Apr. 15, 2015
HARRISBURG – In order to help revitalize areas where abandoned or blighted properties are located, Rep. Judy Ward (R-Blair) has introduced legislation approved by the House Urban Affairs Committee that would allow developers and property owners to receive a tax abatement incentive once they apply and are approved to rebuild upon an abandoned property or in a deteriorated area.
House Bill 613 would create the Tax Exemption and Mixed-Use Incentive Program, which would allow for tax exemption incentives for developers that improve certain deteriorated areas, with a special emphasis on promoting mixed-use housing and development.
Incentivizing the redevelopment of deteriorated properties and transforming them into mixed-use spaces is a benefit for both developers and those living in deteriorated communities. Often, when a deteriorated property is improved, the tax assessment fees rise steeply and this discourages developers from electing to improve properties.
Ward noted that under her bill properties must fulfill specific requirements, such as being a “deteriorated property,” correcting all code violations, conforming to zoning requirements and increasing the property value by at least 25 percent.
“My bill is aimed at providing an added incentive to those who are willing to take on the task of rebuilding in deteriorated areas of the community or where abandoned or blighted properties currently sit,” said Ward. “It only takes one property to bring down the housing values of an entire street if it is left to ruin. This is a problem in every region of the state, whether it be a rural, urban or suburban community. I am thankful the committee is supportive of this approach to help our communities, and it has moved the legislation to the full House of consideration.”
The incentive program is broken down into yearly increments of tax abatements. Once the 10-year mark is hit, the property is assessed and taxed for its full value including increased property value. To ensure that future purchasers are prepared to pay the full tax rate once the 10 years are up, developers must submit a “good-faith” estimate when they apply to improve a property. This will make consumers aware of what they will be paying in future years, all the while allowing developers to estimate and organize their own expenses for improvements.
Under the bill, if zoning ordinances permit mixed-use development, developers must improve and rebuild properties that align with mixed-use zoning.
“Mixed-use properties, and even entire communities, are becoming more and more popular as people see the value of having businesses and residential living in close proximity to one another. The creation of these modern and innovative ‘live-and-work’ areas provide a more urban feel and reduce travel time to go to work, the grocery store, dry cleaner, hair salon and more,” said Ward. “Mixed-use is a viable step in the right direction to eliminate suburban sprawl, decrease greenhouse gas emissions from automobile use and improve health through the creation of more walkable areas.”
This is Wards first piece of legislation to go through the legislative process. House Bill 613 now goes before the full House for consideration.
Representative Judy Ward
80th Legislative District
Pennsylvania House of Representatives
Media Contact: Tricia Lehman
717.772.9840
tlehman@pahousegop.com
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