Council adopts tax-forgiveness ordinance to encourage private rehabilitation of tax-delinquent properties

Munhall Borough council voted Sept. 16 to adopt a tax-forgiveness ordinance that the borough says is designed to encourage private purchase and rehabilitation of tax-delinquent properties.

Borough staff summarized the program and said it follows Pennsylvania law allowing taxing authorities to consent to reduced tax obligations as part of rehabilitation of dilapidated properties. "The tax forgiveness program is ... to assist the borrower remediating tax delinquent properties by establishing rules and procedures to allow these properties to transfer to new ownership to promote the rehabilitation of dilapidated structures," the solicitor said during his summary.

Under the ordinance as summarized by staff, applicants who buy a tax-delinquent property and intend to rehabilitate it must spend funds solely to remediate the dilapidated property in an amount at least equal to the delinquent taxes on that property. The program gives applicants one year to complete the required improvements; if they do not meet the deadlines they are terminated from the program. After inspection and pre-audit reports confirm completion, the ordinance requires the property purchaser to file a petition in court to obtain the tax forgiveness; the borough will consent to the petition and the borough expects the school district and the county to consider similar consent where applicable.

Resident Brad Dachega, 1332 Margaret Street, urged public awareness of the issue of unclaimed or ownerless properties and said the program would help return such properties to the tax rolls. "This tax forgiveness ordinance allows us to at least address this problem," Dachega said.

Council took formal action at the Sept. 16 meeting to adopt the ordinance. The motion to adopt was made and seconded on the amended agenda and carried with an affirmative voice vote. The council also moved the item onto the agenda for formal vote at the same meeting after amending the agenda to add three motions. The solicitor and borough staff will administer the application process and inspect completed work before consenting to court petitions.

Discussion vs. decision: staff presented the program and took public comment (discussion); council then made a formal motion to adopt the ordinance and approved it on Sept. 16 (formal action). The ordinance establishes program criteria (spending at least 100% of delinquent taxes on remediation, one-year completion deadline) and a process that requires a court petition for forgiveness.

Next steps: borough staff will publish application procedures, receive and review applications, inspect completed remediation, and, where applicants meet the program requirements, consent to petitions filed in court to secure tax forgiveness for the purchaser.