Legislative Priorities
PAR monitors hundreds of bills impacting real estate and property owners each legislative session, advocating for policies that positively impact the real estate industry and consumers.
Current Key Legislative Priorities
After a monthlong state budget impasse, Gov. Josh Shapiro signed a $45.5 billion budget into law on July 27. The impasse was largely the result of disagreement over a $100 million appropriation for a private school vouchers program that was included in the spending plan approved by the GOP-controlled state Senate. Initially, Gov. Shapiro publicly supported the funding program, but after intense negotiations with the Democrat-controlled House, who expressed their vehement opposition, Shapiro promised to line-item veto funding for the voucher program. The budget consists of a $567.4 million basic education funding increase and would expand funding for two educational tax credit programs by $150 million. The plan also allocated $100 million for Level Up funding for cash-strapped public school districts. Additionally, the spending plan also would deposit $500 million into the state’s Rainy Day Fund.
While the general appropriations portion of the budget has been signed by the governor, budget-enabling code bills must still be passed in order for the appropriations to take effect. Code bills are pieces of legislation that direct how funding can be spent.
As the legislature prepares to gear up for the fall session, PAR continues to advocate for key legislative priorities set by the PAR Legislative Committee.
Municipal Code and Ordinance Compliance Act
PAR’s Legislative Committee voted to make House Bill 1567 (Malagari, D-Montgomery) priority legislation after its introduction in June. HB 1567, introduced by Realtor® champion Rep. Steven Malagari from Montgomery County, clarifies the Municipal Code and Ordinance Compliance Act (MCOCA) to ensure property transfers are not arbitrarily stopped by municipalities or their components or result in the displacement of renters from properties that are changing ownership. It further clarifies that temporary use permits can still be issued for renter-occupied property transfers, ensuring existing renters are not displaced due to minor code violations.
The Pennsylvania House of Representatives unanimously approved HB1567 on Nov. 14, 2023. The bill now heads to the Senate for consideration.
First-time Homebuyers Savings Accounts
PAR continues to advocate for the enactment of first-time homebuyer savings accounts in the commonwealth. PAR has partnered with Sen. Rosemary Brown (R-Lackawanna/Monroe/Wayne) in the Senate and Rep. Ryan Bizzarro (D-Erie) in the House to advance legislation.
Sen. Brown has introduced Senate Bill 295 and Rep. Bizzarro has introduced House Bill 126. These companion bills would create the First-Time Homebuyer Savings Account program in Pennsylvania. If enacted, this program would allow first-time homebuyers to deposit money into a savings account, where it goes for the exclusive purpose of purchasing a first home, and the money can be deducted from their state income tax.
Senate Bill 295 was voted out of the Senate Urban Affairs and Housing Committee on March 8, 2023, and currently awaits a vote in the Senate Appropriations Committee. House Bill 126 has been re-referred to the House Housing and Community Development Committee on May 3, 2023.
Key Legislation PAR is Monitoring
Taxes
Taxes relative to the real estate transaction, such as the realty transfer tax, and those associated with homeownership, such as the property tax, are a major burden to buyers and homeowners alike. An increase in any industry-related tax would have a negative impact on housing costs and the industry as a whole.
- House Bill 1387 (Kutz, R-Cumberland) – exempts first-time homebuyers from paying the Realty Transfer Tax. PAR supports this legislation.
Practice and Professionalism
The Real Estate Licensing and Registration Act (RELRA) governs the practice of real estate licensees in the Commonwealth and serves to protect consumers who work with real estate licensees. It is incumbent upon the association to enact laws that enhance the industry, both for its members and for consumers.
- House Bill 657 (Bullock, D-Philadelphia) – aims to prohibit a 40-year lien or unfair "realty" agreement model. PAR seeks to amend this legislation.
- House Bill 300 (Kenyatta, D-Philadelphia) –
prohibits discrimination based on sex, sexual orientation, or gender identity or expression. PAR supports this legislation. - Senate Bill 442 (Santarsiero, D-Bucks) – creates a statewide task force to study mitigating costs relating to flood insurance. PAR supports this legislation.
- House Bill 735 (Warren, D-Bucks) – creates a statewide task force to study mitigating costs relating to flood insurance. PAR supports this legislation.
- House Bill 1295 (Mullins, D-Lackawanna) – requires the defendant/respondent to appear (in-person or via remote participation) for any scheduled hearing held before a licensing board, commission or hearing examiner. PAR supports this legislation.
Housing
An estimated 12 million renter and homeowner households across the U.S. pay more than 50 percent of their annual incomes on housing. It is vital that the association play a role in helping to ensure that housing of all types is available at all income levels, and that programs are available to help homeowners achieve the dream of homeownership. The association must also contribute to the creation of revitalized communities while maintaining private property rights.
- House Bill 255 (Merski, D-Erie) – establishes a grant program for municipalities for code enforcement programs. PAR is monitoring this legislation.
- Senate Bill 532 (Vogel, R-Beaver) – increases the cap on realty transfer tax collections that can go into PHARE from current cap of $40 million to $100 million (incremental increases over next three fiscal years). PAR is neutral on this legislation.
- House Bill 417 (Galloway, D-Bucks) – creates the New Home Construction Consumer Protection Act which requires home builders to register with the Attorney General’s office. PAR opposes this legislation.
- House Bill 775 (Twardzik, R-Schuylkill) – allows counties to create and maintain a vacant property registration. PAR is neutral on this legislation.
- House Bill 1062 (Sturla, D-Lancaster) – Creates a statewide blight data collection system. PAR is neutral on this legislation.
- House Bill 1316 (Innamorato, D-Allegheny) – funds the PHARE program via $100 million dollars by FY 2025-26. This legislation currently awaits consideration in the Senate Urban Affairs and Housing Committee as of July 6, 2023. PAR is neutral on this legislation.
- House Bill 1363 (Hefley, R-Carbon) – creates a statewide code of conduct for short-term rentals. PAR is monitoring this legislation.
- House Bill 1567 (Malagari, D-Montgomery) – permits tenants who are currently residing in a property to remain in the property, dependent on the property’s safety and habitability and approval of the municipal code enforcement officer. PAR strongly supports this legislation.
- House Bill 1289 (Fleming, D-Dauphin) – allows a property owner to repudiate unlawful restrictive covenant language from their deed/title without a fee. PAR supports this legislation.
Local Issues
While municipalities in Pennsylvania have the authority to enact local ordinances on such issues as the registration of tenants, sewage lateral inspections, and installation of residential sprinkler systems, it is important for the association to monitor these ordinances in order to forestall any pending statewide implementation.
- Senate Bill 149 (Brewster, D-Allegheny) – Allows counties to impose a fee of no more than $250 on properties sold for delinquent tax sales to be paid by the buyer to establish a demolition and rehabilitation fund. PAR opposes this legislation.
- Senate Bill 202 (Fontana, D-Allegheny) – Amends the Municipal Claim and Tax Lien Law to essentially transition Pittsburgh land banks from a tax sale process to a sheriff’s sale process for the purposes of addressing blighted properties. This bill has been enacted as Act 4 of 2023. PAR supported this legislation.
- Senate Bill 517 (Argall, R-Carbon/Schuylkill) – Amends Recorder of Deeds Fee Law to increase the recorder of deeds fees by $1 - $15 to $16. Also enables counties to adjust the fee yearly to accommodate inflation. PAR opposes this legislation.
- House Bill 246 (Davis, D-Bucks) – requires municipalities to inform residents of changes in flood plain status. PAR is monitoring this legislation.
- House Bill 1163 (Salisbury, D-Allegheny) – amends Title 68 to allow a municipality to designate a blighted or abandoned property as available for acquisition by a land bank. PAR is monitoring this legislation.
- House Bill 405 (Galloway, D-Bucks) – amends how properties that cross municipal boundary lines are assessed and allows new owners the option to choose which municipality upon transfer of ownership. Requires notification in Seller's Property Disclosure. PAR is seeking to amend this legislation.
- House Bill 788 (Innamorato, D-Allegheny) - LOOP Tax Exemption Program. PAR opposes this legislation.