Summary
In the last legislative session, the Philadelphia City Council passed several significant bills affecting real estate development and zoning, which are important for property owners and developers to understand.
- Bill 250041 empowers the Zoning Board of Adjustment to enforce affordable housing commitments as mandatory conditions for special exceptions or variances, despite concerns over its legality.
- Bill 250043 redefines "Affordable Housing Projects" to include more deed-restricted housing types and expedites the permitting process for such projects, capping certain fees, and accelerating hearings without additional cost.
- Bill 250212 eliminates the Development Impact Tax for specific developments, notably affordable housing funded by City loans or grants and affordable housing on City-provided land.
- Bill 250293 extends the waiting period for resubmissions of previously denied zoning applications from one to two years, with appeal processes available for contested decisions.
- Bill 250523 introduces technical amendments to the zoning code and new requirements for landscaping and screening for large properties undergoing significant use changes.
- Bill 250524 removes minimum parking requirements for multifamily developments in the CMX-4 and CMX-5 zoning districts, regardless of existing overlays.
- Bill 250525 establishes a new Residential Zoning District, RTA-2, with reduced lot area and setback requirements compared to the existing RTA-1 district.
The Upshot
The recent legislative changes by the Philadelphia City Council represent a significant shift in the City's approach to real estate development and zoning, emphasizing affordable housing, increasing housing supply generally, and streamlining processes for such projects. These ordinances present new opportunities for developers interested in affordable housing initiatives, with expedited permitting and reduced fees. However, they also introduce stricter enforcement mechanisms and extended timelines for appeals in zoning applications, requiring careful navigation. Property owners and developers need to stay informed and may benefit from legal guidance to leverage these changes effectively and ensure compliance with the new regulations.
The Bottom Line
The Philadelphia City Council's recent legislative updates significantly impact real estate development, with a clear focus on promoting affordable housing, increasing housing supply generally, and modifying zoning procedures. Developers and property owners must understand these changes to capitalize on new opportunities while ensuring compliance with stricter enforcement and procedural requirements. Engaging with legal experts could be crucial in successfully navigating this evolving landscape.
Last month, City Council passed several pieces of legislation affecting real estate development and zoning requirements. Below, we have summarized what we believe are the most impactful ordinances for property owners and developers approved or recently considered by City Council.
Bill 250041 (pending Mayor's signature): The Bill authorizes the Zoning Board of Adjustment (ZBA) to enforce the affordable housing commitments made by an applicant pursuant to Sections 14-702(7)(a)(.1) or 14-702(7)(a)(.2) of the Zoning Code by making such commitments a mandatory condition of any special exception or variance approval from the ZBA. Any variation from the affordable housing condition would be treated as a violation of the Zoning Code enforceable by the Department of Planning and Development. Planning Commission staff testified against Bill 250041 due to the questionable legality.
Bill 250043 (pending Mayor's signature): The Bill expands the definition of an "Affordable Housing Project" to include additional types of deed-restricted affordable housing. The Bill also expedites permitting and review timelines for Affordable Housing Projects by requiring the Department of Licenses and Inspections (L&I) to review zoning permit applications within five days and building permit applications within 10 days. Affordable Housing Projects requiring a ZBA hearing will receive an accelerated hearing date at no additional cost, and other review fees for matters before the ZBA will be capped depending on the type of project.
Bill 250212 (enacted June 13): This Bill eliminates the Development Impact Tax on certain developments, including affordable rental housing projects funded by a loan or grant from the City and developments of owner-occupied affordable housing units on land provided by the City at a below market price.
Bill 250293 (enacted June 26): The legislation lengthens the waiting period required for resubmissions of "substantially similar" applications that had previously been denied by the ZBA from one year to two years. Currently, L&I makes an initial determination of whether a substantially similar application for the same property was denied by the ZBA within the previous year. As amended, applicants cannot reapply for a zoning permit for two years after the final denial or dismissal of their application by the ZBA or court. If they do—and if the application is not permitted as of right—L&I automatically denies the application. Denial under the rule may be appealed to the Zoning Board. On appeal, the Zoning Board will hold a separate public hearing to determine whether L&I properly applied the rule and whether any material changes in circumstances warrant reconsideration of the application. Successful appeals proceed to a public ZBA hearing.
Bill 250523 (enacted June 13): This Bill provides a wide array of technical clarifications and amendments to the Zoning Code, as well as a few substantive changes to landscape buffering and screening requirements for railways, highways, and parking lots. As amended, the parking lot landscape and screening requirements now apply to changes in use for parcels greater than 50,000 square feet where the change of use affects at least 75 percent of the existing gross floor area.
Bill 250524 (enacted June 13): This Bill removes the parking requirement under §14-802 (Motor Vehicle Parking Ratios) for multifamily use in the CMX-4 and CMX-5 districts, the eliminationof the parking requirement for multifamily use in these districts will apply notwithstanding the provisions of any overlay to the contrary.
Bill 250525 (enacted June 13): This Bill creates a new Residential Zoning District, RTA-2 (Residential Two-Family - Attached). The new district allows for minimum lot areas of 1,080 square feet—compared to the 2,250 square foot minimum lot area permitted in RTA-1—and provides for additional reductions to certain lot area, setback, and yard requirements relative to the RTA-1 district.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
