Lackawanna County approves $15 recorder fee to fund demolition of blighted properties

The Board of Commissioners of Lackawanna County adopted Ordinance 299 on Aug. 20 establishing a county demolition fund financed by a $15 fee to be collected by the Lackawanna County Recorder of Deeds on each recorded deed and mortgage. The ordinance takes effect Dec. 1, 2025, and directs that funds be deposited in a designated demolition fund to be administered by the Lackawanna County Land Bank.

The ordinance, enacted at its second reading, is authorized under Act 87 of 1982 as amended by Act 152 of 2016, which permits counties to create demolition funds and to authorize a recorder of deeds to collect a fee of up to $15 per recorded deed or mortgage. Krista Magnotta, director of economic development for Lackawanna County, told commissioners that 26 Pennsylvania counties had implemented similar demolition funds and said, “If we were to have this ordinance in place in 2024, we would have had $174,105” available to address blighted properties.

The proposal drew public comment and opposition at the meeting. Chris Fay, government affairs director for the Greater Scranton Board of Realtors, said his organization recognizes the goal of addressing blight but opposed the fee “in this format,” arguing it would add a cost to every property transaction and could affect housing affordability. Fay said the proposal “could generate approximately a $150,000 in revenue annually, but it would do so by adding a cost to every property transaction.” Lorraine Cummings, a member of the public, also urged the commissioners to vote no, calling the fee “a backdoor tax.”

Magnotta said program guidelines are not yet finalized and that the county is working with solicitors to develop them. She told commissioners that liens will need to be part of the guidelines “in order for the county to recoup costs of demo of the demolition when the properties sell.” Commissioners discussed the possibility of exemptions and a sunset provision; one commissioner said exemptions for first-time homebuyers or low-income buyers could be created in the ordinance’s implementing guidelines, noting, “we can certainly create exemptions under it, because it's our fee that we're imposing.”

Supporters on the board argued the fund will help municipalities that lack resources to remove dangerous, dilapidated structures. One commissioner noted 26 other counties have used the mechanism and called the $15 fee “not prohibitive” while saying demolition can return properties to the tax rolls and improve neighborhood property values.

The board voted to approve Ordinance 299. The ordinance directs the recorder of deeds to collect $15 for each deed or mortgage recorded, requires that all funds collected be promptly deposited into a designated Lackawanna County demolition fund, and assigns administration of those funds to the Lackawanna County Land Bank. The ordinance’s effective date is Dec. 1, 2025, not less than 90 days after final adoption.