RAMP testifies on proposed Land Bank Legislation.

September 13, 2010

Senator Gene Yaw, Chair
Senate Urban Affairs & Housing Committee
Senate Box 203023
457 Main Capitol Building
Harrisburg, PA 17120

Senator Yaw:

On behalf of the 2,200 members of the REALTORS® Association of Metropolitan Pittsburgh (RAMP), thank you for this opportunity to offer comments on HB 712 for the Senate Urban Affairs & Housing Committee to consider. While the intent of HB 712, to put vacant or tax-delinquent properties back into productive use, is certainly a worthy one, we believe doing so via the creation of a land bank will have the opposite effect and unintentionally create yet another bureaucratic barrier.

The creation of a land bank to address the issue of vacant or tax-delinquent properties is viewed by our membership as an idea inherently problematic and cumbersome. They contend it will create another layer of bureaucracy and red tape that potential investors/developers will have to deal with if they are interested in acquiring a property.

The best outcome remains when private investors are able to get properties back on the tax rolls for the benefit of a municipality and school district, as well as the greater community’s interest. Land banks may seem poised to solve one of the larger problems, the removal of tax burdens. However, if there is a willingness to decrease or waive a tax burden in order to put a property back into productive use, why not incentivize municipalities, school districts, and tax claim bureaus in a way that makes it easier for investors and potential buyers to accomplish the same, instead of creating additional hurdles of time and money via negotiating with a land bank? The proposed language within HB 712 does not require a land bank to be responsible for taxes and interest that may be owed on a property. Again, if the power to waive a tax burden can be given to a governmental creation, it would follow that it’s in the best interest of communities to have a similar incentive available to encourage buyers and investors in a swift manner.

As REALTORS®, our members are proud to subscribe to the REALTOR® Code of Ethics, and undergo regular continuing education as real estate professionals. We have concerns that the potential administrators of a land bank are not typically qualified real estate experts, and therefore may not be experienced or equipped to carry out the crucial processes key to successful disposition of property, including appraisal, maintenance, and marketing, as well as the costs associated with these steps. A foreseeable and unfortunate outcome could thereby be the properties for which land banks were intended to assist actually remain non-productive for longer periods of time.

We thank the Senate Urban Affairs & Housing Committee for their consideration of these points, and look forward to continuing to provide input and expertise on these matters that are important to our membership.

Sincerely,

Jennifer M. Cloonan

Government Affairs Director

Cc: Senator Wayne Fontana
 

Effective August 1, 2010

County recording offices will be stringently enforcing its recording requirements. To avoid the rejection of your documents by Allegheny Country recording offices, please review and remember to follow this abbreviated list of current recording requirements:

• Social security numbers are NOT permitted to be listed in a document.
• All documents are recommended to be in 10 point font or larger. We will not accept any document with a font of less than 8 point.
• ALL wording on a document MUST be typed. “Mail to address” and “Certificate of Residence” must be typed. Handwriting is only allowed for signatures and acknowledgments.
• Printing must be fully legible and not faded. Documents that had been photocopied numerous times prior to execution often have faded print, and therefore do not scan legibly for archival purposes.
• There must be a 1” margin at the top of the first page of a deed or deed related document for certification stamping.

NEW AMENDMENTS TO RECORDING REQUIREMENTS:
• Statement of Value Forms accompanying a deed for recording may continue to be handwritten.
• Book volume and page numbers may be legibly hand printed on second and subsequent documents ONLY in instances of concurrently recorded documents

It is recommended that REALTORS® visit and review the web page set up by the Allegheny County Dept. of Real Estate’s regarding Recording Requirements: www.alleghenycounty.us/re/recreq.aspx
 

June, 22nd 2010

Will there be another extention of the homebuyer tax credit?

Many erroneous emails and news reports have been circulating that suggest the June 30th closing date for the homebuyer tax credit has been extended to September 30th. However, this has not yet happened. On June 16th, the Senate adopted Senator Harry Reid's (D-NV) amendment to the pending jobs and extenders legislation (HR 4213) that would extend the closing date for the homebuyer tax credit to September 30th for purchasers who have satisfied the April 30 binding contract rule for the $8000 and $6500 tax credits. The amendment creates no new eligibility for the credit. NAR estimates that 130,000 homebuyers could be affected if the June 30 “close-by” date isn’t extended. As it is a part of HR 4213 – the larger tax package – we must now wait until the Senate completes work on the entire bill. Once through the Senate, the bill must go back to the House for their approval before obtaining the President’s signature. While the timing remains uncertain, completion is expected sometime next week. Congress will be in session during the weeks of June 21 and June 28, so votes on the legislation are still possible before the June 30 deadline. It’s important to understand that the bill could come to the floor again during the week of June 21, but is not presently on the calendar. If it appears that the bill can secure the necessary 60 votes, it will be considered. Then there will be several more votes required in the Senate. The bill then returns to the House. There is no guarantee that the House will adopt the Senate amendment. RAMP will let you know immediately when and if the tax credit closing date is extended, and keep you apprised along the way.

Wrapped up in this process is the National Flood Insurance Program (NFIP), which is currently shut down. It, too, is contained with HR 4213, as well as the USDA section 502 funding for rural housing. Until legislation is signed by the President, NFIP cannot renew or issue new flood policies, which is delaying thousands of real estate transactions.

Updated January 4, 2010

The rental registration ordinance that was originally set for April 1, 2009, has been postponed indefinitely.  We have updated our FAQ guide for your reference.

Updated December 14, 2009 

On November 6th, 2009 the Worker, Homeownership and Business Assistant Act of 2009 signed into law provisions which extended and expanded the homebuyer tax credit. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. 

Use the links below to discover more information about the tax credit.

Homebuyer Tax Credit Comparison Chart of Changes

Homebuyer Tax Credit FAQ's

10 Important Fact about the Extended First-Time Homebuyer Credit

September 1st, 2009

REALTORS make progress.  Rental registration deadline postponed.

The REALTORS® Association of Metropolitan Pittsburgh continues to defend your private property rights, and has just made headway with the rental registration/inspection ordinance issue that affects so many of our members.  We have compiled a list of frequently asked questions, to give you a better understanding of what this means to you. 

Click here to download the FAQ guide. 

December 18th, 2008

Shaler Township Dye Testing

The Board of Commissioners at their meeting held on Tuesday, December 9, 2008, accepted three bids for Sanitary Sewer Certification (Dye Testing), for the contract period of January 1, 2009 through December 31, 2011. The contract has been awarded to Lang Heating and Cooling, Slater Plumbing and Terry’s Plumbing.  Please visit the Township website at www.shaler.org for more information and application forms for each contractor or call 412-486-9700 ext. 221 or 222.

Effective October 2008

As of October 15th, 2008, in order to receive final occupancy approval, the municipality of Penn Hills requires the submission of  forms from both the water and sewage company verfying the accounts have been paid in full.  This applies to property sales, purchases, and new occupants. Beginning January 2009, all apartment buildings will have to submit these forms once each year to the Code Enforcement Department. 

Does this change affect you? Contact the Code Enforcement Department at (412) 798-2132, Monday thru Friday, between the hours of 8:00 a.m. and 4:00 p.m..

To see the announcement, click here.

Effective August 2008

The Borough of Baldwin now requires an inspection of all real estate transfers and rental properties prior to issuance of an occupancy permit. Before parties are allowed to close on the sale the property inspection must be completed.  If there are violations on the premises they must be prepaired before a permit will be issued and the fee will be $60.

For further information contact the code enforcement office at 412-882-9600 ext 258 or 264.

To view the public notice click here.

July 2008

Many municipal governments adjust local property tax rates during the first months of each year. We have compiled the following updates based on recent news accounts. The rates listed below are solely municpal tax rates (i.e., they do not include the separate millages for county and school district).

• Moon School District: 20.47 mills (up from 19.61)
• N. Allegheny School District: 18.99 mills (down from 19.34)
• Penn Hills School District: 24.81 mills (up from 23.39)
• Baldwin-Whitehall School District: 23.61 mills (down from 24.61)
• Ringgold School District: 113 mills (up from 109)
• North Hills School District: 19.6 mills (up from 19.1)
• Quaker Valley School District: 19.75 mills (up from 19.35)
• Bethel Park School District: 23.18 mills (up from 22.75)
• Mt. Lebanon School District: 23.81 mills (up from 23.56)
• Beaver County: 22.2 mills (up from 18.7)
• Harmony Boro (Butler): 14.5 mills (up from 13)
• Kennedy Twp. (Allegheny): 1.95 mills (up from 1.35)
• North Irwin Boro (Westmoreland): 14 mills (up from 11)
• Robinson Twp. (Allegheny): 3.05 mills (up from 2.65)
• South Fayette School District: 24.32 mills (up from 23.14)

Butler County Commissioners have approved a change in the way county property taxes are determined. Previously, taxes had been based on 75% of a home's 1969 assessed value. They will now be levied on a full 100% of 1969 assessed value. The change is likely to be accompanied by reduced millage, although that has not occured as of June 2008.

Effective July 1, 2008

The Peters Township Sanitary Authority Board of Directors has changed the procedures for obtaining a Dye Test and Document of Certification. Effective July 1, 2008 Dye Tests will be performed by Authority personnel, not private plumbers. Applications for testing, as well as payment, will be administered by the Authority.

To obtain an "Application for Dye Test Inspection," download one here or contact the authority at (724) 941-6709. Further procedural and fee details are available in this letter.

From Government Affairs Director Jennifer M. Cloonan:

"Some excellent progress to report . . .

You will recall that Government Affairs Committee Chairman Jerry Speer and I met with Senator Fontana about closing the Act 202 loophole at the state level.  Senator Fontana has offered an amendment to Act 202 (Senate Bill 1425) to do just that — the amendment would provide that in the event that an occupancy permit is issued to a contractor, the property owner would be given six months from the date of occupancy to submit the application form for this vital property tax exemption, thus retaining the incentive for buyers of new residential construction within Allegheny County.

RAMP submitted a letter of support on this proposed amendment to all Senators (Costa, Ferlo, Fontana, LaValle, Logan, Orie, Pippy, Stout) that represent all or parts of Allegheny County. Please click here to see what Senator Fontana has introduced."

Effective immediately, the Allegheny County Recorder of Deeds Office has been replaced by the Allegheny County Department of Real Estate. All recordable documents should be mailed to the "Allegheny County Department of Real Estate." All contact information will remain the same. All checks must be made payable to the Department of Real Estate. (Checks containing the former name will not be accepted after Jan. 31, 2008.)

The cost to file a dye test compliance letter is $25 (up from $15) effective immediately. To obtain dye test paperwork, contact the township public works office at (412) 831-9000. As before, the filing fee and completed report must been submitted at least 14 days prior to closing.

Newly constructed or renovated homes that meet strict "visitability" criteria for access by the disabled are eligible for a five-year property tax credit of up to $2,500. Click here for a copy of the enabling ordinance, which contains criteria and application instructions.