Discharging Mechanic’s Liens in Pennsylvania

If you have had construction work performed at your property, then you may have had the unfortunate experience of having a contractor or subcontractor file a mechanic’s lien against your real property. A mechanic’s lien can cause any number of problems when trying to sell your property – most notably, a cloud on your property’s title. It can also come as a shock to a property owner who was unaware that a subcontractor had not been paid in full.

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Philadelphia Landlord Tenant Cases Postponed Until Further Notice

Today, the Philadelphia Municipal Court issued an Administrative Order postponing Landlord Tenant cases that are currently scheduled for a hearing before the Municipal Court between July 6, 2020 and September 2, 2020 until further order of the Court. Governor Wolf’s May 7, 2020 Executive Order previously extended the moratorium on certain evictions and foreclosures from May 11, 2020 to July 10, 2020.

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Pennsylvania Evictions, Foreclosures & the CARES Act

Yesterday, Governor Wolf signed an Order staying evictions that would require compliance with the Pennsylvania Landlord and Tenant Act of 1951 and the Manufactured Home Community Rights Act for 60 days, until July 10, 2020. The Order provides that the timelines necessary to start an eviction action are tolled until July 10, 2020. The Order also puts foreclosures requiring compliance with Act 6 and Act 91 on hold for the same 60 day period.

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Evictions in Pennsylvania During the Pandemic

Evictions are currently prohibited in Pennsylvania through April 30, 2020. The Supreme Court of Pennsylvania’s April 1, 2020 Second Supplemental Order prohibits evictions, ejectments, or other displacements from a residence for non-payment of rent or taxes, or a mortgage foreclosure.

Despite the ban, landlords are permitted to send termination notices during the moratorium period. Once the eviction ban is lifted, if a tenant remains in breach of the terms of their lease, a landlord will then be able to file an eviction or ejectment action.

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Impact of Coronavirus on Commercial Real Estate Transactions – Remote Notarization and County Recording Office Closures

While county recording offices are shutting down or limiting access across New Jersey, parties to real estate and loan transactions are wondering the impact the shut downs will have on the transaction. While this is a fluid situation that is changing daily, or even hourly, the facilitators of closings, including attorneys, title companies, and lenders are making every effort to see that transactions are not delayed.

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ICSC RECon 2019 Wrap-Up

ICSC’s RECon 2019 in Las Vegas provided a very good vibe for new deals and excitement not seen since before 2007. Unofficial statistics noted that attendance was up, likely above 37,000 with more than 12,000 exhibitors. Low interest rates, heightened consumer demand and an overall positive national economic outlook provided the backdrop for the increased optimism. Here are a few take-aways from this year’s show.

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As Predicted, Bon-Ton Stores file for Chapter 11 Protection? First Large Retail Department Store Bankruptcy of 2018

*Updated February 6, 2018*

Carson Pirie Scott II, Inc., aka Bon-Ton Stores (“Bon-Ton”), which has dual headquarters in Milwaukee, WI and York, PA, filed on Super Bowl Sunday for Chapter 11 bankruptcy protection in the US Bankruptcy Court, District of Delaware, Docket # 18-10248 (MFW).

The regional department store chain operates 260 stores in 24 states, largely in the Northeast and Midwest. Bon-Ton operates stores under its own name as well as: the Boston Store, Carson’s, Younkers, Herberger’s, and Elder-Beerman. Rumblings of a possible filing circulated in early December as the chain watched its holiday sales fall.

Bon-Ton reports that it has a commitment of $725 million for debtor-in-possession (“DIP”) financing to operate during the restructuring process. The company’s business plan, which was filed earlier this week with the SEC, reports it’s main priority is the overhaul of its private-label products, as it plays catch-up with Kohl’s, Macy’s, and J.C. Penney.

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Zoning Concerns from Listing Your Property on Airbnb

One of the topics generating a great deal of attention in zoning relates to people leasing their residential homes via Airbnb.

This issue came up in Reihner v. City of Scranton Zoning Hearing Board No. 256 C.D. 2017 (PA Commw. Ct. Dec. 8, 2017). The owners of a single family residential dwelling rented the three bedrooms on the second floor of their house via the Airbnb website.

The City filed a notice of violation alleging that the use was a “Bed and Breakfast” which was not allowed in the property’s zoning district.

Scranton’s ordinance defined a “Bed and Breakfast use” as follows:

“The use of a single family residential dwelling and/or accessory structure which includes the rental of overnight sleeping accommodations and bathroom access…and which does not provide any cooking facilities or provision of meals for guests other than breakfast…”

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Who Can Be a Redeveloper of Property in New Jersey?

One of the questions that I am frequently asked is, “Who can develop property in a redevelopment area?”

As discussed below, redevelopment can be done by anyone, subject to restrictions discussed below, and is not necessarily restricted to just large scale developers.

A redeveloper is defined by New Jersey’s Local Housing and Redevelopment Law (the “LHRL”) as “… any person, firm, corporation, or public body that shall enter into or propose to enter into a contract with a municipality or other redevelopment entity for the redevelopment or rehabilitation of an area in need of redevelopment…”.

Thus, for a redeveloper to make use of the LHRL, a municipality must have first declared a property or properties as an area in need of redevelopment.

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