Section 5.1.

(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 09 of a donation proposed by the owner ofthe 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 acL 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 recordedprior to the date of donation, except as otherwiseprovided in this section and except mortgages recorded prior to the tax liens.

(b) A municipality which receives a notice ofproposed donation may request to participate in negotiations with regard to the donation and extinguishment of all or part ofits 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 ofits receipt ofthe 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 SESSION OF 2006 Act 2006-18 47 liens against the property in exchange forfull or partial satisfaction ofits claims upon future sale ofthe property by the municipality accepting the donation. Every negotiation shall consider the structure and condition of the property, the market value ofthe property in its current condition, the best use ofthe property given the neighborhood and local ordinances and the costs to cureany defects, including deftcts 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 ofthe donation. In all instances the satisfaction from the municipality which is accepting ownership of the property pursuant to the donation shall provide forfull extinguishment of all claims under this act possessed by it. Satisfactions ofliens 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 ii 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 districtto which it was donated.

(e) Notwithstanding any other provision oflaw, an owner who donates property underthis section shall not be personally liablefor the amount of claims fortaxes exempted or extinguished as a resultofthe donation. 09 A county, city, borough, incorporated town, township, home rule municipality, optionalplan 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 underthis section. A singlemunicipality or the redevelopment authority may be selected as the agent for all municipalities holding a tax claim orlien. In returning the property to the tax rolls or to productive public use, a municipality or a redevelopment authority may seek the assistance ofa communitydevelopment corporation serving the area where the property islocated.

(g) A school district or municipal authority, other than a redevelopment authority, mayparticipate in the provisions ofthissection only ifthe school district or municipal authority has designated an agentin accordance--with subsection

(I). 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 toproductive use is to allow a school district or municipal authority to use the property for purposes directly related to the mission ofthe district or authorit