New demolition fund for blighted properties passes Pa. House

The Pennsylvania House of Representatives has passed a bill designed to deal with blighted and abandoned properties.

Sponsored by Sen. Jim Brewster, D-Allegheny, Senate Bill 149 will allow counties to use a surcharge on real estate transfers to create a demolition fund to help spur redevelopment in local communities. The bill, which received bipartisan support in the Senate, passed the House 109-93 and now heads to Gov. Josh Shapiro to be signed into law.

“Rundown and abandoned properties are a drain on local property values and erode the tax base,” Brewster said in a statement. “This bill will help revitalize neighborhoods while reducing property taxes by shoring up property values.”

Under Senate Bill 149, the governing body of a county may, by ordinance, impose a fee of no more than $250 for the sale of any property being sold or an action for mortgage foreclosure, according to a release. Along with the purchase price, the bureau conducting the sale of the property or the sheriff in a mortgage foreclosure will collect the fee.

The demolition fund can be used by the county, any not-for-profit or for-profit corporation that has a contract with the county or a taxing district, redevelopment authority, land bank or other government entity, for the demolition or rehabilitation of blighted property located in the county, per a release.

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