New Foreclosure Fee in Erie, Pennsylvania Allows County to Combat Blight

A recently enacted law will provide Erie County, along with other counties in Pennsylvania, a new mechanism to combat blight. From now on, Pennsylvania state officials can impose a $250 fee on foreclosure sales, which will fund a demolition and rehabilitation initiative aimed at addressing the issue of abandoned and deteriorated properties in the state’s cities.

Democratic Senator Jim Brewster, the main proponent of the bill, stated on Thursday that abandoned and poorly maintained properties decrease local real estate values. Therefore, this new legislation will not only rejuvenate communities but also reduce property taxes by strengthening real estate values.

However, these problems are undoubtedly not new. Pennsylvania has maintained a Statewide Blight Task Force since 2006, and since then, it has regulations for building codes but lacks a standardized property maintenance code. Instead, municipalities, boroughs, and cities choose whether to implement a code and determine its details individually.

For example, last January, the city of Erie introduced a blight fee, charging property owners $300 every six months. This fee arose after concerns from many local officials that blight, which reduces the value of nearby properties, could lead to disinvestment, increasing the financial pressure on government resources to address issues in problematic areas.

Another strategy to manage the problem of deteriorated structures is to establish land banks to acquire, renovate, and sell such properties. Therefore, the House of Representatives has approved a bill to expand their use, but securing investment to support the banks’ operations is not always easy, nor is finding buyers.

With all Republicans in favor except eight who voted against, Senator Jim Brewster’s bill was approved by the House with a vote of 109 to 93. On Monday, Governor Josh Shapiro signed the bill.

Available Foreclosures:

Erie: 15 homes available.

By Elías DaSilva | 05 de Noviembre de 2024.