Did all kids dream of living in shopping malls? 🙇🏻♀️ Wake up in a cozy bed in the Macy's mattress department, stroll down to Sbarro to grab a slice of pizza, pop on some new kicks from Foot Locker, and hit the arcade! 😎👾 Just livin' the dream.
While it's not exactly living inside goth HQ AKA Hot Topic, one PA bill gives tax incentives to developers looking to flip dead malls into housing. 🏘️
Here’s Five Fast Facts on the new bill:
- 🛍️ Fall Into the Gap - Online shopping has caused the malls of yesterday to die a slow, painful death. Back in the 80's when malls were in their heyday, there were about 2,500 across the country. Today there are only 700, and 56 of them are in Pennsylvania.
- 🛠️ Fix and Flip - Through House Bill 1799, PA localities can give 10-year tax abatements to real estate developers who flip dead and dying malls into mixed-use projects. Qualifications include maintaining a minimum level of "attainable housing," or residences for households making no more than 60% of the area's median income.
- 🌳 Going Green - In the first 10 years of the program, 100% of eligible tax assessments are exempt. Developers could also get additional two to five year exemptions if they maintain their housing requirements, include open green space, increase energy efficiency, and install renewable energy systems.
- 🏰 Mall Mansions - Throughout the Keystone State, some shopping mall owners already have plans to turn the old structures into housing. In Bucks County, construction on 600 upscale units at the Oxford Valley Mall is underway. The mall owner PREIT recently exited bankruptcy and went private.
- 🪦 Up for Grabs - The old Neshaminy Mall in Bensalem was put up for sale earlier this year. Many other malls are either dead or on their last legs, including Chambersburg, Exton Square, and several malls in Harrisburg. Central PA has the fewest remaining malls in operation.
🔥Bottom line: The bill passed the House with a 106 to 95 vote. Those opposed to the bill are concerned that the abatement might be a little too generous. We'll see what happens next! If you're looking for a home this spring season, check out our article that recaps the latest on mortgage rates and housing trends.
Would you live in an old mall?
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