HB 1464 — An Act amending Title 26 (Eminent Domain) of the Pennsylvania Consolidated Statutes, in general provisions, further providing for definitions; in procedure to condemn, providing for advanced notice to condemnee, further providing for notice to condemnee and for preliminary objections and providing for determination of last resort; in procedure for determining damages, further providing for liens and distribution of damages; in just compensation and measure of damages, further providing for measure of damages and providing for compensation for loss of goodwill of business or farm operation; and, in evidence, providing for proof of continuous ownership.

PRINTER'S NO.   1724

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1464
                                               Session of
                                                 2025

     INTRODUCED BY PROBST, HILL-EVANS, PIELLI, GIRAL, BOROWSKI,
        WARREN AND CEPEDA-FREYTIZ, MAY 14, 2025

     REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 14, 2025


                                    AN ACT
 1   Amending Title 26 (Eminent Domain) of the Pennsylvania
 2      Consolidated Statutes, in general provisions, further
 3      providing for definitions; in procedure to condemn, providing
 4      for advanced notice to condemnee, further providing for
 5      notice to condemnee and for preliminary objections and
 6      providing for determination of last resort; in procedure for
 7      determining damages, further providing for liens and
 8      distribution of damages; in just compensation and measure of
 9      damages, further providing for measure of damages and
10      providing for compensation for loss of goodwill of business
11      or farm operation; and, in evidence, providing for proof of
12      continuous ownership.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    The definition of "comparable replacement
16   dwelling" in section 103 of Title 26 of the Pennsylvania
17   Consolidated Statutes is amended and the section is amended by
18   adding definitions to read:
19   § 103.   Definitions.
20      Subject to additional definitions contained in subsequent
21   provisions of this title which are applicable to specific
22   provisions of this title, the following words and phrases when
23   used in this title shall have the meanings given to them in this
 1   section unless the context clearly indicates otherwise:
 2      * * *
 3      "Comparable replacement dwelling."      A dwelling that is:
 4          (1)    Decent, safe and sanitary.
 5          (2)    Adequate in size to accommodate the occupants.
 6          (3)    Within the financial means of the displaced person.
 7          (4)    Functionally equivalent.
 8          (5)    In an area not subject to unreasonable adverse
 9      environmental conditions.
10          (6)    In a location generally not less desirable than the
11      location of the displaced person's dwelling with respect to
12      public utilities, facilities, services and the displaced
13      person's place of employment.
14          (7)    Within the same school district as the condemned
15      dwelling if any of the occupants in the condemned dwelling is
16      a child that, at the time of condemnation, attends a school
17      within the school district in which the condemned dwelling is
18      located.
19      * * *
20      "Continuous ownership."   A continuous and unbroken chain of
21   ownership of a property by a condemnee and the family of the
22   condemnee as provided under section 1107 (relating to proof of
23   continuous ownership).
24      * * *
25      "Marginalized community."   A group of people who experience
26   social, economic or political exclusion or discrimination based
27   on characteristics such as race, ethnicity, gender, sexual
28   orientation, socioeconomic status, disability or religion.
29      * * *
30      "Replacement value."   A valuation completed by an impartial

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 1   expert appraiser that is calculated as the summation of the
 2   following:
 3            (1)   The fair market value of the land as if the land was
 4      vacant.
 5            (2)   The cost of replacing or duplicating existing
 6      structures on the land, including machinery, equipment or
 7      fixtures, adjusting for depreciation.
 8      * * *
 9      Section 2.     Title 26 is amended by adding a section to read:
10   § 304.1.    Advanced notice to condemnee.
11      (a)     Written advanced notice.--Within 30 days prior to the
12   filing of a declaration of taking, the acquiring agency shall
13   provide written notice to a proposed condemnee, mortgagee of
14   record and lienholder of record.
15      (b)     Service.--The advanced notice shall be served in the
16   same manner as required for the notice under section 305(b)
17   (relating to notice to condemnee).
18      (c)     Contents.--The advanced notice shall include:
19            (1)   The name of the proposed condemnee to whom the
20      proposed condemnation is directed.
21            (2)   A statement that the acquiring agency intends to
22      file a declaration of taking for the acquisition of the
23      proposed condemnee's property no less than 30 days from the
24      date of the advanced notice.
25            (3)   The name, address and contact information, including
26      a telephone number and email address, at which a
27      representative of the acquiring agency can be reached.
28            (4)   A statement that the proposed condemnee's property
29      or portion of the property may be condemned for the purposes
30      of the acquiring agency's program or project.

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 1            (5)   A brief description of the purpose of the proposed
 2      condemnation, including the acquiring agency's proposed
 3      project.
 4            (6)   A brief description of the condemnation process in
 5      this Commonwealth, including all of the following:
 6                  (i)    What eminent domain is.
 7                  (ii)    The rights of a condemnee under law, including
 8            the right to hire a lawyer to help guide the condemnee
 9            through the condemnation process.
10                  (iii)    How just compensation is determined and made
11            or secured under the laws of this Commonwealth.
12                  (iv)    That the use of eminent domain is of last
13            resort.
14                  (v)    The next steps the acquiring agency will take if
15            the proposed condemnee's property is subject to a
16            declaration of taking.
17                  (vi)    The process by which the proposed condemnee may
18            challenge the power or the right of the acquiring agency
19            to appropriate the condemned property, the sufficiency of
20            the security, whether the use of eminent domain is of
21            last resort, the procedure followed by the acquiring
22            agency or the declaration of taking.
23      (d)     Proof of service and compliance.--Filing of a copy of
24   the advanced notice and proof of service of the advanced notice,
25   together with the filing of the declaration of taking and
26   security as required under sections 302 (relating to declaration
27   of taking) and 303 (relating to security required), shall
28   constitute compliance with the notice requirements of this
29   section.
30      (e)     Publication.--Within 24 hours of issuing advanced notice

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 1   to a proposed condemnee under subsection (a), an acquiring
 2   agency shall post the advanced notice on the acquiring agency's
 3   publicly accessible Internet website, if available, and at the
 4   acquiring agency's principal office location.
 5      Section 3.     Section 305(c)(13) of Title 26 is amended and the
 6   subsection is amended by adding a paragraph to read:
 7   § 305.   Notice to condemnee.
 8      * * *
 9      (c)   Contents.--The notice to be given the condemnee shall
10   state:
11            * * *
12            (12.1)    A statement that the use of eminent domain is of
13      last resort.
14            (13)    A statement that, if the condemnee wishes to
15      challenge the power or the right of the condemnor to
16      appropriate the condemned property, the sufficiency of the
17      security, whether the use of eminent domain is of last
18      resort, the procedure followed by the condemnor or the
19      declaration of taking, the condemnee must file preliminary
20      objections within 30 days after being served with notice of
21      condemnation.
22      * * *
23      Section 4.     Section 306(a)(3) of Title 26 is amended by
24   adding a subparagraph and subsection (f) is amended by adding a
25   paragraph to read:
26   § 306.   Preliminary objections.
27      (a)   Filing and exclusive method of challenging certain
28   matters.--
29            * * *
30            (3)    Preliminary objections shall be limited to and shall

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 1      be the exclusive method of challenging:
 2                  * * *
 3                  (iii.1)    Whether the use of eminent domain is of last
 4            resort.
 5                  * * *
 6      (f)     Disposition.--
 7            * * *
 8            (4)   For a preliminary objection under subsection
 9      (a)(3)(iii.1), the court shall make a determination of last
10      resort in accordance with section 306.1 (relating to
11      determination of last resort).
12      * * *
13      Section 5.        Title 26 is amended by adding a section to read:
14   § 306.1.    Determination of last resort.
15      (a)     Blighted properties excluded.--A blighted property shall
16   not be subject to the requirements of this section.
17      (b)     Condemnor requirement.--If a condemnee files a
18   preliminary objection under section 306(a)(3)(iii.1) (relating
19   to preliminary objections), the condemnor shall submit the
20   following to the court within 30 days of filing of the
21   preliminary objection:
22            (1)   The alternatives that were considered, including:
23                  (i)    Alternatives that did not involve the use of
24            eminent domain for the program or project.
25                  (ii)    Alternatives that involve the use of eminent
26            domain but condemn fewer properties.
27                  (iii)    Alternatives that involve the use of eminent
28            domain but would not disproportionately affect a
29            marginalized community.
30            (2)   A statement outlining why the specified exercise of

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 1    the power of eminent domain to take private property is the
 2    only feasible option among the alternatives. The statement
 3    shall include the following:
 4                (i)    Evidence that the condemnor fully considered if
 5          the benefits of the program or project outweigh the
 6          negative impacts of the exercise of the power of eminent
 7          domain to take private property on the surrounding
 8          community.
 9                (ii)   Evidence that the exercise of the power of
10          eminent domain to take private property would not
11          exacerbate existing inequities in the surrounding
12          community.
13          (3)   Evidence that a comparable replacement dwelling is
14    available to the condemnee.
15    (c)   Determination of last resort.--
16          (1)   Within 30 days after the condemnor submits the
17    content under subsection (b) to the court, the court shall
18    determine whether the condemnor sufficiently demonstrates
19    that the exercise of the power of eminent domain to take
20    private property is the last resort. The court shall grant
21    determination of last resort if any of the following is
22    satisfied:
23                (i)    The condemnor demonstrates the condemnor fully
24          considered if the benefits of the program or project
25          outweigh the negative impacts of the exercise of the
26          power of eminent domain to take private property on the
27          surrounding community.
28                (ii)    The condemnor demonstrates the exercise of the
29          power of eminent domain to take private property would
30          not disproportionately affect a marginalized community.

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 1                  (iii)   The condemnor demonstrates that the exercise
 2            of the power of eminent domain to take private property
 3            outlined in the declaration of taking is the only
 4            feasible option among the alternatives considered.
 5                  (iv)    The condemnor demonstrates that a comparable
 6            replacement dwelling is available to the condemnee.
 7            (2)   The court shall make the determination of last
 8      resort by considering the content provided by the condemnor
 9      under subsection (b).
10            (3)   If the court determines that the exercise of the
11      power of eminent domain to take private property is the last
12      resort, the use of eminent domain may proceed.
13            (4)   If the court determines that the exercise of the
14      power of eminent domain is not the last resort, the court
15      shall provide a statement to the condemnor outlining why the
16      determination was not granted and provide the condemnor 45
17      days to remedy the insufficiency.
18      Section 6.     Section 521(a)(1) of Title 26 is amended to read:
19   § 521.   Liens and distribution of damages.
20      (a)   Liens.--
21            (1)   Damages payable to a condemnee under sections 701
22      (relating to just compensation; other damages) through 707
23      (relating to removal of machinery, equipment or fixtures),
24      713 (relating to delay compensation), 714 (relating to
25      consequential damages), 715 (relating to damages for vacation
26      of roads) and 902(b)(1) and (2) (relating to moving and
27      related expenses of displaced persons) shall be subject to a
28      lien for all taxes and municipal claims assessed against the
29      property and to all mortgages, judgments and other liens of
30      record against the property for which the particular damages

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 1      are payable, existing at the date of the [filing of the
 2      declaration of taking.] written advanced notice as provided
 3      under section 304.1 (relating to advanced notice to
 4      condemnee).
 5            * * *
 6      Section 7.        Section 702(a) of Title 26 is amended and the
 7   section is amended by adding subsections to read:
 8   § 702.   Measure of damages.
 9      (a)   Just compensation.--
10            (1)     Just compensation shall [consist of] be the higher
11      of the following:
12                  (i)    the difference between the fair market value of
13            the condemnee's entire property interest immediately
14            before the condemnation and as unaffected by the
15            condemnation and the fair market value of the property
16            interest remaining immediately after the condemnation and
17            as affected by the condemnation[.]; and
18                  (ii)    the replacement value of the condemnee's
19            property interest.
20            (2)   The just compensation under paragraph (1)(ii) shall
21      not exceed 200% of the value of paragraph (1)(i).
22      * * *
23      (d)   Augmentation of just compensation.--If a condemnee
24   provides the acquiring agency or court evidence showing proof of
25   continuous ownership as provided under section 1107 (relating to
26   proof of continuous ownership), the amount awarded under
27   subsection (a) shall be augmented by an additional 1% for each
28   year of continuous ownership. The amount of augmentation shall
29   be no greater than 15% of the amount awarded under subsection
30   (a).

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 1      (e)   Blighted property.--If a condemned property is a
 2   blighted property, the just compensation for the blighted
 3   property shall be the difference between the fair market value
 4   of the condemnee's entire property interest immediately before
 5   the condemnation and as unaffected by the condemnation and the
 6   fair market value of the property interest remaining immediately
 7   after the condemnation and as affected by the condemnation. The
 8   blighted property shall not be eligible for augmentation of just
 9   compensation as provided in subsection (d).
10      Section 8.     Title 26 is amended by adding sections to read:
11   § 717.   Compensation for loss of goodwill of business or farm
12                  operation.
13      (a)   Compensation.--The owner of a business or farm operation
14   conducted on the property taken under this title shall be
15   compensated for loss of goodwill if the owner proves all of the
16   following:
17            (1)   The loss is caused by the taking of the property.
18            (2)   Compensation for the loss will not be duplicated in
19      the compensation otherwise awarded to the owner.
20            (3)   Both the acquiring agency and the owner did not
21      enter into negotiations to acquire the property before filing
22      a declaration of taking.
23      (b)   Rebuttal of compensation.--The acquiring agency may
24   rebut the compensation provided under subsection (a) if the
25   acquiring agency proves that the loss could have reasonably been
26   prevented by a relocation of the business or farm operation or
27   by taking steps and adopting procedures that a reasonably
28   prudent person would take or adopt in preserving the goodwill.
29      (c)   Leaseback agreement.--If the acquiring agency and the
30   owner of a business or farm operation enter into a leaseback

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 1   agreement, the following shall apply:
 2            (1)   No additional goodwill shall accrue during the
 3      lease.
 4            (2)   The entering of a leaseback agreement shall not be a
 5      factor in determining goodwill, and any liability for
 6      goodwill shall be established and paid at the time of
 7      acquisition of the property by eminent domain or subsequent
 8      to notice that the property may be taken by eminent domain.
 9      (d)   Use of State tax returns.--
10            (1)   If the owner of a business or farm operation and the
11      acquiring agency do not agree on the value of goodwill, the
12      owner shall make available to the board of viewers or court,
13      and the board of viewers or court shall, upon terms and
14      conditions that will preserve confidentiality, make available
15      to the acquiring agency, the State tax returns of the
16      business or farm operation. The acquiring agency shall review
17      the State tax returns solely for the purpose of determining
18      the amount of compensation under this section.
19            (2)   Nothing in this section shall be construed to affect
20      any right a party may otherwise have to discovery or to
21      require the production of documents, papers, books and
22      accounts.
23      (e)   Blighted property.--A blighted property shall not be
24   eligible for compensation for loss of goodwill in accordance
25   with this section.
26      (f)   Definitions.--As used in this section, the following
27   words and phrases shall have the meanings given to them in this
28   subsection unless the context clearly indicates otherwise:
29      "Goodwill."    The benefits that accrue to a business or farm
30   operation as a result of its location, cultural heritage value

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 1   to the community, reputation for dependability, skill or quality
 2   and any other circumstance resulting in probable retention of
 3   old or acquisition of new patronage.
 4   § 1107.   Proof of continuous ownership.
 5      (a)    Eligibility.--A condemnee shall be eligible for
 6   augmentation of just compensation as provided under section
 7   702(d) (relating to measure of damages) if the condemnee
 8   provides evidence to the acquiring agency or court showing proof
 9   of continuous ownership.
10      (b)    Establishing continuous ownership.--Proof of continuous
11   ownership of a property may be established through evidence of
12   ownership of the property by the condemnee and the family of the
13   condemnee, which shall include siblings, parents, grandparents,
14   aunts or uncles of the condemnee or the spouse of the condemnee.
15      (c)    Burden of proof.--The condemnee shall have the burden of
16   providing continuous ownership to the acquiring agency or court.
17      Section 9.    This act shall apply retroactively to a
18   declaration of taking filed on or after January 1, 2024.
19      Section 10.   This act shall take effect immediately.




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