NAR aims to protect NFIP as government shutdown looms
The National Association of Realtors (NAR) is working to protect the real estate economy as a government shutdown appears increasingly likely by Oct. 1 if Congress does not pass stopgap spending measures. Without a deal to fund the government by the end of the fiscal year on Saturday, an array of government services critical to the real estate sector will come to a halt. NAR chief advocacy officer Shannon McGahn noted, “Our advocacy team is in continuous contact with lawmakers over how this shutdown will affect the real estate sector, which makes up nearly 20% of the entire U.S. economy.” One of the most impacted programs during a government shutdown is the National Flood Insurance Program (NFIP). Flood insurance is required for federally insured mortgages, and nearly five million property owners rely on the program. NAR launched a targeted call to action for its federal political coordinators in an effort to reach and educate every member of Congress about the NFIP this week. NAR estimates that a lapse in NFIP authorization could threaten 1,300 property transactions per day. “However, existing policies won’t begin to expire during the first 30 days of a shutdown, and those policies can be transferred from sellers to buyers after a lapse,” McGahn says. “So, again, the longer the shutdown, the more harm done.” Read more at Realtor Magazine.
Source: NAR; 9/26/2023

What a government shutdown means for Realtors
If Congress is unable to agree on the provisions of a continuing resolution (CR) to fund the federal government by the end of September, the result will be a partial shutdown of some government operations. The partial shutdown will include some federal housing, mortgage and other programs of interest to the real estate industry. Essential services, such as the post office, will continue to run. The National Association of Realtors (NAR) has published a primer that summarizes the impact on selected agencies. NAR staff will continue to monitor federal agencies and work with Congress, the administration and other groups to assess ongoing impacts to NAR members and their businesses.
Source: NAR; 9/26/2023

MV Realty files for bankruptcy
MV Realty, a national real estate brokerage accused of duping homeowners into 40-year listing agreements, has filed for bankruptcy in 33 states. The company filed bankruptcy in Florida Southern District Court to restructure nearly $60 million in debt following a slew of state lawsuits — including in Pennsylvania — over its marketing practices. Boca Raton-based MV Realty Holdings submitted a Chapter 11 petition on Sept. 22 on behalf of all of its entities across 30 U.S. states claiming it owes $58.8 million to three lenders. The company, which operates in Philadelphia, currently lists its assets between $10 million and $50 million. MV Realty said that since last year it has been financially burdened by legal fees associated with lawsuits filed by the state governments of Florida, Pennsylvania, Massachusetts, Ohio, North Carolina, New Jersey and Indiana. Under MV Realty’s Homeowner Benefit Agreement, a homeowner signs over the right to list their home for the next 40 years to MV Realty in exchange for a cash payment ranging from $300 to $5,000. If the homeowner breaks the agreement or decides to terminate it early, they must pay the firm 6% of the appraised value of the home. Since starting the program in August 2020, MV Realty says it has enrolled more than 35,000 homeowners in 33 states and has paid homeowners nearly $40 million. The allegations by the states ranged from telemarketing violations to unfair or deceptive trade practices. Pennsylvania alleged that the real estate brokerage misled consumers about the terms of the HBA and claimed MV Realty obtained mortgages on consumers’ homes without their knowledge. In its lawsuit filed in December, then Attorney General and current Gov. Josh Shapiro called it "calculated deception." Read more here.
Source: Philadelphia Business Journal and Housing Wire; 9/25/2023

Investors retreating from for-sale housing market
According to an Aug. 30 report from Redfin, investor home purchases fell 45% in the second quarter compared to a year earlier. Redfin’s report covered 39 of the most populated U.S. metro areas. The decline outpaced a 31% drop in overall home sales and marked the fewest investor home purchases of any second quarter in seven years. Other data sources that track the homebuying market are also finding a decline in investment activity. The National Association of Realtors (NAR) found about 11% of transactions in the past three months have been by investors, although most of the investor transactions tracked by NAR are likely mom-and-pop investors, said Jessica Lautz, deputy chief economist and vice president of research at NAR. The highest share of non-primary residence buyers was 22% of the market in January 2022, according to NAR, and that number included people purchasing vacation homes. Home-flipping, a subset of the broader investor market, is also seeing a decline within the U.S. housing market. Attom Data Solutions LLC reports that home flip transactions made up 8% of all sales in the second quarter — still higher than the average of the past decade but the first quarterly decline in a year. Read more here.
Source: Philadelphia Business Journal; 9/25/2023

Bedminster makes changes to zoning ordinance
Bedminster supervisors approved a variety of changes to the township’s zoning ordinance, following a review that went on for more than a year. Among the more significant changes, “Commercial Solar Energy Facility” was added to permitted uses, with regulations and criteria applicable to “a utility-scale solar energy facility constituting the principal use of the property and designed to produce energy for sale to third parties.” Regulations were modified for an existing permitted use of “Accessory Solar Energy System” and for “Wind Energy Conversion System” permitted use. Other significant zoning changes included amending performance standards for protection of preserved farmland soils; requirements for buffer plantings; and regulations against odorous emissions “beyond the lot boundary line of the property from which the odors are being emitted,” and in the industrial district, “beyond the district boundary line.” The latter does not apply to agricultural operations.
Source: Bucks County Herald; 9/21/2023

Nockamixon adopts groundwater preservation ordinance
Nockamixon Township voted 3-2 to adopt a new groundwater preservation ordinance. The new ordinance is focused on helping to assure adequate groundwater supplies for all local wells, as individual property owners propose any changes in their use of the common groundwater resource or sell their property to successors. Township officials have emphasized that the future viability of the use of wells for drinking water in the township is at stake, and that without adequate preservation of the common resource, the township might be forced to enter into a public water connection, which would require large assessments for each property owner to contribute. See the ordinance on the Nockamixon Township website.
Source: Bucks County Herald; 9/23/2023

Judge reverses decision in Central Bucks voting district case
Montgomery County Judge Cheryl Austin granted Central Bucks School District’s request to amend its original petition for one that includes a plan that the school board approved Sept. 12. Austin is hearing the case after the Bucks County judiciary recused itself to avoid a conflict of interest. Last month, Austin issued an order stating that she would only consider the original redistricting petition at the Sept. 28 hearing. The original petition submitted for court approval kept nine voting regions but shifted 12 voting precincts in six regions — a move that the grassroots citizens group CBSD Fair Votes said would disenfranchise voters. CBSD Fair Votes opposed the original plan and submitted an alternate plan for the court to approve. Central Bucks was required to change its map after 2020 census data showed some regions did not have the same representation as others. Read more here.
Source: Bucks County Courier Times; 9/22/2023

Trenton-Mercer airport expanding despite opposition from PA elected officials
The Trenton-Mercer airport in New Jersey sits just over the state line from Bucks County. In May 2022, the FAA approved a project to modernize facilities first constructed in 1975. The airport plans to quadruple the size of its existing terminal and build a parking garage for approximately 1,040 cars and trucks. The FAA forecasts a 51% increase in flights from Mercer County, rising from about 316,600 to 476,500 by the year 2035. A report submitted to the FAA by Mercer County argued that the airport’s expansion would have little or no impact on the environment or noise pollution. Bucks County's congressman, Rep. Brian Fitzpatrick (R, PA-1) testified before the U.S. House Committee on Transportation and Infrastructure, asking the federal government to slow the planned construction of a much larger airport and runway that sends planes flying over parts of Lower Makefield, Middletown, Upper Makefield and Yardley. U.S. Senators Bob Casey and John Fetterman joined the protest, telling the U.S. Department of Transportation in August to perform more rigorous studies on the project and its impact on the local environment. Complaints aside, Mercer County officials said they are moving ahead with the planned construction with a new terminal potentially being complete by 2024.
Source: Bucks County Courier Times; 9/19/2023

Tax and fee hikes possible in West Chester preliminary 2024 budget
At a recent borough council meeting, West Chester Borough Manager Sean Metrick presented a preliminary 2024 borough budget that might require tax and fee increases. The borough has gone eight years without a property tax increase. “Eight years not changing the tax rate is just not sustainable,” Metrick told council. “We should work together. There is a certain increase that has to happen.” Although Metrick said that the borough is moving in the right direction, council must also address its general fund being out of balance in the current 2023 budget by $557,290, or 3%. To generate that amount, the property tax revenue would increase by 0.33 mills. Metrick suggested other solutions: using the interest and dividends from the capital operating reserve as revenue; “smoothing” the health care refund; cutting spending; moving the street lighting expense to the liquid fuels fund; continuing to seek grants; and delaying replacements for staff vacancies. The sewer fund is out of balance by nearly $421,000, with income generated through a separate fee-based levy. Looking ahead, Metrick envisions general fund expenses increasing 2.4% to 2.7%, or an average of $628,000 per year, for 2025-2028. Metrick expects borough council to adopt a 2024 budget at the November business meeting.
Source: Daily Local; 9/21/2023

At New Garden Hills, it’s trails for now
New Garden Township held a joint open house with the architectural firm YSM that saw 200 area residents provide a wish list vision for the future of Saint Anthony’s in the Hills, a 137-acre property that the township purchased for $1.5 million in 2018. When the initial plans for the development of the property now known as New Garden Hills were first introduced in 2021, YSM estimated that the price tag was $18 million. In a presentation to the board of supervisors, Township Manager Christopher Himes and parks superintendent Mike Buck said that the original estimate failed to include the price of demolition, the rehabilitation of buildings, the construction of new buildings, water, sanitary and electrical service, parking, and other vital components of the park’s development. The estimated actual costs for New Garden Hills will be closer to $30 million. At a Sept. 18 meeting, Buck and Himes further put a damper on plans for the multi-phase development of New Garden Hills, saying that the township has larger spending priorities. Phase 1 of New Garden Hills development — a nature trail estimated to cost $56,000 — is scheduled to open to the public in late October. The cost of completing phases 2 through 8 — which include a playground, dog park, more trails, open space, a welcome hub, a maintenance facility and refurbishing the amphitheater — is estimated at $26.8 million. The township does not want to tap into the $22 million remaining from the township’s sale of the wastewater system to fund the remaining projects in the park’s construction, as the money is already slated for capital projects. Himes noted that a general obligation bond in the amount of $28.8 million could help pay for the park work, though it would lead to a tax hike for residents.
Source: Chester County Press; 9/20/2023

Kennett Square Borough receives good 2022 audit report
Kennett Square Borough officials shared a clean 2022 audit with attendees at a borough council meeting, with unmodified opinions on financial statements — the highest level of assurance a CPA can provide. The CPA firm, Zelenkofske Axelrod LLC (ZA), provided the findings, which are available on the borough’s public meeting documents site here. ZA required supplementary information for the review, including management’s discussion and analysis, budgetary comparison schedule, and pension plan schedules.
Source: Chester County Press; 9/20/2023

Survey seeks input on Chester County bus service
The Transportation Management Association of Chester County (TMACC) is considering options to improve its Chescobus transit services: Coatesville LINK and SCCOOT. The agency is seeking public input via an online survey that is available in English and Spanish.
Source: Chester County; 9/21/2023

East Goshen Pipeline Task Force provides updates
The East Goshen Pipeline Task Force provided input for reviews of both the Chester County and Pennsylvania hazard mitigation plans. The plans provide blueprints for first responders in emergency situations. In the past, pipelines have been approached using an all-hazard response. The Pipeline Task Force, along with other interested parties, is actively pursuing more specific and comprehensive response plans for pipelines. The taskforce has the cooperation of the East Goshen Township Board of Supervisors in actively advocating for a pipeline-only response. East Goshen Township has 11 pipelines that are currently located within its boundaries. Problems have been rare. The existing 2018 commonwealth plan can be viewed here. The Chester County Hazard Mitigation Plan Update can be viewed here.
Source: East Goshen Township; Fall/Winter 2023

Westtown-East Goshen police seek emergency contacts for commercial properties
The Westtown-East Goshen Regional Police Department is in the process of updating its database for all commercial properties within the department’s coverage area. The department has created an emergency contact form for businesses. The department will not share the information outside of law enforcement agencies and other emergencies, such as fire and ambulance.
Source: East Goshen Township; Fall/Winter 2023