CAPITOL BRIEFS - JULY 8, 2008
Governor Approves Appraiser Trainee, Mortgage Reform, and other Bills
Appraiser Trainee
Legislation to provide for an appraiser trainee classification has passed the legislature and been approved by Governor Rendell.
Senate Bill 485 (Browne) amends the Real Estate Appraiser Certification Act to provide for the appraiser trainee classification, and states that trainees must meet AQB educational requirements and take continuing education. In addition, the bill adds the Secretary of the Commonwealth, Secretary of Banking, Attorney General and two additional professional members to the State Board of Certified Real Estate Appraisers. The bill also increases the civil penalty to a maximum of $10,000 which can be levied on any certificate holder or licensee who violates any provision of the act or any non-certificate holder who holds himself out as a real estate appraiser without being certified. The bill was approved by unanimous vote in both chambers.
Mortgage Reform
Governor Rendell has approved three Senate bills and one House bill intended to reform mortgage lending practices in Pennsylvania. Senator Browne (R-Lehigh) and Representative Peter Daley (D-Fayette) introduced legislation based on the findings of a mortgage industry study mandated by House Resolution 364, which was adopted in 2003.
Senate Bill 483 amends the Loan Interest and Protection Law to increase the monetary cap in the act from $50,000 to the base figure of $217,873, as adjusted annually for inflation;
Senate Bill 484 will permit the Department of Banking to publicly release information on pending enforcement actions and fines levied against non-depository licensees;
Senate Bill 486 amends the Housing Finance Agency Law to require lenders to send copies of foreclosure notices to the Pennsylvania Housing Finance Agency so that mortgage foreclosures can be monitored on a statewide basis; and
House Bill 2179 will regulate the mortgage loan industry in terms of practice, licensure and penalties.
Condo Act Amendment
The governor has approved legislation to ensure that condominium associations can receive up to six months of any unpaid assessments when a unit is sold at judicial sale.
House Bill 2295 (Petrone, D-Allegheny) is a corrective amendment to the Uniform Condominium Act. In December 2004, updates to the Uniform Planned Communities Act, the Real Estate Cooperative Act, and the Uniform Condominium Act were enacted. Act 191 (Uniform Condominium Act) changed the computation of the sixth month period from the date immediately preceding institution of the foreclosing lender’s suit against the unit owner to the six months immediately preceding the date of the judicial sale. However, the act inadvertently removed existing language from this subsection which provided that the six months of unpaid assessments shall be paid out of the proceeds from the judicial sale. House Bill 2295 corrects this error, and was unanimously approved by the House and Senate.
Homeowner Insurance Premium Reduction
A new law signed by Governor Rendell on July 4 may provide some Pennsylvania homeowners a reduction in their homeowners’ insurance premiums. Act 51, previously
House Bill 2428 (Frankel, D-Allegheny) prohibits mortgage lenders from requiring borrowers to insure their property in excess of the value of structures on the land. Previously, lenders could require insurance on the full loan value. However, in the event of a loss, a homeowners’ insurance policy would only restore the value of the structures. House Bill 2428 had passed the House and Senate by unanimous votes.
Time Limit for Challenging Ordinances
The governor has approved legislation to address the PA Supreme Court decision in
Glen-Gery Corporation v. Zoning Hearing Board of Dover Township, which overturned the process for challenging municipal land use ordinances.
Glen-Gery ruled that a procedural defect challenge could be brought against an ordinance no matter how many years have passed since the ordinance had been enacted.
House Bill 1329 (Kessler, D-Berks) and
House Bill 1330 (Kessler, D-Berks) would make it difficult for parties bringing a challenge two years or more after adoption of an ordinance to prove that a township or borough failed to comply strictly with statutory procedural requirements. The bills were approve by unanimous votes in both chambers and were supported by the PA Builders Association, PA League of Cities and Municipalities, PA State Association of Township Supervisors, PA State Association of Boroughs, and PA School Boards Association.
Required Water and Sewer Hookups
Legislation to ease restrictions and requirements concerning certain water and sewer hookups has been approved by the governor.
House Bill 239 (R. Miller, York) affects second-class townships and provides a distance limitation for mandating that property owners connect to public water systems. The new law states that township supervisors may only require property owners to use public water lines if the property’s primary building is within 150 feet of the water system. This provision now coincides with the standard of 150 feet used for water connections. Townships will not be permitted to require that property owners who are not currently connected to water systems to connect to the water system unless that building has no existing water supply that is safe for human consumption. The new law also extends from 60 days to 90 days the amount of time that affected residents have to pay a sewer assessment.
Governor to Consider Assessment Appeals, Water and Sewer Funding, KOZ
Assessment Appeals
The General Assembly has approved legislation to limit the ability of a taxing authority in third through eighth class counties to appeal the property tax assessment of a property. Current law has created a loop hole for corporate authorities, such as school districts, to legally appeal assessments without technically conducting spot reassessment. Once enacted,
Senate Bill 1247 (Rhoades, R-Schuylkill) and
House Bill 1438 (Seip, D-Schuylkill) will close this loop hole and address the lack of fairness among tax payers. PAR offered support for the legislation, which was opposed by the PA School Boards Association. Senate Bill 1247 passed with two negative votes in the Senate and seven in the House; House Bill 1438 passed with three negative votes in the House and four in the Senate.
Water and Sewer Improvement Grants
Legislation has passed the General Assembly to help fund water and wastewater improvement projects in the form of grants and loans to municipalities.
Senate Bill 2 (Earll, R-Erie) provides for the allocation of $800 million of previously un-allocated money in the Pennsylvania Gaming Economic Development and Tourism Fund to the Commonwealth Financing Authority for distribution towards water or sewer, storm water, flood control and high hazard dam projects. The bill will allow the Chesapeake Bay program to purchase nutrient credits to assist in the reduction of costs in pollution reduction.
Senate Bill 1341 (Musto, D-Luzerne) places a question on the fall election ballot regarding the incurrence of $400 million indebtedness for the acquisition, repair, construction, reconstruction, rehabilitation, extension, expansion and improvement of water supply and sewage treatment systems. The bill will also allow the Chesapeake Bay program to purchase nutrient credits to assist in the reduction of costs in pollution reduction.
Both pieces of legislation included components of the Fair Share for Clean Water Plan to help wastewater plant ratepayers and farmers finance improvements needed to address Chesapeake Bay Tributary Strategy and statewide water quality improvement mandates while preserving economic opportunity for future homeowners and businesses. The Plan is supported by PAR and authored by a coalition comprised of the Pennsylvania Municipal Authorities Association (PMAA), Pennsylvania Farm Bureau, Pennsylvania Builders Association (PBA), Pennsylvania Association of Conservation Districts (PACD), and the Chesapeake Bay Foundation (CBF).
KOZ Reauthorization
After a sometimes contentious debate, the House and Senate have approved legislation to reauthorize Pennsylvania’s Keystone Opportunity Zone program, which is geared to foster business development in certain designated zones where taxes are reduced.
Senate Bill 1412 (Pippy, R-Allegheny) would grant extensions to vacant parcels in existing zones, and would add territory to zones. Senate Bill 1412 would create 15 more KOZ sites, and extends the duration of the designation for seven to 10 years, depending on the project. The bill also addresses zones where an endangered species or other environmental concern is discovered that would prohibit development. The measure would allow DCED to replace such sites with nearby parcels to allow development to go forward. The bill also prohibits a person receiving tax exemptions from knowingly allowing illegal aliens to work in the zone. The Keystone Opportunity Zone Act was originally enacted in 1998.
Senate Tables Conservatorship Bill
Upon consistent urging by PAR, the Senate decided to move over
House Bill 2188 (Walko, D-Allegheny) before recess. House Bill 2188 would allow a conservator to take control of a building that has not been legally occupied for the past 12 months, has not been actively marketed for 60 days, and meets three of eight other criteria to determine blighted property. The conservator would act in place of the building’s owner to make necessary repairs, and could sell the building if the owner does not petition to regain possession or reimburse for all costs. On June 29, the House approved the bill by a vote of 194-1. PAR had provided testimony in front of the House and Senate concerning blight legislation, and was told that PAR would have the opportunity to discuss our concerns further over the summer. Late last Wednesday, PAR was informed that the bill would be brought up in the Senate Urban Affairs and Housing Committee the next morning. PAR worked quickly to get the bill held up in order to obtain amendments and secure improvements to the legislation.
House Passes Bill to Provide for Uniform Deed Registration
Legislation to provide for uniform deed registration has passed the House by a vote of 195-0.
House Bill 1634 (Ross, R-Chester) would provide that registration of a deed with a municipality would not be required prior to recording of the original deed with the recorder of deeds. Currently, municipalities are able to adopt ordinances that have the effect of delaying the recordation of deeds in a county land records office. The resulting delay in the deed recordation process can result in liens against prior owners being placed against the real estate while waiting for the municipality to register and return a deed. House Bill 1634 reverses the sequence, thereby permitting a deed to be recorded first while still requiring that a copy of the deed be sent to the municipality to alert it to the sale of the property and enable it to then enforce local ordinance requirements. House Bill 1634 is supported by the PA Land Title Association and the PA State Association of Boroughs. It was referred to the Senate Local Government Committee for consideration.
Senate Moves Brownfield Redevelopment Reimbursement
The Senate has passed legislation to create a program for reimbursing developers for up to 75 percent of the costs associated with the remediation of brownfields sites, including sites impacted by mining activity.
Senate Bill 1062 (Wonderling, R-Montgomery) provides that remediation must be completed in accordance with Pennsylvania’s Land Recycling Program (Act 2) or a cleanup plan that has been approved by the state Department of Environmental Protection. Reimbursement to the developer is contingent on completion of the remediation, performance of the project and generation of new tax revenue. The bill was referred to the House Environmental Resources and Energy Committee for consideration.
House Approves Bills Related to Flood Control and Dam Repair
Three bills that address flood control and dam repair have passed the House and await consideration by the Senate.
House Bill 2539 (Seip, D-Schuylkill) is designed to help improve flood control provisions and reduce flood-related damage in communities. It authorizes the Department of Environmental Protection (DEP) to work with local, state, and federal government entities to develop, implement, and maintain flood-control projects such as floodplain improvements, stream clearances, and watershed restoration. The bill passed by a vote of 182-13.
The second bill, House Bill 2546 (Conklin, D-Centre), would update and improve the state’s flood control provisions and is a component of the state’s economic development initiative, Rebuild PA. The legislation would allow DEP to create flood control districts and present plans for flood control works and improvement projects across the state. HB 2546 would allow the state, through the Rebuild PA initiative, to allocate $13 million for flood control projects across the Commonwealth. The bill passed by a vote of 162-34.
The last bill, House Bill 2549 (Siptroth, D-Monroe), authorizes the Pennsylvania Infrastructure Investment Authority to provide assistance for county and local governments to repair dams which could endanger the health and safety of populated areas if they are not repaired. The bill passed by a vote of 171-25.