In July 2010, the Pennsylvania legislature adopted a law that extends until 2013 the expiration date of all building permits and other authorizations or decisions allowing a development or construction project.
Permits, authorizations and decisions in effect as of January 1, 2009 or after are automatically extended to July 2, 2013 (except in Philadelphia, where notice must be given by the developer to the city agency).
The new law also extends the period during which developers of certain condominiums or planned communities and cooperatives may complete phases that were intended to be completed over a longer period of time. The applicable law required the developer of certain condominiums or planned communities being built in stages to begin the last phase of construction (referred to as converting convertible real estate) within seven years of the filing of the original declaration of condominium or planned community. That seven year deadline is also extended to July 2, 2013.
Although the extension is automatic, a developer may request that the governmental agency confirm or deny in writing the existence of the approval and its expiration date, for which the agency may charge a fee of not more than $100 for verification of a residential approval and $500 for verification of a commercial approval. This can be helpful with lenders and purchasers who are looking for some written assurance that permits or approvals are still valid.
The new law allows developers to retain the legal rights and protections that they may have as a result of prior approvals and permits and without the need of incurring substantial fees for renewals of permits.
The above is a brief summary of the new law and there are some exceptions that may apply. You should contact us if you require any further information on this.
–Stu Cohen