Committee advances Bill 92 to raise deed transfer tax 0.5% to fund Allentown housing programs

At a Community and Economic Development budget meeting, the committee voted to forward Bill 92 — an ordinance amendment to raise the deed/realty transfer tax by 0.5 percentage points — to the full Allentown City Council for consideration on Dec. 3. Proponents said the increase will create a dedicated housing fund administered by the city’s CED department to support acquisition, homeowner repair, rental repair, rehabilitation and first-time homebuyer initiatives.

Supporters said the measure responds to a shift in local housing ownership. "We did a lot of research regarding real estate transactions in the city of Allentown, found that 44% of transactions in the city were made by LLCs and corps," Councilmember Santo Napoli said, arguing investor purchases reduce homebuying opportunities for residents. Napoli said the increase is a one-time settlement charge and offered a concrete example: "Adding a half percent to the deed transfer tax would equal the buyer would…