With Pennsylvania continuing to face a statewide housing crisis, Sens. Pat Stefano (R-32), Greg Rothman (R-34) and Joe Piccozi (R-5) are offering a solution through legislation focusing on property tax abatements for redevelopment projects.
Specifically, the legislation would extend the maximum property tax abatement period from 10 to 20 years under the Local Economic Revitalization Tax Assistance (LERTA) program.
“Across the commonwealth and especially in Southwestern Pennsylvania, communities are often weighed down by vacant buildings and underused properties that could be transformed into housing or other economic opportunities,” Stefano said. “By extending the LERTA abatement period, local governments will receive the flexibility they need to make redevelopment projects financially viable and put blighted properties back to a productive use.”
Currently, counties, municipalities and school districts can offer property tax abatements for up to 10 years for redevelopment projects seeking improvements. That cap has turned into a limitation for many redevelopment projects due to timelines exceeding the 10-year abatement.
The proposed expansion to a 20-year cap aims to make redevelopment more financially feasible and gives local governments more flexibility when structuring abatement schedules to fit the scale and costs of redevelopment projects.
“Too many families are being priced out while vacant and blighted properties sit idle,” Picozzi, chair of the Senate Urban Affairs & Housing Committee, said. “This legislation gives local governments a practical tool to encourage redevelopment, lower housing costs and help ensure our communities remain places where people can afford to live, work and raise a family.”
The senators’ proposal can help ease housing costs by attracting private investment, encouraging infill development and adding housing stock to existing neighborhoods.
“Housing needs to be attainable, affordable and available,” Rothman said. “This legislation will give local communities another tool to help meet the needs of their residents.”
Forming a robust strategy to increase housing supply, improve affordability, and stimulate economic activity is a key focus for the Senate this year. In addition to this measure, other Senate bills to address housing needs are being introduced by legislators from across the state to ensure our commonwealth remains a competitive and desirable place to live, work and raise a family.
