Act 135: Pennsylvania’s Blighted Property Conservatorship

Pennsylvania’s Act 135, the Abandoned and Blighted Property Conservatorship Act, lets neighbors, nonprofits, local governments, lienholders, and owners themselves ask a court to appoint a conservator who takes control of a vacant, deteriorating building and rehabilitates it. The Pennsylvania Act 135 blighted property conservatorship process runs through the Court of Common Pleas in the county where the building sits, and it works as an action against the property itself rather than against the owner personally. The statute covers residential, commercial, and industrial buildings, along with vacant lots where a structure has been demolished.1Pennsylvania General Assembly. Act 135 of 2008 – Abandoned and Blighted Property Conservatorship Act

Who Can File a Petition

Standing is limited. The statute lets four categories of parties bring an Act 135 petition:2Pennsylvania General Assembly. Pennsylvania Code Title 68 PS 1104 – Initiation of Action

  • The property owner or a lienholder with a secured interest, such as a mortgage holder.
  • Anyone who lives or operates a business within 2,000 feet of the building.
  • A nonprofit corporation or redevelopment authority located in the same municipality, provided its mission includes remediating blight or improving neighborhoods. In Philadelphia, the nonprofit must be located within the city and have participated in a project within a five-mile radius of the building.
  • The municipality or school district where the building sits.

If you don’t fit one of these categories, you can’t file. But a neighbor or local nonprofit often can, and that’s who most petitions come from in practice.

Whether the Property Qualifies

Before a court will appoint a conservator, the property must meet all five of these conditions as of the day the petition is filed:3Pennsylvania General Assembly. Pennsylvania Code Title 68 PS 1105 – Appointment of Conservator

  • The building has not been legally occupied for at least the previous 12 months.
  • The owner cannot show compelling evidence of a good-faith effort to sell the property during the 60 days before filing.
  • No nongovernmental entity has a foreclosure action already pending.
  • The current owner cannot show they purchased the property within the preceding six months. Transfers between immediate family members or related business entities generally don’t count as a qualifying recent purchase; an inheritance does.
  • The court finds at least three of the statutory blight indicators.

The nine blight indicators cover physical and social harm: a building declared a public nuisance; a building needing major rehabilitation with no work done in the past 12 months; a building unfit for occupancy; one that increases fire risk to nearby structures; one subject to unauthorized entry because the owner failed to secure it; one that attracts children as a dangerous nuisance; one harboring vermin or accumulated debris that creates health hazards; one that drags down nearby property values through its dilapidated appearance; or one drawing illegal activity like drug use. The court needs to find three. Most seriously blighted properties hit well more than that, and a petition is stronger when it documents several.

Filing the Petition

The petition goes to the Court of Common Pleas in the county where the property is located. It must include a sworn statement that the property meets the conservatorship conditions and, to the extent the petitioner can gather after reasonable effort:

  • Copies of any municipal citations charging the owner with code violations or declaring the building a public nuisance.
  • A recommendation for who should be appointed conservator.
  • A preliminary rehabilitation plan with initial cost estimates, a description of the work needed to bring the building into code compliance, and anticipated funding sources.
  • A schedule of all mortgages, liens, and other encumbrances on the property.

The preliminary plan carries more weight than people expect. Courts want to see that rehabilitation is financially realistic before stripping an owner of control. Vague cost figures or no identified funding source invites problems at the hearing.

After filing, the petitioner records a notice of lis pendens with the county recorder of deeds, which puts anyone searching the title on notice that litigation is pending. The petition then has to be formally served on the owner and every secured creditor, and a notice must be physically posted in a visible location on the property so anyone with an interest who missed standard service still gets notice.

The Hearing and the Owner’s Response

The court must schedule a hearing within 60 days of receiving the petition, and must issue a decision no later than 30 days after the hearing concludes.4Commonwealth Court of Pennsylvania. Commonwealth Court Opinion on Act 135 Petition Hearing Timeline

If the owner doesn’t file an answer, the court can proceed without them. A conservator may be appointed, rehabilitation expenses become a lien against the property, and the property can eventually be sold. If the owner does appear, a general promise to fix things isn’t enough; the court will measure the response against the statutory conditions.

The statute does give owners one real escape. If the court finds the conditions for conservatorship exist but the owner convincingly represents that violations will be corrected within a reasonable time, the court may allow the owner to keep possession.3Pennsylvania General Assembly. Pennsylvania Code Title 68 PS 1105 – Appointment of Conservator The court can condition that outcome on the owner posting a bond equal to the estimated repair costs from the petition.

What the Conservator Can Do

An appointed conservator steps into the owner’s shoes and takes immediate possession of the building, any connected land, and the owner’s bank accounts related to the property.5Pennsylvania General Assembly. Pennsylvania Code Title 68 PS 1106 – Powers and Duties of Conservator The conservator’s authority includes:

  • Hiring contractors for repairs and maintenance, with at least three bids required for contracts over $25,000.
  • Restoring utilities.
  • Entering into rental leases of up to one year with court approval.
  • Collecting outstanding receivables and rents to offset rehabilitation costs.
  • Purchasing insurance.
  • Hiring attorneys, accountants, and appraisers.
  • Applying for public grants or loans.
  • Borrowing money to fund the rehabilitation.

The conservator also has an affirmative duty to maintain, safeguard, and insure the building throughout the process. Within 120 days of appointment, the conservator must present a final abatement plan to the court detailing how the blight conditions will be corrected. If the building is designated historic, the conservator must consult with the local historical commission or the Pennsylvania Historical and Museum Commission during renovation.

Paying for the Work: Financing and Lien Priority

The conservator can borrow money to fund rehabilitation, and the court can grant the new debt priority over existing mortgages and other encumbrances.6Pennsylvania General Assembly. Pennsylvania Code Title 68 PS 1108 – Financing That priority is what makes the statute workable: without it, lenders have little reason to put money into a property already weighed down by debt.

Priority isn’t automatic. The court may grant it only when the conservator first approached the existing senior lienholder for financing and that lienholder declined to provide reasonable terms, and when priority is necessary to attract another lender. If the senior lienholder agrees to finance the rehabilitation, those funds are added to the existing first lien position. The court can also approve financing terms with deferred repayment and use restrictions, and those terms can survive the conservatorship and bind whoever ends up owning the property.

How a Conservatorship Ends

Any party in interest or the conservator can ask the court to terminate the conservatorship. The court will do so under four circumstances:7Pennsylvania General Assembly. Pennsylvania Code Title 68 PS 1110 – Termination of Conservatorship

  • Successful rehabilitation, with all blight conditions and code violations corrected and all conservatorship expenses and fees paid.
  • The owner, a mortgagee, or a lienholder requests termination and gives the court adequate assurances that remaining blight conditions will be promptly corrected. All conservatorship expenses still have to be fully paid or accounted for.
  • The conservator sold the building and distributed the proceeds according to statutory priority.
  • Rehabilitation proves impossible despite diligent effort, because no approvable plan can be developed or an approved plan can’t be implemented.

After the conservator has been in control for more than six months and the owner has not successfully petitioned to terminate, the conservator can ask the court to approve a sale free and clear of all liens.8Pennsylvania General Assembly. Pennsylvania Code Title 68 PS 1109 – Sale of Property Proceeds go to conservatorship costs and fees first, then to secured creditors in order of priority, with any remainder going to the original owner.

For an owner hoping to reclaim the property, “adequate assurances” means more than a verbal promise. The court has already watched this owner neglect the building for at least a year. Getting it back means showing the financial capacity and concrete intent to finish the job, and covering every dollar the conservator spent.

Lead Paint Rules for Pre-1978 Buildings

Many buildings that end up in Act 135 cases predate 1978, which almost guarantees lead-based paint. Federal law requires that any renovation disturbing lead-based paint in pre-1978 residential properties be performed by EPA-certified renovators using lead-safe work practices.9US EPA. Lead Renovation, Repair and Painting Program That applies to conservators, their contractors, and anyone else doing the work.

Lead-safe work practices include containing the work area to prevent dust and debris from spreading, prohibiting open-flame burning and uncontrolled power-tool use, and performing thorough cleanup with a verification procedure.10US EPA. Renovation, Repair and Painting Program – Work Practices A conservator hiring contractors should verify EPA certification before signing any contract. Fines for noncompliance are steep, and they would get charged against the property along with everything else.