Notice of Intent to Consider and Adopt

h:\jestumpf\doc\advertis\notice of intent to consider ad for web.doc Notice of Intent to Consider and Adopt Notice is hereby given by the Board of Supervisors of the Township of Derry, Dauphin County, Pennsylvania, that it is their intent to consider and, if approved by formal action, adopt Ordinance No. 676, which would add Chapter 99, entitled Foreclosed Property Registration, to the Code of the Township of Derry, providing for purpose, intent, and applicability of the Chapter, requiring that foreclosed real properties are registered, maintained, and secured by mortgagees; and providing for penalties, enforcement, regulation, limitation, and reduction of foreclosed real property. Principal provisions of Ordinance No. 676 include: statements of findings, purpose, intent, statutory authority, applicability, severability, and compatibility with other regulations and ordinances regarding Chapter 99; a series of defined terms used in Chapter 99; the necessity for the mortgagee, upon default by the mortgagor, to inspect, register, maintain, and secure the property, as well as the requirements associated with each obligation; the notice of a fee imposed as a part of registration of the property; a declaration that foreclosed real property is a public nuisance; authority for the enforcement officer to abide by the requirements of Chapter 143 (Property Maintenance) of the Township Code for matters related to inspections, notices and orders, unsafe structures and equipment, emergency measures, demolition, and means of appeal; and statement of penalties under the Pennsylvania Rules of Criminal Procedure, including fines or imprisonment, for each section of Chapter 99 that has been violated and for each day that a violation continues. The Board of Supervisors intends to take such action at their meeting on Tuesday, April 12, 2016, which will commence at 7:00 p.m. in the meeting room of the Derry Township Municipal Complex, 600 Clearwater Road, Hershey, PA. A copy of the full text of Ordinance No. 676 may be obtained at the Derry Township Department of Community Development, 600 Clearwater Road, Hershey, between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday; or online at www.derrytownship.org, under Public Notices (see next page).

ORDINANCE NO. 676 AN ORDINANCE AMENDING THE CODE OF THE TOWNSHIP OF DERRY, DAUPHIN COUNTY, PENNSYLVANIA, BY ADDING CHAPTER 99 ENTITLED "FORECLOSED PROPERTY REGISTRATION"; PROVIDING FOR PURPOSE, INTENT, AND APPLICABILITY OF THE CHAPTER; REQUIRING THAT FORECLOSED REAL PROPERTIES ARE REGISTERED, MAINTAINED, AND SECURED BY MORTGAGEES; AND PROVIDING FOR PENALTIES, ENFORCEMENT, REGULATION, LIMITATION, AND REDUCTION OF FORECLOSED VACANT AND/OR ABANDONED REAL PROPERTY WHEREAS, the present mortgage foreclosure crisis has serious negative implications for all communities trying to manage the consequences of property foreclosures and vacancies; and WHEREAS, the Township of Derry (hereinafter referred to as "Township") recognizes an increase in the number of foreclosed properties which are vacant throughout the Township; and WHEREAS, the Township is challenged to identify and locate owners or foreclosing parties who can maintain the properties that are in the foreclosure process or have been foreclosed; and WHEREAS, the Township finds that the presence of foreclosed properties can lead to a decline in property value, create attractive nuisances, and lead to a general decrease in neighborhood and community aesthetic as a result of blighted foreclosed properties; and WHEREAS, the Township has already adopted property maintenance codes to regulate building standards for the exterior of structures and the condition of the property as a whole; and WHEREAS, the Township desires to amend the Township s Code in order to establish a foreclosed property registration process that will identify a contact person to address safety and aesthetic/blight concerns to minimize the negative impacts and blighting conditions that occur as a result of the foreclosure; and WHEREAS, the Township has a vested interest in protecting neighborhoods against decay caused by foreclosed vacant and/or abandoned properties and concludes that it is in the best interests of the health, safety, and welfare of its citizens and residents to impose registration and certification requirements on foreclosed vacant and/or abandoned properties located within the Township. NOW, THEREFORE, it is hereby enacted and ordained by the Board of Supervisors of the Township of Derry, Dauphin County, Pennsylvania, as follows: SECTION 1: Chapter 99 is hereby added to the Code of the Township of Derry to read as follows: 1

CHAPTER 99 FORECLOSED PROPERTY REGISTRATION ARTICLE I General Provisions 99-1. Short title. This chapter shall be known and may be cited as the Foreclosed Property Registration regulations. 99-2. Statement of findings. The Board of Supervisors of the Township of Derry finds that: A. Mortgage foreclosures have a negative impact for all communities trying to manage the consequences of property vacancies and abandoned real properties. B. The Township has recognized an increase in the number of foreclosed properties located throughout the Township. C. The Township finds that the presence of foreclosed vacant and/or abandoned properties can lead to a decline in property value, create attractive nuisances, and lead to a general decrease in neighborhood and community maintenance and aesthetics as a result of blighted foreclosed properties. D. The Township has already adopted property maintenance codes to regulate building standards for the exterior of structures and the condition of the property as a whole. E. The Township is sometimes challenged to identify and locate owners or foreclosing parties who can maintain the properties that are in the foreclosure process or that have been foreclosed. F. The Township has a vested interest in protecting neighborhoods against decay caused by foreclosed vacant and/or abandoned properties and concludes that it is in the best interests of the health, safety, and welfare of its citizens and residents to impose registration and certification requirements on foreclosed properties located within the Township. G. The Township desires to amend the Township s Code in order to establish a vacant and/or foreclosed property registration process that will identify a contact person to address safety and aesthetic concerns to minimize the negative impacts and blighting conditions that occur as a result of the vacancy and/or abandonment of foreclosed properties. 2

99-3. Purpose and intent. It is the purpose and intent of the Township to establish a process to address the deterioration and blight of properties within the Township that is caused by an increasing amount of foreclosed real property as defined hereinafter, and to identify, regulate, limit, and reduce the number of vacant and/or abandoned foreclosed properties. It is also the Township's intent to establish a registration program as a mechanism to protect neighborhoods from becoming blighted due to the lack of adequate maintenance and security of such foreclosed properties. 99-4. Statutory authority. The Township is empowered to regulate land use activities that affect building and housing regulations by the authority of Section 1527 of the Second Class Township Code of the Commonwealth of Pennsylvania, 53 P.S. 65101, et. seq. 99-5. Applicability. This chapter applies to any foreclosed real property within the Township. 99-6. Repealer. Any ordinance provision(s) or regulation of the Township inconsistent with any of the provisions of this chapter is hereby repealed to the extent of the inconsistency only. 99-7. Severability. In the event that any section or provision of this chapter is declared invalid by a court of competent jurisdiction, such decision shall not affect the validity of any of the remaining provisions of this chapter. 99-8. Compatibility with other requirements. A. Actions taken under this chapter do not relieve the registrant of the responsibility to secure required permits or approvals for activities regulated by any other code, law, regulation, or ordinance. B. This chapter shall be considered cumulative and not superseding or subject to any other law or provision for the same, but rather is an additional remedy available to the Township above and beyond any other state, county, or local provisions. 3

ARTICLE II Definitions 99-9. Definitions. The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning. ABANDONED REAL PROPERTY- A property which is vacant and where the mortgage is in default. ACCESSIBLE PROPERTY/STRUCTURE - A property that is accessible through a compromised or breached gate, fence, wall, etc.; or a structure that is unsecured and/or breached in such a way as to allow access to the interior space by unauthorized persons. APPLICABLE CODES - Includes, but shall not be limited to, the Township's Code of Ordinances ("Township Code") and the Pennsylvania Uniform Construction Code. BLIGHTED PROPERTY - A. Properties that have broken or severely damaged windows, doors, walls, or roofs which create hazardous conditions and encourage trespassing; or B. Properties whose maintenance is not in conformance with the maintenance of other neighboring properties, causing a decrease in value of the neighboring properties; or C. Properties cited as a public nuisance pursuant to the Township Code; or D. Properties that endanger the public's health, safety, or welfare because the properties or improvements thereon are dilapidated, deteriorated, or violate minimum health and safety standards or lack maintenance as required by the Township Code. ENFORCEMENT OFFICER - Any law enforcement officer, building code official, zoning officer, code enforcement officer, code official, fire inspector or building inspector, or other person authorized by the Township s Board of Supervisors to enforce the applicable code(s). EVIDENCE OF VACANCY - Any condition that, on its own or combined with other conditions present, would lead a reasonable person to believe that the property is vacant. Such conditions may include, but not be limited to, overgrown or dead vegetation; trash, junk, or debris; stored, unused building materials; any accumulation of newspapers, circulars, flyers, or notices; lack of building maintenance; and statements by neighbors, passersby, delivery agents, or government agents. FORECLOSED REAL PROPERTY - Any real property located in the Township, whether vacant or occupied, that is in default on a mortgage, has had a lis pendens filed against it 4

by the lender holding a mortgage on the property, is subject to an ongoing foreclosure action by the lender, is subject to an application for a tax deed or pending tax assessor s lien sale, or has been transferred to the lender under a deed in lieu of foreclosure. MORTGAGE A conveyance of title to property that is given as security for the payment of debt or the performance of a duty and that will become void upon payment or performance according to the stipulated terms. MORTGAGEE - One to whom property is mortgaged, or the mortgage creditor or lender. OWNER - Any person, agent, operator, firm, or corporation having a legal or equitable interest in real property or recorded in the official records of the Commonwealth, County, or Township as holding title to the property or otherwise having control of the property, including the guardian of the estate of any such person and the trustee, executor, or administrator of the estate of such person, if authorized by law to take possession of real property or if ordered or authorized to take possession of real property by a court. This term shall also apply to any person, legal entity, or agent responsible for the construction, maintenance, or operation of the subject property. PROPERTY MANAGEMENT COMPANY - A local property manager, property maintenance company, or similar entity responsible for the management and/or maintenance of foreclosed real property. SERVICER (a.k.a. MORTGAGE SERVICER) A company to which borrowers pay their mortgage loan payments and which may perform other services in connection with mortgages and mortgage-backed securities. The servicer may be the entity that originated the mortgage, or it may have purchased the mortgage servicing rights from the original mortgage lender. The duties of a mortgage servicer may include the acceptance and recording of mortgage payments; calculating variable interest rates on adjustable rate loans; payment of taxes and insurance from the borrower s escrow accounts; negotiations and modifications of mortgage upon default; and conducting or supervising the foreclosure process when necessary. VACANT - Any building or structure that is not legally occupied and remains so for more than thirty (30) days. ARTICLE III Registration, Maintenance, and Security Requirements 99-10. Establishment of a registry. Pursuant to the provisions of 52-11 of this article, the Township or its designee shall establish a registry containing the information required by this article, cataloging each foreclosed real property within the Township. 99-11. Registration of foreclosed real property. 5

A. Any mortgagee who holds a mortgage on foreclosed real property located within the Township shall perform an inspection of the property to determine vacancy or occupancy, upon default by the mortgagor of thirty (30) days or more upon request by the Township. The mortgagee shall, within 10 days of the inspection, register the property with the Township s Department of Community Development, or its designee, on forms or by website access provided by the Township, and indicate whether the property is vacant or occupied. A separate registration form and fee is required for each property, whether it is found to be vacant or occupied. B. If the property is occupied but remains in default, it shall be inspected by the mortgagee or their designee monthly until: (1) The mortgagor or other party remedies the default; or (2) The property is found to be vacant or shows evidence of vacancy, at which time the mortgagee shall, within 10 days of that inspection, update the property registration to a vacancy status on the required forms. C. Registration pursuant to this section shall contain the name of the mortgagee and the servicer, the direct mailing address of the mortgagee and the servicer, a direct contact name and telephone number for both parties, a facsimile number and e-mail address for both parties, the folio or tax number for the property, and the name and 24-hour contact phone number of the property management company responsible for the security and maintenance of the property. D. A non-refundable annual registration fee, in an amount as established by resolution of the Board of Supervisors, shall accompany the registration form or website registration. E. All registration fees must be paid by the mortgagee, servicer, trustee, or owner. Third party registration fees are not allowed without the consent of the Township and/or its authorized designee. F. This section shall also apply to properties that have been the subject of a foreclosure sale where the title was transferred to the beneficiary of a mortgage involved in the foreclosure, and any properties transferred under a deed in lieu of foreclosure/sale. G. Properties subject to this section shall remain under the annual registration requirement and the inspection, security, and maintenance standards of this section as long as they remain a foreclosed real property. H. Any person or legal entity that has registered a property under this section must report any change of information contained in the registration within 10 days of the change. I. Failure of any person or legal entity to properly register the property, or to modify the registration form from time to time to reflect a change of circumstances as required by this article, is a violation of the article and shall be subject to enforcement. 6

J. Pursuant to any administrative or judicial finding and determination that any property is in violation of this article, the Township may take the necessary action to ensure compliance and place a lien on the property for the cost of the work performed to benefit the property and bring it into compliance. 99-12. Maintenance requirements. A. Properties subject to this chapter shall be kept free of grass and weeds in excess of 6 inches; overgrown brush; dead vegetation; trash; junk; debris; unused, stored building materials; any accumulation of newspapers, circulars, flyers, or notices, except those required by federal, state, or local laws; discarded personal items, including, but not limited to, furniture, clothing, large and small appliances, or printed material; and any other items that give the appearance that the property is vacant or an abandoned real property. B. The property shall be maintained so that it is free of graffiti or similar markings by methods including removal of or painting over the graffiti or markings with an exterior grade paint that matches the color of the exterior of the structure. C. All yard areas, including landscaping, shall be maintained in accordance with the applicable code(s) at the time registration was required. D. Yard maintenance shall include, but not be limited to, watering; irrigation; cutting and mowing of grass, ground covers, bushes, shrubs, hedges, or similar plantings as appropriate; and removal of the trimmings. Decorative rock, mulch, bark, or artificial turf/sod areas shall not contain weeds, gravel, broken concrete, asphalt, or similar material. E. Pools and spas shall be maintained so that the water remains free of pollutants and debris, and shall comply with the regulations set forth in the applicable code(s). F. Failure of the mortgagee and/or owner to properly maintain the property may result in a violation of the applicable code(s) and issuance of a citation or Notice of Violation. The Township may take any necessary action to ensure compliance with this section. G. In addition to the above, any other necessary upkeep shall be performed in order to prevent the foreclosed real property from becoming a blighted property as defined by this chapter, and the property is required to be otherwise maintained in accordance with all other applicable code(s). 99-13. Security requirements. A. Properties subject to this chapter shall be maintained in a secure manner so as not to be an accessible property/structure or to create a blighted property. A "secure manner" shall include, but not be limited to, the closing and locking of windows, doors, gates, fences, walls and other openings of such size that may allow a child or 7

other unauthorized person to access the interior of the property or structure. B. Broken windows, doors, gates, fences, walls, and other openings of such size that may allow a child or other unauthorized person to access the interior of the property or structure must be repaired upon registration and maintained in a secure manner. Broken windows shall be secured by reglazing of the windows. C. Once a real property becomes a foreclosed real property, a property management company shall be designated by the mortgagee to perform the work necessary to bring the property into compliance with the applicable code(s), and the property management company must perform regular inspections to verify compliance with the requirements of this article and any other applicable codes of the Township. 99-14. Public nuisance. ARTICLE IV Violations and Penalties All foreclosed real property is hereby declared to be a public nuisance, the abatement of which, pursuant to the police power of the Township, is hereby declared to be necessary for the health, welfare, and safety of the residents of the Township. 99-15. Inspections for violations. Adherence to this chapter does not relieve any person, legal entity, or agent from any other obligations set forth in any applicable code(s) that may apply to the property. Upon sale or transfer of title to the property, the owner shall be responsible for all violations of the applicable code(s) and the owner shall be responsible for meeting with the Township s Enforcement Officer within 45 days for a final courtesy inspection report. 99-16. Additional authority. A. The Township s Enforcement Officer shall follow and be bound by the requirements of Chapter 143 (Property Maintenance) of the Township Code for matters related to inspections, notices and orders, unsafe structures and equipment, emergency measures, demolition, and means of appeal. B. The Township s Enforcement Officer shall have the authority to require the mortgagee and/or owner of record of any property affected by this section to implement additional maintenance and/or security measures including, but not limited to, securing any and all windows, doors, gates, fences, walls, and other openings; employing an on-site security guard; or taking other measures as may be reasonably required to reduce the attractive public nuisance and to help prevent further blight of the property. C. The mortgagee shall reimburse the Township for costs incurred by the Township in reducing the attractive public nuisance. If the mortgagee does not reimburse the 8

Township for the cost of temporarily securing the property or of any abatement directed by the Township s Enforcement Officer within 30 days of the Township s invoice, then, in addition to any other remedy permitted by law, the Township may file a lien against the property for such cost, along with an administrative fee of $500.00, to recover the cost of administrative personnel services. 99-17. Penalties. Any person, firm, or corporation who shall violate any provision of this chapter, upon conviction thereof in an action brought before a district justice in the manner provided for the enforcement of summary offenses under the Pennsylvania Rules of Criminal Procedure, shall be sentenced to pay a fine of not less than $100 nor more than $1,000 for each separate offense and, in default of the payment of such fine, may be sentenced to imprisonment for 90 days, or to the extent allowed by law for the punishment of summary offenses. Each day that a violation of this chapter continues and each section of this chapter that has been violated shall constitute a separate offense, and penalties shall be cumulative. SECTION 2: All ordinances or parts of ordinances inconsistent herewith are hereby repealed to the extent of such inconsistency. SECTION 3: If any section, subsection, sentence, or clause of this ordinance is held, for any reason, to be invalid, such decision or decisions shall not affect the validity of the remaining portions of this ordinance. SECTION 4: The Board of Supervisors finds that this ordinance is consistent with the overall goals of the Derry Township Comprehensive Plan. ORDAINED AND ENACTED into law this day of, 2016 to become effective five days from the date hereof. ATTEST BY: Secretary BOARD OF SUPERVISORS TOWNSHIP OF DERRY DAUPHIN COUNTY, PENNSYLVANIA BY: Chairman (Seal) 9