Newsletter Volume 11, Issue 8
Properties At A Glance
Changes coming in 2022
High Level Definition— The residential tax abatement program is a reduction of a property tax levied by a municipality, typically to spur development of residential properties.
Background— Philadelphia enacted its 10 year property tax abatement program, which covers rehabs and new construction, in 2000 and the city has seen steady new home starts and redevelopment over the past 20 years.
Pros and Cons—Those in favor of the abatement argue the tax abatement create jobs, revitalizes communities, and increase a tax base across Philadelphia. Those opposed to the abatement are concerned it causes rampant development which in turn causes long-term owners and residents to be pushed out of communities due to gentrification, rising property taxes and increasing rents.
Impacts— In order for residential property owners to receive full benefits of the current program, the application deadline to file for an abatement is December 31, 2021. At V2 Properties we own many residential properties across the city, we are working hard to getting as many tax abatement applications submitted to the city prior to the end of the year as possible. One of the pre-requisites for obtaining a tax abatement is having a building permit. We currently have more than 25 building permit applications in the L&I pipeline awaiting approval. Our goal is to have all of these permits approved and then obtain tax abatement approvals by the end of 2021.
The key for us to get the building permit and then submit the abatement application to the city and gain abatement approval. When we have that abatement approval we can transfer those abatement benefits to our home buyers. We do not have sell a property by 12/31/2021 for the new home buyer to reap the full rewards of the current program, as long as the application is approved by the end of 2021.
Conclusion— There is no doubt the reduction in the tax abatement program starting in 2022 will impact the real estate market in Philadelphia. In the short term, we expect a surge in home sales prior to the end of the year and early next year. We expect the longer term impacts to be minimal to our business. We are extremely confident in our position as offering the best quality product in the city at a fair price
Vince Viney, Founder and President
Featured project: 1440 S. 21st Street
2,580 Sq Ft New construction home with approved 10-year tax abatement. Built by V2 Properties, Philadelphia’s Premier Home Builder. Some spectacular features include a rooftop deck with wet bar on the landing, rear yard, granite kitchen, premium Mohawk / Revco or Aquaguard flooring, great technology and more. Wide trim package through home, elegantly tiled baths, a full 3rd floor master suite spacious closets, and private spa-inspired bathroom. This home also has a finished lower level with tile flooring perfect for a 4th bedroom or 2nd living room. The front facade is brick with a designer standing seam metal sided accent panels and iron railing. The exquisite kitchen which has beautiful cabinets, granite counters, granite island with pendant lighting above, a tile backsplash and quality stainless steel appliances! All of the bathroom vanity counter-tops are granite or quartz. The master bedroom includes a trey ceiling with crown molding illuminated with accent lighting. Tech includes: built in speakers, video doorbell, nest thermostat, alarm system, and full home automation compatibility. Top quality new construction home at a very reasonable price, built by the city's premier home builder! Super low taxes. Also, Builder warranty included by a builder with proven reputation of standing behind their warranty!!
Where Are Our Projects
0In the Pipeline
1Phase 1 - Foundation & Framing
2Phase 2 - Mechanicals & Insulation
3Phase 3 - Final Finishes
4On the Market
On The Market
In The Pipeline