Property Owners Defeat Act 135 Conservatorship Through Negotiated Resolution
Industry
Real Estate Law
Challenge
Property owners faced an Act 135 conservatorship petition that could have placed control of their Powelton Village property in the hands of a court-appointed conservator.
Results
Nochumson P.C. negotiated a comprehensive settlement that preserved the clients’ ownership and control while establishing a structured plan to remediate the property and resolve outstanding violations.
Key Service
Litigation
Act 135 provides a mechanism for addressing blighted properties, but it also protects owners who are willing and able to correct the conditions at issue.
Nochumson P.C.
Litigation
About the Client
Nochumson P.C. represented property owners facing an Act 135 conservatorship petition involving a property in Philadelphia’s Powelton Village neighborhood. A local nonprofit organization sought appointment as conservator under Pennsylvania’s Abandoned and Blighted Property Conservatorship Act.The Challenge
The petitioner alleged that the property met the statutory criteria for conservatorship under Act 135, claiming that it had been vacant for an extended period, contained numerous code violations, posed safety concerns, and had become a blighting influence on the surrounding neighborhood.
The petition sought appointment of the nonprofit organization as conservator. If granted, a court-appointed conservator could have taken control of the property, undertaken repairs, and potentially recovered rehabilitation costs through a future sale or other court-authorized mechanisms.
The proceeding therefore presented a significant risk to the clients’ ownership interests and required a strategy that addressed both the conservatorship allegations and the underlying condition of the property.
The Solution
Nochumson P.C. developed a strategy focused on preserving the clients’ ownership rights through remediation and compliance rather than protracted and costly litigation.
Working closely with the property owners, Nochumson P.C. helped establish a realistic plan to address the conditions identified in the petition. The plan demonstrated the clients’ willingness and ability to rehabilitate the property and eliminate the conditions forming the basis of the conservatorship action.
Nochumson P.C. then engaged in extensive negotiations with counsel for the petitioner. Those negotiations addressed remediation schedules, permit compliance, inspection requirements, and documentation demonstrating completion of the required work.
By presenting a practical and enforceable rehabilitation plan, the clients demonstrated that they could correct the alleged deficiencies without the appointment of a conservator.
For property owners facing an Act 135 petition, demonstrating a credible ability and commitment to remediate the property can provide a path toward preserving ownership and avoiding court-imposed conservatorship.
The Results
The parties reached a comprehensive settlement that allowed the clients to retain ownership and control of the property.
Under the agreement, the clients committed to completing specified remediation work, maintaining the property free of debris, complying with applicable permitting requirements, and resolving the outstanding unsafe violations identified by the City.
In exchange, the petitioner agreed to discontinue the Act 135 action upon satisfaction of the settlement terms rather than pursue appointment as conservator.
The settlement avoided costly litigation, protected the clients from the immediate risk of losing control of their property, and established a structured path toward bringing the property into compliance and returning it to productive use.
Read our related article for additional background on this topic: Property Owners Defeat Act 135 Conservatorship Through Negotiated Resolution
