PA LAC Preserves 7 Year Declarant Control in State Law

Jun 3, 2013

After raising objections to fast-tracked legislation that was moving swiftly through both chambers of Pennsylvania's legislature, CAI's Pennsylvania Legislative Action Committee (PA LAC) reached an agreement on amending language with the Bill's primary sponsors as well as the trade groups lobbying for adoption of the legislation.

Senate Bill 859 was introduced by Senator David Argall (R-29-Schuykill County) on April 18, 2013. House Bill 1122 was introduced by Representative Maureen Gingrich (R-101-Lebanon County) on April 8, 2013. The Bills amend the Uniform Planned Community Act and the Uniform Condominium Act to replace the current 7-year limitation on withdrawal or conversion of real estate within flexible planned communities with either a 10-year limitation (for projects that do not have a phasing plan) or a limitation based on the approved phasing that is submitted by the developer to the municipality. 

Both the Uniform Planned Community Act and the Uniform Condominium Act provide that control of the board of a planned community or condo must be turned over from the developer to a unit owner-elected board no later than the sale of 75% of the units within the development, or seven years after the conveyance of the first unit in the development, whichever first occurs. CAI sought amending language that clarifies that these Bills make no changes in the period of declarant control. The amendment supported by CAI states:

The foregoing amendments to Sections 3206(2), 3219(a), 5206(2) and 5219(a)(3) of Title 68 of the Pennsylvania Consolidated Statutes shall specifically apply only to those Sections; and shall not apply to, or alter any other Sections of Title 68 of the Pennsylvania Consolidated Statutes, including, by way of example and not limitation, Sections 3303, 3411, 5303 and 5411.  All other time periods listed in Title 68 of the Pennsylvania Consolidated Statutes are therefore unaffected hereby.

The foregoing language was accepted by the Bill's sponsors, converted into legislative terms by the Pennsylvania Legislative Reference Bureau, and is included in the current version of the Bills, which await final passage by the legislature. CAI will continue to monitor the legislation as it moves towards final passage.

Update: Senate Bill 859 was unanimously adopted by the State Senate on June 3, 2013.


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