Policies & Issues
- Realty Transfer Tax
- New Residential Property Disclosure
- Use and Occupancy Ordinances
- Growth Managment
- Mandatory Fire Sprinkler Ordinances
- The Property Assessment Appeals Process
- Rental Property Inspection
- Eminent Domain
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News & Issues: Policy Statements
Mandatory Fire Sprinkler Ordinances
REALTORS® support the development and enforcement of reasonable fire prevention criteria for all types of real property. However, in general, REALTORS® believe that fire sprinkler requirements that are only focused on a narrow segment of a community's residential housing stock do little to promote health, safety and welfare of all citizens.
Background:
In 2006, several townships and boroughs in Delaware County (PA) attempted to enact fire sprinkler ordinances that are focused on an extremely narrow segment of their housing stock - new construction and homes that are converted from owner-occupied to rental units. Because of the limited application of these proposed ordinances, the safety benefit to the overall community would be minimal. Such requirements should be standardized and limited to correct true health and safety issues.
The high cost of retrofitting older homes with a fire sprinkler should also be taken into consideration. The Suburban REALTORS Alliance has researched the cost of retrofitting an older home (pre-1960 construction, 1200 sq. feet) with a sprinkler system. Quotes from local companies ranged from $10,000-15,000, or $8.33 to $12.50 per square foot.
The Alliance is concerned that Government mandates that require a sprinkler system could lead to a significant portion of a home's equity being stripped from its owner. For instance, the average sale price of a home in Sharon Hill (Delaware County) over the past year was $108,000. Requiring a $10,000-$15,000 fire sprinkler system in a home of this value would strip 10 to nearly 16 percent of the home's equity. This requirement would deter investment, and could limit the availability of affordable housing within the community. It could also place a great financial burden on existing homeowners who wish to sell their property.
The Alliance would like to suggest the following alternatives to address fire safety in a municipality:
- Strengthen and/or enforce existing smoke alarm ordinances. The use of smoke alarms, as required by the PA Uniform Construction Code (UCC), is an economical solution for older properties that can greatly reduce property loss, injury, and death from fire.
- Offset the high cost of sprinkler retrofits by providing a tax credit to any home owner who voluntarily installs a fire sprinkler system in an existing home. This type of tax credit for voluntary sprinkler retrofits exists in Montgomery County, MD. See http://www.montgomerycountymd.gov/content/council/pdf/bill/2003/25-03.pdf
Recent Development:
In January 2007, the PA Department of Labor and Industry (L & I) declared Sharon Hill's sprinkler ordinance "disapproved, null and void." L & I ruled that the section of Sharon Hill Ordinance 1311 requiring fire sprinklers in homes being converted from owner-occupied to rental units exceeded the minimum requirements set forth in the UCC. The ruling was in response to a challenge made by the Suburban REALTORS Alliance, PA Builders Association, the Home Builders Association of Chester and Delaware Counties, and several residents of the community.
The Borough failed to establish that "clear and convincing local climatic, geologic, and topographical or public health and safety circumstances or conditions" justified the exception to the UCC.
Sharon Hill does have fire safety standards in place for rental units. Rental dwellings are inspected once a year and are required to have a battery-operated smoke detector in each bedroom and on the first floor if it is a multi-unit/multi-floor property; rental dwellings are also required to have an electric operated smoke detector on the top of the second floor level and in the basement area. Under a 1997 Sharon Hill ordinance, new construction within the borough will still be required to be equipped with a sprinkler system.
Click here to access the full text of the PA Department of Labor and Industry decision. Sharon Hill Borough has opted to appeal this decision.
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