(1) A local taxing district which receives a notice of proposed donation may request to participate in negotiations with regard to the donation and extinguishment of all or part of its liens and with regard to proposals to return the property to the tax rolls or to productive public use. A local taxing district which does not respond in writing to the notice within thirty (30) days of receipt of the notice shall waive its right to participate in the donation negotiations, and its lien shall be extinguished. A local taxing district participating in donation negotiations may agree to extinguish all existing liens against the property in exchange for full or partial satisfaction of its claims upon future sale of the property by the local taxing district accepting the donation. Every negotiation shall consider the structure of the property, the market value of the property in its current condition, the best use of the property given the neighborhood and local ordinances and the costs to cure any defects, including defects in title.

(2) 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 of the donation. In all instances, the satisfaction from the local taxing district which is accepting ownership of the property pursuant to the donation shall provide for full extinguishment of all claims under this act possessed by it. Satisfactions of liens shall provide that all claims of all local taxing districts in which the property is located are discharged and extinguished, unless terms are otherwise agreed upon between the owner and the local taxing districts participating in the donation negotiations.

(3) Property that has been donated in accordance with this subsection shall be exempt from claims for taxes from any local taxing district in which it is located during the time that it remains in the ownership of the county, city, borough, incorporated town, school district, township, home rule municipality, optional plan municipality, redevelopment authority or optional charter municipality to which it was donated.

(4) An owner that donates property in accordance with this subsection shall not be personally liable for the amount of claims for taxes exempted or extinguished as a result of the donation.

(5) A local taxing district possessing a claim under this act may designate another local taxing district, or the redevelopment authority in the county in which the property is located, to act as its agent with regard to a donation under this subsection. A single local taxing district or the redevelopment authority may be selected as the agent for all local taxing districts holding a tax claim or lien against the property under this act. In returning the property to the tax rolls or to productive public use, a redevelopment authority may seek the assistance of a community development corporation serving the area where the property is located.

(6) A school district or municipal authority other than a redevelopment authority may participate in the provisions of this subsection only if the school district or municipal authority has designated an agent in accordance with paragraph (5). 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 to productive use is to allow a school district or municipal authority to use the property for purposes directly related to the mission of the district or authority.