News Briefs Archive May 9, 2022
General News
Realtors focus on inventory, fair housing solutions at legislative meetings
At the 2022 Realtors legislative meetings, the “Advocacy Scoop” session provided National Association of Realtors (NAR) members with an inside look at the state of real estate in Congress. NAR president Leslie Rouda Smith opened the session by laying out three priorities:
- Addressing inventory, supply and affordability
- Ensuring fair housing for all
- Demonstrating how NAR research products can inform policy-making
"We often say our advocacy operation is second to none — and we say that because it's true," Rouda Smith said. "We don't represent an industry. We represent a profession made up of 1.5 million individuals working every day in their communities to change lives." NAR chief advocacy officer Shannon McGahn noted that inventory is top of mind for Realtors. "Our job is to fight for your clients, consumers and the entire industry to make sure we have enough housing supply to make homeownership accessible, available and affordable," McGahn said. She stressed the importance of NAR's nonpartisan, issue-focused advocacy structure. "No matter who is in power, our issues stay the same. Our fight for all consumers continues. And we keep these legislative conversations going throughout the year, back in the districts." Read more here.
Source: Nar.realtor; 5/2/2022
Buyers need 17% more income to afford a home than they did a year ago
Philadelphia-area homebuyers have to bring in 17% more income than a year ago to make their typical monthly mortgage payment, a new Redfin report found — an increase that is one of the lowest across major metropolitan regions in the U.S. The increase is due to a combination of growing home prices and rising interest rates impacting monthly mortgage rates. A 30-year, fixed-rate mortgage is currently hovering around 5%, according to Freddie Mac, up from 3% a year ago. While buyers in the Philadelphia region may need 17% more, the average year-over-year increase nationally in March was 34.2%, Redfin found. The Philadelphia market's increase is the second lowest in the U.S. among the top 50 metros, trailing only Pittsburgh at 16.3%. Redfin's report excludes Montgomery County from its data and tracks Pennsylvania's third-largest county separately. The median mortgage payment in the Philadelphia area in March was $1,227 per month, assuming homebuyers put 5% down. That number is up 17.1% from $1,048 a year ago. Montgomery County, one of the most expensive home markets in the region, saw an 8.1% bump in median sale price. Monthly mortgage payments in Montgomery County rose 23% from $1,500 to $1,850 over the past year. Buyers in the Philadelphia area need to earn just over $49,000 per year in order to make regular mortgage payments on a typical house in the region, up from the nearly $42,000 that homebuyers needed in March 2021. Prospective homebuyers in Montgomery County would have to make just over $75,000 to make a typical mortgage payment each month — a 23.7% increase over the previous March.
Source: Philadelphia Business Journal; 4/29/2022
The Pennsylvania Environmental Council (PEC) has a new video, Stormwater Illustrated, that explains the benefits of Green Stormwater Infrastructure (GSI). GSI is a solution that can be deployed at almost any scale — from big commercial properties all the way down to residential backyards. It uses natural solutions to filter and absorb stormwater where it falls, reducing the amount of water entering storm sewers. Older city sewage systems can be quickly overwhelmed by a heavy downpour, causing them to overflow into nearby rivers and streams. Through multiple ongoing initiatives, PEC has been working to ease stormwater impacts in Greater Philadelphia using GSI, along with cleanup and restoration projects, riparian buffers, public outreach and education and more.
Source: PEC; 4/2022
Bucks County
Proposed ordinance would create design guidelines for Plumsteadville Village
Plumstead Township supervisors will hold a public hearing to consider a proposed ordinance establishing architectural design guidelines for Plumsteadville Village. The draft ordinance defines the geographic scope of the design guidelines, and allows for the amendment of the guidelines by resolution of township supervisors. The hearing will be held at the Plumstead Township Municipal Building, 5186 Stump Road, Plumsteadville, on Tuesday, May 10, at 7 p.m. Copies of the full text of the ordinance are available for viewing at the municipal building. Plumstead has been working on proposed changes to make Plumsteadville a vibrant town center and focal point of the township for several years.
Source: The Intelligencer; 4/22/2022
BCWSA now evaluating offers, as opposition to possible sale mounts
Officials of the Bucks County Water and Sewer Authority (BCWSA) said Wednesday that they are evaluating potential options for the public system, which serves about 100,000 households in Bucks, Montgomery and Chester counties. John F. Cordisco, chairman of the BCWSA board, reported that an appraisal commissioned by BCWSA values the authority at $1.4 billion. Bucks County officials are evaluating an offer of about $600 million from Aqua Pennsylvania to buy the county’s sprawling water and wastewater utility. A sale would boost the county’s coffers but impact water and sewer rates for BCWSA customers. A campaign opposing the potential sale is sprouting up in Bucks County, led by Kofi Osei, founder of Towamencin Neighbors Opposing Privatization Efforts, and Tom Tosti, director of the American Federation of State, County and Municipal Employees (AFSCME) District Council 88. Read more here.
Source: Philadelphia Inquirer; 4/27/2022 & Whyy.org; 5/2/2022
Doylestown Borough planners to hold comprehensive plan kickoff meeting
The Doylestown Borough Planning Commission will hold a comprehensive plan kickoff meeting on Tuesday, May 10, at 7:30 p.m. at Doylestown Borough Hall, 10 Doyle St. The borough’s comprehensive plan was last updated in 1997 and resulted in many improvements, including downtown revitalization, traffic calming, improved trail connectivity, a cultural district, preservation and adaptive reuse of historic buildings, and beautification along major corridors and gateways. As a mature and mostly built-out community, the borough is moving into an era of stewardship to maintain and preserve its character while accommodating the organic growth that all healthy communities need. Borough council and the planning commission invite residents and business owners to attend the kickoff and subsequent comprehensive plan meetings to provide input that will set the stage for future adaptive reuse of existing building stock, opportunities for infill, housing needs, transportation needs, community facilities, environmental factors and economic stability.
Source: Doylestown Borough; 5/3/2022
S&P Global Ratings upgraded Bucks County’s financial outlook from negative to stable in an April 13 report. S&P cited “strong management with good financial practices” in place since January 2020, as well as the county’s “very strong economy” and “very strong reserves” bolstered by federal pandemic relief and recovery funds. The report also affirmed the county’s AAA credit rating. S&P’s upgrade comes less than a year after Moody’s Investors Services removed a negative view of the county’s finances in favor of a stable outlook.
Source: Bucks County; 4/25/2022
Chester County
Chesco joins Berks, Montco in approving new regional rail authority
Chester County Commissioners approved the creation of the Schuylkill River Passenger Rail Authority (SRPRA), following similar votes by commissioners in the other two counties involved, Berks and Montgomery. SRPRA will oversee and implement the restoration of passenger rail service between Reading and Philadelphia and will be supported with equal representation and funding from all three counties, starting with a $100,000 investment from each. The authority will have the power to formalize agreements, pursue funding opportunities, and partner with rail operators and state and federal transportation agencies. Proponents of restoring passenger rail service from Philadelphia to Reading — with stops in Montgomery and Chester counties — say creating the authority is a key accomplishment to making the idea a reality. SRPRA will add legitimacy in competitive efforts for infrastructure funding, have the power to receive federal funding, spend money to develop plans and work directly with organizations such as Amtrak, PennDOT, the Federal Railroad Administration and other necessary partners. Chester County commissioners said the creation of the Schuylkill River Passenger Rail Authority is not a guarantee that passenger rail will return, but it is a crucial next step to continue the long process of research and planning. County leaders are optimistic the effort will be successful due to the potential funding available through the federal bipartisan infrastructure law.
Source: Daily Local; 4/28/2022
Uptown Worthington, under development for 20 years, comes up for sale
Uptown Worthington, a mixed-use community in Malvern, East Whiteland Township, that has been under development for two decades, is on the market and could potentially sell for upwards of an estimated $250 million. The property located near the intersection of Route 202 and Route 29 has about 422,000 square feet of retail space, including a 125,000-square-foot Wegmans, a 91,800-square-foot town center and a 253-unit apartment complex called Royal Worthington that is 95% occupied. A 46,600-square-foot building is under development and will be occupied by Nemours Children’s Health, which signed a 15-year lease on the space. The Target that is part of Uptown Worthington is not part of what is on the market. Uptown Worthington comes up for sale at a time when investors continue to be interested in grocery-anchored retail properties and are willing to pay a premium to get them. “It’s time to sell,” said Brian O’Neill of MLP Ventures, which owns and developed Uptown Worthington with Lubert-Adler, a Philadelphia real estate investment firm. “My life sciences businesses are booming, and it’s just time.” The roughly 100-acre Uptown Worthington property has additional development potential, including another 500 apartments in two buildings, 41,300 square feet of retail, and 336,000 square feet of space that MLP Ventures has been marketing to life sciences tenants.
Source: Philadelphia Business Journal; 4/28/2022
Developer in Honey Brook faces opposition
A developer’s plan to build 398 residential dwellings — including 244 twin units and 141 townhomes — on 176 acres in bucolic Honey Brook Township is generating pushback from residents. D.R. Horton Homes has reduced the number of proposed units over a series of four township zoning meetings, but a coalition of neighbors, including senior citizens and members of the Amish community, is fighting to preserve the rural community, arguing that the township’s limited infrastructure cannot support the proposed high-density development. The homes would be built on two parcels located at the eastern edge of Honey Brook Township at 2351 Chestnut Tree Road and 2207 Horseshoe Pike, off Route 322. The acreage, located in a flood plain, includes pastures, forest and wetlands. The township’s Zoning Hearing Board did not reach a decision at the close of the recent public hearing. Township solicitor Charles Haws said the zoning board is expected to announce its decision on Horton’s application for a special exception to build the high-density development by Tuesday, May 9.
Source: Daily Local; 4/49/2022
Proposed budget in Tredyffrin/Easttown has taxes going up 3.4%
The Tredyffrin/Easttown School Board approved a 2022-2023 proposed budget that would generate $4.3 million, with a tax increase of 3.4% — the maximum allowed without voter approval under the state’s Act 1 index. The budget, if approved, would help to close a projected operating deficit of almost $6 million. The proposed budget would cost average property owners $222 more per year, generating a tax bill of $6,539 for a house assessed at $260,000. With no tax hike, the board would be looking at an operating deficit of around $4.27 million. “We will try to keep the numbers as low as possible,” said Roberta Hotinski, board president. She noted that the final budget depends largely on enrollment updates, and the potential renovation of the district’s athletic fields, to the tune of $24 million. Budget talks will continue at a meeting on Monday, May 9. The final budget and property tax rate will not be set until the June 13 regular public board meeting.
Source: Daily Local; 4/29/2022
Aqua invests $2.4M in infrastructure projects in Chester County
Aqua Pennsylvania announced the investment of $2.4 million in infrastructure improvement projects in East Goshen and Westtown townships. These upgrades will improve reliability for customers throughout Chester County. Crews are at work on a $1.4 million project in East Goshen to replace about 7,100 feet of aging 8-inch cement pipe with a new 8-inch ductile iron water main. In Westtown Township, crews are working on a $1 million project to replace about 4,800 feet of aging 6-inch cement pipe with a new 8-inch and 12-inch ductile iron water main. The new water mains will reduce the potential for breaks and discolored water, and improve water flow in the area.
Source: Daily Local; 4/29/2022
Delaware County
Delco’s new health department can’t do inspections in eight townships, due to injunction
Eight Delaware County townships are pushing back against the new county health department, arguing that their individual municipalities are better able to do health inspections in a timely manner. Springfield, Darby, Middletown, Aston, Upper Chichester, Ridley, Tinicum and Marple townships have asked the Delaware County Court of Common Pleas to step in, and last month Judge Spiros Angelos issued a preliminary injunction stopping the county from doing environmental health inspections and licensing, including of restaurants. “Each of them believe they can do a much better job on a local basis than can be done from some central location in the county, both in time getting to the sites, as well as confusion from people in the towns relating to the inspections,” said Jim Byrne, Springfield Township solicitor. Seven of the eight townships — all but Middletown — filed suit this winter, before the health department even began operating, said Byrne, who is representing all eight townships in the matter. Middletown joined later. Until the county department launched in early April, all municipalities were tasked with food and sanitation inspections. A final hearing is scheduled for Wednesday, May 25.
Source: Philadelphia Inquirer; 5/2/2022
Chichester School Board approves proposed final budget
The Chichester School Board approved a proposed final budget for 2022-2023 in the amount of $89.1 million, with a real estate tax of 26.506 mills. The millage rate reflects a roughly 4.6% increase over the current rate of 25.3404 — the maximum increase allowed without voter approval under the state Act 1 index. The proposed final budget in its most recent form is on the district website. The budget may be amended before final adoption, which is scheduled for the school board meeting on Tuesday, June 14.
Source: Daily Times; 4/24/2022
Delco hires first diversity, equity and inclusion officer
Delaware County has hired its first diversity, equity and inclusion officer. Lauren Footman, who also serves as the chair to the Delaware County Women’s Commission, began in the position on April 11. “I am excited to bring my professional, academic and life experience to this role, to help make our government an employer of choice, and work to further an internal culture and external reputation that constituents, communities and organizations feel seen, represented and respected,” Footman said. Her main goals will be to facilitate training, continue to diversify the county workforce, focus on procurement and supplier diversity, environmental justice, health and digital equity, equitable budgeting, and community engagement. The diversity, equity and inclusion office will create partnerships throughout the county and serve as a bridge for resources that the county offers, connecting to communities in need of assistance.
Source: Daily Times; 5/1/2022
Delaware County held the first of three workshops on April 28 to discuss how waste will be handled over the next 10 years, with a specific focus on zero-waste strategies. Members of Zero Waste Associates, a consultant hired by the county, engaged members of the public as they worked to identify guiding principles for a plan that will determine how the county deals with its trash over the next decade. Currently, each year, approximately 370,000 tons of trash goes directly to the Covanta waste-to-steam plant in Chester, and another 30,000 tons is trucked directly to the Rolling Hills Landfill in Berks County. Ash from the Covanta facility is also sent to the landfill. The remaining workshops include: a discussion of zero waste initiatives on Thursday, May 26, at 6 p.m. at Norwood Public Library; and a review of the draft plan on Thursday, June 30, at 6 p.m. at Ridley Township Public Library & Resource Center in Folsom. Tentative public hearings for the plan are scheduled for Aug. 25 and Oct. 19.
Source: Daily Times; 3/29/2022
Montgomery County
Open space tax on the ballot in Whitpain
Whitpain residents will have an opportunity to vote on a ballot question that would increase the Earned Income Tax (EIT) by 0.06%, with the revenue being used to preserve and maintain open space. The additional revenue would add approximately $40 to the annual EIT payment of a resident with a typical income of about $67,500 and would not change real estate taxes. Approval of the measure would provide an additional dedicated stream of revenue for open space acquisition, open space debt repayment, and open space improvements. The change would not go into effect until 2023. Learn more about the ballot question here.
Source: Whitpain Township; 4/2022
Lower Gwynedd looks to adopt anti-discrimination ordinance
The Lower Gwynedd Township Board of Supervisors will consider for adoption a proposed ordinance that would create a Human Relations Commission. The proposed ordinance would also prohibit discrimination in housing, commercial property, employment and public accommodations based upon actual or perceived race, color, national origin, immigration status, ancestry, religious creed, age, sex, sexual orientation, gender identity, gender expression, veteran status, marital status, familial status, genetic information, handicap or disability, or use of an assistance animal. It would also provide relevant definitions and penalties. The supervisors will consider the proposal in a public hearing held in-person and also via Zoom on Tuesday, May 10, at 7 p.m. at the township building, 1130 N. Bethlehem Pike, Spring House. Review the proposed ordinance and meeting information here.
Source: The Reporter; 5/2/2022
Developer sues Pennsburg council
A developer is suing Pennsburg Borough Council. Hendricks Group Developers LLC filed a suit in the Montgomery County Court of Common Pleas claiming Pennsburg municipal officials improperly rejected a proposed subdivision plan. The developer hopes to build townhomes on the property at 704 Montgomery Ave. A subdivision plan for the property was first submitted in May 2020, with a revised plan submitted in December 2020. On June 9, 2021, Pennsburg administrative manager Lisa Hiltz sent a letter to Hendricks, informing the company that the council had unanimously denied the waiver and formally rejected the plan submission. The lawsuit argues that because the borough did not cite any specific reason for its decision, the court should rule that the revised subdivision plans should be deemed to be approved by virtue of two sections of the Pennsylvania Municipal Planning Code. The court paperwork states that since council is the only authority regarding land development in the borough, the developer has no other options for legal remedies.
Source: Upvnews.com; 4/20/2022
Public comment for Montco Pikes Study closes May 13
The Montco Pikes Study team has been busy taking public feedback on the draft improvements from last fall to develop the future vision for six selected Montgomery County-owned corridors: Butler Pike, Easton Road, Germantown Pike, Geryville Pike, Sumneytown Pike and Swamp Pike. Members of the public are invited to share thoughts and ideas on the draft report chapters for the Montco Pikes corridors by the deadline of May 13.
Source: Worcester Township “Peek at the Week”; 4/30/2022
Norristown endorses proposed townhome development
Norristown Municipal Council recently endorsed a preliminary/final land development plan for a proposed residential project on Green Valley Road. Developer JD Signature Homes shared plans with council to transform 1421 Green Valley Road into a 13-building, 26-unit community. Plans for development of the approximately 1.7-acre parcel have gone through several channels at the municipal and county levels since 2020, including the municipality’s zoning hearing board, planning commission and design review board. It was also reviewed by the Montgomery County Planning Commission. An exact timeline and price points for the prospective units are not yet known.
Source: Times Herald; 4/20/2022
Philly delayed property assessments for three years; now residential values are jumping 31%
In the first citywide reassessment in three years, the value of the average residential property in Philadelphia increased a staggering 31%, Mayor Jim Kenney’s administration announced. The value of nonresidential parcels like commercial properties, which took a hit during the coronavirus pandemic, increased only 9% on average, and the total value of assessed property in the city jumped 21%. Property owners will be able to look up their new assessments, which will apply to tax bills due March 31, 2023, on the city’s website beginning Monday. They will receive notice of their new valuations by mail by Sept. 1 of this year, and the deadline for filing an appeal with the Board of Revision of Taxes is Oct. 3. Changes in assessments of the city’s 580,000 properties will vary widely, with fast-growing areas seeing spikes well above the average, and other areas seeing more modest jumps. Philadelphia has long struggled to maintain a fair and efficient system for regularly reassessing property values. Former Mayor Michael Nutter’s administration implemented the Actual Value Initiative in 2014, simultaneously reassessing all properties for the first time in decades. But problems have continued at the city’s Office of Property Assessment. The latest reassessment has been paused since 2019 as the city struggled to implement its new Computer Assisted Mass Appraisal system and encountered delays caused by the pandemic. The delays forced Kenney to omit proposals on tax rates from his March 31 budget address because the city could not yet say how much property tax revenue it expected to generate. Council initially planned to hold hearings on the reassessment in early April, but the administration requested a delay to finish the valuations. Those hearings are now scheduled for Monday, May 9. Read more here. Read more about property tax assessments across the region here.
Source: Philadelphia Inquirer; 5/3/2022
Kenney proposes city wage tax reduction as surging home values increase property tax burden
The City of Philadelphia has conducted property reassessments for the first time since before the Covid-19 pandemic, with rising home values set to drive up property taxes. To offset the additional burden on residents, city officials said they are looking to soften the blow by reducing other taxes, particularly the wage tax. For the 580,000 residential, commercial, industrial and institutional properties that were recently reassessed across Philadelphia, the city found a 21% increase in aggregate value since the last time properties were evaluated in tax year 2020, including a 31% increase for residential properties. The city estimates that the surge in property values will bring an additional $92 million in tax revenue to the city's general fund in fiscal 2023 and $460 million over the course of five years. In response, Mayor Jim Kenney is proposing a reduction in the city's oft-criticized wage tax. For city residents, the wage tax would decrease from 3.84% to 3.7% under Kenney's proposal. For nonresidents, the rate would decrease from 3.4481% to 3.44%. City officials said those would be the lowest wage tax rates since 1976 and estimate the cuts would provide a total of $260 million in relief. Kenney is also proposing an additional $200 million in homeowner and rent relief through various programs. One is the Homestead Exemption, which reduces the assessed property value for Philadelphians who own their primary residence in the city, in turn bringing down property taxes. Kenney proposed that the reduction be increased from $45,000 to $65,000, and the city estimates it would save most homeowners more than $900 on their real estate taxes. The mayor is also looking to add funds to the Longtime Owner Occupants Program, the Senior Citizen Tax Freeze program and other rent relief initiatives.
Source: Philadelphia Business Journal; 5/3/2022
Philly street sweeping program expands, with stepped up parking enforcement
Philadelphia will no longer be the only major U.S. city that does not have a street-sweeping program. On April 4, the Philadelphia Streets Department began Phase II of its street-sweeping pilot program, adding 14 pilot areas that will receive cleaning services. In the first month of the program, residents in those areas were not ticketed if they didn’t move their cars for street sweeping — however, as of May 1, Philadelphia Parking Authority (PPA) is enforcing the no-parking rule on street-sweeping days in specific areas. That means if you don’t move your car, you’re going to get ticketed. Read more about what residents can expect from the program here.
Source: Philadelphia Inquirer; 5/2/2022