17290_Authority_February_2024

18 The Authority | FEBRUARY 2024 This fact sheet provides available options to municipal authorities in handling delinquencies and collections. Water Termination Laws (one of the most effective incentives): (See corresponding flow chart outlining various water termination laws and application of each on page 20). 1. Water Services Act (53 P.S. Section 3102.101) • Water termination for nonpayment of sewer fee. • Applies to property owners and/or tenants. • Requires water supplier (public or private) to terminate water service at the request of sewer service supplier with delinquent sewer customer. Note: If water service is provided by a private water company, they are regulated by the PA Public Utility Commission and water termination is prohibited by law during winter months (December 1 – March 31) if water is used in the heating of a home. 2. Utility Services Tenants Rights Act (68 P.S. Section 399.1) - Water termination for nonpayment of water fee -Applies to tenants Other Laws (liens, collection, occupancy, etc.): 1. Municipal Claim Tax Lien Law (53 P.S. Section 7101) • High statutory interest rate allowed on principal balance of municipal claim at 10% per annum. • All collection costs (including attorney’s fees and filing claim) paid by delinquent property owner. 2. Sheriff Sale (within process of filing municipal lien, reduce to judgment) - List the property for sheriff sale. • Can also take possession of items of relative value to the delinquencies outstanding. 3. Permit denials by municipalities (53 Pa. C.S. Section 6131) - Building permit, occupancy permit denial by municipality if water or sewer delinquency exists. 4. Municipality Authorities Act (53 Pa. C.S.A. Ch. 56): • Violation of authority Rules and Regulations under Section 5607(d)(17), post as a summary offense with magistrate. • For tenants, may bill property owner only under Section 5607 (d) (10) & (11). Case Law Bill Landlord only – Authorities are not required to accept tenants as customers and may send bills only to the property owner. The owner/landlord can be held liable ultimately for bills owed by a tenant even where the tenant is the customer of record (Pennsylvania case law – Sledge v. borough of Homestead, 677 A.2d 1327 (Pa. Cmwlth. 1996), Lord v. Borough of Pottstown, 205 B.R. 48 (E.D.Pa. 1997) (affirmed by 3rd Cir.). Strategies/Tactics 1. Notify Mortgage Company - send lien to customer’s mortgage company. The mortgage company may pay the bill out of customer’s escrow fund in order to avoid the possibility of them losing their home. 2. Name delinquent individuals at public meeting for the minutes – As part of the Sunshine Act (Open Meetings), the board can vote to take official action at an authority board meeting on individuals with outstanding accounts. If newspaper reporter present, he/she may place information in the local paper. However, the Authority should not do this on their own as it violates the Fair Credit Reporting Act. Delinquencies | Collections Tools and Methods