all possible steps within
their power to address the blighted-property problem about which you are concerned.
Actions that you should consider before pursuing conservatorship include the following:
Negotiated purchase
You may be able to buy the property from the owner. We recommend, however, that you consult with an attorney
before contacting the owner directly. If tipped off that you intend to pursue conservatorship, the owner may take
certain very minimal steps to make conservatorship impossible—by listing the property for sale, for instance. For that
reason, it may be advisable to file the conservatorship petition before attempting to negotiate with the owner. Many
deteriorated properties fall into one of the following three categories.
1. Owner happy to sell
An offer to purchase may be welcomed by an owner who has been looking for a way to get out from under the
burdens of ownership. In many communities blighted properties simply have no buyers. The owner may have
inherited the property. Or the owner may have bought the property to rehab it but it was too expensive. When
rehab becomes economically prohibitive, the owner may be happy to get out.
Note: You should determine whether it is economically feasible for you to rehab the property before acquiring it.
But with funding available to nonprofit organizations that is not available to private individuals, your
organization may be able to handle a property that the current owner cannot.
2. Mortgage lender or servicer
Because so many properties having gone through foreclosure in recent years, lending institutions may be eager
to negotiate with you for properties they own. Such properties, known as Real Estate Owned or REOs, are costly
to the banks. Because of the glut of REOs, you may be able to get a donation or very favorable sale terms. Even
when the real estate market rebounds, lenders are a good source for properties.
In 2008, the National Community Stabilization Trust was created to help nonprofits acquire REOs. For more
information, go to http://www.stabilizationtrust.com.
3. Speculator
If the property is owned by someone who is simply waiting for market values to appreciate to the point where a
profitable sale can be achieved, acquisition through negotiated purchase may be difficult—or infeasible. Working
with your local codes department, filing notices of code violations, and initiating court actions if there is no
abatement can help put pressure on the owner. Further code escalation and enforcement actions may make the
owner more receptive to your offer.
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Housing Alliance of Pennsylvania
Property donation
In some cases the owner of a neglected property may be willing to give the property away rather than finance a
rehabilitation project or face code enforcement actions. A willing owner could donate his property to a 501(c) (3)
organization and take a charitable contribution deduction on his taxes. Under certain circumstances a Pennsylvania
business could receive a state tax credit for donating property. (See the Neighborhood Assistance Program at the
Department of Community and Economic Development.) But be careful about accepting a donated property with
liens, mortgages or other claims against it. By working with your municipality, county and school district, you may
be able to get tax claims removed.
Some municipalities will agree to accept a donated property and clear the liens, after which the property may be
conveyed to a party that agrees to restore it to productive use. The municipality should refer to the donation provisions
in the Municipal Claims and Tax Lien Law (53 P.S. secs. 7108.1, 7143; Act 18 of 2006) and the Real Estate Tax Lien Law
(72 P.S. secs. 5860.303, 5860.309; Act 12 of 2006).
File a code complaint
Neighbors and other interested parties can file a building code or property maintenance code complaint with the
municipal code enforcement department that serves the property location. The results achieved by filing a complaint
with building code officials can vary. In response to a complaint, a code enforcement officer typically will inspect the
property and, if a code violation is found, issue a violation notice that includes a deadline for bringing the property
into compliance. When an owner does not abate the violation or respond to the violation notice, the code official may
pursue municipal code prosecution, which begins as a court filing with the appropriate magisterial district judge.
Make sure your code department has a copy of the Quick Guide: New Tools to Address Blight and Abandonment for laws
that allow code enforcement to escalate to criminal misdemeanor charges and that allow the municipality to recover
the cost of abatement and fines.
Taking matters into your own hands is not recommended.
As an immediate response to conditions at nuisance properties, neighbors sometimes start taking care of neglected
properties on their own initiative, without seeking permission from the owner or anyone else. They cut weeds and
remove litter from a vacant lot, for example, or secure windows and doors in a vacant house.
These actions are short term and are usually limited in effectiveness. At best, they help to maintain the stability of the
surrounding neighborhood. At worst, they expose community members to charges of trespassing. Entering onto a
property without the owner’s permission or court sanction is not recommended.
If you still are unsure whether conservatorship is the right tool, discuss your situation with an attorney who is
experienced in real estate and knowledgeable about the Commonwealth’s conservatorship legislation. In some
instances, a property that initially appears unsuitable for conservatorship may prove to be a good candidate for
this approach—or vice versa.
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Blighted and Abandoned Property Conservatorship Handbook
3
Act 135 § 5(d); 68 P.S. § 1105(d).
4
Act 135 § 5(d)(1); 68 P.S. § 1105(d)(1).
5
Act 135 § 5(d)(2); 68 P.S. § 1105(d)(2).
6
Act 135 § 3; 68 P.S. § 1103 definition, “Actively marketed.”
Chapter Three
Researching Your Case
Once you have determined that a property appears to be a good candidate for conservatorship, you will need to
research the eligibility criteria described in the preceding chapter so that you can prepare to file a petition and get
scheduled for a court hearing.
This chapter describes four defining characteristics that a property must possess in order to be considered eligible for
conservatorship, as well as nine indicators that would qualify the property as “blighted,” consistent with the legislative
definition of this term.
Suggestions about how you might document eligibility for conservatorship or a property’s status as blighted are
provided after each item.
In many instances, we recommend obtaining affidavits from neighbors and others attesting that the property meets
one of the conservatorship eligibility or blighted-status qualifications. Be sure to prepare the affidavits in consultation
with your attorney to make sure that they will be effective when presented to the court.
Defining Characteristics of a Property Eligible for Conservatorship
Act 135 mandates that a property must meet four conditions to qualify for conservatorship.
3
If any one of these four
conditions is not met, conservatorship is not an option.
Four Conditions Necessary to Qualify for Conservatorship
1. The property must not have been legally occupied for at least the previous 12 months.
4
If the property appears to be vacant, neighbors may be able to provide information about when it was last
occupied and sign an affidavit to that effect.*If utility shutoff dates are available as a matter of public record,
that information may be helpful as well.*
A squatter-occupied property is not considered “legally occupied.”
2. The property must not have been actively marketed for sale during the 60 days before the date
of the petition.
5
A property is considered “actively marketed” when a “For Sale” sign has been placed on the property with
accurate contact information and when the owner has done at least one—but not necessarily all—of the following.
• Engaged the services of a real estate agent to place the property in a Multiple Listing Service, or taken other
action to market the property
• Advertised the property for sale on a weekly or more frequent basis by means of print or electronic media
• Distributed printed advertisements.
6
An asterisk (*) follows any sentence that describes suitable documentation for inclusion as an attachment to a conservatorship petition.
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7
Act 135 § 5(d)(3); 68 P.S. § 1105(d)(3).
8
Act 135 § 5(d)(4); 68 P.S. § 1105(d)(4).
Below are some suggestions on how to research and document this issue.
If no “For Sale” sign is posted, photographs of the property should be taken to illustrate that fact. The photographs
should display the time and date they were taken.*
If a “For Sale” sign is posted, check to see whether the contact information is inaccurate or outdated. Call the phone
number provided on the sign and, if someone answers, ask whether the property is for sale and request
information about the current status of the property.*
Don’t be discouraged if you see a “For Sale” sign posted on the property. You may be able to provide evidence
that the property was not “actively marketed” in the past 60 days and is therefore eligible for conservatorship.
If the property is residential, check the Multiple Listing Service (MLS) at http://www.realtor.com to determine
whether the property has been listed on the MLS. Print out the results of the MLS search.*
If the property is commercial, contact local commercial real estate brokers to determine whether it is being actively
marketed. Make a list of the brokers who were contacted, along with summaries of the information they provided.*
For any property, you should check local papers, real estate magazines, craigslist.com, and any other publication or
web site that may contain real estate listings in the area so that you can find out whether the property has been
advertised for sale. Keep a detailed record of the search.*
Neighbors and local community group leaders may have information about whether the property has been
advertised in the past 60 days. See whether those community members are willing to sign an affidavit stating
that, to their knowledge, the property has not been marketed within the past 60 days.*
3. The property must not be subject to an existing foreclosure action.
7
To find out whether the property is subject to a foreclosure action, check with your county’s Prothonotary, which
is the keeper of civil court records. Do not rely solely on a title report to determine the status of the property title.
The Act does not provide detailed guidance about the filing of a conservatorship action in connection with a
property that is subject to a pending tax sale or similar action. If the property in question appears to be subject
to a foreclosure proceeding, consult with your attorney to get advice about how to address that issue. Be sure
to document whatever steps you take to determine whether a foreclosure action is pending.*
4. The property has been owned by the current owner for at least six months.
8
This condition does not apply if the new owner is an immediate family member of the prior owner (unless the
transfer results from the death of the prior owner), or where either party is a business in which the other party
has an ownership interest of more than five percent. In other words, the owner cannot avoid the conservatorship
by selling the property to a family member or a business owned by that individual and continuing the transfers
every few months. In this context, “immediate family” is defined as “a parent, spouse, child, brother or sister.”
In determining whether six months or more have passed since the current owner acquired the property, be sure to
check with your county’s recorder of deeds for the exact date on which title was transferred. Also, be sure to check
with the recorder of deeds to determine whether there has been a recent transfer of ownership. This is important to
do repeatedly during your preparation, and certainly just before filing the petition. Obtain a printout or some kind of
documentation of the research you have conducted or the county staff has conducted for you.*
An asterisk (*) follows any sentence that describes suitable documentation for inclusion as an attachment to a conservatorship petition.
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Blighted and Abandoned Property Conservatorship Handbook
9
Act 135 § 5(d)(5); 68 P.S. § 1105(d)(5).
10
Act 135 § 5(d)(5)(i); 68 P.S. § 1105(d)(5)(i) and § 3; 68 P.S. § 1103
definition, “Public Nuisance”.
11
Act 135 § 5(d)(5)(ii); 68 P.S. § 1105(d)(5)(ii) and § 3; 68 P.S. § 1103
definition, “Substantial Rehabilitation”.
Defining Characteristics of a Property in Blighted Condition
In addition to providing evidence that the property has all four of the characteristics described above, you will need to
show that the condition of the property can be characterized as blighted, based on evidence that the property meets at
least three of the nine defining characteristics of blight described in the act.
9
The property may have more than three of
the characteristics, and you are free to present evidence related to as many characteristics as are applicable, although
you are not required to do so.
Nine Indicators of a Blighted Property Condition
1. The property is a public nuisance.
10
If the property has been declared a public nuisance by your municipality’s code official, you should obtain a copy
of the citation and copies of any code violation notices issued by the local code enforcement department.*
If the building has not been declared a public nuisance, provide photographs and affidavits from neighbors who
live near the property to show the judge that there is sufficient cause for ruling the building a public nuisance.
The affidavits, which should be prepared and notarized in consultation with your attorney, should describe the
condition of the property.*
2. The property is in need of substantial rehabilitation, and no rehabilitation activity has taken
place during the previous 12 months.
11
“Substantial rehabilitation” has taken place when:
a. The cost of the repair, replacement and improvement activity exceeds 15% of the property’s value after
rehabilitation; or
b. When one of the following is being replaced: roof structures, ceilings, wall or floor structures, foundations,
plumbing systems, heating or air conditioning systems or electrical systems.
If some rehabilitation activity appears to have taken place within the past 12 months, get in touch with neighbors
and a contractor to prepare a description of the activity, along with an estimate of the fair market value of the
property after rehabilitation. Take photographs of the property without entering the premises (and collect before-
rehabilitation photos of the property, if available), and, in consultation with your attorney, obtain affidavits from
neighbors and from the contractor whom you have asked to examine the property.
If the property owner has applied for a building permit at any time, the property may still be eligible for
conservatorship if no work has been done within the past 12 months.
An asterisk (*) follows any sentence that describes suitable documentation for inclusion as an attachment to a conservatorship petition.
14
Housing Alliance of Pennsylvania
12
Act 135 § 5(d)(5)(iii); 68 P.S. § 1105(d)(5)(iii).
13
Act 135 § 5(d)(5)(iv); 68 P.S. § 1105(d)(5)(iv).
14
Act 135 § 5(d)(5)(v); 68 P.S. § 1105(d)(5)(v).
15
Act 135 § 5(d)(5)(vi); 68 P.S. § 1105(d)(5)(vi).
3. The property is unfit for human habitation, occupancy or use.
12
Violation notices issued by the code enforcement agency can be used as evidence that this condition exists.*
Photographs of the property and affidavits from neighbors attesting to property conditions are also recommended.*
As described later, the preparation of a “preliminary plan” for upgrading the property is an integral part of the
conservatorship process, and documentation of existing conditions and of the actions that need to be undertaken
to address them would be helpful as evidence of an existing blighted condition and as documentation for
inclusion in the preliminary plan.
4. The condition and vacancy of the building materially increase the risk of fire to the building
and to adjacent properties.
13
Documentation of previous fires on the property may be obtained from the fire department. Neighbors may
be willing to provide photographs and sign affidavits attesting to previous fires.
Past code violations, including violations associated with the presence of excessive trash or flammable materials
in or near the building, may be used as evidence of a “risk of fire,” even if no previous fires have taken place at
the property.
5. The building is subject to unauthorized entry leading to potential health and safety hazards
and one of the following applies:
(a) the owner has failed to take reasonable and necessary measures to secure the building or
(b) the municipality has secured the building to prevent such hazards after the owner has failed to do so.
14
Photographs of the property and affidavits from neighbors can be used to provide evidence that the owner has
not taken sufficient steps to secure the building.*
Police reports may be used to prove that the building has been entered illegally.*
If the building has been sealed by the municipality, contact the code enforcement agency to obtain documentation
of the action.*
6. The building is considered an “attractive nuisance” to children.
“Attractive nuisance” describes a property that is an unsafe structure or that includes abandoned basements,
excavations, shafts or wells.
15
The condition can be documented by photographs illustrating the above characteristics, affidavits from neighbors
regarding the actual entry of children onto the property, a detailed description of any injuries that children have
received as a result of entering onto the property, and code violation notices issued by the code enforcement
agency.* Remember that an abandoned building in and of itself has the potential to attract the interest of children
in a residential community.
An asterisk (*) follows any sentence that describes suitable documentation for inclusion as an attachment to a conservatorship petition.
15
Blighted and Abandoned Property Conservatorship Handbook
16
Act 135 § 5(d)(5)(vii); 68 P.S. § 1105(d)(5)(vii).
17
Act 135 § 5(d)(5)(viii); 68 P.S. § 1105(d)(5)(viii).
18
RHLS Manual at 19.
19
Act 135 § 5(d)(5)(ix); 68 P.S. § 1105(d)(5)(ix).
7. The presence of vermin or the accumulation of debris, uncut vegetation, or the physical
deterioration of the structure or grounds has created potential health and safety hazards
and the owner has failed to take reasonable and necessary measures to remove the hazards.
16
This condition can also be documented through photographs of the vermin, uncut vegetation, debris, or
deterioration of the property, along with any relevant notices of code enforcement violations.*
8. The dilapidated appearance or other condition of the building negatively affects the economic
well-being of residents and businesses near the building.
17
Evidence that the property “negatively affects the economic well-being of residents and businesses” may include
information about declining property values and loss of business in the immediate area, as well as related
photographs and affidavits from property owners, business owners and operators, and real estate professionals
attesting to the negative impact of the property on the neighborhood economy.*
The RHLS Manual cautions against relying on this indicator of blight, because it might be abused by unscrupulous
developers as a means of forcing out low-income residents.
18
Most abandoned and blighted properties will satisfy
three or more of the other criteria, so referring to declining property values should be unnecessary.
9. The property is an attractive nuisance for illicit purposes.
19
“Illicit purposes” includes prostitution, drug use and vagrancy. It can be documented by police reports detailing
the illegal activity, as well as affidavits from neighbors confirming that the activities occur on the property.*
As indicated on pages 11–15, items in the preceding sections that have been tagged with an asterisk (*) may be
included as attachments to a conservatorship petition. Although most of the items are not required, it would
be advantageous to include as many of them as possible in order to strengthen your case. Reminder: Be sure to
consult an attorney before preparing any affidavit to present in court, and make sure the affidavit is signed by
the person making the statement in the presence of a notary public.
An asterisk (*) follows any sentence that describes suitable documentation for inclusion as an attachment to a conservatorship petition.
16
Housing Alliance of Pennsylvania
17
Blighted and Abandoned Property Conservatorship Handbook
20
Act 135 § 5(h); 68 P.S. § 1105(h) and § 6(b)(1); 68 P.S. § 1106(b)(1).
21
Act 135 § 6; 68 P.S. § 1106.
22
RHLS Manual at 37.
Chapter Four
The Conservator and the Improvement Plan
The conservator is the party appointed by the court to enter the property and address the conditions of blight. This
chapter describes what the law mandates a conservator to do and the powers conferred to a conservator, and the legal
and practical considerations involved in selecting a party to be recommended to the court for selection as conservator
of the property. The remainder of the chapter describes the elements of the improvement plan for the property and
important issues that you should consider in preparing the plan.
Conservator Mandates
Act 135 requires that a conservator take possession immediately upon appointment and maintain, safeguard and
insure the property.
20
Powers of the Conservator
Act 135 specifies that the appointment of a conservator by the court authorizes the conservator to undertake any of the
following actions:
21
Conservator Powers
1. Take possession and control of the building, associated land, and any personal property
of the owner used with respect to the building, including any bank or operating accounts
for the building.
2. Collect outstanding accounts receivable.
3. Pursue all claims or causes of action of the owner with respect to the building and all other
property subject to the conservator.
Action 3 may provide the conservator with a source of additional funds to help pay for the rehabilitation of the
property.
4. Contract for the repair and maintenance of the building.
The contracts must be fully documented, and the documentation must be included in the reports and accounting
that the conservator is required to submit. For contracts valued at more than $25,000, the conservator is required
to make a reasonable effort to solicit three competitive bids.
Although the act requires only three bids for contracts that are expected to exceed $25,000, it is recommended that
conservators obtain three bids for all work, except work that needs to be done in response to an emergency.
22
5. Borrow money and obtain credit for the rehabilitation of the property.
6. Contract and pay for the maintenance and restoration of utilities to the building.
If the property has past-due bills, they may need to be paid before the utilities can be reconnected so that the
property can be fully rehabilitated and sold.
18
Housing Alliance of Pennsylvania
23
See the “Difficult Considerations for Conservatorship” section of
this handbook for more information on historic properties.
24
See the “Termination of Conservatorship” section of this handbook
for more information on the selling of property.
7. Purchase materials, goods and supplies to accomplish repairs and operate the building.
The conservator should keep detailed records (with the assistance of a certified public accountant if needed) of
all costs incurred, to ensure that a full reimbursement of expenses is received at the end of the conservatorship.
8. With the court’s approval, enter into new rental contracts and leases for a period not
to exceed one year.
Some buildings may be rehabilitated in phases, with the first phase being rented while the next phase is
completed, and so on. The lease may not exceed one year, because it is anticipated that when the rehabilitation
is complete, the property will be sold.
9. Affirm, renew or enter into contracts providing for insurance coverage on the building.
The conservator is authorized to purchase any and all required insurance, including coverage for the property,
the equipment and liability.
10. Engage and pay legal, accounting, appraisal and other professionals to aid the conservator in the
conduct of the conservatorship.
This provision includes the engagement of professional services associated with all aspects of the development,
design, and construction, budgeting, bidding, financing and out-sale process.
11. In cases where the building has been designated a historic property or is located in a designated
historic district, consult with the appropriate local or state historical commission to determine
what requirements apply to the renovation to preserve the building’s historic character, or to
determine whether demolition will be allowed.
23
12. Apply for and receive public grants or loans.
13. Sell the building.
24
14. Exercise all authority that an owner of the building would have to improve, maintain and
otherwise manage the building.
This is a catch-all provision that allows the conservator to handle any unanticipated problems that may arise
as improvement plans are being implemented.
19
Blighted and Abandoned Property Conservatorship Handbook
25
Act 135 § 4(b)(2); 68 P.S. § 1104(b)(2).
26
Act 135 § 5(e)(2); 68 P.S. § 1105(e)(2).
27
Act 135 § 5(e)(3); 68 P.S. § 1105(e)(3).
28
Act 135 §3; 68 P.S. §1103
Choosing a Conservator
The conservatorship petition that you file in court is to identify a party that you are recommending be appointed by
the court as conservator.
25
The court will make the final decision about whether to appoint the recommended
conservator or to appoint some other party instead.
In thinking about a prospective conservator to recommend to the court, you should consider both the legal and
practical considerations associated with conservatorship.
Legal Considerations
Act 135 requires that the petitioner first approach the senior lien holder to determine that party’s interest in being
appointed conservator.
26
The senior lien holder is the party that has filed a lien (a claim or security against the property)
in “first position”—meaning that this claim is to be paid first, right after government liens are paid but before any
other private liens are paid, in the event that the property is sold or foreclosed upon. The first lien holder is often,
but not always, the mortgage lender. A review of the title report will enable you to identify the first lien holder.
The reasoning behind this requirement is that the costs incurred by the conservator, when secured by a lien, supersede
existing liens other than federal, state and local government liens—creating a “super lien” status. As a result of the
conservatorship, funds may not be available to repay the existing lien holders. The non-government liens will be wiped
out when the property is sold at the end of the conservatorship process. Offering the senior lien holder an opportunity
to become the conservator offers this party an opportunity to control the process and mitigate their potential losses.
If the title report shows that there is no lien holder, or if the senior lien holder declines the appointment, or if the court
determines that the lien holder would be an inappropriate candidate for appointment as conservator, the petitioner may
consider other parties to recommend. The act states that the court must consider any other recommendations from the
petitioner and give preference to a nonprofit corporation or governmental unit rather an individual.
27
Practical Considerations
Act 135 does not provide detailed rules or guidelines to be used in choosing a conservator, but the law does say the
conservator must be “competent.” A “competent entity” has “experience in the rehabilitation of residential, commercial
or industrial buildings and the ability to provide or obtain the necessary financing for such rehabilitation.” It is
important that you and other members of your team consider all of the responsibilities that a conservator will need to
assume for the property about which you are concerned and that you select a prospective conservator with the skills
and experience that would make him or her particularly well qualified to take on the challenge of implementing an
improvement plan for the property.
28
Here are some of the most important conservator responsibilities:
1. Taking possession immediately upon appointment and maintaining, safeguarding and insuring
the property.
2. Preparing and submitting proposals for blight remediation to the court for approval.
This responsibility includes all aspects of the development, design, construction, budgeting, bidding, financing,
and selling or leasing process.
3. Advertising for bids from contractors, subcontractors and professional services, and selecting
and supervising the work of architects, engineers, contractors and other design and construction
professionals.
20
Housing Alliance of Pennsylvania
29
RHLS Manual at 29.
4. Ensuring that approvals are obtained for the necessary permits, zoning variances, insurance,
environmental assessments, historic restoration plans, storm water management plans, financing,
and title insurance.
5. Working with legal counsel and your team to make regular reports to the court and secure court
approvals for each step of the process, as required by the court.
6. Maintaining financial records and working with financial professionals to complete the final
accounting required by the court.
7. Working closely with legal counsel and a title insurance agent during the process to make sure
that the court will approve the conservator’s lien and the public or private sale process.
If the identified Conservator has most, but not all, of the above qualifications necessary, you and your team may
want to consider recommending the appointment of a “co-conservator,” a party with the capability to manage
responsibilities that the primary conservator is not able to fully address. Bringing a “co-conservator” on board should
be considered only when absolutely necessary, when feasible, and when both parties meet all legal requirements.
It may be better for the conservator to hire professionals to provide expertise that the conservator is lacking.
When considering the selection of a party to recommend for court appointment as conservator, make sure that you
compile a written description of the process, to document in detail the steps that led to your decision about the
recommendation of a conservator. Your description should include information about the individuals who, along
with the conservator, will have important roles in implementing the conservatorship plan.
Documentation about the prospective conservator should include contact information and summaries of past
projects, including brief project descriptions, cost information, completion dates, and information about the role
of the prospective conservator in completing each project summarized. Any other information that seems relevant
to the prospective conservator’s suitability for appointment as conservator should be included as well.
29
The Plan for the Property;Threshold Issues
Before filing a conservatorship petition, you and your team should decide whether rehabilitation or demolition
is the most feasible course of action. Four issues should be given particular consideration.
1. Condition of the building
2. Cost of rehabilitation
3. Anticipated final use of the property
4. Availability of financing to complete the activities proposed
Before filing the petition, your team—including the architect and anyone the architect may recommend as a source
of information about construction techniques and costs—should inspect the exterior of the building, including the
structure, foundation, roof, windows and doors, to establish a preliminary estimate of rehabilitation costs. Later, the
court will allow the team to enter the property in order to prepare a cost estimate for the interior as well. Obtaining as
precise an estimate of rehabilitation costs as possible is important; in the event that costs rise above the level of funding
available to support the implementation of the conservatorship plan, the conservator may choose to terminate the
conservatorship altogether.
21
Blighted and Abandoned Property Conservatorship Handbook
30
Act 135 § 4(b)(3); 68 P.S. § 1104(b)(3).
31
See RHLS Manual at 30-31.
32
RHLS Manual at 20-22, 29.
The Preliminary Plan
A conservatorship action must be supported by a preliminary plan that includes information about the current
condition of the property and about the approach proposed for improving the property to a standard that complies
with municipal codes. The preliminary plan must be submitted as an attachment to the petition for conservatorship.
30
Preliminary Plan Contents
The preliminary plan should include the following information. The list is not intended to be exhaustive; other
information that you consider relevant should also be included.
31
1. A brief description of the petitioner
2. A site plan illustrating property dimensions, as well as a map showing the location of the
property within the municipality
3. Photographs of the property
Although it may be impossible to obtain photographs of the interior of the property, be sure to provide exterior
photographs are that show the condition of the property and its relationship to the surrounding neighborhood.
4. An inspection report, feasibility study and cost estimate for the rehabilitation or demolition
of the property
If possible, the inspection should be completed and the feasibility study and cost estimate prepared by a contractor
with experience and qualifications similar to those required to rehabilitate or demolish the property (depending on
the course of action that your team has decided to pursue). A preliminary cost estimate based on an inspection of
the exterior of the property is sufficient for documentation of the preliminary plan.
5. A structural assessment obtained through a visual examination of the exterior
6. If the property is historically certified or located in a historic district, a historic preservation
assessment that includes an estimate of the costs of complying with historic preservation
requirements associated with the property
7. Anticipated sources of financing for rehabilitation or demolition as well as the estimated total
project cost
8. Information about the process for conveying the property after the blighting conditions have
been addressed and the conservatorship is terminated
32
22
Housing Alliance of Pennsylvania
23
Blighted and Abandoned Property Conservatorship Handbook
33
Act 135 § 3; 68 P.S. § 1103.
34
A “secured creditor” is a creditor that holds a security interest
over some or all of the assets of the debtor. In many instances,
this includes a home owned by the debtor. This classification
of creditor is especially important to title insurance companies
and must be examined closely.
Chapter Five
Going to Court
Although the conservatorship process—including research on the property, preparation to go to court, and completing
the conservator’s plan—can be long and complicated, the legal action resulting in the appointment of a conservator
consists of just four steps. This chapter describes how the court process works and includes some guidance about how
to prepare for court after filing a conservatorship petition. Check the Glossary in Appendix D for definitions of any
terms that may be unfamiliar to you.
Keep in mind that this handbook is designed to serve as an information resource, not as a substitute for legal advice.
To gain a full understanding of how the conservatorship law and process apply to your circumstances, be sure to
consult with an attorney.
Step One: File a petition for conservatorship
A “party in interest” files a petition for the appointment of a conservator in the Court of Common Pleas in the county where
the property is located.
If you do not meet the criteria defining a “party in interest,” you will need to locate a person or entity that does meet
the criteria and is willing to take on the role of petitioner.
Any one of the following may be considered a party in interest:
33
• A lien holder or other secured creditor
34
of the owner
• A resident or business owner within 500 feet of the building
• A nonprofit corporation, including a redevelopment authority, located in the municipality
where the building in located.
• The municipality or school district in which the building is located
Petitions for Act 135 conservatorship are filed in your county’s Court of Common Pleas as a civil filing unless the
property owner is deceased. In that instance, the filing may be with a Court of Common Pleas Orphan’s Court judge.
Your attorney will recommend which option to pursue.
The assignment of a judge is made by the court, not the petitioner.
The petition includes four items.
1. A sworn statement by the petitioner that the property meets the statutory conditions
for Conservatorship
2. Documentation supporting the claim
Before filing, you and your attorney should review all research previously completed on the property, as described
in the preceding chapters, and make sure that all of the statutory requirements associated with the filing of an action
have been met.
3. A recommendation identifying a possible conservator
4. A preliminary plan The preceding chapter contains detailed information about items 3 and 4.
24
Housing Alliance of Pennsylvania
35
Act 135 § 9(a); 68 P.S. § 1109(a).
36
General Court Regulation 2009-01 (as amended), §§ 11-12.
37
Act § 5(a); 68 P.S. § 1105(a)
38
Act 135 § 5(f)(1); 68 P.S. § 1105(f)(1)
Step Two: File notification of pending court action
File a lis pendens with the recorder of deeds or prothonotary to notify anyone reviewing public records related to
the property about the pending litigation. A lis pendens will prevent the owner from trying to sell his way out of
the conservatorship, or at least ensure that anyone buying the property knows that they are buying it subject to
an existing conservatorship action.
35
Step Three: Serve the petition
Serve the petition on all parties whose interest in the property makes them “necessary defendants,”
based on guidance provided by your legal counsel. Serving the petition involves the following actions:
• Sending notice by registered or certified mail and posting the notice
• If the certified mail is refused, sending the notice by ordinary mail
• If the certified letter is unclaimed, attempting personal service
36
If you are unable to locate the owner, the court may accept as valid a notice by publication,
such as a legal notice in a newspaper.
Step Four: Participate in the court hearing
The act requires that a hearing be held within 120 days of receipt of the petition and that a decision be rendered
no later than 30 days after the hearing.
37
If no objections to the petition arise at the hearing, the court may appoint a conservator immediately and authorize the
conservator to take physical possession of the property at once. Such action enables the conservator to begin drafting
a “final plan” for the property.
If the property owner appears in court and states that the “violations or nuisance or emergency condition will be
abated in a reasonable period,” the court may decide to grant the owner “conditional relief” and prevent the
conservatorship from proceeding. If that happens, the owner will be required to post bond, and if the property is not
rehabilitated within a reasonable period, the court will order the conservator to proceed, in which case the owner will
forfeit the bond money.
38
25
Blighted and Abandoned Property Conservatorship Handbook
39
RHLS Manual p. 9.
40
These specific costs will be incurred by the petitioner only.
What It Might Cost
In preparing to file a conservatorship petition, your team should be aware of the costs associated with a
conservatorship action and the process leading to the appointment of a conservator. The following are some examples
of the costs you should expect to incur. The list is not exhaustive, and not every filing will incur the same costs.
1. Purchase of a Full Title Report
You should budget about $300 for this expense. The full title report will identify the recorded owner of the property
and any lien holders or secured creditors that may hold an interest in the property.
39
If some time has elapsed between the purchase of a title report and the filing of the conservatorship petition, you
may need to order an update (also called a “Bring Down”) to ensure that the information is up to date at the time
of the filing.
2. Filing Fees
40
The county’s Court of Common Pleas charges fees for the filing of court papers associated with a conservatorship
action, such as the filing of a Petition for the Appointment of a Conservator and the filing of a Lis Pendens. Check
with your county’s Prothonotary for filing fees that may apply to the Act 135 court action.
3. Service of Process
In any civil action involving real property, the plaintiff or petitioner who brings the action must notify anyone with
any interest in the property. In accordance with Act 135, the political subdivisions in which the property is located
also receive service of process. The title report will identify the parties with an interest in the property, including
the owner and any lien holders.
Your attorney will recommend how service of process will be made on each party. If personal service is required,
there are associated fees. If personal service has to be made by your county’s sheriff, you can check with the
sheriff’s office for the fees the sheriff charges for the service of a complaint and other documents. If your lawyer,
following Pennsylvania’s Rules of Summary Process, is able to give notice by publication, there is a cost for the
legal notice in a local newspaper of general circulation or a local legal journal.
26
Housing Alliance of Pennsylvania
27
Blighted and Abandoned Property Conservatorship Handbook
41
See RHLS Manual at 35-36 for more description.
42
Act 135 § 6(c); 68 P.S. § 1106(c).
43
Act 135 § 6(b)(3); 68 P.S. § 1106(b)(3) and see RHLS Manual
at 37.
Chapter Six
Getting the Job Done
This chapter describes how a conservatorship action is implemented from the time of the court decision to the time
when the conservator’s responsibilities have been completed and the property is no longer in blighted condition.
Appointment
After reviewing the conservatorship filing and making a determination that the property meets the four basic
requirements and at least three of the nine criteria for blight, the court may rule that the property meets the
requirements of Act 135 and appoint a conservator. As previously indicated, the court may decide to appoint
the conservator that you and your team recommend or to appoint another party instead.
Right of Entry
Conservatorship gives the conservator immediate possession of the property. A “Right of Entry Order” issued by the
court authorizes the conservator to enter the property and develop the “final plan,” as discussed below. After the court
approves the final plan, the conservator may begin obtaining construction permits and undertaking property improvements.
With possession of the property come several important responsibilities that the conservator must fulfill, including
the following.
41
• Obtain property insurance and liability insurance
• Seal the building and take other measures to safeguard the public from known dangers on the property
• Make emergency repairs that may be necessary before approval of the final plan.
Final Plan
Act 135 requires the conservator to submit a “final plan” to the court and requires the court to hold a hearing on the
plan.
42
When the conservator is appointed, the court must set a hearing date, which is to be no more than 120 days
later. The plan must be submitted to the court at least 30 days before the hearing date. If the court denies the final plan,
the court will hold a supplemental hearing within 60 days to give the conservator an opportunity to amend the plan.
The final plan should document the way in which the conservator will complete the following activities:
• Abate the blighting conditions that caused the petition to be granted; or, if the conservator finds that approach
to be infeasible, develop alternatives such as closing, sealing or demolishing part or all of the building.
• If the building has been designated a historic property, rehabilitate architectural features that define the
property’s historic character, consistent with historic preservation requirements.
• If the property is located in a historic district and is to be demolished, design any replacement construction
on the site in compliance with codes and historic-preservation standards.
43
• Finance the activities described in the plan and identify sources of funding.
28
Housing Alliance of Pennsylvania
44
RHLS Manual at 35, “E. Taking Possession and Developing a final
plan”.
45
Act 135 § 6(d); 68 P.S. § 1106(d).
Permission to Begin Work
Before entering the property and starting work, the conservator must obtain a court order for the property’s plan.
To obtain approval for subsequent actions, the conservator must obtain court approval before starting any work on the property
and be aware of any requirements to return to the court.
If the conservator is an corporation governed by a board of directors, board approval, as well as court orders, must
be obtained for action to be undertaken.
44
Termination of the Conservatorship
Once the activities described in the final plan have been completed, or if it becomes infeasible to complete the final
plan, the conservator must file a detailed final report with the court.
45
The conservator may then petition the court for
authorization to terminate the conservatorship through either a public or a private sale. Notice of the petition to sell
the property must be provided to the property owner and to lien holders, so that they have an opportunity to object.
If a sale is proposed, the terms and conditions of the sale are subject to court approval, and the court must be satisfied
that the buyer is likely to maintain the property.
On selling the property, the conservator petitions the court to terminate the conservatorship and provides a final
accounting to show that the proceeds of the sale were distributed in the manner specified in Act 135. The conservator
then relinquishes possession of the property, and the conservatorship is complete.
29
Blighted and Abandoned Property Conservatorship Handbook
Appendix A Act 135 at a Glance
Act 135 has many provisions. The material shown in the following tables is paraphrased from the act and intended
to serve as a shorthand reference. Be sure to read the language of the law itself in Appendix C.
Table 2
ACT 135 SUPPORTING PARTIES
These professional services and their associated costs may be involved
Table 1
ACT 135 FOUR PRIMARY PARTIES
The following are the primary roles set out by Act 135
(see tables 3 through 5 for more details).
Are you thinking ‘what about the OWNER?’ If so, see table 7.
The BUILDING
A vacant residential,
commercial or industrial
structure that meets
certain conditions
(see table 3)
The PETITIONER
The “party in interest”
who initiates the action
(see table 4)
The CONSERVATOR
A court approved, third
party appointed to take
possession and control of
the building (see table 5)
The JUDGE
A Court of Common
Pleas judge who decides
whether to appoint a
conservator and oversees
the conservatorship
(see table 6)
ATTORNEY
A lawyer will need to represent the Petitioner, file the
court action, and terminate the conservatorship.
CONTRACTOR
Provides stabilization or demolition work write up and
estimated costs; complete the rehab or demolition.
ENGINEER
Provides specification for necessary structural work and
estimated costs.
REALTOR
Markets the property for sale.
DESIGNER
Provides design options related to property rehabilitation
or property reuse and estimated costs. For instance, a
landscape designer might offer designs to manage storm
water runoff.
ARCHITECT
Provides specification for necessary or desired
rehabilitation work and estimated costs.
DEVELOPER
Oversees the project. May be the conservator
or may be hired by the conservator. A developer
may be unnecessary for a demolition project.
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Housing Alliance of Pennsylvania
Table 5
ACT 135 CONSERVATORS
Table 4
ACT 135 PETITIONERS
“Party in interest” has a direct and immediate interest in the blighted building, and can include:
Table 3
Act 135 Required Building Conditions
ALL must apply:
Not legally occupied for 12 months
Not marketed for 60 days
No foreclosure action
Current owner longer than 6 months
PLUS three (3):
■■ A public nuisance
■■ Needs substantial rehab
■■ Unfit for occupancy
■■ Increases risk of fire
■■ Subject to entry
■■ Not secured by owner
■■ Attractive nuisance
■■ Hazards
■■ Decreases property values
■■ Illicit activity
Owner Lien holder
Resident or
business owner
within 500 feet
Nonprofit, including
a redevelopment
authority, in the
municipality
where the property
is located
The municipality
or school district
The law states an order of preference for who
is appointed Conservator:
• Senior lien holder
• Non Profit Corporation
• Governmental Unit
• Individual
The Conservator must have the competency to:
• Develop a preliminary plan for the building
• Take possession immediately upon appointment
• Maintain, safeguard and insure the building
• Develop a final plan for court approval
• Implement the final plan
• Submit status reports to the court
31
Blighted and Abandoned Property Conservatorship Handbook
Table 8
ACT 135 STEP BY STEP
• Identify and research property
• Prepare court action
• Initiate court action by filing petition and notifying all that have an interest in the property
• Court hearing on petition takes place within 120 days of filing
• Court approves or denies appointment of conservator within 30 days of hearing
• Appointed conservator takes possession and control of building
• Court approves final plan, may approve super priority lien, if requested
• Implement plan, submit status reports
• Terminate conservatorship by fulfilling conservatorship plan, owner redemption, or free and clear sale
Table 7
WHAT ABOUT THE OWNER?
• An owner may petition for conservatorship, as when there is a co-owner who is absent or refuses to act and the
“good” owner cannot repair or sell the property without the co-owner’s consent
• If owner responds to the court petition to appoint a conservator, the Judge may set a deadline for the owner to abate
the conditions
• Conservatorship does not relieve owner of any liability or responsibilities
• Owner may petition to terminate the conservatorship but owner is required to make conservator whole
• Owner is last on list of distribution of proceeds
Table 6
ACT 135 COURT OF COMMON PLEAS JUDGE
• Oversees the cases from initial petition to termination of the conservatorship
• Appoints conservator
• Approves conservator plan
• May “grant a lien or security interest with priority over all other liens with the exception of municipal or other
governmental liens”
• May “authorize the conservator to sell the building free and clear of all liens, claims and encumbrances…”
• Authorized to approve distribution of proceeds of sale, if any in accordance with Act 135 distribution priority
32
Housing Alliance of Pennsylvania
Appendix B
Sample Petition for Conservatorship
The attached petition from Allegheny County is meant to serve as a sample that can be adapted for use
in other counties.
Note: This petition includes multiple attachments. Not all attachments, however, are vital to the success of the
petition. It is best to check the act, attached hereto as Appendix C, for strict requirements.
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Blighted and Abandoned Property Conservatorship Handbook
IN THE COURT OF COMMON PLEAS OF
ALLEGHENY COUNTY, PENNSYLVANIA
[Petitioner] CIVIL DIVISION
Petitioner, GD No.
v. Issue No.
[Owner(s) of Subject Property, Political Date on GD Trial List
Subdivisions in which subject property is
Located, all lien holders]
Respondent(s).
PETITION FOR THE APPOINTMENT OF A CONSERVATOR
“Code “
Real Estate Involved:
[Address]
[Ward]
[Lot & Block]
Filed on behalf of Petitioner, [JOHN DOE]
Counsel of Record for this Party:
[Attorney]
[Bar No.]
[Firm]
[Firm ID]
[Firm Address]
[Firm Information]
34
Housing Alliance of Pennsylvania
IN THE COURT OF COMMON PLEAS OF
ALLEGHENY COUNTY, PENNSYLVANIA
ACTION HOUSING :
: CIVIL DIVISION
Petitioner, :
: GD. No.
:
v. : Issue No.
:
[Owner(s) of Subject Property, Political : Date on GD Trial List
Subdivisions in which Subject Property is :
located, all lien holders] : PETITION FOR THE
: APPOINTMENT OF A
Respondent(s). : CONSERVATOR
:
: “Code “
NOTICE TO DEFEND
You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must
take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance
personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth
against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be
entered against you by the Court without further notice for any money claimed in the Complaint or for any
property or other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER
OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND
OUT WHERE YOU CAN GET LEGAL HELP.
LAWYER REFERRAL SERVICE
ALLEGHENY COUNTY BAR ASSOCIATION
920 CITY-COUNTY BUILDING
414 GRANT STREET
PITTSBURGH, PA 15219
(412) 261-0518
35
Blighted and Abandoned Property Conservatorship Handbook
IN THE COURT OF COMMON PLEAS OF
ALLEGHENY COUNTY, PENNSYLVANIA
[Petitioner] :
: CIVIL DIVISION
Petitioner, :
: GD. No.
:
v. : Issue No.
:
[Owner(s) of Subject Property, Political : Date on GD Trial List
Subdivisions in which Subject Property is :
located, all lien holders] : NOTICE OF FILING OF A
Respondent(s). : PETITION FOR THE
: APPOINTMENT OF A
: CONSERVATOR
PETITION FOR THE APPOINTMENT OF A CONSERVATOR
Petitioner, [petitioner name], by and through [its/his/her] counsel, [attorney name] respectfully petitions this
Court to appoint a conservator to take possession of and to undertake the rehabilitation of a certain property,
and in support thereof avers as follows:
JURISDICTION AND VENUE
This Court has jurisdiction pursuant to the Abandoned and Blighted Property Conservatorship Act, P.L. 1672,
No. 135, 68 P.S. § 1101 et seq. (2008) (the “Act”).
The Property is located in the [Municipality] and County of Allegheny, Pennsylvania and venue is pursuant to
Section 1104(a) of the Act because the Property is located in the City of [Municipality] and County of Allegheny,
Pennsylvania.
PROPERTY
The Property subject to this Petition is a [Residential/commercial/industrial] building located at:
[address of property], Block & Lot No. [ - - ] (the “Property”). A copy of the last recorded vesting
Deed is attached as Exhibit “A;” a Title Report is attached as Exhibit “B;” and the Legal
Description is attached as Exhibit “C.”
PETITIONER
Petitioner is a party in interest as defined by Section 1103 of the Act, specifically, [the owner(s) of property
at issue] OR [a lien holder or other secured creditor of the owner] OR [a resident or business owner within
500 feet of the building] OR [a nonprofit corporation located in the [Municipality] with a mailing address of ,
within the municipality where the Property is located, having as one of its purposes to create and stimulate
community economic development activities, including economic development, historic preservation or the
promotion or enhancement of affordable housing opportunities], OR [municipality] [school district] in which
the building is located].
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Housing Alliance of Pennsylvania
RESPONDENTS
Defendants are the owner or owners, mortgage holders, assignees, lien holders or other persons identified in the
Title Report as having or possibly having some right, title, or interest in, or claim against, the Property. A copy
of the Title Report is attached hereto and made a part hereof as Exhibit B.
Defendant, , is the Grantee on the vesting deed on the Property which is the subject of this Petition for
the Appointment of Conservatorship, with a last known address of .
Defendant, , is a former owner of the Property which is the subject of this Petition for the Appointment
of Conservatorship, with a last known address of .
Defendant, the Estate of , deceased, filed at the Allegheny County Department of Court Records
Wills/Orphans Division Est. # , includes the Property which is the subject this Petition for the
Appointment of a Conservator. The copy of the vesting deed is attached hereto and made a part hereof as Exhibit
A. A copy of the death certificate for is attached hereto and made a part hereof as
Exhibit D.
Defendant, the Estate of , deceased, no estate filed includes the Property which is the subject of
this Petition for the Appointment of a Conservator. The copy of the vesting deed is attached hereto and made a
part hereof as Exhibit A. A copy of the death certificate for is attached hereto and made
a part hereof as Exhibit D.
Defendant, , is an heir of with an address of .
Defendant, , is a beneficiary of the Estate with an address of .
Defendant, , is a political subdivision of the County of Allegheny and Commonwealth of Pennsylvania
in which the Property is located with an address of .
Defendant, , is a governmental agency of the Commonwealth of Pennsylvania in which the Property
is located with an address of .
Defendant, , is an independent authority of the [Borough, City of ,]
County of Allegheny and Commonwealth of Pennsylvania in which the property is located, with an address
of .
Defendant, , is a corporation headquartered at .
PROPERTY OWNER(S), LIEN HOLDERS ETC.
The Petitioner avers that the property is owned by __________________.
[If the owner is deceased, “ . died on , [intestate/testate], survived
by as [his/her] heirs at law, all of whom are named defendants to this petition and all of whom consent
to the appointment of a conservator.]
The Owner has not vacated the Property to perform military service in time of war or armed conflict or in order
to assist with relief efforts during a declared federal or state emergency as a member of the United States Armed
Forces or reserve.
The Property is not held in trust for the federal government and regulated under the United States Housing
Act of 1937, 50 Stat. 888, 42 U.S.C. § 1437 et. seq.
After diligent investigation, Petitioner has been unable to ascertain the identity of any other person or persons,
corporations, partnerships, associations or governmental agencies having or claiming an interest or right in,
or lien or encumbrance on, the Property other than the Defendants identified by name above.
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Blighted and Abandoned Property Conservatorship Handbook
CONDITIONS FOR CONSERVATORSHIP
In accordance with the Act § 1105, the Property has not been legally occupied for at least twelve (12) months
before the date of the filing of this Petition. [Add any relevant description.]
The Property has not been actively marketed during the sixty (60) days before the date of the filing of this Petition.
[Describe efforts and attach relevant documents]
No “For Sale” sign has been placed on or in front of the Property during the sixty (60) days before the date of the
filing of this Petition. [Describe efforts and attach relevant documents]
The Property has not been advertised as for sale through distributed print advertisements, print or electronic
media, or through engagement of a real estate professional [for residential property add: to place the Property in
a Multiple Listing Service or] to otherwise market the Property. [Add any relevant description.]
According to inspection of public records, the Property appears not to be subject to an existing foreclosure action.
According to inspection of public records, [Owner] has not acquired the Property within the preceding six (6)
months prior to the date of the filing of this Petition.
The Property, because of a physical condition or use, has been declared a public nuisance by .
[Indicate whether the property has been declared to be a public nuisance by which appropriate public official
within [Municipality] in accordance with the local housing, building, health, fire or related code, or is
determined by a court and attach relevant documentation.] A copy of the citation[s] is/are attached as Exhibit ___.
The Property is in need of substantial rehabilitation (rehabilitation cost exceeding fifteen percent (15%) of the
property’s value after completion of all repairs, replacements and improvements; or, more than one major
building component is being replaced) and no rehabilitation has taken place during the previous twelve (12)
months prior to the date of the filing of this Petition. Photographs of the Property are attached as Exhibit ___.
[Add any relevant description and attach any relevant documents. Please note that Electronic Filing rules
require all legal papers (including exhibits) to be filed in a pdf format.]
The Property is unfit for human habitation, occupancy or use because . . . [Add any relevant description and
attach any relevant documents.]
The conditions and vacancy of the Property materially increase the risk of fire to the Property and adjacent
properties because . . . [Add any relevant description and attach any relevant documents.]
The Property is subject to unauthorized entry leading to potential health and safety hazards and the Owner has
failed to take reasonable and necessary measures to secure the Property. [OR] The Property is subject to unauthorized
entry leading to potential health and safety hazards and the [Municipality] has secured the Property to prevent
such hazards after the Owner failed to do so. [Add any relevant description and attach any relevant documents.]
The Property is an attractive nuisance to children, including, but not limited to, the presence of [abandoned wells,
shafts, basements, excavations, and unsafe structures]. [Add any relevant description and attach any relevant
documents.]
The presence of vermin and the accumulation of debris, uncut vegetation or physical deterioration of the structure
and grounds have created potential health and safety hazards, and the Owner has failed to take reasonable and
necessary measures to remove the hazards. [Add any relevant description and attach any relevant documents.]
The dilapidated appearance and condition of the Property negatively affects the economic well-being of residents
and businesses in close proximity to the Property, including decreases in property value and loss of business,
and the Owner has failed to take reasonable and necessary measures to remedy the appearance and condition.
Specifically, [Add any relevant description and attach any relevant documents.]
The Property is an attractive nuisance for illicit purposes, including [prostitution, drug use and vagrancy].
[Add any relevant description and attach any relevant documents.]
38
Housing Alliance of Pennsylvania
PROPOSED CONSERVATOR
Petitioner recommends that ________________________________ [Name of proposed conservator] be appointed
Conservator. The proposed Conservator has the financial resources and experience to properly rehabilitate the
Property. [Explain and provide detail concerning the proposed Conservator’s qualifications to be Conservator,
including inter alia financial resources and experience regarding past projects that proposed Conservator
handled, including details of specific role, description of each project, total budget, scope of work performed,
names of responsible staff members, and the date each development was completed.][If a non-profit
Corporation is the proposed Conservator, provide evidence of Qualifications of Non-Profit to serve as a
competent entity.] [As per §1105(e), note in detail that Petitioner first inquired whether senior lien holder
is interested in being Conservator, followed by non-profit or other “competent entity”]
Petitioner’s Preliminary Plan with initial cost estimates for rehabilitation of the Property to bring it into compliance
with all municipal codes and duly adopted plans for the area in which the Property is located and anticipated
funding sources are attached as Exhibit __. [Briefly describe the preliminary plan. Be sure to specify financial
issues, demolition vs. rehabilitation, and maps, photographs, assessments, etc.]
39
Blighted and Abandoned Property Conservatorship Handbook
LIS PENDENS
Petitioner will serve or provide notice of the filing of this Petition as provided by Section 1104(d) of the Act
and as otherwise ordered by the Court.
As required by Section 1104 (c), Petitioner shall file a Lis Pendens, substantially in the form attached hereto
as Exhibit ___, with the County of Allegheny Department of Court Records, Civil/Family Division and shall
thereafter file a file-stamped copy with the Prothonotary.
WHEREFORE, Petitioner prays for the following relief:
Issue an Order to Show Cause, inter alia, as to why a Conservator should not be appointed to abate the public
nuisance and rehabilitate [or demolish], as alleged and ultimately proven, at the Property located at
________________________;
Appoint a Conservator as authorized by the Abandoned and Blighted Property Conservatorship Act;
and Grant such other and additional relief as may be just and appropriate.
Dated:_________ Respectfully submitted,
_____________________________________________
40
Housing Alliance of Pennsylvania
VERIFICATION OF PETITIONER
I, _____________________, hereby state:
1. I am [Title] for [Petitioner], Petitioner in this action;
2. I verify that the statements contained in the foregoing Petition to Appoint a Conservator are true and
correct to the best of my knowledge, information, and belief; and
3. I understand that the statements in the Petition to Appoint a Conservator are subject to the penalties
of 18 Pa. C.S.A. § 4904 relating to unsworn falsification to authorities.
_____________________________________________
[Title]
[Petitioner]
Dated:__________________, 20____
41
Blighted and Abandoned Property Conservatorship Handbook
EXHIBIT A – RESOLUTION
IN THE COURT OF COMMON PLEAS OF
ALLEGHENY COUNTY, PENNSYLVANIA
[Petitioner] CIVIL DIVISION
Petitioner, GD No.
v. Issue No.
[Owner(s) of Property at Issue] Date on GD Trial List
Respondent(s).
NOTICE OF FILING OF A PETITION FOR THE APPOINTMENT OF A CONSERVATOR
“Code “
Real Estate Involved:
[Address]
[Ward]
[Lot & Block]
Filed on behalf of Petitioner, [JOHN DOE]
Counsel of Record for this Party:
[Attorney]
[Bar No.]
[Firm]
[Firm ID]
[Firm Address]
[Firm Information]
42
Housing Alliance of Pennsylvania
IN THE COURT OF COMMON PLEAS OF
ALLEGHENY COUNTY, PENNSYLVANIA
[Petitioner] :
: CIVIL DIVISION
Petitioner, :
: GD. No.
:
v. : Issue No.
:
[Owner(s) of Property at Issue] : Date on GD Trial List
:
Respondent(s). : NOTICE OF FILING OF A
: PETITION FOR THE
: APPOINTMENT OF A
: CONSERVATOR
NOTICE OF FILING OF A
PETITION FOR THE APPOINTMENT OF A CONSERVATOR
A petition has been filed under the Abandoned and Blighted Property Conservatorship Act, 68 P.S. §§ 1101-1111
(2008), for appointment of a Conservator to take possession of and rehabilitate or demolish the property located
at:
________________________________________________________ , Block & Lot No. _________.
A hearing on the Petition for the Appointment of a Conservator will be scheduled by the Court. As required by
[Refer to Court Rules, Allegheny County Local Rule 400], the Petitioner shall serve or mail a copy of this Notice,
the Petition for the Appointment of a Conservator together with all exhibits, and a copy of the court order scheduling
a hearing. A copy of this Notice (without the Petition for the Appointment of a Conservator, exhibits or court order)
will also be posted at the property.
YOU ARE RECEIVING THIS NOTICE BECAUSE PUBLIC RECORDS REVEAL THAT
YOU MAY BE ONE OF THE FOLLOWING:
Owner of Property at issue. If you are the record owner or an owner claiming a right to title to the premises
and want to be heard in this matter, you must file an answer as required by the Court order referenced above.
If you do not file an answer, the court may proceed without you and you may lose your rights to the property.
A conservator may be appointed to take possession of the property, incur expenses that will be a lien against the
property, and sell the property. You will still be responsible for your obligations as the owner, including expenses
incurred by the conservator.
Lien holder/Secured Creditors. If you are a lien holder or other secured creditor and want to be heard in this
matter, you must file a petition to intervene as required by the Court order referenced above and may seek to be
appointed as Conservator. If you do not file an answer, the court may proceed without you and you may lose
your rights to the property. A conservator may be appointed to take possession of the property, incur expenses
that will be a lien against the property, and sell the property. The conservator lien may have priority over your
lien or other rights.
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Blighted and Abandoned Property Conservatorship Handbook
The City of [Municipality]. As the political subdivision in which the property is located, the City of
[Municipality] may file a petition to intervene as required by the Court order referenced above and may
seek to be appointed as the conservator.
You should take this paper to your lawyer at once.
If you do not have a lawyer or cannot afford one, go
to or telephone the office below to find out where
you can get legal help.
Lawyer Referral Service
Allegheny County Bar Association
11th Floor Koppers Building
Pittsburgh, PA 15219
Telephone: (412) 261-5555
Lleve esta demanda a un abogado immediatamente.
Si no tiene abogado o si no tiene el dinero suficiente
de pagar tal servicio, vaya en persona o llame por
telefono a la oficina cuya direccion se encuentra
escrita abajo para averiguar donde se puede
conseguir asistencia legal.
El Servicio de la Referencia del abogado
Asociación de Barra de Condado de Allegheny
11th Floor Koppers Building
Pittsburgh, PA 15219
Telefónico: (412) 261-5555
44
Housing Alliance of Pennsylvania
CERTIFICATE OF SERVICE
The undersigned hereby certifies that a true and correct copy of the foregoing PETITION FOR THE
APPOINTMENT OF A CONSERVATOR has been served upon all other parties at the address(es) below
via , this day of , 20 .
[Name and address of counsel]
[signature]
45
Blighted and Abandoned Property Conservatorship Handbook
IN THE COURT OF COMMON PLEAS OF
ALLEGHENY COUNTY, PENNSYLVANIA
[Petitioner] :
: CIVIL DIVISION
Petitioner, :
: GD. No.
:
v. : Issue No.
:
[Owner(s) of Property at Issue] : Date on GD Trial List
:
Respondent(s). : ORDER TO SHOW CAUSE
“Code “
Real Estate Involved:
[Address]
[Ward]
[Lot & Block]
Filed on behalf of Petitioner, [JOHN DOE]
Counsel of Record for this Party:
[Attorney]
[Bar No.]
[Firm]
[Firm ID]
[Firm Address]
[Firm Information]
46
Housing Alliance of Pennsylvania
IN THE COURT OF COMMON PLEAS OF
ALLEGHENY COUNTY, PENNSYLVANIA
[Petitioner] :
: CIVIL DIVISION
Petitioner, :
: GD. No.
:
v. : Issue No.
:
[Owner(s) of Property at Issue] : Date on GD Trial List
:
: ORDER TO SHOW CAUSE
Respondent(s).
ORDER TO SHOW CAUSE
AND NOW, this ____ day of _____________, 20___, upon consideration of the Petition for the Appointment of a
Conservator pursuant to the Abandoned and Blighted Property Conservatorship Act, 68 P.S. § 1101 et seq. (P.L.
1672, No. 135), it appearing that a prima facie showing of entitlement to the relief requested concerning the
property located at:
________________________________________________________ , Block & Lot No. _________.
may have been made, it is hereby ORDERED and DECREED that:
1. As required by [Refer to local rules], the Petitioner shall promptly:
a) Post a copy of the Notice of Filing of a Petition for the Appointment of a Conservator at the property;
b) Serve a copy of the Notice, Petition and all exhibits, and this Order on the owner(s) as required by
Allegheny County Local Rule 400 and file a return of service as soon as possible upon service;
c) Mail a copy of the Notice, Petition and all exhibits, and this Order by registered or certified mail on the
City of [Municipality] at [include address] and shall file a return of service as soon as possible upon
service. Service may also be accomplished as provided by Allegheny County Local Rule 400;
d) Mail a copy of the Notice, Petition and exhibits, and this Order to all lien holders and other secured
creditors as identified in the Petition, by registered or certified mail, to their last known address, and
file a return of service as soon as possible upon service. Service may also be accomplished as provided
by Allegheny County Local Rule 400. The lien holders and other secured creditors as identified in the
Petition are:
[List here the name of all lien holders and other secured creditors or as attachment]
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Blighted and Abandoned Property Conservatorship Handbook
2. As required by 68 P.S. § 1104 (c), the Petitioner shall file a Lis Pendens with the Allegheny County
Department of Records [Refer to local rules, Allegheny County Local Rule 205.2];
3. Unless otherwise provided upon petition, the owner may file an Answer to the Petition on or before
_____________ [approximately 60 days];
4. Unless otherwise provided upon petition, the [Municipality of ], lien holders, other secured
creditors, and any other “party in interest” as defined in 68 P.S. § 1103 may file a Petition to Intervene
pursuant to Allegheny County Rule 2326 et seq. on or before _________________ [approximately 60 days];
5. Answers and responses to any Petitions to Intervene must be filed on or before ______________________
[approximately 90 days];
6. As required by the Act, a hearing will be held on ________________ [within 120 days of the filing of Petition]
at __ o’clock __M ___, in Courtroom ____, to determine whether the conditions for conservatorship have
been met, whether a conservator should be appointed, who should be appointed as conservator, and/or
whether other appropriate relief should be granted; and
7. At any time, the Court may appoint a master to review the pleadings filed, conduct any hearing or status
hearing authorized by Act 135 and [Refer to Local Rules], and issue orders or recommendations as directed
by the Court and as may otherwise be necessary. Court costs necessary for the payment of the master must
be deposited with the Court of Common Pleas by the Petitioner or Conservator as may be ordered from
time to time by the Court.
BY THE COURT
_____________________________________________
J.
CERTIFICATE OF SERVICE
The undersigned hereby certifies that a true and correct copy of the foregoing PETITION FOR THE
APPOINTMENT OF A CONSERVATOR has been served upon all other parties at the address(es) below
via , this day of , 20 .
[Name and address of counsel]
[signature]
48
Housing Alliance of Pennsylvania
IN THE COURT OF COMMON PLEAS OF
ALLEGHENY COUNTY, PENNSYLVANIA
[Petitioner] :
: CIVIL DIVISION
Petitioner, :
: GD. No.
:
v. : Issue No.
:
[Owner(s) of Property at Issue] : Date on GD Trial List
:
Respondent(s). : LIS PENDENS
“Code “
Real Estate Involved:
[Address]
[Ward]
[Lot & Block]
Filed on behalf of Petitioner, [JOHN DOE]
Counsel of Record for this Party:
[Attorney]
[Bar No.]
[Firm]
[Firm ID]
[Firm Address]
[Firm Information]
49
Blighted and Abandoned Property Conservatorship Handbook
IN THE COURT OF COMMON PLEAS OF
ALLEGHENY COUNTY, PENNSYLVANIA
[Petitioner] :
: CIVIL DIVISION
Petitioner, :
: GD. No.
:
v. : Issue No.
:
[Owner(s) of Property at Issue] : Date on GD Trial List
:
Respondent(s). : LIS PENDENS
LIS PENDENS
To The Recorder of Deeds:
Kindly enter the above action as a Lis Pendens against the property located at:
________________________________________________________ , Block & Lot No. _________.
and meeting the following legal description (the “Property”):
[Include property description in indented paragraph or as attachment.]
I do hereby certify that this action involves title to real estate. It seeks appointment of a conservator to take
possession and to undertake the rehabilitation [or demolition] of the Property pursuant to the Abandoned
and Blighted Property Conservatorship Act, P.L. 1672, No. 135, 68 P.S. § 1101 et seq. (2008).
_____________________________________________
Attorney for Petitioner
50
Housing Alliance of Pennsylvania
CERTIFICATE OF SERVICE
The undersigned hereby certifies that a true and correct copy of the foregoing PETITION FOR THE
APPOINTMENT OF A CONSERVATOR has been served upon all other parties at the address(es) below
via , this day of , 20 .
[Name and address of counsel]
[signature]
51
Blighted and Abandoned Property Conservatorship Handbook
Appendix C
The Abandoned and Blighted Property
Conservatorship Act {68 P.S. § 1101 (2008)}
Act of Nov. 26, 2008, P.L. 1672, No. 135
§ 1101. Short title
This act shall be known and may be cited as the Abandoned and Blighted Property Conservatorship Act.
§ 1102. Legislative findings and purpose
The General Assembly finds and declares that:
(1) Pennsylvania’s older communities are important to the Commonwealth’s economic health by providing a focal
point for businesses and services and to this Commonwealth’s quality of life with its rich history and diverse
communities. However, many older communities suffer from blighted properties that have been abandoned by
their owners.
(2) Many citizens of this Commonwealth are adversely affected by abandoned and blighted residential, commercial
and industrial properties, including those citizens who live in proximity to such substandard buildings, as well as
those who own property in the vicinity of such buildings.
(3) Substandard, deteriorating and abandoned residential, commercial and industrial structures are a public safety
threat and nuisance and their blighting effect diminishes property values in the communities in which these
properties are located.
(4) If these buildings are not rehabilitated, they are likely to remain abandoned and further deteriorate, resulting in
increased costs to the Commonwealth, municipality and taxpayers to secure and ultimately demolish them.
(5) Providing a mechanism to transform abandoned and blighted buildings into productive reuse is an opportunity for
communities to modernize, revitalize grow, and to improve the quality of life for neighbors who are already there.
(6) If the owner of a residential, commercial or industrial building fails to maintain the property in accordance with
applicable municipal codes or standards of public welfare or safety, it is in the best interest of the Commonwealth,
the municipality and the community for the court, pursuant to the provisions of this act, to appoint a conservator
to make the necessary improvements before the building deteriorates further and necessitates demolition, resulting
in the removal of the building from the housing supply or prohibiting future productive economic use.
§ 1103. Definitions
The following words and phrases when used in this act shall have the meanings given to them in this section unless
the context clearly indicates otherwise:
“Actively marketed.” A “for sale” sign has been placed on the property with accurate contact information and the
owner has done at least one of the following:
(1) engaged the services of a licensee under the act of February 19, 1980 (P.L. 15, No. 9), known as the Real Estate
Licensing and Registration Act, to place the property in a Multiple Listing Service or otherwise market the property;
(2) placed weekly or more frequent advertisements in print or electronic media; or
(3) distributed printed advertisements.
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“Building.” A residential, commercial or industrial building or structure and the land appurtenant thereto.
“Code.” A building, housing, property maintenance, fire, health or other public safety ordinance enacted by
a municipality.
“Competent entity.” A person or entity, including a governmental unit with experience in the rehabilitation of
residential, commercial or industrial buildings and the ability to provide or obtain the necessary financing for
such rehabilitation.
“Costs of rehabilitation.” Costs and expenses for construction, stabilization, rehabilitation, maintenance and operation
or demolition, including reasonable nonconstruction costs associated with the project, including, but not limited to,
environmental remediation, architectural, engineering and legal fees, permits, financing fees and a developer’s fee
consistent with the standards for developers’ fees established by the Pennsylvania Housing Finance Agency.
“Court.” The appropriate court of common pleas.
“Historic property.” A property that is listed on the National Register of Historic Places or is a contributing property
in a national register historic district or is located in a local government ordinance historic district.
“Immediate family.” A parent, spouse, child, brother or sister.
“Nonprofit corporation.” A nonprofit corporation that has, as one of its purposes, community development activities,
including economic development, historic preservation or the promotion or enhancement of affordable housing
opportunities.
“Owner.” The holder or holders of title to, or of a legal or equitable interest in, a residential, commercial or industrial
building. The term shall include an heir, assignee, trustee, beneficiary and lessee provided the ownership interest is a
matter of public record.
“Party in interest.” A person or entity who has a direct and immediate interest in a residential, commercial or
industrial building, including:
(1) The owner.
(2) A lien holder and other secured creditor of the owner.
(3) A resident or business owner within 500 feet of the building.
(4) A nonprofit corporation, including a redevelopment authority, which:
(i) except as set forth in subparagraph (ii), is located in the municipality where the building is located; and
(ii) for a building located in a city of the first class, is located in the city and has participated in a project within a
one-mile radius of the location of the building.
(5) A municipality or school district in which the building is located.
“Public nuisance.” A property that, because of physical condition or use, has been declared by the appropriate official a
public nuisance in accordance with the local housing, building, health, fire or related code or is determined to be a
public nuisance by the court.
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“Substantial rehabilitation.” Repairs to the building where:
(1) the cost of repairs, replacements and improvements exceeds 15% of the property’s value after completion of all
repairs, replacements and improvements; or
(2) more than one major building component is being replaced. Major building components include:
§ 1104. Initiation of action
(a) FILING OF PETITION.— A petition for the appointment of a conservator to take possession and to undertake
the rehabilitation of a building may be filed by a party in interest in a court in the county in which the building
is located. The proceeding on the petition shall constitute an action in rem.
(b) CONTENTS.— The petition submitted to the court shall include a sworn statement that, to the best of the
petitioner’s knowledge, the property meets the conditions for conservatorship set forth in section 5(d) and
to the extent available to the petitioner after reasonable efforts to obtain such information:
(1) A copy of any citation charging the owner with being in violation of municipal code requirements or declaring
the building to be a public nuisance.
(2) A recommendation as to which person or entity should be appointed conservator.
(3) A preliminary plan with initial cost estimates for rehabilitation of the building to bring it into compliance with
all municipal codes and duly adopted plans for the area in which the building is located and anticipated
funding sources.
(c) NOTICE OF LIS PENDENS.— The petitioner shall file a notice of lis pendens in the office of the recorder of deeds
for the county in which the property is located.
(d) NOTIFICATION OF OWNER, POLITICAL SUBDIVISIONS AND LIEN HOLDERS.—
(1) Upon filing the petition with the court, the petitioner shall notify the current owner of the property, all
political subdivisions in which the property is located and all lien holders of the filing by registered or
certified mail to the last known address of each and by posting a copy of the notice on the building.
(2) In the event the registered or certified mail is returned with notation by the postal authorities that the
recipient refused to accept the mail, the petitioner may mail a copy to the recipient at the same address
by ordinary mail with the return address of the petitioner appearing thereon.
(3) Service by ordinary mail shall be presumed complete if the mail is not returned to the petitioner within
30 days after mailing.
(4) In the event that the registered or certified mail is returned with the notation by the postal authorities
that it was unclaimed, the notice shall be personally served.
(5) In the event that the personal service is not able to be made after two such attempts, then the petitioner
shall mail the petition to the recipient at the same address by ordinary mail with the return address of the
petitioner appearing thereon with service by ordinary mail deemed complete if the mail is not returned
to the petitioner within 15 days after the mailing.
(6) The petitioner shall also notify the owner and each lien holder of the hearing date and provide notice
that the owner and lien holders may petition to intervene in the action.
(i) roof structures;
(ii) ceilings;
(iii) wall or floor structures;
(iv) foundations;
(v) plumbing systems;
(vi) heating and air conditioning systems; and
(vii) electrical systems.
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§ 1105.Appointment of conservator
(a) GENERAL RULE.— The court shall act upon a petition submitted by holding a hearing within 120 days of receipt
of the petition and rendering a decision no later than 30 days after completion of the hearing.
(b) INTERVENTION.— A party in interest may intervene in the proceeding and be heard with respect to the petition,
the requested relief or any other matter which may come before the court in connection with the proceeding.
(c) HEARING.— At the hearing, any party in interest shall be permitted to present evidence to support or contest
the petition.
(d) CONDITIONS FOR CONSERVATORSHIP.— If a petition is filed under section 4, the court may appoint
a conservator if all of the following apply:
(1) The building has not been legally occupied for at least the previous 12 months.
(2) The building has not been actively marketed during the 60 days prior to the date of the petition.
(3) The building is not subject to an existing foreclosure action.
(4) The current owner fails to present sufficient evidence that he has acquired the property within the preceding
six months. The evidence shall not include instances where the prior owner is a member of the immediate
family of the current owner, unless the transfer of title results from the death of the prior owner, or where the
current or prior owner is a corporation, partnership or other entity in which either owner or the immediate
family of either owner has an interest in excess of 5%.
(5) The court finds at least three of the following:
(i) The building or physical structure is a public nuisance.
(ii) The building is in need of substantial rehabilitation and no rehabilitation has taken place during
the previous 12 months.
(iii) The building is unfit for human habitation, occupancy or use.
(iv) The condition and vacancy of the building materially increase the risk of fire to the building and
to adjacent properties.
(v) The building is subject to unauthorized entry leading to potential health and safety hazards and
one of the following applies:
(A) The owner has failed to take reasonable and necessary measures to secure the building.
(B) The municipality has secured the building in order to prevent such hazards after the owner
has failed to do so.
(vi) The property is an attractive nuisance to children, including, but not limited to, the presence of
abandoned wells, shafts, basements, excavations and unsafe structures.
(vii)The presence of vermin or the accumulation of debris, uncut vegetation or physical deterioration of the
structure or grounds has created potential health and safety hazards and the owner has failed to take
reasonable and necessary measures to remove the hazards.
(viii)The dilapidated appearance or other condition of the building negatively affects the economic well-being
of residents and businesses in close proximity to the building, including decreases in property value and
loss of business, and the owner has failed to take reasonable and necessary measures to remedy
appearance or the condition.
(ix) The property is an attractive nuisance for illicit purposes, including prostitution, drug use and vagrancy.
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(e) APPOINTMENT.—
(1) If the court determines after a hearing that the property has met the conditions of subsection (d),
the court may appoint a conservator and grant such other relief as may be just and appropriate.
(2) The court shall give first consideration for appointment as conservator to the senior lien holder on the property.
(3) In the event the senior lien holder is found to be not competent or declines the appointment, the court may
appoint a nonprofit corporation or other competent entity. If the property is located in a city of the first class,
the nonprofit corporation or entity must be located in the city and must have participated in a project within
a one-mile radius of the location of the property. In appointing a conservator, the court shall:
(i) consider any recommendations contained in the petition or otherwise presented by a party in interest; and
(ii) give preference to the appointment of a nonprofit corporation or governmental unit over an individual.
(f) CONDITIONAL RELIEF.—
(1) If the court finds after a hearing that the conditions for conservatorship set forth in subsection (d) have been
established, but the owner represents that the violations or nuisance or emergency condition will be abated in
a reasonable period, the court may allow the owner to proceed to remedy the conditions.
(2) If the conditions set forth in paragraph (1) have been satisfied, the court shall enter an order providing that,
in the event that the violations or nuisance or emergency conditions are not abated by the owner by a specific
date or that other specified remedial activities have not occurred by a specific date or dates, an order granting
the relief requested in the petition shall be entered.
(3) The court may also require the owner to post a bond in the amount of the repair costs estimated in the petition
as a condition to retaining possession of the building.
(g) CONSERVATOR’S LIEN.— The conservator may file a lien against the property in an amount based
on the costs incurred during the conservatorship. The lien amount may be adjusted from time to time.
(h) IMMEDIATE POSSESSION.— The conservator shall promptly take possession of the building and
other property subject to the conservatorship and shall immediately be authorized to exercise all powers
of this act.
(i) REMOVAL BY COURT.— A conservator may be removed by the court at any time upon the request of
the conservator or upon a showing by a party to the action that the conservator is not carrying out its
responsibilities under this act.
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§ 1106. Powers and duties of conservator
(a) FULL POWERS AND DUTIES.— The conservator shall have all powers and duties necessary or desirable,
from time to time, for the efficient operation, management and improvement of the building in order to bring
it into compliance with all municipal building and housing code requirements and to fulfill the conservator’s
responsibilities under this act. Such powers and duties shall include, but not be limited to, the power to:
(1) Take possession and control of the building, appurtenant land and any personal property of the owner used
with respect to the building, including any bank or operating account for the building.
(2) Collect outstanding accounts receivable.
(3) Pursue all claims or causes of action of the owner with respect to the building and all other property subject
to the conservator.
(4) Contract for the repair and maintenance of the building. The contracts shall be appropriately documented
and included in the reports and accounting which the conservator is required to submit or file under the
provisions of this act. The conservator shall make a reasonable effort to solicit three bids for contracts valued
at more than $ 25,000.
(5) Borrow money and incur credit in accordance with section 8.
(6) Contract and pay for the maintenance and restoration of utilities to the building.
(7) Purchase materials, goods and supplies to accomplish repairs and operate the building.
(8) With the court’s approval, enter into new rental contracts and leases for a period not to exceed one year.
(9) Affirm, renew or enter into contracts providing for insurance coverage on the building.
(10) Engage and pay legal, accounting, appraisal and other professionals to aid the conservator in the conduct
of the conservatorship.
(11) When the building has been designated a historic property, consult with the municipality’s historical
commission or board of historical and architectural review, a local historic preservation organization or,
in the absence thereof, the Pennsylvania Historical and Museum Commission for recommendations on
preserving the property’s historic character.
(12) Apply for and receive public grants or loans.
(13) Sell the building in accordance with section 9.
(14) Exercise all authority that an owner of the building would have to improve, maintain and otherwise manage
the building.
(b) AFFIRMATIVE DUTY.— While in possession of the building, the conservator shall:
(1) Maintain, safeguard and insure the building.
(2) Apply all revenue generated from the building consistent with the provisions of this act.
(3) (i) Develop a final plan for abatement of the conditions which caused the petition to be granted or, if no such
feasible final plan can be developed, to develop alternatives, including the closing, sealing or demolition
of all or part of the building.
(ii) When the building has been designated a historic property, rehabilitate architectural features that define
the property’s historic character.
(iii) When demolition of a property in a historic district is necessary, design any replacement construction
on the site to comply with applicable standards under current law.
(4) Implement the final plan referred to in paragraph (3) upon approval by the court.
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(5) Submit a status report to the court and parties to the action annually or more frequently as the court
may deem appropriate. The status report shall include:
(i) A copy of any contract entered into by the conservator regarding the improvement of the building.
(ii) An account of the disposition of all revenue generated from the building.
(iii) An account of all expenses and improvements.
(iv) The status of developing and implementing the final plan pursuant to this subsection.
(v) A description of any proposed actions to be taken in the next six months to improve the building.
(c) HEARING ON CONSERVATOR’S FINAL PLAN FOR ABATEMENT.—
(1) At the time the court appoints a conservator, a hearing date on the conservator’s final plan for abatement
shall be set within 120 days of the appointment.
(2) Thirty days prior to the date of the hearing, the conservator shall submit the plan to the court and to all
parties to the action.
(3) The plan shall include a cost estimate, a financing plan and either a description of the work to be done
for the rehabilitation of the building or, if rehabilitation is not feasible, a proposal for the closing, sealing
or demolition of the building.
(4) The plan shall conform with all existing municipal codes, duly adopted plans for the area and historic
preservation requirements.
(5) At the time of the hearing, all parties shall be allowed to comment on the plan, and the court shall take
all comments into consideration when assessing the feasibility of the plan and the proposed financing.
(6) Within 15 days of the hearing, the court shall issue a decision approving the plan or requiring that the plan
be amended.
(7) If the court decision requires that the plan be amended, a hearing date shall be set within 60 days from
the date of the decision.
(d) ACCOUNTING.— Upon the implementation of the final plan approved by the court, the conservator shall file
with the court a full accounting of all income and expenditures during the period of time it took to implement
the final plan.
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§ 1107. Ownership of property
(a) OWNERSHIP INTEREST OF CONSERVATOR.— A conservator appointed under section 5 shall be deemed to
have an ownership interest in and legal control of the property for the purposes of filing plans with public
agencies and boards, seeking and obtaining construction permits and other approvals and submitting applications
for financing or other assistance to public or private entities.
(b) LIABILITY OF OWNER.— Notwithstanding the appointment of a conservator under section 5, nothing in this act
shall be construed to relieve the owner of any civil or criminal liability or of any obligation to pay taxes, municipal
liens and charges, mortgages, private liens or other fees or charges, whether incurred before or after the
appointment of the conservator and no such liability shall transfer to the conservator.
(c) LIMITATION OF CONSERVATOR’S ENVIRONMENTAL LIABILITY.—
(1) Notwithstanding any law to the contrary, the conservator shall not be held liable for any environmental
damage to the building or the real property upon which the building is located that existed prior to the
appointment by the court of the conservator.
(2) Paragraph (1) does not apply to the owner or any other person or entity regarding the building and its real
property that is subject to an appointed conservator under this act.
§ 1108. Incurring indebtedness
(a) BORROWING.— From time to time, a conservator may borrow money or incur indebtedness in order to cover
the costs of rehabilitation or to otherwise fulfill the conservator’s obligations under this act.
(b) LIENS.— In order to facilitate the borrowing of funds for the costs of rehabilitation, the court may grant a lien or
security interest with priority over all other liens with the exception of municipal or other governmental liens,
provided, however, that prior to granting a priority lien, the court has found that:
(1) The conservator sought to obtain the necessary financing from the senior lien holder, but the lien holder
declined to provide financing for reasonable improvements or other costs of rehabilitation on reasonable terms.
(2) Lien priority is necessary in order to induce another lender to provide financing on reasonable terms.
(c) LIEN STATUS OF REHABILITATION EXPENSES.— Should the senior lien holder agree to provide financing
for the costs of rehabilitation, any funds lent to cover the costs shall be deemed to be added to the senior lien
holder’s preexisting first lien.
(d) APPROVAL OF FINANCING.— The court may approve financing for the costs of rehabilitation, the terms
of which may include deferred repayment and use restrictions. The terms of the financing may remain with
the property after the conservatorship has ended and be assumed by any of the following:
(1) The owner, if the owner regains possession of the property under section 10(2).
(2) The buyer who takes title under section 9.
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§ 1109. Sale of property
(a) SALE BY OWNER OR LIEN HOLDER.— If a property subject to conservatorship is sold by the owner or
foreclosed upon by a lien holder or if any interest therein is transferred, such sale, foreclosure or transfer shall be
subject to the conservatorship.
(b) SALE BY CONSERVATOR.— Upon application of the conservator, the court may order the sale of the property if
the court finds that:
(1) Notice and an opportunity to provide comment to the court was given to each record owner of the property
and each lien holder.
(2) The conservator has been in control of the building for more than six months and the owner has not
successfully petitioned to terminate the conservatorship under section 10.
(3) The terms and conditions of the sale are acceptable to the court, and the buyer has a reasonable likelihood of
maintaining the property.
(c) SALE FREE AND CLEAR.—
(1) The court may authorize the conservator to sell the building free and clear of all liens, claims and
encumbrances, provided that the proceeds of the sale are distributed pursuant to subsection (d) at settlement.
(2) In the event that the proceeds of the sale are insufficient to pay all existing liens, claims and encumbrances, the
proceeds shall be distributed according to the priorities set forth in subsection (d) and all unpaid liens, claims
or encumbrances which have not been assumed under section 8(d) shall be extinguished.
(d) DISTRIBUTION.— The proceeds of the sale shall be applied in accordance with the following priorities to:
(1) All court costs.
(2) Municipal or other governmental liens.
(3) Costs and expenses of sale.
(4) Principal and interest on any borrowing or incurrence of indebtedness granted priority over existing liens and
security interest under section 8(b).
(5) Costs of rehabilitation and any fees and expenses incurred by the conservator in connection with the sale or
the safeguarding of the property for which the lien authorized under section (5)(g) was filed.
(6) Valid liens and security interests in accordance with their priority.
(7) Any unpaid obligations of the conservator.
(8) Costs incurred by the petitioner in requesting the court to place the property in conservatorship.
(9) The owner.
(e) OWNER’S PROCEEDS AS UNCLAIMED PROPERTY.— In the event the owner cannot be located, any proceeds
from the sale which belong to the owner shall be presumed to be abandoned and unclaimed and shall be subject to
the custody and control of the Commonwealth pursuant to Article XIII.1 of the act of April 9, 1929 (P.L. 343, No.
176), known as The Fiscal Code.
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§ 1110.Termination of conservatorship
Upon request of a party in interest or the conservator, the court may order the termination of the conservatorship
if it determines:
(1) the conditions that were the grounds for the petition and all other code violations have been abated or corrected,
the obligations, expenses and improvements of the conservatorship, including all fees and expenses of the
conservator, have been fully paid or provided for and the purposes of the conservatorship have been fulfilled;
(2) the owner, mortgagee or lien holder has requested the conservatorship be terminated and has provided adequate
assurances to the court that the conditions that constituted grounds for the petition will be promptly abated, all
obligations, expenses and improvements of the conservatorship, including all fees and expenses of the
conservator, have been fully paid or provided for and the purposes of the conservatorship have been fulfilled;
(3) the building has been sold by the conservator and the proceeds distributed in accordance with section 9(d); or
(4) the conservator has been unable, after diligent effort, to present a plan that could be approved under section
6(b)(3) or to implement a previously approved plan or, for any reason, the purposes of the conservatorship cannot
be fulfilled.
§ 1111.Applicability
(a) GENERAL INAPPLICABILITY.— This act shall not apply to commercial and residential buildings, structures
or land owned by or held in trust for the Federal Government and regulated under the United States Housing
Act of 1937 (50 Stat. 888, 42 U.S.C. § 1437 et seq.) and regulations promulgated under that act.
(b) INAPPLICABILITY TO SERVICE MEMBERS.— This act shall not apply if the property owner has vacated
the property in order to perform military service in time of war, armed conflict or in order to assist with relief
efforts during a declared Federal or State emergency as a member of the United States Armed Forces or its
reserve component.
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Appendix D Glossary
Abandoned Property – Any property that meets the requirements of “Conditions for Conservatorship”
set forth in § 1105(d).
Abatement – The action of eliminating or nullifying a nuisance or a code violation on the property.
Accounting – The action or a system of establishing or settling financial accounts.
Affidavit – A voluntary declaration of facts written down and sworn to by the person making the statement before
an officer authorized to administer oaths, such as a notary public.
Appointment – The designation of a person for a job or duty.
Appurtenant Land – Land that belongs or is attached to the property at issue.
Blight – Property that meets at least three of nine categories set out by Act 135; the categories are discussed at length
in Chapter 3: Researching Your Case.
Brownfield – An abandoned, idled or underused industrial or commercial site that is difficult to expand or redevelop
because of environmental contamination.
Building – A residential, commercial or industrial building or structure and the land appurtenant thereto.
Code – An ordinance pertaining to buildings, housing, property maintenance, fire, health or other public-safety matter,
enacted by a municipality.
Competent Entity – A person or entity, including a governmental unit, with experience in the rehabilitation of
residential, commercial or industrial buildings and the ability to provide or obtain the necessary financing for
substantial rehabilitation.
Conservator – A person or entity determined to be competent and appointed by the court for the protection,
rehabilitation or demolition of a property.
Court – The appropriate Court of Common Pleas in the county where the property is located.
Due Diligence – To act with a certain standard of care and conduct a reasonable amount of research necessary
to ensure that an action is appropriate.
Greyfield – A vacant or underperforming commercial property.
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Historic Property – A property that is listed on the National Register of Historic Places or is a contributing property in
a National Register historic district or is located in a local government ordinance historic district.
Immediate Family – A parent, spouse, child, brother or sister.
In Rem – Involving or determining the status of a thing, as opposed to a person, and therefore determining the rights
of persons generally with respect to that thing.
Intervention – A “party in interest” joining a lawsuit to protect their interest.
Lien – A legal right or interest that a creditor has in another’s property, lasting usually until a debt or duty that it
secures is satisfied.
Lis Pendens – A notice, recorded in the chain of title to real property, required or permitted in some jurisdictions to
warn all persons that certain property is the subject matter of litigation and that any interests in the property acquired
during the pendency of the suit are subject to the outcome of the suit.
Nonprofit Corporation – A nonprofit organization that has, as one of its purposes, community development activities,
including economic development, historic preservation or the promotion or enhancement of affordable housing
opportunities.
Owner – The holder or holders of title to, or of a legal or equitable interest in, a residential, commercial or industrial
building. The term shall include an heir, assignee, trustee, beneficiary and lessee provided that the ownership is a
matter of public record.
Petition – A formal written request presented to a court or other official body.
Petitioner – A party who presents a petition to a court or other official body.
Possession – The fact of having or holding property in one’s power; the exercise of dominion of property.
Possession is not the same as ownership.
Public Nuisance – A property that, because of physical condition or use, has been declared by the appropriate
official a public nuisance in accordance with the local housing, building, health, fire or related code or is determined
to be a public nuisance by the court.
Secured Creditor – A creditor that holds a security interest over some or all of the assets of the debtor. In many
instances, this includes a home owned by the debtor. This classification of creditor is especially important to title
insurance companies and must be examined closely.
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Rachel Blake
Ms. Blake joined Regional Housing Legal Services in May
2007. She spends her time on policy and communications
projects, including foreclosure prevention initiatives,
increasing energy efficiency in affordable multifamily
properties and low-income communities, and accelerating
the incorporation of data and technology into housing-
policy discussions. Ms. Blake practiced general real estate
and affordable housing and community development law
in large and mid-sized Pennsylvania firms for more than
five years before joining RHLS. She has also worked in
a legal-services office in Chicago, representing tenants
in foreclosure. Ms. Blake received her JD/MA (urban and
regional planning) from the University of Iowa in 2001
and AB in Sociology from the University of Chicago.
She earned an MBA in 2007 from the Tepper School of
Business at Carnegie Mellon University.
John Caddell
Mr. Caddell is an associate in the legal department of
Parkway Corporation, a Philadelphia-based parking
management and real estate development company.
He previously worked for the City of Philadelphia
Department of Licenses & Inspections. As part of L&I’s
Vacant Property Strategy, Mr. Caddell coordinated with
local non-profits and helped them assemble the
documentation needed to file conservatorship petitions.
He also helped to streamline and expand the City’s
“Windows and Doors Court,” where delinquent property
owners are compelled to either remediate their properties
or pay substantial fines. He received a B.A. from Tulane
University and a J.D. from the University of Pennsylvania
Law School.
Cynthia Witman Daley
Ms. Daley is the policy director for the Housing Alliance
of Pennsylvania. The Housing Alliance was the prime
advocacy organization working to enact conservatorship,
and Ms. Daley participated in drafting the legislation that is
now Act 135 of 2010. Before joining the Housing Alliance’s
staff in 2004, Cindy worked with Regional Housing Legal
Services for 17 years. At RHLS she represented community
development organizations engaged in the construction or
rehabilitation of affordable homes. Ms. Daley received a
B.A. from George Washington University and a J.D. from
Temple University School of Law.
John Kromer
John Kromer is a housing and development consultant
who specializes in reinvestment and growth strategies for
distressed urban communities. As Philadelphia’s Director
of Housing from 1992 to 2001, Mr. Kromer supervised
the expenditure of more than a billion dollars in public
investment to implement housing preservations and
development strategies that improved living conditions
for thousands of Philadelphia families. Since 2001, he has
completed projects in Allentown, Philadelphia, Reading
and York. Mr. Kromer maintains an affiliation with the
University of Pennsylvania’s Fels Institute of Government as
a Senior Consultant. His most recent book is Fixing Broken
Cities: The Implementation of Urban Reinvestment Strategies.
Irene McLaughlin
Ms. McLaughlin is an attorney and a solo practitioner
offering blight reduction related legal expertise and
mediation services for community development
initiatives and charitable legal services for lower-income
homeowners living in distressed neighborhoods. Ms.
McLaughlin served as a city magistrate with Pittsburgh
Magistrates Court from 1993 to 2003, specializing in
hearing municipal prosecutions related to property code
enforcement. After the Pennsylvania Supreme Court’s
elimination of the city magistrate positions, she managed
a special project to keep owner-occupants in their homes in
the wake of local government’s sale of property tax liens
to private debt collectors, and she provided legal services
to a multiyear blight reduction project that acquired,
remediated and transferred to new use scattered-site,
blighted parcels. Ms. McLaughlinmanages a legal clinic
for lower-income homeowners based at NeighborWorks
Western Pennsylvania, a HUD-approved housing-
counseling agency. She received her B.S. from the
Wharton School of the University of Pennsylvania, her
J.D. from CUNY Law School at Queens College and her
M.A. from the McGregor School at Antioch University.
Catherine L. Meehan
Ms. Meehan is currently employed at Steptoe & Johnson,
PLLC. She is also a Supervising Attorney for the
Duquesne University School of Law Urban Development
Clinic 2012-2013. She has her J. D. from the Duquesne
University School of Law, 2011 and was admitted to the
Pennsylvania Bar in 2011.
Appendix E
Biographies of Contributing Authors
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The Housing Alliance of Pennsylvania
Elizabeth G. Hersh, Executive Director
Founded in 1985, the Housing Alliance of Pennsylvania is a statewide membership organization that provides
leadership and a common voice for policies, practices and resources to ensure that all Pennsylvanians, especially
those living on low incomes, have access to safe, decent, accessible and affordable homes.The Housing Alliance
works for policy changes to improve communities and has been instrumental in the passage of numerous bills
aimed at reclaiming blighted properties.
309 Florence Ave. 914 N
Jenkintown, PA 19046
215-576-7044
610 N. Third Street
Harrisburg, PA 17101
717-909-2006
710 Fifth Avenue
Suite 1000
Pittsburgh, PA 15219
412-281-1137
www.housingalliancepa.org
www.housingalliancepa.org
Philadelphia and Allegheny
County are NOT included
in this Handbook! They
each have their own
handbook that is available
through the Housing
Alliance of Pennsylvania,
www.housingalliancepa.org
