Attainable housing and the transformation of commercial properties - Feb 2025
- Dave Doll
- Mar 16
- 4 min read
The Attainable Housing Crisis
Over the past decade, the gap between housing supply and demand has widened, driven by rising construction costs, zoning restrictions, labor shortages, and insufficient investment in relevant housing projects.
The concept of “attainable housing” refers to the availability of affordable homes for middle-income families. This is not Section 8 housing or homeless shelters. It’s about housing that is affordable on an “average” income.
Starter homes, typically smaller and more affordable properties for first-time homeowners, have become rare. Builders target larger, more expensive homes, leaving a void in the market for entry-level buyers. This shortage has left many people struggling to find a home within financial reach, particularly in urban and suburban areas.
One strategy being pursued in many places is the conversion of under-used commercial properties into residential spaces, a solution highlighted by recent actions in Whitpain.
Federal and State Efforts to Improve Housing Availability
In response to the nationwide shortage, federal and state governments have implemented measures to increase the availability of attainable housing, such as financial incentives, grants, and policy changes aimed at reducing regulatory barriers.
At the federal level, programs such as the Low-Income Housing Tax Credit (LIHTC) and the Housing Trust Fund (HTF) provide funding for affordable housing projects.
Similarly, the Pennsylvania Housing Finance Agency (PHFA) provides low-interest loans and grants to developers for approved projects. Also, the state has introduced zoning reforms to encourage the development of mixed-use properties and streamline the approval process for relevant housing projects.
The Push to Convert Commercial Properties into Residential Spaces
One idea gaining traction is the conversion of commercial properties into residential units. This could address multiple challenges: revitalizing vacant or underused commercial spaces, increasing the housing supply, and promoting sustainable urban/suburban development. By repurposing existing structures, this can reduce the need for new construction and create/preserve green space.
There are big challenges for conversion, both physical and legal. Studies show that the design of most commercial buildings (estimates can be as high as 90%) do not allow conversion of the structure. For most sites, it requires a tear-down and rebuild.
And then there is the challenge of zoning codes and development restriction. Local zoning codes do not typically allow residential where the empty commercial buildings exist.
The Whitpain Comprehensive Plan
Whitpain Township has recently taken action to embrace the conversion of commercial properties into residential spaces. In 2024, the Board of Supervisors approved a change to the Comprehensive Plan, attaching a consultant report that describes potential changes to commercial properties in a defined “Zone” stretching from Walton and Township Line (Sentry Park), through Arbor Crest, to the PA Turnpike.
The Comprehensive Plan is a guiding document that Whitpain officials have updated on an irregular basis, roughly every 10+ years. It was last refreshed in 2016, indicating a next-version after 2026. The modifications added in 2024 include specific provisions to promote the reuse of commercial properties. By leveraging existing commercial spaces, the Township can increase its housing stock without extensive new construction. The direction is to promote zoning changes that will streamline approval for conversion projects and provide incentives for developers to undertake such initiatives.
The important distinction here is that the Comprehensive Plan is a vision document, but Zoning dictates actual development rules and restrictions.
Impact on the Tax Base
This push within Whitpain coincides with a need to improve a waning tax base. As documented in recent WRO emails, Whitpain faces declining revenues and increasing expenses (personnel, maintenance, recreation, etc.). As the formerly-stable commercial tax base continues to drop, officials are looking to expand the residential base in order to restore tax revenue. To put it simply, more residents equals fewer tax increases.
For 2025, Whitpain passed a small real-estate tax increase with another increase projected in 2-3 years:
The Catch
Driven by the urgent need to increase the tax base, how does the Township balance the support for new construction with the goal of attainable housing? There are no new homes built in this vicinity that are less than $1M. The new townhouses in Broad Axe, Saint Mary’s in Ambler, the single-family homes on Penllyn…
Heck, the zoning changes aren’t even written yet, and the developer for Parcel D just showed off a new plan for $1.5M townhouses. That ain’t “attainable housing”.
The Township has several significant projects recently approved:
PROJECT | ACRES | UNITS | YEAR BUILT |
The AVE 1600 Union Meeting Rd | 12 | 270 apts | 2020 |
Creekside (Beachcomber swim club) 652 DeKalb Pike | 15 | 31 townhomes | 2022 |
Federation Housing 953 Penllyn Pk | 3 | 56 age restricted senior apts | 2025+ |
Franklin (Reeds Nightclub) 1486 Skippack Pk | 17 | 90 age restricted condos | 2025+ |
Entrance to Whitpain Hills 1730 Skippack Pk | 14 | Zoning updated to allow approx 34 townhomes | TBD |
The Township’s own “Absorption Study” describes several other not-yet-proposed projects: https://www.whitpaintownship.org/DocumentCenter/View/4129/Whitpain-Township-Quick-Housing-Absorption-Study---November-2023
"It is estimated the 180-unit apartment project at 10 Sentry Parkway would take six to seven months to fully lease up."
"The developer of the 90-unit townhome project at 1400 Union Meeting Road estimates full absorption of this property will take 2.5 years, with approximately 36 units absorbed annually."
The Ripple Effect
The "Zone" defined in the Comprehensive Plan update (from Sentry Park, Arbor Crest, to the Turnpike) includes several key properties that have risks. How one is developed will impact the next and the next and the next…
Some are greenfield, like Parcel D and the old Blue Bell Senior Camp (Hoover and Union Meeting). Others have existing, near-empty commercial buildings like Arbor Crest Building C, 1407 Union Meeting (recently purchased by a Chinese corporation), and several on Harvest Drive.
Conclusion
The goals are important, and the Comprehensive Plan changes are vague. The critical part will be the upcoming zoning changes. That’s what matters. The devil is in the details.
Whether you care about your kids’ ability to buy a house someday, the future of those commercial properties in the “conversion zone” or the impact on the tax base, this is a critical issue for the future of Whitpain Township.
We will try to pay attention and suggest you do too.
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