Section 7108.1 - Donations of property subject to claim for taxes(a) A county, city, borough, incorporated town, township, home rule municipality, optional plan municipality or optional charter municipality may accept the donation of a property that is subject to a claim for taxes. A municipal authority, other than a redevelopment authority, or a school district may participate in a donation pursuant to subsection (g). A municipality shall provide written notice to other local municipalities or their designees under subsection (f) of a donation proposed by the owner of the property. A donation under this subsection shall not be accepted less than thirty days after notice to all other municipalities which have a claim for taxes on the subject property under this act. A donation under this subsection shall operate to divest all liens against the property possessed by the municipality accepting the donation and all other local tax liens recorded prior to the date of donation, except as otherwise provided in this section and except mortgages recorded prior to the tax liens.(b) A municipality which receives a notice of proposed donation may request to participate in negotiations with regard to the donation and extinguishment of all or part of its liens and with regard to proposals to return the property to the tax rolls or to productive public use. A municipality which does not respond in writing to the notice within thirty days of its receipt of the notice shall waive its right to participate in the donation negotiations, and its lien shall be extinguished. A municipality participating in donation negotiations may agree to extinguish all existing liens against the property in exchange for full or partial satisfaction of its claims upon future sale of the property by the municipality accepting the donation. Every negotiation shall consider the structure and condition of the property, the market value of the property in its current condition, the best use of the property given the neighborhood and local ordinances and the costs to cure any defects, including defects in title.(c) A donation under this subsection shall be by deed recorded, and registered where required, with the county recorder of deeds. The deed shall be accompanied by recorded satisfactions of any and all claims for taxes which are extinguished by virtue of the donation. In all instances the satisfaction from the municipality which is accepting ownership of the property pursuant to the donation shall provide for full extinguishment of all claims under this act possessed by it. Satisfactions of liens shall provide that all claims of all municipalities in which the property is located are discharged and extinguished, unless terms are otherwise agreed upon between the owner and the municipalities participating in the donation negotiations.(d) Property that has been donated under this section shall be exempt from claims for taxes from all the municipalities in which it is located during the time that it remains in the ownership of the county, city, borough, incorporated town, township, home rule municipality, optional plan municipality, optional charter municipality, redevelopment authority or school district to which it was donated.(e) Notwithstanding any other provision of law, an owner who donates property under this section shall not be personally liable for the amount of claims for taxes exempted or extinguished as a result of the donation.(f) A county, city, borough, incorporated town, township, home rule municipality, optional plan municipality or optional charter municipality in which the property is located may designate another such municipality, or a redevelopment authority in which the property is located, to act as its agent with regard to a donation under this section. A single municipality or the redevelopment authority may be selected as the agent for all municipalities holding a tax claim or lien. In returning the property to the tax rolls or to productive public use, a municipality or a redevelopment authority may seek the assistance of a community development corporation serving the area where the property is located.(g) A school district or municipal authority, other than a redevelopment authority, may participate in the provisions of this section only if the school district or municipal authority has designated an agent in accordance with subsection (f). Nothing in this subsection shall prevent a school district or municipal authority from taking title to a donated property if it is determined during negotiations that the best manner to return the property to productive use is to allow a school district or municipal authority to use the property for purposes directly related to the mission of the district or authority.1923, May 16, P.L. 207, § 5.1, added 2006, Feb. 21, P.L. 46, No. 18, § 1, effective in 60 days [April 24, 2006].