Township of Cheltenham, PA Claims

Municipal claims filed upon the assessment for amounts remaining unpaid for improvements to real estate shall, upon filing, have added thereto a penalty of five percent (5%) of the amount of the claim.

Municipal claims filed upon the failure to pay for services rendered or provided shall, upon filing, have added thereto a penalty of 10% of the amount of the claim.

In addition, upon collection of any municipal claim, there shall be added thereto interest on the claim and penalty at the rate of 10% per annum from the date of the filing of the lien or the completion of the work, whichever shall last occur; except that, where a municipal claim is filed arising out of a project financed by the issuance of township bonds, interest shall be collectible at the rate of interest paid on the bonds, or at the rate of 12% per annum, whichever is less.

Article II Fees and Costs for Collection of Unpaid Claims

[Adopted 11-16-2011 by Ord. No. 2229-11; amended in its entirety 4-26-2023 by Ord. No. 2457-23]

§ 120-2 Definitions.

The following terms in this article shall be defined as follows:

ACT

The Municipal Claims and Tax Liens Act, 53 P.S. § 7101 et seq., as amended, and capitalized terms used but not defined in this article shall have the meanings ascribed to such terms in the Act.

COLLECTION EXPENSES

The Charges, Expenses, Commissions and Fees incurred in the collection of the Unpaid Claims.

MCTLA UNPAID CLAIMS

The collection of certain Unpaid Claims pursuant to the Act.

UNPAID CLAIM

Taxes, Tax Claims, Tax Liens, Municipal Claims and/or Municipal Liens owed to the Township that become delinquent.

§ 120-3 Attorney fees and collection fees to be added to the MCTLA unpaid claims.

The Attorney Fees and Collection Fees set forth below are hereby adopted, approved and determined to be reasonable, including, without limitation, as contemplated by § 7106 of the Act. The Attorney Fees and Collection Fees set forth below shall be included and added to the applicable MCTLA Unpaid Claim in an amount equal to the amount set forth in this section.

Attorney fees.

Initial review and sending first legal demand letter	$175
File Lien and prepare Satisfaction	$250
Prepare Writ of Scire Facias	$250
Prepare and mail letter under Pa.R.C.P. 237.1	$50
Prepare Default Judgment	$175
Research, prepare and obtain re-issued Writ	$175
Prepare Praecipe to Amend	$100
Prepare Motion to Amend	$150
Prepare Motion for Alternate Service	$250
Prepare Motion to Consolidate Claims	$250
Amend claim to add United States as defendant	$250
Prepare Writ of Execution	$800
Preparation for sheriff's sale; review schedule of distribution and resolve distribution issues	$400
Prepare Motion to Continue Sheriff's Sale	$50
Prepare Petition for Free and Clear Sale	$400
Preparation and service of Subpoena	$100
Presentation of Motion or Petition	$50
Services not covered above	At an hourly rate between $75 to $275 per hour

Collection fees.

Validation notice	$25 per notice
Notice of delinquent claim and fee shifting	$40 per notice, plus applicable postage
Bookkeeping fee for payment plan of 3 months or less	$25
Bookkeeping fee for payment plan of more than 3 months	$50
Handling fee for returned check	$25

§ 120-4 Costs to be added to unpaid claims.

In addition to the Collection Fees set forth under § 120-3 above, the amount of out-of-pocket charges, costs, expenses, commissions and fees incurred in connection with the filing, preservation and collection of the MCTLA Unpaid Claims, including, but not limited to, prothonotary fees and charges, sheriff fees and charges, postage expenses, title search expenses, vehicle identification number (VIN) search expenses, skip tracing and/or other investigatory service expenses, and the costs, fees, charges and/or expenses arising out of any payment by any credit card, debit card or any other payment medium are hereby approved and shall be included, upon incurrence, together with the applicable MCTLA Unpaid Claim.

§ 120-5 Interest.

Interest will be assessed upon the Unpaid Claims at a rate of 10% per annum and added to the Unpaid Claims. The Township is permitted to waive any interest on any Unpaid Claim when the Township or any attorney and/or third party collector collecting the Unpaid Claim believes, in its discretion, that such amount is de minimis or that the cost or burden of continuing collection outweighs the benefit of collecting the interest.

§ 120-6 Collection procedures.

The following collection procedures are hereby established in accordance with the Act:

At least 30 days' prior to assessing or imposing attorney fees in connection with the collection of an Unpaid Claim account, the Township or its designee shall mail or cause to be mailed, by certified mail, return receipt requested, a notice of such intention to the property owner or other entity liable for the account (the "property owner").

If the certified mail notice is undelivered, then, at least 10 days' prior to assessing or imposing such attorney fees, the Township or its designee shall mail or cause to be mailed, by first-class mail, a second notice to the property owner.

All notices required by this article shall be mailed to the property owner's last known post office address as recorded in the records or other information of the Township or such other address obtained by the Township from the County Tax Assessment Office.

Each notice as described above shall include the following:

(1)

The type of municipal claim or other charge, the year that it became due and the amount owed, including penalty and interest;

(2)

A statement of the Township's intent to impose or assess attorney fees no earlier than 30 days after receipt of the first notice, or no earlier than 10 days after receipt of the second notice;

(3)

The manner in which the assessment or imposition of attorney fees may be avoided by payment of the account; and

(4)

The place of payment for accounts and the name and telephone number of the Township's representative designated as responsible for collection matters.

§ 120-7 Related action.

The proper officials of the Township are hereby authorized and empowered to take such additional action as they may deem necessary or appropriate to implement this article.

§ 120-8 Appointment of Solicitor.

The Township appoints a Solicitor[1] for the limited purpose of collecting the Unpaid Claims and hereby authorizes her, and all attorneys employed by Portnoff Law Associates, Ltd., to sign any and all documents, including municipal claims and liens, on behalf of the Township.

[1]

Editor's Note: The Solicitor's name is included in the text of Ord. No. 2457-23, a complete copy of which is on file in the Township offices.