V2 Properties Newsletter Volume 11, Issue 8

August 2021

Exponential Insights

Properties At A Glance

  • 15
    Currently Under Contract
  • 78
    Awaiting Building Permits
  • 10
    Sold In Last 30 days
  • 0
    Scheduled To Sell In Next 30 days

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


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Where Are Our Projects

0
In the Pipeline
1
Phase 1 - Foundation & Framing
2
Phase 2 - Mechanicals & Insulation
3
Phase 3 - Final Finishes
4
On the Market
4
Under Contract

Phase 1

Phase 2

Phase 3

Under Contract

On The Market

In The Pipeline

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