Published: November 29, 2008 11:24 pm      

New law targets blight

In their continuing effort to eradicate blight, local officials often complain that legal hurdles and mounds of red tape prevent them from making much progress.

But with a stroke from his pen last week, Gov. Ed Rendell provided some help.

Rendell on Wednesday signed the Abandoned and Blighted Property Conservatorship Act, which in some cases allows a court-designated “conservator” to take control of – and then fix or demolish – a vacant, blighted structure.

While some officials in Cambria and Somerset counties expressed concerns about the new law’s legal mechanisms and its lack of funding, they also said the measure could help them address their most-troublesome properties.

“It’s a welcome tool,” said Ron Shomo, Johnstown’s codes and permitting director.

It took years for the act to pass through the Legislature and reach the governor’s desk.

Concerns about impinging on the rights of property owners were a major stumbling block, said state Rep. Don Walko, an Allegheny County Democrat who authored the bill.

But in the end, he said, “we were able to show that private interests end when the neighbors next door are losing the value of their home” due to blight.

The act works like this: A “party in interest” may petition the court to appoint a conservator who would have the power to repair – or, if necessary, demolish – a blighted property.

Those who could be a “party in interest” include someone who holds a lien on the property, a nearby resident or business owner, a municipality, a school district or a nonprofit corporation.

Though the law applies to both residential and commercial structures, there are strict guidelines for which properties are eligible:

nThe building must have remained unoccupied for the previous 12 months.

nThe parcel cannot have been “actively marketed” for sale for the previous 60 days.

nThe property cannot be subject to a foreclosure action.

nThe current owner must fail to “present sufficient evidence that he has acquired the property within the last six months.”

In addition, a judge must find that at least three of nine other conditions apply to a property.

That includes buildings that are “unfit for human habitation” or are an “attractive nuisance to children.”

After a series of attempts to notify a property’s owner, the court would hold a hearing and appoint a conservator, who must develop a plan to fix a blighted building.

While the conservator does not take ownership, that person or entity has complete control of a property – though the owner can attempt to intervene through the courts at any time.

The conservator also can file a lien against the property to help cover renovation costs.

Eventually, a renovated property could be sold, with the proceeds going toward court costs and payments of liens and other debts.

For officials who either don’t have the power to take property through eminent domain, or those who consider eminent domain to be a “legal nightmare,” the conservatorship act may be a blessing.

And it could be a remedy for the headaches of dealing with uncooperative, absentee property owners who don’t respond to letters or citations and won’t show up for court hearings.

Larry Custer, Cambria County Redevelopment Authority executive director, said he’s already been contacted by a few municipal attorneys who hope to use the authority as a conservator to address blighted property.

“This is a wonderful tool for us,” Custer said.

Steven Spochart, Somerset County Redevelopment Authority executive director, expressed similar sentiments.

While Spochart considers himself a supporter of property rights, he said those who allow structures to become severely blighted have a negative impact on an entire community.

“It becomes a public problem because of the effect it has on the neighborhood and property values,” he said.

If there is a major question about the new law, it is this: Where’s the money?

It takes cash for a conservator to be able to bring a property up to code or demolish it, and Walko’s bill does not provide any state funding for those efforts.

“All these things will work, but the one missing link is money,” Shomo said.

Walko acknowledges the lack of available funding for anti-blight efforts.

“I readily admit that there have to be more sources of money,” he said.

Financial issues aside, others are skeptical of the new law’s practicality.

Ron Repak, Johnstown Redevelopment Authority executive director, said he finds the conservatorship process “extremely complicated.” He expects it to be used only in the worst blight cases.

Repak is concerned about possible legal issues.

“The first challenge coming from a private owner who wasn’t notified, or a lien holder who wasn’t notified, that worries me a little bit,” he said.