HB 1289 — An Act amending Title 68 (Real and Personal Property) of the Pennsylvania Consolidated Statutes, in residential real property, providing for repudiation of discriminatory real estate covenants.

PRIOR PRINTER'S NO.NOS.

14071407, 1651 PRINTER'S NO.

16511757 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

NELSON, VENKAT, MADDEN, PROBST, RABB, WARREN, HILL-EVANS, FREEMAN, PARKER, MALAGARI, KRAJEWSKI,ZZI, KINSEY, CERRATO, HANBIDGEHANBIDGE, GREEN AND GREEN,WEBSTER, JUNE 1, 2023 AS REPRESENTATIVES,JUNE AS27, AMENDED,2023COND JUNECONSIDERATION, 21,HOUSE 2023E OF REPRESENTATIVES, AN ACT Amending Title 68 (Real and Personal Property) of the Pennsylvania Consolidated Statutes, in residential real property, providing for discharging REPUDIATION OF <-- discriminatory real estate covenants;covenants.

and establishing the Unlawful Restrictive <-- Covenant Discharge Reimbursement Fund.

CHAPTER 74 DISCHARGING REPUDIATION OF DISCRIMINATORY <-- REAL ESTATE COVENANTS Sec.

Discharge REPUDIATION of unlawful restrictive covenants.

<-- 7405.

Form for discharge.discharge REPUDIATION.

<-- 7406.

Unlawful Restrictiverestrictive Covenantcovenants Dischargein Reimbursementdeclarations <--of Fund.common interest ownership communities.

74077407. 7406.

Unlawful restrictive covenants not in declarations of <-- common interest ownership communities.

7408 7407.

Unlawful restrictive covenants not in declarations <-- of common interest ownership communities.

20230HB1289PN1651 - 2 - (2) The term includes the Philadelphia Department of 20230HB1289PN1757 - 2 - Records and the Allegheny County Department of Real Estate.

<-- (1) Race, color, ethnicity, national origin, religious creed, sex, gender identity, sexual orientation, age, marital status, familial status, citizenship or immigration status or any other status as those terms are defined in A PRACTICE OR <-- POLICY OF DISCRIMINATION AGAINST INDIVIDUALS OR GROUPS COVERED UNDER the act of October 27, 1955 (P.L.744, No.222), known as the Pennsylvania Human Relations Act, or 42 U.S.C.

(2) The presence of a sensory, mental or physical <-- disability or the use of a guide, service, assistance or support animal as a reasonable accommodation for the user or because the user is a handler or trainer of service, support, assistance or guide animals.

THE TERM DOES NOT INCLUDE A <-- COVENANT OR RESTRICTION AFFIXED TO A PROPERTY BY A RELIGIOUS ORGANIZATION THAT PREVENTS THE USE OF THE PROPERTY FOR PURPOSES THAT WOULD OFFEND THAT RELIGIOUS ORGANIZATION OR AN AGE-BASED COVENANT OR RESTRICTION INTENDED TO CREATE A SENIOR LIVING COMMUNITY.

20230HB1289PN1757 - 3 - (b) Combined covenants.--If an unlawful restrictive covenant is contained in an instrument affecting title to real property that also contains other covenants or provisions that are not an unlawful restrictive covenant, the validity and enforceability of the remaining covenants or provisions, as well as the 20230HB1289PN1651 - 3 - validity of the recorded instrument, shall not be affected by the nullification, voiding and unenforceability of the unlawful restrictive covenant.

Discharge REPUDIATION of unlawful restrictive <-- covenants.

(a) Landowner discharge.--Andischarge MAY FILE FORM.--An owner of real <-- property, including a common interest ownership community, with an unlawful restrictive covenant recorded in the instrument may file a form described in section 7405 (relating to form for discharge)discharge REPUDIATION) with the recorder in the county where the <-- real property is located to strikerepudiate REPUDIATE the unlawful restrictive <-- covenant from the instrument.

<-- (b) Electronic filing.--A form filed under subsection (a) shall be in writing and may be filed electronically if the county allows for electronic recording of deeds.

(c) Duty of recorder.--The recorder shall record the form submitted under subsection (a) and, to the extent practicable, <-- notate the indices to the records accordingly to reflect the invalidity of the unlawful restrictive covenant.

(e) Separation of covenant from instrument.--When the form submitted under subsection (a) is properly recorded, the removal <-- REPUDIATION of the unlawful restrictive covenant is effective <-- and does not affect the validity of the instrument.

The 20230HB1289PN1757 - 4 - instrument shall be construed as if the unlawful restrictive covenant was never contained in the instrument.

Form for discharge.discharge REPUDIATION.

<-- (a) Development.--No later than 90 days after the effective date of this section, the department shall develop and release a standardized form for landowners or other persons with an 20230HB1289PN1651 - 4 - interest in real property to file with the recorder to discharge <-- REPUDIATE an unlawful restrictive covenant within the interested <-- person's instrument.

(b) Distribution.--No later than 30 days after the standardized form required in subsection (a) is approved in final form by the department, the department shall provide a "Discharge REPUDIATION of Unlawful Restrictive Covenant" form to <-- each recorder in this Commonwealth and publish the form on the department's publicly accessible Internet website.

Unlawful Restrictiverestrictive Covenantcovenants Dischargein Reimbursementdeclarations <--of Fund.common interest ownership communities.

The(a) UnlawfulBoard Restrictivevote Covenantfor Dischargeremoval.--Notwithstanding Reimbursementany Fundother isprovision establishedof inlaw, thea Stateboard Treasuryof fora thecommon purposeinterest ofownership reimbursingcommunity recordersmay, forupon thereceipt costsof incurredan inopinion recordingby dischargesindependent oflegal counsel, consider an unlawful restrictive covenantscovenant to be removed <-- as provideda undercorrective sectionamendment 7404REPUDIATED (relatingby toa dischargevote of a majority of <-- the members of the board and without further need for a vote by unit owners or approval from lenders on individual units, thereby correcting the declaration by amendment to remove <-- REPUDIATING the unlawful restrictive covenants).covenant.

Funding<-- (b) Unit owner request for removal REPUDIATION.--If a unit <-- owner in a common interest ownership community submits a written request to carrythe outboard for an amendment to the purposedeclaration to <-- remove TO REPUDIATE an unlawful restrictive covenant, the board <-- 20230HB1289PN1757 - 5 - shall, no later than 90 days after receipt of thisthe fundrequest, shallhold a meeting to determine whether an unlawful restrictive covenant exists and should be contingentremoved onfrom appropriationsthe ofdeclaration by a <-- corrective amendment to the Generaldeclaration Assembly.REPUDIATED.

§If 7407the 7406.board <-- finds that an unlawful restrictive covenant exists and should be removed from the declaration by a corrective amendment to the <-- declaration REPUDIATED, the board shall take swift action to <-- record the corrective amendment REPUDIATION FORM.

Unlawful restrictive covenants in declarations of <-- common§ interest7407. ownership communities.

(a)Unlawful Boardrestrictive votecovenants fornot removal.--Notwithstandingin anydeclarations other provision of law, a board of a common interest ownership communitycommunities. may, upon receipt of an opinion by independent legal counsel, consider an unlawful restrictive covenant to be removed as a corrective amendment by a vote of a majority of the members of the board and without further need for a vote by unit owners or approval from lenders on individual units, thereby correcting the declaration by amendment to remove the unlawful restrictive covenant.

(b)If Unitan ownerinstrument requestin forthe removal.--Ifchain aof unittitle ownerto the common elements in a 20230HB1289PN1651condominium, -in 5the - common interestfacilities ownershipor communitycontrolled submitsfacilities in a writtenplanned requestcommunity toor in the boardchain forof antitle amendment to thea declarationreal toestate removecooperative includes an unlawful restrictive covenant, the board shall,may noperform latera thanlandowner 90discharge days<-- afterREPUDIATION receiptin ofaccordance thewith request,section hold7404 a(relating meeting to determine<-- whetherdischarge anREPUDIATION of unlawful restrictive covenantcovenants). exists and should be removed from the declaration by a corrective amendment to the declaration.

If<-- theSection board2. finds that an unlawful restrictive covenant exists and should be removed from the declaration by a corrective amendment to the declaration, the board shall take swift action to record the corrective amendment.

§ 7408 7407.

Unlawful restrictive covenants not in declarations <-- of common interest ownership communities.

If an instrument in the chain of title to the common elements in a condominium, in the common facilities or controlled facilities in a planned community or in the chain of title to a real estate cooperative includes an unlawful restrictive covenant, the board may perform a landowner discharge in accordance with section 7404 (relating to discharge of unlawful restrictive covenants).