Read our 2021 Annual Report below.  Click the icon in the center to make it full-screen.

When dealing with a local government during a property sale, it's important to maintain an appropriate level of respect for its authority under state law — mainly because it's in your and your client's best interest. 

For example, if you submitted a U&O inspection application and haven't heard back for a week, it's reasonable to call or email to follow up. 

However, if your client wants to dispute a legitimate property maintenance issue cited during an inspection or otherwise wants to take an adversarial approach toward the municipality, try to help them understand that there are some things that simply fall within the municipality's discretion, and arguing the point could result in settlement delays and a more difficult interaction. 

Of course, there are times when a municipality oversteps. A municipality can check for an item that's not on its U&O inspection checklist, but it can't require escrow as a condition of issuing a U&O certificate. In addition, municipalities in Pennsylvania must follow the Municipal Code and Ordinance Compliance Act once inspections have been completed.

Feel free to contact us if you're not sure about whether a municipality is truly out of line or simply being overzealous in its enforcement. We field plenty of those calls and are always happy to help provide guidance and clarity.

Photo by Scott Webb on Unsplash

Ideally, homes are assessed at 100% of their market values. That’s what happens immediately after a countywide reassessment.

But assessment values become inaccurate over time as the real estate market changes. To keep new assessments in line with old ones, the PA Department of Revenue sets a Common Level Ratio factor for each county every July.  

For example, Montgomery County has a 2021-2022 common level ratio factor of 2.24, meaning market value should equal 2.24 times the assessment.  Doing the math in reverse, Montco assessments should equal about 44.643% of market value.  So, a home with a market value of $100,000 would be assessed at about $44,643, and that assessed value would be used to calculate local property tax bills.

Here’s the math behind that percentage:

If you want to figure out the market value that the county is using — meaning, you want to know what the county thinks a property is worth — multiply the assessed value by the common level ratio factor.  Using the Montgomery County example above: $44,643 (assessed value) x 2.24 (ratio) = $100,000 (market value as determined by county).

This Philadelphia Inquirer article provides more explanation on assessments and appeals in the Greater Philadelphia region.

 * Delaware County just completed a court-ordered countywide reassessment, the values of took effect in 2021. Learn more about that in our blog post:  Delco reassessment project: an overview.

Update: Watch a recording of the webinar below:

We recently heard from a member who had helped her clients close on a home, only to discover a significant electrical issue after settlement.

We encourage Realtors to keep in mind the importance of a private inspection — not only because it protects their clients, but also because it is a strong argument against overreaching municipal inspections.

For example, when Falls Township, Bucks County, dropped its U&O inspection requirement last year, the township manager explained it this way:

"The level of inspection that home inspectors do privately is far, far greater than what the township's program was providing."

Bottom line: Don't count on a municipal code inspection to catch everything that will be important to your buyers.

Photo by Troy Bridges on Unsplash

Upper Darby Township has dropped a controversial requirement that buyers and sellers provide copies of photo identification during property transfers. Instead, the township will update its resale application to include fields for individuals' names and addresses to go with LLCs and companies.

The township had enacted the requirement on March 15 to address LLCs that were flipping properties without providing contact information, leaving the township unable to reach them regarding problems.

The Suburban Realtors Alliance heard from many Realtors upset by the ID requirement and sent a letter (PDF) to township leaders expressing opposition to it.

The township rescinded the requirement on April 15. In making the announcement, the township's Licenses and Inspections Department also asked that Realtors provide sufficient time for a resale application to be processed before settlement. The Alliance suggests applications be submitted to municipalities at least 30 days in advance.

How about a bit of good news to start 2021?

Falls Township, Bucks County, will no longer conduct residential resale inspections.

Township supervisors approved an updated use & occupancy inspection ordinance at their Jan. 18 meeting. The ordinance ends township resale inspections for owner-occupied homes.  

Falls Township Manager Matthew Takita explained why the change makes sense and won't increase the risk to buyers:

"The way the real estate agencies are set up, with the private home inspections and all the other forms they have to fill out, there's a lot of protection for the buyer that's already incorporated into the industry," Takita said.

"The level of inspection that home inspectors do privately is far, far greater than what the township's program was providing.  With the certifications, we'll make sure all the essentials are covered. There still will be a property history review, so any open violations or open permits will still be listed on the certificate when it's issued, so the buyer is aware of what's outstanding."

The township will still require four certifications before a sale:

• heating system
• fireplace/heater, chimney, flue and vent
• sewer lateral inspection
• electrical service panel 

The ordinance also makes changes to the township's regulations regarding rental properties, including implementing a rental unit inspection program.

This significant, positive development is a direct result of advocacy by the SRA, the Bucks County Association of Realtors, dozens of Realtors who responded to an SRA survey on doing business in Falls Township, and the elected and administrative officials in Falls who were responsive to community input.  

The ordinance was passed Jan. 18. Realtors should consider holding off on applying for U&Os until it becomes effective on Jan. 25. View video of the Falls Township supervisors meeting approving Ordinance 2021-1.

Pictured: A meeting to discuss Falls Township U&O issues in February 2020. From left: Maureen Scanlin (SRA board member), Pam Croke (BCAR AE and SRA board), Matt Takita (Falls Twp Manager), Jamie Ridge (SRA CEO/president), Bob Ramagli (Century 21) Drew Ferrara (RE/MAX Total), Alex Shnayder (SRA board president 2019-2020). Photographer/not pictured: Connie Kaminski (RE/MAX Total)

Read our 2020 Annual Report below.  Click the icon in the center to make it full-screen.

Oct. 12, 2020 

FOR IMMEDIATE RELEASE

CONTACT: Pete Kennedy, 610-981-9000, sra@suburbanrealtorsalliance.com

UPPER DARBY, Pa. — The Suburban Realtors^® Alliance (SRA) is calling on Upper Darby Township to fix its broken use and occupancy process. A survey of Realtors^® who have recently done business in the township showed that 80% of them found the process difficult, and 53% said municipal staff did not return emails or phone calls.

“This is not a trivial matter, as it is creating serious hardship for sellers, buyers and the real estate professionals who are attempting to provide their services to current and future residents,” said Jamie Ridge, SRA president and CEO.

Upper Darby, like roughly half the municipalities in the Philadelphia suburbs, requires a use and occupancy inspection before allowing a property to change hands. The seller or buyer must request an inspection from the township, paying a $100 application fee. After the inspection, the township issues a resale permit allowing the transaction to move forward.

“Imagine trying to buy a home and you’ve done all the research, negotiated a price, secured a mortgage, hired a private home inspector, lined up insurance — and it’s all in jeopardy because the township won’t respond to your phone calls or emails,” Ridge said. “Deals are falling apart, and families are being left in limbo, unable to sell their home, or buy a home in Upper Darby. This is a level of incompetence that we have never seen in another municipality in southeastern Pennsylvania.”

After receiving frequent complaints and requests for assistance from Realtors^® struggling to complete transactions in Upper Darby, the SRA in July created a survey, which drew 45 responses and revealed widespread frustration.

Several respondents shared details of their experiences:

“Although we submitted everything required, the staff at Upper Darby stated that their computer systems were ‘down’ and they could not issue the certificate. This went on for several weeks, before and after our settlement. To this day we have not received the Certificate of Occupancy.”

“The workers at the township have been very honest by stating that there are piles of paperwork all over the place and they can’t find anything; Resubmitting the paperwork is the only way to proceed. What a mess.”

“I have made multiple calls, left messages and sent emails and have not heard back from anyone.”

On Aug. 25, Ridge sent an email to Mayor Barbarann Keffer, Township Council President Laura Wentz and Township Administrator Vince Rongione to share the survey results and discuss ways to improve the situation. None of them responded or acknowledged the message.

On Oct. 1, Ridge sent a similar email to members of township council. One council member, Donald Bonnett (1^st District), responded that he had personally intervened on behalf of Realtors^® and a property owner who were receiving no response from the township’s Department of Licenses and Inspections.

“We’re not seeing this level of dysfunction anywhere else in the Philadelphia suburbs, and there’s simply no explanation for it,” Ridge said. “I’m optimistic about working together with the township to make the situation better. But before that can happen, the leadership has to acknowledge there’s a problem they want to fix.”

About Suburban Realtors^® Alliance

The Suburban Realtors^® Alliance is a subsidiary of the three largest local Realtor^® associations in Pennsylvania: the Bucks County, Montgomery County and Suburban West associations of Realtors^®. Between its three shareholder associations, the Alliance serves more than 12,000 members. For more information, visit www.suburbanrealtorsalliance.com.

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The Suburban Realtors® Alliance hosted a Realtor® Town Hall with U.S. Rep. Mary Gay Scanlon (PA-5) — on Thursday, June 11, 2020. Watch it below:

The conversation covered COVID-19 relief efforts like Pandemic Unemployment Assistance and SBA loans, and broader legislative topics relevant to real estate like remote notarization. 

Panelists for the town hall include:
    • Congresswoman Mary Gay Scanlon (PA-5)
    • Stefanie Hahn (NAR Federal Political Coordinator)
    • Jamie Ridge (SRA President/CEO)

In 2018, Gov. Wolf ordered all 67 counties in Pennsylvania to have paper-based voting machines in time for the April 2020 presidential primary. The systems produce a paper trail of votes that can be manually audited and recounted.

Choose a county to learn more about its voting machines:

The Suburban Realtors® Alliance hosted a webinar — "Legislative Update: Reopening Real Estate in Pennsylvania" — on Friday, May 15, 2020. Watch it below:

The discussion covered efforts in the state House and Senate to reopen real estate throughout Pennsylvania, with a focus on House Bill 2412. The bill would to allow real estate service providers to be designated as a life-sustaining industry and resume working with safety precautions.

Jamie Ridge, SRA CEO/president, facilitated the conversation. Panelists included:

• State Sen. Tom Killion (9th District/Chester and Delaware counties)
• Mike McGee (PAR CEO)
• State Rep. Todd Polinchock (144th District/Bucks County)
• Jamie Ridge (SRA president/CEO)

The Suburban Realtors® Alliance and the Bucks County Association of Realtors® hosted a webinar — "State of Bucks County: An Update for Realtors®" — on Friday, May 1, 2020. Watch it below:

Bucks County leaders provided an update on how the county is operating during the coronavirus outbreak.

BCAR executive Pam Croke and SRA CEO/president Jamie Ridge facilitated the conversation.  Panelists included:

Commissioners Chair Diane M. Ellis-Marseglia (@ 2:30)
Commissioners Co-chair Robert J. Harvie Jr. (@ 9:20)
Commissioner Gene DiGirolamo (@ 15:10)
Recorder of Deeds Robin Robinson (@31:50)

The Suburban Realtors® Alliance hosted a virtual town hall on Friday, April 24, to provide legislative updates at the local, state and federal levels. Watch it below:

The town hall was conducted as a Zoom webinar and focused on efforts to protect and support real estate during the coronavirus outbreak.

Speakers included:

• PAR director of public policy Alex Charlton (segment begins at 01:30)
• NAR political representative Drew Myers (segment begins at 25:50)
• NAR director of federal housing and commercial policy Megan Booth (segment begins at 31:35)
• SRA president/CEO Jamie Ridge (segment begins at 56:10)

April 10, 2020

FOR IMMEDIATE RELEASE

CONTACT: Pete Kennedy, 610-981-9000, sra@suburbanrealtorsalliance.com

UPPER DARBY, Pa. — The Suburban Realtors^® Alliance (SRA) is urging Upper Darby Township Council to table a proposed ordinance that would require residents to perform costly sewer inspections and repairs when they sell their homes.

Draft Ordinance 3070, which is set for a council vote during an online meeting on April 15, would require home sellers to have a plumber inspect their sewer laterals — the pipes that carry sewage from homes to sewer mains under the street. The proposal is being considered at a time when the township has closed its offices to the public and drastically changed its public meeting procedures in response to the coronavirus pandemic.

“The idea of introducing such an ineffective, but very expensive point-of-sale inspection during an unprecedented pandemic and financial crisis is mind-boggling,” said Jamie Ridge, SRA president/CEO. “Why rush through this major piece of legislation when there are obstacles to public engagement? Why add a new burden on home owners who are already worried about their income and upcoming mortgage payments?”

The Pennsylvania Office of Open Records advisory on coronavirus says, “To the extent that agenda items can be delayed until in-person meetings can resume, it’s a good idea to do so.” The Pennsylvania District Attorneys Association says, “What can happen in the ordinary course of business should happen in the ordinary course of business with full and complete transparency after the emergency has ended.” The Pennsylvania State Association of Townships says, “if the township does not have business that it needs to conduct, then PSATS believes that it would be appropriate under these emergency circumstances to cancel or postpone the meeting.”

The proposed ordinance could deliver a devastating blow to an Upper Darby real estate market already troubled by extremely high local property taxes that have depressed the value of homes compared to neighboring communities. Typical sewer lateral inspections cost hundreds of dollars, and needed repairs can run into many of thousands of dollars.

“Point-of-sale inspections are also a wholly ineffective method of addressing the serious issue the township wants to fix — infiltration of fresh water into the municipal sewer system,” Ridge said. “By only inspecting approximately 1-2% of sewer laterals each year, it will take Upper Darby more than four decades to stop the infiltration of fresh water into the system via residential laterals.”

A smarter, more cost-effective plan would be to first determine whether the issue is being created by problems in the main sewer lines, Ridge said.

The SRA previously submitted comments to Upper Darby Council on portions of the draft ordinance that would violate Pennsylvania Act 133 of 2016. Ridge said that while those legal issues have been addressed, the SRA is strongly encouraging the council to table the proposed ordinance entirely until the state of emergency has been lifted and a more comprehensive solution can be designed with proper opportunities for public comment.

About Suburban Realtors^® Alliance

The Suburban Realtors^® Alliance is a subsidiary of the three largest local Realtor^® associations in Pennsylvania: the Bucks County, Montgomery County and Suburban West associations of Realtors^®. Between its three shareholder associations, the Alliance serves more than 12,000 members. For more information, visit www.suburbanrealtorsalliance.com.

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The coronavirus/COVID-19 outbreak is causing municipal and county government offices to drastically reduce their operations — affecting local code inspection processes and county recorder of deeds offices. At the Suburban Realtors® Alliance, we're working to minimize the impact of these changes on Realtors® and their clients who are involved in property transfers.

Because municipalities have different regulations and are reacting to the public health emergency in different ways, each case is unique. If you're involved in a transaction being held up by a municipal closure, your best sources for guidance right now are your company’s broker and counsel, as well as suggesting that sellers and buyers consult with their personal attorneys. 

What Realtors® should know:

• Act 133 is still in effect. If a municipality has conducted a U&O inspection, it must issue a resale certificate — at least a temporary access certificate.
• Many municipalities have altered their U&O procedures.  Some are issuing conditional U&O certificates without a full inspection, on the condition that buyers (and in some cases sellers and agents) sign affidavits stating that certain items like smoke detectors are already in place and that any issues revealed during the eventual inspection will be the responsibility of the buyer.
• Recorder of Deeds offices in the four SRA counties are being affected by the state of emergency.
• The Suburban Realtors Alliance is available to help you through specific issues. We continue to track news and public legal notices, and we've been assisting members with their municipal issues throughout the region.

Below are resources for more information about how coronavirus is affecting real estate in the Philadelphia suburbs.

Here's a sampling of what we've been hearing from members since the coronavirus hit our region:

"I have a closing scheduled on March 25, but we need a re-inspection and the borough office just closed."

"The township just told me they are not conducting U & O inspections."

"Since they won't inspect, they want my buyer to sign a waiver saying she'll be responsible for any repairs they require after the sale."

Here are examples of municipalities finding a way to get the job done, even during the crisis:

“We are continuing with external inspections of properties, but we would love to see pictures if possible for the smoke detectors, fire extinguisher, hand rails and relief valve on the water heater. If needed, we will issue a conditional U&O for the property.”

“We are continuing our inspections, but will only enter buildings if they are unoccupied in an effort to protect our staff and avoid spreading the virus.”

Many municipal government offices have shut down or drastically reduced their operations during the public health emergency that is the coronavirus/COVID-19 outbreak. Where does that leave Realtors® and their clients?  Because municipalities have different regulations and are reacting to the public health emergency in different ways, each case is unique. If you're involved in a transaction being held up by a municipal closure, your best sources for guidance right now are your company’s broker and counsel, as well as suggesting that sellers and buyers consult with their personal attorneys.  

The Alliance has been in contact with individual municipalities when a settlement issue has been brought to our attention (with mixed success), and we are actively coordinating with the Pennsylvania Association of Realtors® to find a broader solution to this unprecedented situation. 

Of course, municipal inspections are just one part of the more complex process of buying or selling a property, and other areas may be similarly affected by the ongoing public health emergency. We will continue to coordinate with our leadership, our shareholders and the state association to find resolutions for these issues.

Please continue to keep us informed about your experiences with local, county and state government during the coronavirus outbreak. Email us at sra@suburbanrealtorsalliance.com.

 
Dear SRA members,
 
In response to the coronavirus/COVID-19 outbreak in our region, the Suburban Realtors® Alliance office in Malvern is temporarily closed, but our work continues uninterrupted.

Alliance staff are working remotely, starting this week through the end of March. We continue to monitor the news and legal notices for any issues that could affect the members of our three shareholder associations. Our municipal database remains online. We are in contact with government officials to ensure necessary public health measures cause as little disruption to real estate as possible.

Stay in touch.

As always, our Realtor® members are a vital source of on-the-ground information. Please continue to contact us with any questions, concerns or issues you’re experiencing. We are responding promptly to messages sent via email and phone.

As this outbreak progresses, we will send updates as necessary.  In the meantime, we encourage you to utilize these sources of information.

Delaware County is reassessing all 200,000 residential and commercial properties within its borders. 

The county is working to determine the market value of each property, which will be used to calculate real estate taxes starting in 2021. 

• Why is it happening?

• What is the timeline?

• Important points to know  

• SRA flyer and other resources

The countywide reassessment is the result of a court order.

Two families who purchased homes in Rose Valley Borough and Haverford Township in 2014 found their tax assessments to be too high. They challenged the county’s assessment process in court, and won.

The judge who heard their petitions — Judge Charles B. Burr of the Delaware County Common Pleas Court — determined that property assessments in the county were so inconsistent that they violated the state constitution.

In 2017, the judge ordered the county to reassess all properties within its borders.

The goal of the reassessment is to determine accurate values of all properties in the county, so that owners are paying a fair amount of property tax and the tax burden is distributed equitably across all taxpayers.

Click a bullet point below to expand.

SRA:  View a one-page overview flyer (PDF).

SRA: What is an accurate property assessment?

SWRA:  Information about the Agreement of Sale and Assessed Value (PDF) from Suburban West Realtors® Association.

Delaware County:  Visit the Delaware County Reassessment Project website. 

Still have questions about the reassessment?  
Contact the Delaware County Tax Assessment office (610-891-4879) or the county's consultant on the reassessment project, Tyler Technologies: (610-891-5695).

Read our 2019 Annual Report below.  Click the icon in the center to make it full-screen.

GLENOLDEN, Pa. — Glenolden Borough Council voted Nov. 19 to bring the municipality’s use and occupancy ordinance into compliance with state law. The move comes as a direct result of a federal lawsuit brought by the Suburban REALTORS^® Alliance over the borough’s abusive and illegal point-of-sale property inspection practices.

The borough council voted to repeal Chapter 61 of the borough code, titled “Certificate of Occupancy,” and replace it with a new version. The repealed version violated Act 133 of 2016, which amended the state’s Municipal Code and Ordinance Compliance Act (MCOCA) and changed the way local governments issue occupancy permits to homeowners. 

“Glenolden is finally doing the right thing.  Unfortunately, it took us asking them repeatedly for three years, then filing a federal lawsuit to get to this point,” said Jamie Ridge, president and CEO of the Suburban REALTORS^® Alliance (SRA).

Roughly half of the municipalities in the Philadelphia suburbs require point-of-sale inspections for property transfers. Act 133 mandates that after such an inspection, the municipality must issue a use and occupancy certificate — or a temporary access permit in the case of an unsafe property — and provide no less than 12 months for repairs to be made. Act 133 also states that the municipality cannot require escrowing funds in return for the issuance of a use and occupancy certificate.

After MCOCA was amended in 2016, most municipalities updated their ordinances and procedures to comply, but a handful of outliers, including Glenolden, have retained illegal ordinances and inspection practices.  The SRA’s intent is to have these municipalities replace their illegal ordinances with MCOCA, as Glenolden now has done.

“The updated ordinance is great news for Glenolden residents and Realtors^®, but it doesn’t change the fact that the borough has violated people’s rights for years,” Ridge said. “Our lawsuit continues.”

The SRA filed a federal lawsuit against Glenolden Borough in July 2019 for its failure to abide by MCOCA. The Alliance’s co-plaintiff in the suit, Mohammed Rahman, recently sold a property in the borough and was subjected to enforcement of unconstitutional ordinances.

Mr. Rahman was required to provide $5,000 in escrow while he made repairs, which is explicitly prohibited by MCOCA. The borough demanded that he complete all repairs within 30 days of settlement — another clear MCOCA violation. And though he completed the repairs within the arbitrary time frame, he was still fined more than $1,200 for not having a use and occupancy certificate at the time of settlement.

“The borough made up its own rules, then broke them,” Ridge said. “You can bet we’ll be watching closely to make sure Glenolden sticks to the law it just enacted so that its residents get the benefit of the new ordinance.”

About Act 133 of 2016 and MCOCA

Act 133 of 2016 is a Pennsylvania law signed by Gov. Tom Wolf that changed the way local governments issue occupancy permits to homeowners. The act amended the Municipal Code & Ordinance Compliance Act, which was passed in 2000. Act 133 was expressly designed to allow property transactions to proceed without compromising safety. The amended law allows code inspectors to issue three kinds of permits after a use and occupancy (U&O) inspection has been performed: 1) a full U&O certificate; 2) a temporary U&O certificate for minor violations, which must be fixed within 12 months; and 3) a temporary access permit, which allow buyers of unsafe homes to make necessary repairs but not move in until an inspector approves. For more information, visit www.suburbanrealtorsalliance.com/act133.

About Suburban Realtors^® Alliance

The Suburban Realtors^® Alliance is a subsidiary of the three largest local Realtor^® associations in Pennsylvania: the Bucks County, Montgomery County and Suburban West associations of Realtors^®. Between its three shareholder associations, the Alliance serves more than 12,000 members. For more information, visit www.suburbanrealtorsalliance.com.

See Also:  SRA Sues Borough of Glenolden for Violating Homeowners’ Rights  (SRA press release 10/15/2019)

October 15, 2019

FOR IMMEDIATE RELEASE

CONTACT: 610-981-9000, sra@suburbanrealtorsalliance.com

GLENOLDEN, Pa. – The Suburban REALTORS^® Alliance has filed a federal lawsuit against the Borough of Glenolden for refusing to issue residential use and occupancy certificates after municipal code inspections in accordance with state law.

The Alliance’s co-plaintiff in the suit, Mohammed Rahman, recently sold a property in the borough and was subjected to the enforcement of unconstitutional ordinances that violate the Pennsylvania Municipal Code and Ordinance Compliance Act (MCOCA).

“Not only did Glenolden Borough ignore state law and impose unconstitutional conditions on the transfer of his property, the borough also extracted from Mr. Rahman more than $1,200 in fines and has forced him to defend himself against criminal charges,” said Jamie Ridge, president and CEO of the Suburban REALTORS^® Alliance. “Glenolden denied him a use and occupancy permit to which he was entitled, then levied criminal sanctions against him for his failure to have the permit. It's ridiculous, arbitrary and wrong.”

Among the unconstitutional conditions that the borough imposed on Mr. Rahman were requiring that he post a $5,000 escrow in return for the issuance of a use and occupancy permit, and requiring that code inspection repairs be made within 30 days, both of which are prohibited by MCOCA.

“Mr. Rahman is just one example of how Glenolden’s outdated ordinances and bullying enforcement tactics continue to stifle the ability of residents and Realtors^® to engage in the transfer of private property,” Ridge said.

The lawsuit seeks to have Chapter 61 of Glenolden’s code of ordinances, titled “Certificates of Occupancy,” declared unconstitutional and to stop enforcement techniques that violate MCOCA.  Right now, the borough ordinances require that a property be brought into full compliance before the borough will issue a use and occupancy permit and allow the property to be sold. Such a restriction violates MCOCA, as amended by Act 133 of 2016, which states municipalities must issue a use and occupancy certificate after an inspection — or a temporary access permit in the case of an unsafe property — and provide no less than 12 months for repairs to be made.

Mr. Rahman acceded to a borough demand that he complete all repairs within 30 days of settlement, though he was under no legal obligation to do so. He completed the repairs within 30 days, but he was still fined more than $1,200 for not having a use and occupancy certificate at the time of settlement. The borough also held $5,000 from Mr. Rahman in escrow during the repairs — a practice explicitly prohibited by MCOCA.

Glenolden Borough took these actions despite its officials knowing their demands violated Pennsylvania law.

“We have asked the borough for the past two years to bring its ordinances and enforcement practices in line with state law, but they have chosen to ignore it,” Ridge said. “The extent to which the borough officer’s intentional actions have harmed Rahman and other property owners and wasted the borough’s resources is undetermined at this time.”

The lawsuit — Mohammad Z. Rahman and Suburban Realtors Alliance v. Borough of Glenolden, et al — was filed July 24, 2019 in the Eastern District of Pennsylvania. Several borough officials are specifically named as defendants: Kenneth Pfaff, council president; James Boothby, council vice-president; Brian Razzi, borough manager; and Anthony Tartaglia, chief of code enforcement. The plaintiffs are represented by Connor, Weber & Oberlies, based in Paoli, Pennsylvania.

As a part of the lawsuit, Rahman is seeking relief from the criminal sanctions and compensation for the borough’s intentional violation of the rights that should have been afforded to him under MCOCA.  The SRA has joined Rahman in the lawsuit to bring to light the borough’s unconstitutional ordinances and to force the borough to incorporate MCOCA’s rights and protections for property owners and Realtors^® into the borough’s ordinances. 

Although the lawsuit is still ongoing, through a sworn affidavit of Michael Puppio, the borough Solicitor, the borough has represented that it “intends to repeal its existing ordinances and to enact new ordinances consistent with MCOCA.”  Under Pennsylvania law, the borough must advertise its new ordinance provisions at least seven days prior to the borough council voting to enact the new provisions. 

Roughly half of the municipalities in the Philadelphia suburbs require point-of-sale inspections for property transfers, and most of them have updated their ordinances and practices to comply with MCOCA. Glenolden is one example of the municipalities who maintain ordinances and procedures in contravention of MCOCA.

About Act 133 of 2016 and MCOCA

Act 133 of 2016 is a Pennsylvania law signed by Gov. Tom Wolf that changed the way local governments issue occupancy permits to homeowners. The act amended the Municipal Code & Ordinance Compliance Act, which was passed in 2000. Act 133 was expressly designed to allow property transactions to proceed without compromising safety. The amended law allows code inspectors to issue three kinds of permits after a use and occupancy (U&O) inspection has been performed: 1) a full U&O certificate; 2) a temporary U&O certificate for minor violations, which must be fixed within 12 months; and 3) a temporary access permit, which allow buyers of unsafe homes to make necessary repairs but not move in until an inspector approves. For more information, visit www.suburbanrealtorsalliance.com/act133.

About Suburban Realtors^® Alliance

The Suburban Realtors^® Alliance is a subsidiary of the three largest local Realtor^® associations in Pennsylvania: the Bucks County, Montgomery County and Suburban West associations of Realtors^®. Between its three shareholder associations, the Alliance serves more than 12,000 members. For more information, visit www.suburbanrealtorsalliance.com.

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[View a PDF Version of this press release]

A trend is emerging among some municipal code inspectors in the Philadelphia suburbs — they're asking home buyers to sign away their rights. 

Per state law, buyers have at least 12 months to make repairs cited in a use-and-occupancy inspection. But Downingtown Borough, for example, has a “U&O Waiver Form” on its website in which buyers agree that, "I will make all repairs [within] 30 days of the closing of the sale.” These 30-day affidavits are popping up in municipalities across the region.

Considering the power these municipalities hold and what's at stake — a new home — buyers and agents may be inclined to sign the form to keep transactions on track.

But the bottom line is that these towns and boroughs cannot force the buyers to sign, and they cannot withhold a U&O certificate as leverage. The Alliance has been addressing these situations on a case-by-case basis while working toward setting a legal precedent that would force these municipalities to obey the spirit of the law, not just the letter.

If your clients are being asked to sign such an affidavit, please contact the Suburban Realtors^® Alliance.

 We are seeking input from BCAR members regarding the recently introduced sewer lateral inspection requirement in Bristol Township.

As our members may be aware, the SRA has met several times with Bristol Township staff and council members to ensure that the new inspection requirements are compliant with PA Act 133 of 2016. The act sets forth procedures that must be followed by municipalities that require property maintenance and other code inspections upon the sale of a residential property.

Please contact the SRA if any of the following apply:

1. Your client is being denied a U&O permit or a temporary access permit. The municipality must provide one of these as long as a required code inspection has been completed.
2. Your client is being asked to provide escrow toward repairs on the home prior to the sale, as a condition of receiving a temporary U&O permit.
3. A municipal official tells you that Act 133 does not apply to them for any reason.

Realtors can reach the SRA via our online Contact Us form or by email: sra@suburbanrealtorsalliance.com. 

The reference sheet below answers a few questions about the Delaware County Reassessment Project, and provides links to other resources like a sample of the questionnaire property owners may receive in the mail.

Click the image below to view the PDF file.

[Note: PDF updated 2/10/2020]

In 2014, William Penn School District in Delaware County joined with other districts, associations and parents to file William Penn School District et al. v. Pennsylvania Department of Education et al. They argue that the state is failing in its constitutional duty to provide adequate public education and is discriminating against students based on geography.

In fact, Pennsylvania does have a reputation for unfair education funding. In 2015, a Washington Post analysis declared, “Pa. schools are the nation’s most inequitable.” In 2016, the General Assembly tried to address the problem by enacting a new Fair Funding Formula, which was designed to equitably distribute Basic Education Funding to all districts in the state by taking into account factors like the poverty level, number of non-English speakers and charter schools.

However, only money added since the Fair Funding Formula was put into place is distributed through it. In the 2018-2019 school year, that’s $539 million out of $6.1 billion — less than 9 percent.

What would happen if all of the $6.1 billion was put through the Fair Funding Formula?

William Penn would receive an additional $2.92 million dollars, about $530 more for each of its roughly 5,500 students, according to a 2018 report by the House Appropriations Committee.

In Delaware County, 12 of the 15 districts would receive more money. Upper Darby would receive an additional $16.2 million per year over its current state allocation of $38.6 million.   

In Chester County, 7 of the 12 districts would see a boost. Phoenixville Area School District would receive an additional $2.7 million per year over its current state allocation of $4.9 million.

In Bucks County, 6 out of 13 counties would receive more money. In the 2018-2019 school year, Bensalem Township School District would receive an additional $6.8 million per year over its current allocation of $12.8 million.

In Montgomery County, 18 out of 22 school districts would receive more money. In the 2018-2019 school year, Pottstown School District would receive an additional $13 million per year — more than doubling its current allocation of $11.5 million.

The corresponding losses would be felt by districts who are benefiting from a “hold-harmless” provision that allows them to maintain previous funding levels despite falling enrollment.

State funding is important for districts like those listed above, where a low tax base means raising tax rates wouldn’t yield much increased revenue. The lawsuit is expected to go to trial in 2020, and it could result in major changes in state education funding.

Read more about Pennsylvania public education funding at www.suburbanrealtorsalliance.com/schools

Making sense of sewer laterals beyond the property line

When a municipal sewer lateral inspection reveals a problem that is beyond a homeowner’s property line, who is responsible for fixing it? The answer, many municipalities assume, is that the burden falls on the homeowner.

For example, West Brandywine Township’s sewer ordinance states that:

Maintenance, repair, or replacement of the building sewer between the sewer main and the building served by the building sewer shall be the responsibility of the property owner.

But is this fair, and more importantly, is it legal? Should homeowners be on the hook for expensive repairs that are literally beyond their property line?

This situation has arisen often enough that recently we have been consulting with legal counsel for the Pennsylvania Association of Realtors® to determine if such ordinances are worth challenging. If you have thoughts or experiences to share about this topic, please contact us at via our online form or by email at sra@suburbanrealtorsalliance.com.

Flickr image by Adam Rose (CC BY SA 2.0)

The Suburban Realtors® Alliance wants to hear from Realtors^® whose clients have been affected by the point-of-sale enforcement of easements by the Lower Bucks County Joint Municipal Authority (LBCJMA).

The LBCJMA has in recent years taken a hard-line approach to enforcing easements, leading to reports of homeowners incurring losses in the tens of thousands of dollars because pools and outbuildings, which were properly permitted and inspected by their municipalities, encroached on easements, even by small amounts.

If you have had an experience you’d like to share, contact us via the Alliance website, email sra@suburbanrealtorsalliance.com or call 610-981-9000.

What if your $600,000 home sale was in jeopardy, but a 15-year-old who lived around the corner could save it for about $30?

We recently got a call from a Realtor^® who was selling a home, and the township would not issue a use and occupancy certificate because the grass wasn’t cut.

While that may sound like an excessive action by the township and a violation of Act 133, it actually was not illegal. The reality was that the township had issued a citation for the overgrown grass before the home sale began.

Act 133 prevents municipalities from withholding resale certificates based on code issues discovered during point-of-sale inspections, but it does not apply to pre-existing violations. Such violations might include building code violations, or missing or open permits.

We can glean two pieces of advice from this anecdote:

1) Listing agents should be proactive about finding out whether there are municipal code violations standing against a client’s property.

2) When it comes to small fixes — mowing the lawn, installing a smoke detector, etc. — it’s often faster and easier to simply address the issue than to fight city hall.

Read more about Act 133 in our blog post: ‘When Do I Schedule Inspections?’ And Other Important Questions.

Flickr image by Green Shadows (CC BY 2.0)