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
Residential Wholesaling
On July 8, Governor Josh Shapiro signed into law Act 52 of 2024, formerly Senate Bill 1173. This bill was a key priority for the PAR Legislative Committee and based on recommendations of a PAR-member task force.
Championed by Senate Consumer Protection and Professional Licensure Committee Chairman Pat Stefano (R-Fayette), a real estate caucus member, SB 1173 requires those conducting residential wholesaling in the commonwealth to obtain a real estate salesperson license under the Real Estate Licensing and Registration Act (RELRA). Additionally, this bill ensures that consumers are made aware they are engaging in a wholesale transaction by receiving proper disclosures.
Residential wholesaling occurs throughout the commonwealth, and this legislation will ensure uniformity. Those engaging in the practice of real estate are required to have a license in Pennsylvania, and residential wholesalers should not be outside the scope of licensure. The legislation also will ensure that consumers have a clear understanding of the type of transaction they are engaging in by requiring specific disclosures for residential wholesale transactions.
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 Senate approved HB 1567 on Sept. 18, 2024, by a vote of 48-1. It was subsequently signed and approved in the House on Sept. 23 and was signed into law on Oct. 2 as Act 93 of 2024.
First-Time Homebuyers Savings Account
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.
House Bill 126 (Bizarro, D-Erie) and Senate Bill 295 (Brown, R-Lackawanna/Monroe/Wayne) are companion bills that create a first-time homebuyer savings account. 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 was amended so the program would mirror that of the existing 529 savings plans. This bill was voted out of the House on June 28 and currently awaits consideration in the Senate.
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.
Professionalism and Practice
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 supports 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. This bill was enacted as Act 22 of 2023. PAR supported 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. This bill was enacted as Act 5 of 2024. PAR supported this legislation.
- Senate Bill 1173 (Stefano, R-Fayette) – requires those engaged in residential wholesaling to obtain a real estate salesperson license under RELRA. This bill was enacted as Act 52 of 2024. PAR strongly supported this legislation.
- House Bill 2220 (Guzman, D-Berks) – allows appraisers-in-training to work with multiple supervisors per assignment. Additionally, lowers the experience threshold for supervisors to train appraisers-in-training from five years to three. PAR supports this legislation.
- House Bill 2141 (McAndrew, D-Allegheny) – allows creditors in foreclosure proceedings to use a private selling officer. PAR is monitoring this legislation.
- Senate Bill 1173 (Stefano, R-Fayette) – requires those engaging in wholesale transactions to obtain a real estate salesperson license. This bill was enacted as Act 52 of 2024. PAR strongly supported 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. This bill was enacted as Act 54 of 2023. PAR supported this legislation.
- House Bill 1549 (Madsen, D-Dauphin) – creates a voluntary program that enables landlords to pay for the relocation of tenants during issues of habitability. PAR worked extensively with the prime sponsor to make changes to this legislation. PAR supports this legislation.
- House Bill 1799 (Siegel, D-Lehigh) – provides incentives for municipalities and developers to work together to redevelop existing shopping malls into mixed-use communities. PAR supports this legislation.
- House Bill 1976 (Siegel, D-Lehigh) – requires municipalities to allow multi-family housing and mixed-use development inn areas zoned for office space. 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. This bill was enacted as Act 48 of 2024. PAR opposed 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.
- House Bill 1386 (Kutz, R-Cumberland) – allows municipalities to be designated as an “Attainable Housing Community” if they meet certain criteria. PAR supports this legislation.