Lackawanna County holds first reading of ordinance to create demolition and rehabilitation fund

Lackawanna County commissioners held a first reading on Feb. 19 of an ordinance that would create a county demolition and rehabilitation fund funded by a $250 fee on each purchaser at tax sales and mortgage-foreclosure sheriff’s sales.

The ordinance, presented as a first reading by Kristen Magnotta, Director of Economic and Community Development, implements authority in Act 48 of 2024 and directs the Lackawanna County Tax Claim Bureau and the Lackawanna County Sheriff to collect the fee. "It allows the Lackawanna County Tax Claim Bureau to add a fee of $250 to the cost of all tax delinquent property sales and the Lackawanna County Sheriff's Department to add a fee of $250 to the sale of all properties sold at mortgage foreclosure sales," Magnotta said.

The draft ordinance would require the Lackawanna County Treasurer to deposit fee proceeds into a designated demolition and rehabilitation fund under 72 P.S. § 5860.631 and authorize the Lackawanna County Land Bank to administer the fund. The land bank "may use the funds for its own demolition and or rehabilitation projects and may award funds by application on a competitive basis to municipalities, school districts, redevelopment authorities, and or any other nonprofit entities for demolition and or rehabilitation of blighted properties within Lackawanna County," the reading says.

Commissioners framed the ordinance as a tool to address blight without raising general taxes. The chairman said the fund would "give our county a much stronger tool in the fight against blight" and described blight as harming public safety and property values. The ordinance text, as presented, states there is "no cost to the county" and that proceeds may be used by the county and awarded to local governments and nonprofits for demolition or rehabilitation of blighted properties.

Magnotta told the board that two other Pennsylvania counties — Jefferson and Clarion — have enacted similar local fees under the same state authority. The ordinance as read is a first reading; no final adoption vote took place at the Feb. 19 meeting.

If enacted after a second reading, the ordinance as presented would make each purchaser at a tax sale or foreclosure responsible for a $250 fee collected at the time of sale, with funds directed to the county-managed demolition and rehabilitation fund and administered by the land bank.

The board did not vote on final adoption during the meeting; commissioners indicated the item will return for a second reading and formal vote at a later meeting.

The ordinance text read aloud includes the statutory references cited by county staff and describes eligible uses, the administrative role of the land bank, and the process for awarding competitive grants to municipalities and nonprofit entities for projects addressing blighted properties.