News Briefs Archive June 20, 2022
General News
Livestream education bill heads to governor’s desk
The Pennsylvania Senate passed House Bill 1849 on June 15, sending the bill to Gov. Wolf for his signature. The bill would amend the Real Estate Licensing and Registration Act (RELRA) to permanently allow real estate education courses to be conducted via livestream methods. The bill was sponsored by state Rep. Todd Polinchock (R-144), of Bucks County, a Realtor and former board chairman of the Suburban Realtors Alliance. The Pennsylvania Association of Realtors strongly advocated for the legislation and expressed gratitude to Polinchock for championing it.
Source: PAR; 6/15/2022
Philly is poised to boost property tax relief, and cut business and wage taxes
Many Philadelphians are likely to see property tax relief amid soaring real estate assessments, as well as cuts to wage and business taxes, thanks to a compromise proposal between city council members and Mayor Jim Kenney’s administration. Under the tax plan designed in negotiations over the city budget that begins July 1, the property tax rate of 1.3998% will stay the same, but the homestead exemption, which reduces the taxable value of owner-occupied homes, would increase from $45,000 to $80,000. Lawmakers also amended Kenney’s $5.6 billion budget proposal to include several substantial funding increases, including $15 million in rental assistance. The approval by the Committee of the Whole, which includes all members, sets up a final vote on the budget at council’s June 23 meeting. The focus on taxes was prompted in part by the first citywide property reassessment in three years, which saw residential property values increase 31% on average and much more in rapidly gentrifying areas. The proposal also cuts the business income and receipts tax on net profits from 6.2% to 5.99%, and reduces the wage tax from 3.8398% to 3.79% for city residents, and from 3.4481% to 3.44% for people who work in Philadelphia but live outside the city limits. Read more in the Inquirer.
Source: Inquirer; 6/15/2022
$48 million in PHARE funding will bolster affordable housing in PA
Gov. Tom Wolf announced that 245 housing and community development initiatives will receive a total of $48.4 million through the Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) fund, which is managed by the Pennsylvania Housing Finance Agency (PHFA). PHARE funding comes from two main sources. Since 2012, the program has received a portion of the impact fees collected from natural gas companies operating in the state with the goal of addressing the housing shortage caused by the impact of drilling. That is supplemented with funding provided by a portion of the realty transfer tax. The PHARE fund is often referred to as the state’s Housing Trust Fund. The latest batch of grant funding is expected to support:
- 249 units rehabilitated/preserved through the funding of 4% tax credit projects
- 71 new single-family homes to be created
- 419 potential new homebuyers to receive down payment and closing cost assistance
- More than 12,000 families/households to receive housing counseling and financial education
- 74 housing units created or rehabilitated specifically for households in danger of homelessness
- 5,289 affordable housing units to be preserved/rehabilitated
- 449 new, affordable housing units
- Assistance to more than 12,600 households in danger of homelessness
A list of proposals receiving PHARE funding, sorted by county, is available on the PHFA website.
Source: Office of Gov. Wolf; 6/9/2022
Realtors discuss top issues with state legislators during Day on the Hill
Nearly 175 Realtors and government affairs directors from throughout Pennsylvania met with more than 80 legislators on June 8 to discuss policies and legislation important to real estate, with a focus on passing 1031 like-kind exchanges. Pennsylvania is the only state in the country to not allow like-kind exchanges, which are a financial tool that can help offset the costs of exchanging real property used for business or held as an investment solely for other businesses or investment property that is the same type or “like-kind,” according to the IRS. Read more about the importance of this legislation on the Pennsylvania Association of Realtors’ JustListed blog.
Source: PAR; 6/9/2022
The Federal Reserve announced the largest interest rate hike in 28 years as the central bank struggles to regain control over soaring consumer prices. The Fed raised its benchmark interest rate by three-quarters of a percentage point (0.75%). It previously raised the rate a quarter-point (0.25%) in March and a half-point (0.5%) in May. Policymakers opted for the aggressive move after a report last Friday showed inflation was stronger than expected in May. Consumer prices were up 8.6% from a year ago. Additional rate hikes are expected in the coming months. On average, Fed policymakers said they expect interest rates to climb to around 3.4% by the end of this year, up from 1.9% they were projecting in March. Mortgage rates have risen sharply in anticipation of that, putting homes out of reach for some would-be buyers. The average rate on a 30-year fixed home loan is near 6%, according to Bankrate, double what it was a year ago. "We're going to see some of the highest mortgage rates that we have seen in many, many years," said Mark Hamrick, a senior economic analyst at Bankrate. "Along with the high home prices that have been seen all across the country, this housing affordability question is only going to move from the yellow to the red zone." National Association of Realtors economist Lawrence Yun published an instant reaction to the rate hike, saying it may slow home sales. “Pricing a listed home properly will, therefore, be the key to attracting buyers. In the meantime, rental demand will strengthen along with rents.”
Source: NPR; 6/15/2022
Bucks County
Judge tells Bensalem hotel it can’t lock out residents
Multiple residents living at the Neshaminy Inn for several years allege that they recently received notices to vacate within a 24-hour period. Legal Aid of Southeastern Pennsylvania stepped in and filed a preliminary injunction for the residents of three rooms, with residents of at least five other rooms also planning to file petitions. Bucks County Common Pleas Court Judge Jeffrey G. Trauger sided with the residents of the motel, saying they couldn't be suddenly kicked out of their rooms. The decision could have far-reaching implications for hundreds of other homeless people living long-term in area motels, said Joshua Goldblum, an attorney for Legal Aid of Southeastern Pennsylvania. "Long-term residents of extended stay hotels are tenants," Goldblum said. "Even when you are called a hotel, you cannot exercise sudden evictions. That is what the judge said in the case." Read the full article here.
Source: Bucks County Courier Times; 6/11/2022
Upper Makefield OKs pipeline project, with conditions
Sunoco Pipeline LP has proposed a pipeline renovation and repositioning project that calls for a section of the pipeline — which runs under the Delaware River through Upper Makefield in Bucks County, and Hopewell and Ewing townships in New Jersey — to be repaired and relocated several dozen feet from its current location. Upper Makefield supervisors outlined more than a dozen conditions Sunoco must adhere to before signaling approval for the project. The conditions focus on preparation, cleanup, and road and traffic management, while including an emphasis on penalties if Sunoco doesn't meet the expectations. Sunoco will also be responsible for landscaping and upkeep of the area for 18 months after the project is finished. The township also stipulated that Sunoco provide financial security to "guarantee the restoration of the property" and the roadway overlays. The work will take about four months to complete, but no timeline has been provided for a start date.
Source: Bucks County Courier Times; 6/10/2022
Water authority heads speak out against sewer privatization to Bucks municipal leaders
The heads of North Penn and North Wales water authorities in Montgomery County have joined together with the current director of the Pennsylvania Municipal Authorities Association (PMAA) to speak out against the privatization of public water and sewer systems and the consequences of Act 12 in 2016, which changed the way the systems are valued and allowed municipalities to charge much more for them. A five-page letter to Bucks County municipal and community leaders was signed by North Penn Water Authority executive director Tony Bellitto, North Wales Water Authority executive director Robert C. Bender, and PMAA Region 1 director Michael K. Sullivan. The letter discussed impacts of privatizing publicly owned sewer systems and why they were not in favor of it. The authorities, the letter said, operate “with long-term stability, typically without influences from political interests or corporate influences.” Now, Act 12 allows investor-owned utilities to pay a higher “fair-market” value for municipal water and wastewater systems and recover the entire sale price from their customers through higher rates, they said. Read more here.
Source: North Penn Now & Levittown Now; 6/11/2022
Levittown residents await sidewalk and yard repair
The Lower Bucks County Joint Municipal Authority undertook a water line replacement project this spring on Meadow Lane in the township’s Levittown section. The sidewalks and parts of driveways and the street were ripped up, and residents have been waiting for weeks for their properties to be restored. According to Dr. Vijay Rajput, the managing director of the authority, the ground needed to settle before the restoration could be completed. He said the contractor will be back out this week to work on the sidewalks.
Source: Levittown Now; 6/7/2022
Solebury Township supervisors will conduct a public hearing on a proposed ordinance that updates some provisions of the zoning code, to define and provide use regulations for a bed-and-breakfast, hotel, motel, inn or other short-term lodging facility. The draft ordinance adds definitions for primary residence, updates certain definitions to include "commercial," and adds a section regarding noise and nuisances. The hearing will be held on Tuesday, June 21, at 6 p.m. in person at the township building, 3092 Sugan Road, and residents can also attend via Zoom. Instructions for access and participation are located on the Solebury Township website. On the same night, the board will also hold a hearing on a proposed ordinance to prohibit single-use, carry-out plastic bags, polystyrene food containers, and single-use plastic straws by commercial establishments. The proposed ordinances may be viewed on the township website.
Source: The Intelligencer; 6/7/2022
Chester County
Chester County commits to increasing affordable housing supply
Chester County has joined a growing number of cities and counties nationwide to sign onto the federal House America program, an effort to address the nation’s homelessness crisis. “Homelessness continues to impact over 400 residents in our county on any given night, with additional households impacted by disasters,” said County Commissioners Chairwoman Marian Moskowitz. “A lack of affordable housing remains a barrier to the health, safety, well-being, employment and education of these individuals and their families. That is why Chester County is committed to placing 150 households experiencing homelessness into stable housing, and to adding 350 new affordable rental units to our development pipeline.” House America, launched in September 2021, is a partnership among the U.S. Department of Housing and Urban Development, the U.S. Interagency Council on Homelessness, and state and local leaders to respond with urgency to address the crisis of homelessness. County Commissioner Josh Maxwell detailed some of the affordable housing in the works: “A 51-unit affordable housing complex in West Chester called Pinckney Hill Commons opens this summer. We are also supporting Habitat for Humanity with a 30- to 40-unit first-time homebuyer development in West Grove, and The Willows at Valley Run in Caln Township is due to begin construction in the fall of 2022, with a total of 120 units anticipated by the end of 2024.”
Source: Daily Local; 6/9/2022
West Whiteland to host open house on IPMC ahead of adoption
West Whiteland Township is inviting the public to learn about how local property maintenance regulations would be affected by the adoption of the International Property Maintenance Code (IPMC). The township already incorporates parts of the IPMC into its ordinances, but it is considering adopting it entirely. The IPMC is part of the International Code Council (ICC) family of codes that addresses minimum standards for continued use and maintenance of existing building elements and structures. It would apply to all existing residential and nonresidential structures and facilities. The goal is not to place an additional maintenance burden on the property owner. The township will host the open house to answer questions about the IPMC on Thursday, June 23, from 6:30 to 8:30 p.m. Read more on the township website.
Source: West Whiteland Township; 6/2022
ChristianaCare to acquire Jennersville Hospital
ChristianaCare will purchase the former Jennersville Hospital location in West Grove from Tower Health, including the hospital and Tower’s interest in two office buildings, plus an additional 24-acre parcel of land. The new name for the campus will be ChristianaCare West Grove Campus. The transaction is expected to close in the third quarter. The 52-bed Jennersville Hospital has been closed since Dec. 31, 2021. The acquisition does not include any personnel or practices that are currently operating. County officials had been working to stop the closure of Tower’s Brandywine and Jennersville hospitals, which the company said were underperforming financially. A deal with another potential buyer, Canyon Atlantic Partners, fell through. In February, ChristianaCare announced its plans to acquire Crozer Health from Prospect Medical Holdings, a deal that is still in the due diligence phase.
Source: ChristianaCare; 6/15/2022
Easttown considering plastic bag ordinance
Easttown Township supervisors will hold a public hearing to consider and possibly adopt an ordinance prohibiting single-use plastic bags. The proposed ordinance, which would take effect in January 2023, cites the environmental and economic cost of plastic bag litter and aims to “reduce the use of single-use, plastic carry-out bags by commercial establishments.” It states that “No commercial establishment shall provide to any customer a single-use, plastic carry-out bag … for the purpose of carrying goods away from the point-of-sale.” The public hearing will occur on Monday, June 20, at 7 p.m. at the township building, 566 Beaumont Road, Devon.
Source: Daily Local; 6/12/2022
Delaware County
Edgmont to hold public meeting about proposed elementary school
The Edgmont Township Planning Commission will hold a special meeting to discuss the proposed elementary school project application submitted by Rose Tree Media School District for the property at 1501 and 1519 Middletown Road. The meeting will be held on Tuesday, June 21, at 7 p.m., at the Penn State Brandywine Campus, 25 Yearsley Mill Road, Media, in the Student Union Building. Anyone who needs assistance to attend or participate in the meeting should contact the township manager at 610-459-1662, ext. 203, or at manager@edgmont.org.
Source: Daily Times; 6/14/2022
Land trust opens 71 acres of Brandywine Battlefield site to public
A previously unprotected portion of the historic Brandywine Battlefield that was the subject of a preservation effort led by the North American Land Trust (NALT) is now open to the public. The trust announced it had opened 71 acres of Brinton Run Preserve in Dilworthtown, Delaware County, a historic tract of the Battle of Brandywine where American and British forces fought on Sept. 11, 1777. Now, the battlefield and its natural resources at the preserve will be open to the public and protected forever. “We are excited to open our first public preserve to visitors,” said Steven Carter, NALT president. “Brinton Run Preserve is a place where people can enjoy a wide array of plant and wildlife species and learn about the historical significance of this battlefield.”
Source: Daily Local; 6/14/2022
NY firm seeks to build gigantic, $6.4 billion LNG plant along Delaware River
A New York company has been quietly planning to build a massive liquefied natural gas (LNG) facility and export terminal in Chester City along the Delaware River, but it faces a complex federal regulatory process with no guarantee of success. Penn America Energy LLC, the firm behind the estimated $6.4 billion project, wants to build a liquefaction facility on 100 acres along the Chester waterfront with the goal of exporting 7 million metric tons of LNG each year down the river to countries in South America, Europe and Asia. The process involves cooling methane to negative 260 degrees Fahrenheit at which point it becomes a liquid capable of being loaded into a specialized container. Read more from WHYY and the Inquirer.
Source: Inquirer; 6/13/2022 and WHYY; 6/14/2022
Upper Providence adopts, amends 2021 IPMC
Upper Providence Township Council on June 9 adopted Ordinance 538, which amended Chapter 1460 of the municipal code. The ordinance updated the township’s adoption of the International Property Maintenance Code (IPMC) to the 2021 edition, and amended the township’s insertions and amendments to the IPMC.
Source: Daily Times; 6/14/2022
Upper Darby School District plans to adopt the 2022-2023 final budget at a school board meeting on Tuesday, June 21, at 6 p.m. at Upper Darby High School Board Room, 601 N. Lansdowne Ave., Drexel Hill. The $234.8 million budget proposal raises the property tax rate about 2.5% from 24.6274 to 25.2431 mills. The proposed final budget can be viewed on the budget section of the district website.
Source: Daily Times; 6/14/2022
Montgomery County
Lower Merion School District agrees to settle lawsuit over property tax increases
The Lower Merion School District has agreed to settle with three taxpayers who sued in 2016, alleging the district had been concealing surpluses to justify property tax increases. The district has agreed to pay $27 million back to taxpayers over several years to settle the long-running lawsuit challenging property tax increases in the affluent district. If approved by a Montgomery County Court of Common Pleas judge, the agreement would give back $15 million among everyone who owned property in the district on Aug. 29, 2016, and who paid school taxes that year. It would also require the district to pay $4 million a year in rebates to taxpayers in 2023, 2024 and 2025. It also places restrictions on district budgets going forward — reducing the millage rate for the coming school year, and setting parameters lasting for at least several years that would force the district to return 50% of future unexpected budget surpluses to taxpayers. The agreement was described by one school district solicitor as “unprecedented in Pennsylvania” and may represent the first time a lawsuit against a Pennsylvania school district has triggered a tax rebate and an agreement by a district to limit its future taxing power. Read the Inquirer article here.
Source: Philadelphia Inquirer; 6/14/2022
Collegeville Borough approves College Gateway Overlay Ordinance
Collegeville Borough Council recently approved a College Gateway Overlay Ordinance that will cover the four corners at 5th Avenue and Main Street. The specific intent of the new district is to serve as an overlay district by conditional use in order to improve the streetscape, increase pedestrian accessibility, incentivize commercial development, and provide for flexible residential design at the western end of the Main Street Commercial District. The full ordinance is posted on the Collegeville Borough website.
Source: Collegeville Borough; 6/2022
Life sciences firm purchases another Montgomery County building
Life sciences firm Aviridi has purchased a facility on Quinter Street in Pottstown as the company continues to expand in Montgomery County. Aviridi has purchased a 26,000-square-foot building at 10 Quinter St. in Pottstown for $1.2 million. The facility sits in one of Pottstown’s three Qualified Opportunity Zones. The building is the second Montgomery County property purchase for the firm. In April, it closed on a 10,000-square-foot life sciences facility at 48 E. Main St. in Norristown that will serve as the company’s headquarters. That building also sits in a Qualified Opportunity Zone. Opportunity zones offer tax benefits to investors who elect to temporarily defer tax on capital gains if they invest those gain amounts in a Qualified Opportunity Fund, according to the IRS website.
Source: Pottstown Mercury; 6/10/2022
Narberth issues impervious cover reminder for homeowners
Narberth has posted a reminder about the borough’s definition and standards of impervious cover on the borough website. Most residential lots in Narberth are permitted maximum impervious coverage of 60%. Impervious cover includes: structures (including eaves, roofs and roof overhangs); paved parking spaces, driveways, and roads; buildings, sidewalks, patios and decks. The installation of new surfaces (including paving stones, gravel and crushed stone) may exceed the maximum impervious cover for a property. The borough cautions homeowners to do their own homework and not rely on a contractor to be familiar with Narberth’s code and definition of impervious cover. Check the standards or contact the borough before moving forward with any project.
Source: Narberth Borough; 6/3/2022
Philly needs 60 more lifeguard to open pools
Philadelphia public pools are still plagued by a lifeguard shortage. With less than a month left until Philly’s public pools are scheduled to start opening, the Department of Parks and Recreation still needs to hire more lifeguards. Officials say if they get about 60 more staffers signed up, they’ll be able to open 65 of their usual 70-plus pools. In the runup to this year’s swim season, Parks and Recreation fought to recruit more lifeguards by bumping salaries to $16 per hour, up from $15.25 last year, and reaching out to older candidates. Interested candidates can fill out an application and sign up for skills training at pools all over the city.
Source: WHYY; 5/30/2022
Three state lawmakers look to impeach Philly DA
Three state legislators — none from the Philadelphia area — said Monday that they plan to introduce articles of impeachment against Philadelphia District Attorney Larry Krasner. The lawmakers cite what they called his dereliction of duty in addressing the city’s gun violence crisis. Krasner quickly dismissed the idea as a political stunt, potentially unconstitutional and an attempt to undercut the will of Philadelphia voters. Krasner was easily reelected to a second term last year. The lawmakers have not finished drafting the articles of impeachment and have sent a memo to House colleagues seeking their support. Read more here.
Source: Philadelphia Inquirer; 6/13/2022
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