Legislation would keep homeowners in the LOOP
State lawmakers representing Pittsburgh unveiled new legislation Thursday that would let the city offer tax relief to longtime homeowners in neighborhoods where property values have skyrocketed.
If the legislation were enacted in Harrisburg, Pittsburgh would be allowed to create its own version of what’s known as a Longtime Owner Occupant Program, or LOOP — a tax relief system for homeowners in developing areas who get squeezed by big tax bills on increasing property values.
In neighborhoods such as Bloomfield, Lawrenceville and East Liberty, homeowners are being priced out by property taxes that have spiked dramatically, state Sen. Jay Costa, D-Allegheny, said Thursday. Bringing a LOOP to Pittsburgh would freeze tax bills for those homeowners, he said.
“We’re trying to take steps to make certain that folks are able to stay in their homes, particularly in the communities and neighborhoods they’ve resided in for so long,” Mr. Costa, the top Senate Democrat, said during a news conference in Bloomfield. He introduced the legislation with Sens. Jim Brewster, D-Allegheny, Christine Tartaglione, D-Philadelphia, Nikil Saval, D-Philadelphia and Tim Kearney, D-Delaware.
State Rep. Sara Innamorato, a Democrat who has lived in Lawrenceville for 13 years, called the legislation “a win-win” because it encourages new investment while ensuring that people who live in rapidly gentrifying areas can afford to stay.
“Progress should not come at the expense of our neighbors who have built their lives here,” said
Innamorato, who is also running in the May 16 Democratic primary for Allegheny County executive. “This is about protecting the people and families who have been here during the tough times, while also welcoming new neighbors and new investments.”
Current Pennsylvania law only allows municipalities to create their own tax relief programs when authorized to do so by their counties.
Allegheny County tried to enact such an ordinance in 1990, but it was ruled too broad to meet state requirements in a legal challenge. Officials at the time were unable to create a program that would be flexible enough to apply to all 130 municipalities in the county.
If the legislation is passed and signed into law, Pittsburgh would no longer have to follow the lead of the county and could develop its own LOOP parameters.
Philadelphia made changes to its own LOOP last year. The city stipulated that, to be eligible, homeowners must have lived in their house for 10 or more years, and their property assessment must have increased by 50% in the last year or 75% in the last five years.
Homeowners also must fall below certain income thresholds to qualify for Philadelphia’s program.
LOOP differs from other tax relief programs, such as the Homestead Exemption, because it’s specifically designed to address the effects of rising property values. The Homestead Exemption, a statewide tax relief program, is for property owners whose home is their primary residence.
Mr. Costa and Ms. Innamorato worked on similar legislation in 2019 with then-Mayor Bill Peduto. Pittsburgh Mayor Ed Gainey, who was a state representative at the time, was also part of the initial proposal.
It was put on hold as they focused on other housing legislation such as the Whole Home Repair program, Mr. Costa said. That program provides grants to homeowners to make repairs if their income is less than 80% of the area’s median income.
Mr. Gainey, who went to Harrisburg last year to lobby for more flexibility in the tax relief Pittsburgh can offer, said the city needs this type of authority to enact its own program.
“We don’t want to push people out,” he said Thursday, “we want to bring people in.”