For Part I of this series, please click here.

Chasing down documents, recovering escrow funds, and worrying about fraud are examples of things in the real estate world that create stress. Wouldn’t it be nice to know that your contract will be executed and carried out accurately and without fail? That it will occur almost automatically and with fewer 3rd-party hands touching it along the way? Your work life might be simplified in that case, freeing you up for other matters. Really, the process of transferring ownership of property in Pennsylvania can be complex and time-consuming. It typically involves intermediaries which can add significant costs to the transaction. Perhaps blockchain technology can simplify our lives and reduce transactional costs in the real estate context and elsewhere.

Continue Reading Simplifying the Sale of Property with Blockchain Technology (II of IV)
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As of late December 2023, Bitcoin was up more than 60% in the prior four months while another well-known cryptocurrency, Solana, was up over 240%. The cryptocurrencies were on their annual Fall bull run, but there seems to be more to why they have jumped in value in the past several months. At least in my opinion, cryptocurrencies, blockchain, and related technologies and concepts are here to stay.

But this post, and the posts that follow, will not provide a primer or deep dive into cryptocurrency – at least not the direct investment potential of it. Rather, this series of four posts will discuss cryptocurrencies’ underlying blockchain technology that has the potential to revolutionize the way we buy, sell, and develop real property. By leveraging the benefits of blockchain technology, we can simplify, streamline, and make more transparent the real estate sales and development process for the benefit of property owners, developers, municipalities, and other stakeholders.

Continue Reading Revolutionizing Real Estate Sales and Development One Block at a Time (Part I of IV)
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Often times, property owners wish to develop their property in a manner that differs from what is allowed by their local zoning ordinance. When this happens, the property owner must seek and obtain a “variance” from their municipality’s zoning hearing board. Pursuant to Section 910.2(a) of the Pennsylvania Municipalities Planning Code, the board may grant a variance if all of the following relevant factors are established:

(1) That there are unique physical circumstances or conditions, including irregularity, narrowness, or shallowness of lot size or shape, or exceptional topographical or other physical conditions peculiar to the particular property and that the unnecessary hardship is due to such conditions and not the circumstances or conditions generally created by the provisions of the zoning ordinance in the neighborhood or district in which the property is located.

(2) That because of such physical circumstances or conditions, there is no possibility that the property can be developed in strict conformity with the provisions of the zoning ordinance and that the authorization of a variance is therefore necessary to enable the reasonable use of the property.

(3) That such unnecessary hardship has not been created by the appellant.

(4) That the variance, if authorized, will not alter the essential character of the neighborhood or district in which the property is located, nor substantially or permanently impair the appropriate use or development of adjacent property, nor be detrimental to the public welfare.

(5) That the variance, if authorized, will represent the minimum variance that will afford relief and will represent the least modification possible of the regulation in issue.

One of the biggest hurdles for property owners is proving that there is an “unnecessary hardship” impacting their property. The hardship must be directly tied to the unique physical circumstances or conditions of the property (e.g., size, shape, location, topography, etc.) and cannot be justified by economic burden or financial loss. While a hardship inquiry looks principally to the physical characteristics of the property that is the subject of the variance request, a 2022 Commonwealth Court decision, Canivan v. Honesdale Borough Zoning Board, illustrates how changes in the use of the property and physical conditions external to the property can also contribute to a legally cognizable hardship.

Continue Reading Zoning Variances: How a “Hardship” May Evolve Over Time
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Tighter credit, lower asset valuations and changes in consumer demand will force property owners to reimagine how real estate assets are currently used and to deploy new tools to ensure real estate assets are being used for the highest and best use in a rapidly changing environment.

If real estate assets are showing signs of vulnerability like protracted vacancies, maturing debt with challenging refinancing terms on the horizon, or depressed valuations, early action may help provide breathing room in a more challenging real estate operating environment. Here is a snapshot of some things real estate owners should be thinking about to help navigate difficult times.

Continue Reading Challenging Market Conditions Require Commercial Real Estate Owners to Find Creative Solutions

In recent months, several media outlets have reported on potential redevelopment concepts and initiatives for the Colonial Park Mall site in Lower Paxton Township and the Harrisburg Mall site in Swatara Township, both located in Dauphin County, PA.

As mentioned before in this blog, large, older enclosed shopping malls that include vast expanses of underutilized parking spaces have been declining for the past several decades.  In fact, several hundred of these shopping malls have permanently closed, while several hundred more continue to struggle to stay viable and relevant.  Some of the factors contributing to these declines and closures include: (i) inconvenient, inefficient, and outdated format and layout; (ii) costs of maintaining or retrofitting large, unique single-purpose buildings nearing or exceeding their functional life expectancies; (iii) rise of online retailing and e-commerce; (iv) social and economic impacts of COVID-19; (v) vacant tenant spaces; and (vi) lack of foot-traffic. 

Continue Reading Municipalities Help to Breathe New Life into Vacant or Underutilized Shopping Mall Sites
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Electric vehicles (EV) have an increasingly important role in Pennsylvania’s transportation network. In 2022, there were over 42,000 EVs registered in the Commonwealth, almost double the roughly 23,000 that were registered in 2021. This increase in EVs corresponds to a greater need for charging stations, which in turn can impact a community’s land use goals and objectives.

While Pennsylvania’s Municipalities Planning Code (MPC) contains several provisions relating to vehicle parking facilities, it does not contain specific provisions relating to EV parking or EV charging stations. Nevertheless, the MPC affords municipalities a good deal of discretion and flexibility in enacting zoning ordinances, and municipalities may benefit from adopting EV-specific regulations.

Continue Reading Electric Vehicles Prompt Municipalities to Revisit their Zoning Ordinances
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On May 11, 2023, USEPA announced proposed rules to further limit the emission of carbon dioxide (CO2) from power plants and other electric generating units (EGUs). Industry trade associations assert that these regulations are a not-so-subtle attempt to eliminate fossil fuel use in the electricity generation industry.

Continue Reading EPA PROPOSES NEW LIMITATIONS ON CARBON DIOXIDE EMISSIONS FROM ELECTRIC GENERATING UNITS
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This is a guest post by Andrew Notarfrancesco, Vice President of JEM Group

For most people, a primary residence is the largest investment they will make over their lifetime. Therefore, it’s no surprise that people will be curious, critical, or even opposed to any type of real estate development in their community which they feel could have an adverse impact on the place they chose to live. This is frequently the case with affordable housing, where the age-old ‘not in my backyard’ stigma often stems from beliefs that low-to-moderate income neighbors could undermine the local quality of life and security.

Continue Reading Better Housing and Building to Improve Lives
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Over the course of 2022, rising interest rates and inflation slowed the housing market frenzy. As a result, for the first time since the early days of the COVID-19 pandemic, residential homebuilders may find themselves with excess inventory. If your company is in this situation, it is important to understand when real estate taxes can be assessed against new construction, including model and spec homes (even when they are being used temporarily as a sales or leasing office), or even partially leased multi-family buildings. It may be later than you think! 

Continue Reading To Assess or Not to Assess? Temporary Tax Exemption for New Residential Construction
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With football season behind us, March arrives with bracket talk and the discussion of college basketball teams you have never heard of. Some of us spend hours researching or contacting that old college buddy to help fill our brackets, while others choose teams based on names or colors. No matter your strategy, March Madness and the brackets are here!

Continue Reading Top 5 Ways to Encourage Controlled and Collaborative Development: Providing for Clearly Defined Processes (Part II of V)