Crafton explores selling conservatorship property to developer under court-approved clawback to speed rehabilitation

Crafton Borough officials told council on Aug. 14 they intend to seek court permission to sell the Belvedere conservatorship property to a local developer under conditions that would protect the borough’s investment and ensure timely rehabilitation.

Community and economic development staff said the borough had budgeted $200,000 for rehabilitation but, after cleaning out the house and an onsite inspection by a local developer, staff believe the property may be marketable to a flipper if the developer is relieved of title encumbrances via the conservatorship. Staff said the property carried a large judgment—about $650,000—that had prevented sale at sheriff’s sale.

The proposed path is to request a court order permitting the borough to enter a contract with a buyer/developer, include performance timelines and clawback provisions in the contract, and only expend borough funds as required to meet the court’s conditions. Staff said this approach could reduce the borough’s immediate capital outlay and bring the property back onto the tax rolls faster. Council members asked if clawbacks and timelines could ensure quality; staff said they would seek contractual enforcement mechanisms and work with the court.

Manager and staff emphasized this approach is contingent on the judge approving terms; if the court declines, the borough may proceed with direct rehabilitation or other tools. Council asked staff to pursue the court process and return with proposed contract language and timelines.