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4C — September 30 - October 13, 2016 — Fall Preview — M id A tlantic
Real Estate Journal
R eal E state L aw By Christopher A. Naylor, Esq., Barley Snyder
Pennsylvania is back on the clock with the Development Permit Extension Act
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land development and con- struction approvals. Penn- sylvania’s Development Per-
development, but would not be able to sell and build that number of homes within the timeframe required by the ap- plicable approvals because of the stagnant economy. If those deadline dates for development weren’t relaxed, development projects could have been signif- icantly restricted or scrapped altogether. Subsequent amendments to the Act provide that any development approval granted for or in effect between Jan. 1, 2009, and July 2, 2013 (which dates are referred to as the “tolling period”), be automati-
proval. During the recession, commercial and residential land development slowed to
cally suspended until July 2, 2016. Approval is broadly defined and generally includes any approval, permit or other authorization related to land development or construction. However, there are certain exclusions, such as NPDES permits or approvals issued to comply with Federal law. Except for Philadelphia, the suspension provided is auto- matic, so developers don’t have to apply for or otherwise act for their approval to be covered by the Act. According to the Act, the holder of an approval may request a written verification from the government agency that issued or authorized an approval that it is suspended and to verify when the approv- al will expire. The verification is helpful not only to confirm the government agency ac- knowledges the validity of the approval, but also to verify its new expiration date. The new expiration of an ap- proval covered by the Act can be calculated by determining the timeframe of the approval initially, and then deducting how much of the approval’s lifespan has existed outside of the tolling period. For example, if a development approval has a four-year duration and was is- sued on Jan. 1, 2007, two years would have elapsed before the tolling period under the Act be- gan. The clock started ticking again on July 2, 2016, and with two years left on the approval, the new expiration date would be on or about July 2, 2018. If an approval was issued within the tolling period, the clock would not have even started ticking until July 2, 2016. It is important to consult an at- torney to determine whether you hold an approval that is covered, and when such ap- proval will expire. If the goal for the Act in Pennsylvania and other states like it is realized, the “time- out” called on land develop- ment and construction approv- als will mean that developers will now be calling “time-in” on proceeding with these projects. These delayed effects of the Act may very well encourage progress on pent-up develop- ment and further stimulate a rebounding economy. Time will tell. Chris Naylor, Esq. is an associate in Barley Sny- der’s Real Estate and Busi- ness groups. n
government-approved “time-out” on commer- cial and residential de-
velopment in Pennsylvania is ending, and c ou l d l e ad to a surge of development throughout the state. The slug- gish economy of the recent
“The sluggish economy of the recent recession spurred Pennsylva- nia and several other states to adopt legislation providing time ex- tensions for certain land development and construction approvals.”
mit Extension Act (“Act”), originally passed in 2010 and amended in 2012 and 2013, suspended certain time periods in which land development or construction needed to start, or be completed, after the project received governmental ap-
troubling levels, with many de- velopment projects idling while completion deadlines crept up on the developers, many times before ground had even been broken. For example, a developer may have obtained approval to build a 100-home
Christopher Naylor
recession spurred Pennsylva- nia and several other states to adopt legislation providing time extensions for certain
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