Philadelphia Metropolitan Area Real Estate Law Blog

For years, Philadelphia’s neighbor across the river, Camden, has suffered from unprecedented levels of urban blight, poverty and, of course, crime. Indeed, the city was named the most violent in the U.S. in the not-so-distant past.

We are finishing up our discussion of a case from outside of Pennsylvania over damage caused by Chinese drywall. In our Oct. 19 post we talked about the extent of the drywall issue and how hard it was for affected homeowners to secure compensation for their losses. The case we have been talking about is not about a civil action against the drywall manufacturer, but a couple’s attempt to convince their property insurance company that the loss they suffered — the use and enjoyment of their new home — was covered by their homeowners policy.

The next Haddon Township Board of Commissioners meeting may finally decide the fate of the Dy-Dee Diaper Service property. About 250 rental apartments — some of which will be set aside as affordable housing — and 12,500 square feet of retail space make up the proposed seven-building complex.

As a developer, you may have a great idea for a project in Philadelphia. Maybe you are envisioning a new condominium or a great mixed-use space. However, as any developer knows, going from a permit to actual occupancy involves a lot of work. Of the governmental players you will need to work with, the Development Planning Division of the Philadelphia City Planning Commission is a department you will no doubt become very familiar with as you navigate the waters of making your vision a reality. 

Last December and January, we posted about artist James Dupree’s argument with the Philadelphia Redevelopment Authority over plans to pull down his studio to make way for a grocery store. The neighborhood, Mantua, did not have a grocery store, and everyone agreed that a successful revitalization of the area called for a grocery store within walking distance of most residents.

We are still talking about home values in neighborhoods with Trader Joe’s markets and Whole Foods markets. The online real estate research company RealtyTrac recently reported that while Whole Foods neighborhoods did see an overall 34 percent increase in value, Trader Joe’s neighborhoods fared better with an overall increase of 40 percent. The researchers measured the increase from the date of purchase to the date of the study.

We are still talking about brownfields. As we said in our last post, the Pennsylvania Department of Environmental Protection defines them as underutilized properties, the development of which may be complicated by the presence of hazardous substances or contaminants. A brownfield site may be an old chemical plant or an old gas station. Underground storage tanks, for example, can contaminate more than the soil surrounding them: Groundwater and surface water are also at risk.

We have spent a good deal of time lately talking about Philadelphia’s problem with abandoned and vacant properties. The city might have an easier time finding a solution if all of the properties were the same — not necessarily a uniform size, but in the same condition. Even if these parcels could be broken down into two or three categories, it might be easier to find buyers or to make redevelopment a more attractive option.

Real estate developers, homebuilders and realtors have had a pretty rough decade, and new potential problems seem always to be on the horizon. The foreclosure crisis sent new housing starts plummeting — and the apartment industry booming. Climate change threatens to alter entire coastlines — or at least to create new design and insurance challenges. Now, an entire generation of Americans may have given up on homeownership.

In any development plan there are multiple matters that need to be addressed. The specific issues that arise will vary from project to project depending on the circumstances surrounding each. For example, if the location of a new building is next to a historical building, the new structure may need to meet certain design requirements.