PBA has gotten at least one bill signed by the Governor EACH YEAR for the last 11 years. Don’t forget we were also the first industry to open back up during the pandemic because of our connections with key legislators. Ask anyone in Harrisburg, and they will tell you that that is not common practice. We are effective because of YOU and the support we give those in the legislature.
Some examples of recent wins:
SB 208 – now Act 97 of 2021:
On December 22, 2021, Governor Wolf signed PBA priority bill Senate Bill 208. Act 97 amends the Municipalities Planning Code to clarify Section 509 regarding final plat approval and the retention of posted financial security for improvements.
While the law’s intent was to ensure developers have sufficient funds to complete all required property improvements, the prior language was misinterpreted to withhold excess funds that greatly restricted a builder’s ability to get bonded for other on-going projects.
Instead of only retaining a bond of 110% of the value of remaining improvements, some municipalities have interpreted the law to retain 10% of the entire original project amount in addition to the cost of remaining improvements. Act 97 of 2021 clarifies that municipalities may only retain 110% of the value for the remaining improvements.
SB 1030 – now Act 34 of 2020:
Act 26 amended the PA Sewage Facilities Act (Act 537 of 1965) to provide for the use of alternate on-lot septic systems for site development plans.
Act 26 also required DEP to develop scientific, technical, and field-testing standards, in consultation with the Sewage Advisory Committee, to evaluate on-lot sewage systems that have been classified as alternate systems.
DEP has refused to interpreted Act 26 to follow both the letter of and the intent of the General Assembly with respect to use of on-lot alternate sewage technologies. In fact, the most recent draft Technical Verification Protocol imposes a disincentive to the adoption of alternate technologies which DEP has itself listed as effective. Sen. Yaw (Chair of Senate Environmental Resources and Energy Committee) introduced a bill, Senate Bill 1030, that will re-implement the original intent of Act 26.
PBA, along with multiple coalition partners participated in a call-to-action asking for swift passage of SB 1030 during June. The vote in the Senate was unanimous and the vote in the House was 136-66. The Governor signed the bill on June 5, 2020.
HB 751 – now Act 53 of 2019
Pennsylvania Governor Tom Wolf signed House Bill 751 (Act 53 of 2019) reforming the way private water and sewer utilities’ income tax liability is calculated. The tax change specifically relates to a federal tax provision affecting private water and sewer utilities when they extend service to a new area. With more than 3,800 member companies, Pennsylvania Builders Association Members annually invest millions of dollars in water and wastewater infrastructure that is donated to private water/sewer companies after development is complete. Act 53 becomes effective August 31,2019.
Investor-owned water companies previously enjoyed a federal tax exemption for such infrastructure known as contributions in aid of construction (CIAC), but a little-advertised change in the Federal Tax Cut and Jobs Act (TCJA) eliminated this exemption in 2018. Prior to the passage of Act 53 this tax impacted developers, increasing the cost of every new home by thousands of dollars.
The “no gross up” method (also called the “utility finance” or “socialization” method) adopted in Act 53 requires the utility to pay the tax and then adds that amount to the utility’s rate base for all customers. Essentially, the utility finances the payment of the tax expense and the utility gets reimbursed from rates over the life of the depreciating CIAC asset. Eliminating the requirement that developers fund the utilities tax obligation up front.
Act 53 of 2019 provides significant savings for developers, homebuilders, and homebuyers.
Pennsylvania Home Builders and Developers are the only advocates that consumers can trust to safeguard the integrity of affordable housing.
HB 1499 – now Act 84 of 2018
Elimination of Signature Requirement for Closure of NPDES Permits.
Act 84 amends the statutes governing common interest ownership communities (CIOCs) in. These amendments are all intended to clarify existing provisions of these consumer protection statutes and enhance the overall administration and governance of Pennsylvania’s community associations.
Section 3205(13.1) of the Uniform Condominium Act, Section 5205 (16.1) of the Uniform Planned Community Act and Section 4205(A)(15) of the Real Estate Cooperative Act codify the current instructions promulgated by the Department of Environmental Protection in connection with the termination of the NPDES permit and provide for the transfer of responsibility for post-construction stormwater management from the declarant to the association, if the declaration provides notice of those responsibilities.