Real Estate

The Commonwealth of Pennsylvania has recently approved an important amendment to the Permit Extension Act of 2010 that will extend the life of development related permits and approvals for an additional three years.

Act 87 of 2012 was enacted by the Pennsylvania Legislature on June 3rd and signed into law by Governor Corbett on July 2nd. Act 87 was actually a finance bill, but it also contained an important amendment to Act 46 of 2010. Act 46 provided that certain real estate development related permits, approvals and authorizations, including building and other construction permits that were set to expire after December 31, 2008, would remain valid until July 2, 2013. The extension contained in Act 87 tolls the expiration date of any approvals set to expire from July 2, 2013 to July 2, 2016, thus adding three additional years to the life of those permits. Once again, in deference to the recession, the Legislature has provided relief to property owners and developers who have been unable to move forward on previously obtained development approvals.

The potential exists for Act 46, as amended, to provide relief even beyond July 2, 2016. In a Lancaster County case, the Court held that Act 46 tolls the expiration of a permit during the extension period. Thus, if the permit had 11 months before it was to expire, that 11-month period does not commence until July 2, 2016. Act 46 has not been the subject of a matter before the Commonwealth Court or the Supreme Court of Pennsylvania.

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