Pa. lawmakers consider housing solutions, some wary over bills' mandates

Mar. 1—HARRISBURG — Proposed revisions to Pennsylvania law would allow empty office and retail spaces zoned for commercial use to be converted into housing.

A group of related bills introduced by House Democrats includes revisions to the Municipal Planning Code that would affect more than 600 cities, boroughs and townships with a minimum population of 5,000 residents.

The bills include a separate proposal for the same classes of municipalities that would mandate local zoning ordinances allow duplex, triplex and quadplex housing on parcels zoned for single-family lots.

Municipalities can already consider such revisions locally on their own accord. However, the proposed laws would make the change for them, speeding up the process for builders and developers but eliminating controls for local government.

Additional legislation includes a proposal to allow single-exit stairwells for multi-unit dwellings and another that would create the designation of "Attainable Housing Community" for municipalities enacting creative solutions such as allowing tiny houses built as accessory units on single-family lots.

The intent is to improve the availability and affordability of housing in a real estate market with limited stock and rising prices.

Listings are down nearly 20% and sales dropped more than 3% in January year over year, according to the Pennsylvania Association of Realtors.

The median sales price settled just below $200,000, the organization reported, down slightly from the month prior but more than 2% higher compared to January 2023 and 42% higher than in January 2019 when the median price was about $139,000.

"Many buildings that are zoned for office space are sitting empty or are being drastically underutilized. Most of the time, this is because this area of the municipality is zoned for office space or commercial use and businesses do not need as much office space due to teleworking," Democratic Reps. Joshua Siegel, Manuel Guzman and Tarik Khan wrote in a co-sponsorship memo for the commercial zoning proposal.

"If we allow these buildings to be a multi-use dwelling, then we can free up existing underused space and make it productive. Often, these spaces already have parking, accessibility, and other infrastructure that can be easily adapted for residential use," they wrote.

Bill sponsors say the legislation is modeled on laws adopted last year in Montana. Unlike Pennsylvania, that state has a Republican super majority in its Legislature along with a Republican governor.

The laws were met with litigation, however, and at least two are now stalled by court injunctions.

Opinions are mixed among trade and municipal organizations.

The Pennsylvania Chamber of Business and Industry sent a memo to members of the state House's Housing & Community Development Committee in support of the proposals on commercial buildings and single-family lots. The organization said it would help attract workers and reduce commute times.

Daniel Durden, executive director of the Pennsylvania Builders Association, said his organization supports the same proposals. He said the commonwealth is desperate for available and affordable housing for buyers and renters. For buyers, he noted how owning a home is a proven way to build wealth in this country.

"The biggest problem we have in this state is finding properties where you can bring the house to completion and still have it at an affordable price," Durden said. "if those options are available and it's not just single-family housing, now you can build homes at an affordable rate and sell them at an affordable rate, and more of them."

John Brenner, executive director of the Pennsylvania Municipal League, said his organization is generally opposed to state mandates and the loss of local control.

"If you want to shift to mixed-use there's nothing wrong with that, it could be a great idea. But, there's a process to go through. You have to go through that process," Brenner said, referring to local zoning rules and hearings. "If it's the right decision for your community then it will happen.

Brenner said continued efforts in the General Assembly to improve workforce development along with legislative changes to allow municipalities to better approach the elimination of blighted properties would help with improving housing without undercutting local government.

"The challenge with these bills is they are not options, they're mandates," said Dave Sanko, executive director of the Pennsylvania State Association of Township Supervisors. "One-size-fits-all solutions coming from Harrisburg don't work everywhere."

Sanko said the concept within the legislation helps attempt to solidify a middle housing market. But considerations vary from one community to the next, he said, such as the availability of water and sewage, waste disposal, school proximity and enrollment and potential impacts on traffic congestion.